Obligation Reconciliation and 2108 Certification

Standard Operating Procedures

June 10, 2008

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Table of Contents

[Purpose 2](#purpose)

[GL to PO Module Reconciliation 3](#gl-to-po-module-reconciliation)

[Stale Balance Reviews 8](#stale-balance-reviews)

[2108 Analysis 10](#analysis)

[Field Office 2108 Certification 18](#field-office-2108-certification)

[Appendix A -- Procedures for Running STARS Field 2108 Reports
19](#appendix-a-procedures-for-running-stars-field-2108-reports)

[Appendix B -- CFO FMS 2108 Checklist and Certification Statement
21](#appendix-b-cfo-fms-2108-checklist-and-certification-statement)

**Obligation Reconciliation and 2108 Certification Procedures**

# Purpose

This Standard Operating Procedure (SOP) document implements the policy
requirements contained in Chapter 5 of the Accounting Handbook with
respect to the periodic review and validation of unpaid obligation
balances and the annual certification of the 2108 report. This SOP
describes the processes to be used by field offices and EFASC to:

-   reconcile STARS General Ledger (GL) balances to the Purchase Order
    (PO) Module

-   perform a quarterly analysis of the 2108 report to include
    reconciling randomly selected CIDs/WFOs for the following balances
    to source documents:

> \(7\) Reimbursements Earned and Refunds - by WFO -- reconciled to
> accounts receivable documents
>
> \(8\) Unfilled Customer Orders - by WFO -- reconcile cumulative orders
> accepted to source documents
>
> \(9\) Undelivered Orders and Contracts -- by CID -- reconcile
> cumulative obligations to the obligation source documents
>
> (10)Accounts Payable and Other Liabilities - by CID -- reconcile
> non-automated accruals to source documentation.

-   Perform stale balance reviews for each of the above columns.

Key reconciliation and analysis processes used to ensure the accuracy of
budget execution data on the 2108 report include the following:

![](media/image2.wmf)

This SOP provides the minimum requirements to support the field office
2108 certification. Field offices may perform more than the minimum
reconciliations to source documents than those randomly selected, or can
perform stale balance reviews using parameters more conservative than
those adopted for DOE-wide use. (Note: This guidance does not apply to
either the power marketing administrations (PMAs) or the Federal Energy
Regulatory Commission (FERC)).

# GL to PO Module Reconciliation

1.  The GL to PO reconciliation includes two comparisons. The first is a
    GL to GL comparison of the Undelivered Order Balances. This involves
    comparing the Undelivered Orders balances found on column 9 of the
    2108, or the DOE Undelivered Orders Report (48x1 SGLS) to the
    Uncosted balances found on the Contract Data Report (48x1 and 48x2
    SGLS), less the prepayments (48x2 SGLS). The second is a GL to PO
    comparison of the Undelivered Orders Balances. This involves
    comparing the Undelivered Orders balances found on column 9 of the
    2108, or the DOE Undelivered Orders balances (48x1 SGLS), plus GL
    Prepayments (48x2), to the Undelivered Orders balance in the PO
    Module at the distribution level (Quantity Ordered less the Quantity
    Cancelled less the Quantity Delivered). The GL to PO Undelivered
    Orders Reconciliation and Stale Balances Report provides the
    drilldown capability to the Treasury Symbol, CID, and the entire
    AFF. It is important that the reconciliation of the GL Undelivered
    Orders to the GL CDR Uncosted Balance and the GL Undelivered Orders
    to the PO Undelivered Orders Balance occur simultaneously. (Note: PO
    Module reports provide real time data and these reconciliations need
    to be done at the same time to assure a true GL to PO
    reconciliation.) In addition to reconciling these balances, any
    prepayment amounts that are less than zero should be researched and
    corrected.

    Note: There are three Discoverer Worksheets included in the workbook
    named: GL TO PO UNDELIVERED ORDERS RECONCILIATION AND STALE PO UDO
    BALANCES REPORT.

    Worksheet 1: The GL TO PO UDO RECON REPORT Worksheet includes all
    CIDs with exception to those CIDs that have Undelivered Order
    Balances related to Interentity collection activity.

    Worksheet 2: The GL TO PO UDO RECON REPORT (INTERENTITY CIDs that
    contain BOTH PO and AR transactions) includes those CIDs that have
    Undelivered Order Balances related only to Interentity collection
    activity.

    Worksheet 3: The STALE PO UDO BALANCES REPORT Report includes CIDs
    that contain Stale Undelivered Order Balances from the Purchasing
    Module.

2.  The GL to PO reconciliation is to be performed monthly by all
    allottees. Documentation should be maintained locally to provide
    audit evidence that the reconciliations were performed. Follow-up
    corrective actions should be taken promptly to resolve any
    discrepancies found during the reconciliation.

3.  Reconciliation Steps Executed for the GL to PO Undelivered Orders
    Reconciliation

    1.  Logging into Discoverer Viewer

        1.  Go to the STARS HOMEPAGE
            (<http://crinfo.doe.gov/officedocs/cf40/stars/>)

        2.  Click on the Reporting Tools link on the left hand side.

        3.  Click on the Discoverer Viewer link in the Reporting & Query
            Tools Box

    2.  Establishing a Discoverer Connection

        1.  If you already have a connection created (should be a link
            with your last name and first initial), skip to Step13. If
            you do not have a connection, click on the Create a
            Connection button

        2.  In the Connect to Box, select Oracle Applications

        3.  In the Name box, enter your last name, followed by your
            first initial (this is not case sensitive).

        4.  In the Username box, enter your STARS production username
            (this is not case sensitive).

        5.  In the Password box, enter your STARS production password
            (this is not case sensitive.

        6.  Enter 'strs' in the Database box (this is not case
            sensitive).

        7.  Click on the Apply button.

        8.  In the Responsibility dropdown box, select the DOE (or your
            office) GL Inquiry responsibility.

        9.  Click on the Continue button.

    3.  Connecting to Discoverer Viewer

        1.  Click on your connection name.

        2.  Enter your password (STARS password) and click on the Go
            Button.

    4.  Running the GL to PO Undelivered Orders Reconciliation and Stale
        Balances Report

        1.  Click on the Preferences Link at the very top right hand
            corner of the Discoverer Page.

        2.  Make sure that the first check box is checked ('Warn me if
            predicted time exceeds'). Uncheck the other two boxes below
            this box.

        3.  Click on the Apply button. **NOTE: IT IS VERY IMPORTANT TO
            COMPLETE THIS STEP BEFORE CONTINUING TO THE NEXT STEP. THE
            COMPLETION OF STEP 1.3.4.2 WILL ENABLE YOU TO VIEW ALL ROWS
            OF DATA ON THE UNCOSTED VALIDATOR REPORT (AND WILL NOT LIMIT
            YOUR VIEW TO 10,000 OR LESS ROWS OF DATA).**

        4.  In the box next to the Search All Workbooks box, type in 'GL
            to PO', and click on the GO button. Scroll down until you
            find the report name: 'GL to PO Undelivered Orders
            Reconciliation and Stale PO UDO Balances Report'.

        5.  Click on the blue triangle with a plus sign next to the
            report name. Note: You should see two links (GL to PO UDO
            Recon Report and Stale PO UDO Balances) Click on the GL to
            PO UDO Recon Report link.

        6.  You will be prompted to enter the following parameters:

            1.  Parameters are case sensitive. Also, you do not need to
                add single quotes when typing in the parameters, because
                Discoverer will automatically do this for you.

            2.  The Period Parameter has been removed; the period will
                automatically default to the latest open GL period.

            3.  To select multiple values for either parameter, click on
                the flashlight and select values to use from the LOV
                provided.

        7.  Select Allottee (ex. 30)

        8.  Select CID (Leave this Parameter blank right now so that you
            can view all CIDs for your particular allottee)

        9.  Select Award Type (Leave this Parameter blank to select all
            award types)

        10. Click on the GO button

    5.  Exporting the Report into Excel

        1.  If you receive a warning message "Continue to Run Query"?,
            click on the "yes" button

        2.  You will see a Query Progress screen pop up. You do not need
            to click on anything (wait for the report output to
            display).

        3.  If the report is displaying less than 12 columns (the last
            column should be PO Costs), then click on the "Rows and
            columns" link.

        4.  Type in 12 in the "columns" box and click on the GO button.

        5.  Click on the Export link under the Action Box in the top
            left hand corner.

        6.  Choose the Microsoft Excel Workbook (\*.xls) from the drop
            down box.

        7.  Click on the Export Button (top right hand corner)

        8.  You should now see an Export Ready Page. Click on the 'Click
            to View or Save' button.

        9.  You will see a File Download Box. Click on the Save button.

        10. Save the report output in the location of your choice on
            your hard drive.

        11. Locate the exported GL to PO Reconciliation Report on your
            hard drive and open it, or just click Open when the dialog
            box appears after saving.

        12. You will see a Microsoft Excel Box pop up. Click on Enable
            Macros.

    6.  Review the Excel Output file in a summarized form by CID and
        Fund

        1.  For each PO number and Fund, determine if there is a
            difference between:

-   GL UDO balance and the GL CDR Uncosted balance columns (Note: There
    should be no differences in this column. If you see a difference in
    this column, contact the help desk)

-   GL UDO balance and the PO UDO balance columns. **Note: It is very
    important that both these steps are complete. You cannot just
    reconcile the GL UDO balance and the GL CDR Uncosted balance because
    they are both from the same source system. There must be a tiepoint
    to the PO Module as well since that is our method of funds control
    and should contain all transactions backed up by source
    documentation, with exception to Working Capital, Payroll, Cost
    Accruals, and Cost Overruns (at the AFF level).**

    1.  For any and all PO/Fund differences identified between the GL
        UDO balance and the PO UDO balance, use source documentation to
        verify whether the GL UDO/CDR Uncosted or the PO UDO balance is
        correct. **Note: The GL UDO balance should be the driver of the
        reconciliation process since it is reflected on the 2108 and
        financial statements. Also, the differences described in the
        Reconciliation Scenarios below are based off the Allottee, CID,
        and Fund levels.**

+------------------+---------------+-----------------+----------------+
| PO UDO BALANCE   | GL UDO        | CDR UDO BALANCE | CORRECTIONS    |
|                  | BALANCE       |                 |                |
+------------------+---------------+-----------------+----------------+
| Incorrect (does  | Correct       | Correct         | Correct PO     |
| not match source | (matches      | (matches source | module with    |
| documentation)   | source        | documentation   | obligation     |
|                  | documentation |                 | and/or receipt |
|                  |               |                 | entries        |
|                  |               |                 | --reverse      |
|                  |               |                 | entries in the |
|                  |               |                 | GL             |
+------------------+---------------+-----------------+----------------+
| Correct (matches | Incorrect     | Incorrect (does | Correct GL UDO |
| source           | (does not     | not match       |                |
| documentation    | match source  | source          | Correct CDR    |
|                  | d             | documentation)  | balances       |
|                  | ocumentation) |                 |                |
+------------------+---------------+-----------------+----------------+
| Incorrect (does  | Incorrect     | Incorrect (does | First, correct |
| not match source | (does not     | not match       | GL UDO/CDR UDO |
| documentation)   | match source  | source          | balance        |
|                  | d             | documentation)  |                |
|                  | ocumentation) |                 | Then, correct  |
|                  |               |                 | PO module with |
|                  |               |                 | obligation     |
|                  |               |                 | and/or receipt |
|                  |               |                 | entries        |
|                  |               |                 | --reverse      |
|                  |               |                 | entries in the |
|                  |               |                 | GL             |
+------------------+---------------+-----------------+----------------+
| **\*Note: The GL |               |                 |                |
| UDO Balances and |               |                 |                |
| the CDR Uncosted |               |                 |                |
| Balances should  |               |                 |                |
| always match. If |               |                 |                |
| it does not,     |               |                 |                |
| contact the help |               |                 |                |
| desk. Also note  |               |                 |                |
| that not all     |               |                 |                |
| transactions are |               |                 |                |
| entered through  |               |                 |                |
| the PO Module.   |               |                 |                |
| The Working      |               |                 |                |
| Capital fund,    |               |                 |                |
| Payroll, Cost    |               |                 |                |
| Accruals, and    |               |                 |                |
| Cost Overruns at |               |                 |                |
| the detailed AFF |               |                 |                |
| are not entered  |               |                 |                |
| in the PO        |               |                 |                |
| Module.**        |               |                 |                |
+------------------+---------------+-----------------+----------------+

2.  Drilldown to the entire AFF for a specific CID using the GL to PO
    UDO Recon Report in Discoverer for any and all differences
    identified.

3.  Choose a CID from your exported excel worksheet that contains a GL
    UDO to CDR Uncosted balance difference and/or a GL UDO to PO UDO
    balance difference

4.  Type in the CID in the Select CID parameter box at the top of the
    report and then click on the GO button.

5.  Click on the blue triangle next to the Fund value

6.  You should see "Drill to Related" and a list of items that you can
    drilldown to (Treasury Symbol, Award Type, Appropriation Year,
    Reporting Entity, SGL, Object Class, Program, Project, WFO, Local
    Use, and Future). Select Appropriation Year.

7.  If you receive a warning message "Continue to Run Query"?, click on
    the "yes" button.

8.  You will see a Query Progress screen pop up. You do not need to
    click on anything (wait for the report output to display).

9.  Repeat Steps 1.3.6.6 through 1.3.6.9 to drilldown to other segments
    of the AFF. **Note: After you have completed your drilldown, save
    the report by clicking on the Save As link (in the Actions box which
    is located in the top left hand corner). You will have to save the
    report with another name. This will allow you to relog into
    Discoverer and use the same drilldown report the next time you need
    to research a CID (just change the CID parameter). If you need to
    run the report without the drilldown, just run the original GL to PO
    UDO Reconciliation Report.**

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1.  Researching Null CIDs using the Drilldown function

    1.  Null CIDs are only valid for funds 00911 and 00912. All other
        null CID values are indicative of data errors requiring
        correction.

    2.  Open the Saved Drilldown Report created in steps 1.3.6.4 through
        1.3.6.10

    3.  Follow steps 1.3.6.4 through 1.3.6.10 above to drilldown to the
        lowest level of the AFF. **Note: Enter the word Null for the CID
        parameter.**

    4.  Log into STARS production using the DOE GL Inquiry
        Responsibility

    5.  Select the DOE GL Null CID Research (CSV output) report

    6.  Enter SEP-04 in the Period From Parameter

    7.  Enter the latest open GL period in the Period To Parameter

    8.  Enter the AFF information you have saved from you Discoverer
        Drilldown as parameters for this report

    9.  Export the CSV output into an Excel Worksheet. This report will
        provide you further details of what makes up the Null CID
        balance (ex. Batch name, Journal Name, reference fields, etc),
        similar to the DOE GL Journal Details report

    10. Back out Manual GL entries that were created without a CID and
        reenter them with the CID DFF populated. **NOTE: Funds 00911 and
        00912 should have a null CID for the Credit Ob entries created
        in the GL. You do *NOT* want to add a CID to these Credit Ob
        entries for both the 00911 and 00912 funds!**

2.  Research and resolve any balances in the GL Prepayment Balance (48X2
    SGLs) Column that is less than zero.

    1.  Use the DOE GL Journal Detail Report to determine the
        transaction(s) that caused the abnormal balance.

    2.  The prepayment balance can be affected by either PO Receipt or
        AP Invoice transactions and are also reflected in SGL 14xx.

# Stale Balance Reviews 

1.  Stale balance reviews are to be performed for Reimbursements Earned
    and Refunds, Unfilled Customer Orders, Undelivered Orders and
    Contracts, and Accounts Payable and Other Liabilities. Stale balance
    reviews should be completed as close as possible to the June 30^th^
    and September 30^th^ quarter-end periods to maximize the benefits to
    the 3^rd^ quarter and year-end financial statements. At a minimum,
    field offices should complete the stale balance review steps
    identified below for all balances identified on the March and July
    stale balance reports as of June 30^th^ and September 30^th^,
    respectively.

    1.  Budgetary Reimbursements Earned Stale Balance Review

> In GL Inquiry, run the STARS Report DOE Budgetary Reimbursements
> Earned w/o Activity for 12 Months Report (a paper report) or DOE
> Budgetary Reimbursements Earned w/o Activity for 12 Months Report (CSV
> output) (a data dump) by allottee. This report lists Federal
> receivable balances that have not had activity in periods 2-14 for the
> past 12 months. Review these orders to ensure they are valid and take
> corrective action as needed.

2.  Unfilled Customer Orders Stale Balance Review

> In GL Inquiry, run the STARS Report DOE Unfilled Customer Orders w/o
> Activity for 12 Months Report (a paper report) or DOE Unfilled
> Customer Orders w/o Activity for 12 Months Report (CSV output) (a data
> dump) by allottee. This report lists unfilled customer orders by WFO
> number that have not had activity in periods 2-14 for the past 12
> months. Review these orders to ensure they are valid and take
> corrective action as needed.

3.  Undelivered Orders Stale Balance Review

    1.  Field CFOs have the primary responsibility for ensuring that
        invalid or excess obligations are promptly deobligated. Field
        CFOs must regularly review undelivered order balances with
        emphasis on large dollar, inactive (stale), prior-year
        obligations, and should independently evaluate and confirm
        undelivered balances. Stale balances requiring this review are
        identified on the GL to PO Undelivered Orders Reconciliation and
        Stale PO UDO Balances Report under the Stale PO UDO Balances
        worksheet in Discoverer. The report utilizes standard parameters
        based on award types for identifying stale UDO balances. These
        parameters are as follows:

-   36 months for award type:  PCS

-   6 months for the following award types: TDY, CARD, CRDN, EMPM, TVL,
    LEGL, LOCAL, MISC, PENS , PILT, PRNT, SECY, TORT, TRNG, UTIL

-   12 months for all other award types

    1.  Identifying Stale PO Undelivered Order Balances

        1.  Click on the Stale PO UDO Balances link in the Worksheets
            box (top left hand corner, under the Actions box)

        2.  Enter your Allottee in the Allottee parameter. This is a
            required parameter. You can enter a particular Fund,
            Reporting Entity, and/or Award Type if you want to narrow
            your selection (these three parameters are not required to
            run the report). You can select multiple values for either
            of the parameters by clicking on the flashlight and
            selecting the values to use from the LOV provided. Click on
            the GO button.

        3.  Follow Steps 1.3.5.5 to 1.3.5.12 to Export the Report

    2.  Performing the Undelivered Orders Stale Balance Review

        1.  Assure that the obligation is valid (e.g., not past the end
            date of the contract). You may need to contact the
            contracting officer or responsible program official to
            determine whether the contract is still valid.

        2.  Documentation should be maintained locally to provide audit
            evidence that the stale balance review was performed.
            Follow-up corrective actions should be taken promptly to
            deobligate invalid/excess balances.

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    1.  Accounts Payable and Other Liabilities Stale Balance Review

> In GL Inquiry, run the STARS Report DOE Budgetary Accounts Payable w/o
> Activity for 12 Months Report (a paper report) or DOE Budgetary
> Accounts Payable w/o Activity for 12 Months Report (CSV output) (a
> data dump) by allottee. This report lists accounts payable by CID that
> have not had activity in periods 2-14 for the past 12 months. Review
> these CIDs to ensure they are valid and take corrective action as
> needed.

# 2108 Analysis

2.  Field Chief Financial Officer (CFO) analysis of 2108 reports is a
    key internal control in support of the Department of Energy's (DOE)
    financial statement reporting process. Headquarters' (HQ)
    certification of the Department's year-end 2108 report is dependent
    on the Field CFO certifications of interim and year-end reports. The
    independent auditors rely on the analysis performed by Field CFOs to
    limit the amount of transactional testing in their financial
    statement audit designed to ensure that the Department's budgetary
    obligations and resources are properly reported.

    1.  In order for field CFOs to obtain an adequate confidence level
        of their accounting data, internal controls must be maintained.
        This is accomplished by following the guidance outlined in
        Chapter 5 of the DOE Accounting Handbook, performing monthly GL
        to PO module reconciliations, performing stale balance reviews,
        analyzing the 2108 report which includes reconciling STARS GL
        balances to source documents, and performing other
        reconciliations and analysis (outside the scope of this SOP)
        that include the following:

-   Reconciliation of Budget Execution and Reporting System
    (BEARS)/Funds Control and Distribution System (FCDS) to STARS,

-   Reconciliation of the Integrated Contract (IC) trial balances to the
    GL,

-   Resolving edits,

-   Performing abnormal balance reviews in accordance with the abnormal
    balance review guidance at
    http://www.mbe.doe.gov/CF12/reports/AbBalReviewsSOP.doc, and

-   Performing the quarterly reconciliation of STARS to FDS allocations
    by allottee and fund in accordance with the Monthly Review of STARS
    Allocations at
    <http://www.mbe.doe.gov/CF12/reports/MonthlyReviewofSTARSAllocations.doc>
    (Note: Field CFO certification of the 2108 will now eliminate the
    requirement for a separate Field CFO Certification memo to the
    Headquarters Office of Internal Review, indicating that this
    reconciliation has been completed.)

    1.  An analysis and certification of the 2108 report by each field
        CFO is required for second, third, and fourth quarters.
        Supporting documentation for these quarterly reviews should be
        maintained at the field office and be available for subsequent
        review. Field offices are encouraged to review their 2108 on a
        more regular basis. (See Appendix A for the detailed
        instructions on procedures for running the DOE 2108 by Allottee
        and the DOE 2108 Column reports.)

    2.  The FMS-2108, Year-End Closing Statement, ties the cash balance
        to the ending unobligated balance at the Treasury Appropriation
        Fund Symbol (TAFS) level. TAFS fund resources are increased by
        cash (Column 5), other authorizations (Column 6), reimbursements
        earned and refunds (Column 7) and unfilled customer orders
        (Column 8). Fund resources are decreased by unpaid obligations,
        which are made up of undelivered orders (Column 9) and accounts
        payable and other liabilities (Column 10) to derive the
        unobligated balance.

    3.  The USSGL selection criteria for the FMS 2108 are as follows:

> **Notes**:

1.  Columns 2- 4 do not appear on the DOE 2108 reports and they do not
    apply to the field offices.

2.  DOE does not use all of the above referenced United States Standard
    General Ledger (USSGL) accounts.

3.  Column 11 on the DOE allottee 2108 is a calculated column (columns
    5 + 6 + 7 + 8 - 9 -10 = column 11). Column 11 is based upon the
    USSGL selection criteria at the Departmental level.

    1.  Columns of the allottee 2108 are to be reviewed as follows

        1.  Column 1 - Treasury Appropriation Fund Symbol (TAFS)

> The Department of the Treasury (Treasury) provides the appropriation
> fund symbol with sub-accounts. No field review of this column 1 is
> necessary.

2.  Column 2 -- Pre-Closing Unexpended Balance

> Treasury provides balances based upon DOE's SF 224, Statement of
> Transactions (SF-224), warrants and transfer activity. This column is
> validated at the Departmental-level through the cash reconciliation
> process. (See also note under 3.5.5)

3.  Column 3 -- Increases and Rescissions

> These are increases and decreases in the following SGL accounts:
> Current Year Contract Authority Realized (4131) and Current Year
> Borrowing Authority Realized (4141). (Note: Bonneville Power
> Administration (BPA) and the Loan Guarantee Program are the
> Department's only programs with contract and/or borrowing authority.)

4.  Column 4 - Unobligated and Obligated Balances Withdrawn/Cancelled

> These are obligated and unobligated balance withdrawals or
> cancellations. (Note: This column is only used at the Department
> level, and by BPA and the Loan Guarantee program.)

5.  Column 5 - Post-closing Unexpended Balance

> Review and explain negative cash balances. (NOTE: Negative cash
> balances for federal reimbursable funds are to be expected, but those
> negative balances should be offset by reimbursements earned balances
> (Column 7). However, negative cash balances at the parent
> appropriation level indicate a potential Anti-Deficiency Act
> violation.). The federal reimbursable funds being used currently are:

  ------------ ----------------------------------------------------------
  **Fund **    **   Description**

  00110        3A - 89X0212 - Federal Energy Regulatory Commission,
               Reimbursable Work, Federal

  00556        3Y - 89X0224 - Energy Supply Research and Development
               Activities, Reimbursable Work, Federal

  00910        3T - 89X0240 - Weapons Activities, Reimbursable Work,
               Federal

  01055        3F - 89X0243 - Other Defense Activities, Reimbursable
               Work, Federal

  01353        3L - 89X0302 - Southeastern Power Administration,
               Reimbursable Work, Federal

  01404        3N - 89X0303 - Southwestern Power Administration,
               Reimbursable Work, Federal

  02504        3U - 89X5068 - Western Area Power Administration,
               Reimbursable Work, Federal

  05499        3Z -- 89X0321 -- Energy Efficiency and Renewable Energy,
               Reimbursable Work, Federal
  ------------ ----------------------------------------------------------

> **(Note: Due to legacy issues and the manner in which unobligated
> funds are withdrawn and allotted, cash is not accurate at the allottee
> level. This is a known problem for which remediation efforts are being
> taken. Controls are in place to ensure that the Department's cash
> balances at the parent appropriation levels are reconciled to Treasury
> balances. Until remediation efforts on the fund balances are
> completed, Field offices should footnote their 2108 certifications
> accordingly.)**

6.  Column 6 - Other Authorizations

> This balance represents Authorization Indicator Record Type 7 (RT7)
> balances which are used for TAFS that have Imprest Funds, Borrowing or
> Contract Authority, or Investments and includes unrealized discounts,
> imprest funds, unamortized discounts/premiums of zero coupon bonds,
> contract authority, authority to borrow from Treasury, authority to
> borrow from the public, investment in Treasury securities, investment
> in agency securities, investment in non-Federal securities. (This
> column is reviewed by the EFASC Accounting Branch, Financial Control
> and Reporting and BPA.)

7.  Column 7 - Reimbursements Earned and Refunds

    1.  In GL Inquiry, run the STARS Report DOE Budgetary Reimbursements
        Earned Report (a paper report) or DOE Budgetary Reimbursements
        Earned Report (CSV output) (a data dump) by allottee. This
        report provides the federal receivable balances (Reimbursements
        and Other Income Earned-Receivable - SGL 4251) by Work for Other
        (WFO) number and Reporting Entity

    2.  Verify that the total of the report agrees with the total of
        Column 7 on the allottee 2108.

    3.  Review and explain any WFO number with a negative balance.

> Run the GL Inquiry STARS Report DOE Abnormal Balances Report (CSV
> output) for Category 110, Budgetary Reimb Earned, to identify the
> abnormal balances and analyze them in accordance with the Abnormal
> Balance Review SOP.

4.  Verify that there are no balancing edit 20/908, 22/910 or 111 errors
    that indicate a material misstatement of the budgetary receivable
    balances. (There is a GL Inquiry STARS Report DOE GL Budgetary vs
    Proprietary Tie Point Differences (CSV output) that mirrors these
    edits when run at the summary level for Display Type DOE Federal
    Receivables. This report can be used to get more detailed AFF data
    than that provided in the edits.)

5.  Verify that the reimbursements earned balances for a randomly
    selected sample of WFOs can be reconciled to the outstanding
    receivable source documentation. **(Note: A random sample of
    reimbursements earned transactions will be selected from the STARS
    report. An asterisk on the report will denote the selected sample.
    The sampling criterion is based upon 5% of the total WFO
    transactions or 10 random transactions, whichever is less. Based
    upon the results of your sample, take appropriate actions.
    Identified discrepancies should be corrected and the sample should
    be expanded if systemic discrepancies are found. These randomly
    selected CIDs represent the minimum that field CFOs must validate to
    source documents prior to certifying the 2108 report. Field offices
    may perform additional validations at their own discretion )**

    1.  For reimbursable work orders billed by integrated contractors,
        the reconciliation will most likely need to be performed by
        them.

    2.  For all other reimbursable work receivables, field offices
        should run the AR Inquiry STARS DOE RW Order Cost and Billing
        Summary Report (run by WFO) to reconcile the earned
        reimbursement balance to the amount billed versus collected on
        this report

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8.  Column 8 - Unfilled Customer Orders

    1.  In GL Inquiry, run the STARS Report DOE Unfilled Customer Orders
        Report (a paper report) or DOE Unfilled Customer Orders Report
        (CSV output) (a data dump) by allottee. This report provides the
        unfilled customer orders (Unfilled Customer Orders Without
        Advance - SGL 4221) balances by WFO number and Reporting Entity.

    2.  Verify that the total of the report agrees with the total of
        Column 8 on the allottee 2108.

    3.  Review and explain any WFO number with a negative balance.

> Run the GL Inquiry STARS Report DOE Abnormal Balances Report (CSV
> output) for Category 130, Budgetary UCO, to identify the abnormal
> balances and analyze them in accordance with the Abnormal Balance
> Review SOP.

4.  Verify that the WFO number balances can be reconciled to the
    customer order source documents for the "selected" WFO numbers. The
    STARS report DOE Status of Funds For a Reimbursable Work Order will
    identify the cumulative reimbursable work accepted amount for each
    WFO value since go-live. Pre-STARS balances can be obtained from
    DISCAS data , where available. In most cases, it should be
    sufficient to reconcile the cumulative orders accepted since April
    2005 to the STARS balance. **(Note: A random sample of unfilled
    customer orders transactions will be selected from the STARS report.
    An asterisk on the report will denote the selected sample. The
    sampling criterion is based upon 5% of the total WFO transactions or
    10 random transactions, whichever is less. Based upon the results of
    your sample, take appropriate actions. Identified discrepancies
    should be corrected and the sample should be expanded if systemic
    discrepancies are found. These randomly selected CIDs represent the
    minimum that field CFOs must validate to source documents prior to
    certifying the 2108 report. Field offices may perform additional
    validations at their own discretion** )

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9.  Column 9 - Undelivered Orders and Contracts

    1.  Run the STARS DOE Undelivered Orders Report (a paper report) or
        DOE Undelivered Orders Report (CSV output) (a data dump) to
        identify a random sample of CIDs for review. **(Note: A random
        sample CIDs will be identified on the STARS report. An asterisk
        on the report will denote the selected sample. The sampling
        criterion is based upon 5% of the total transactions or 10
        random transactions, whichever is less, excluding ICs. Reconcile
        the cumulative obligations for these randomly selected CIDs to
        the source documentation. Based upon the results of your sample,
        take appropriate actions. Identified discrepancies should be
        corrected and the sample should be expanded if systemic
        discrepancies are found. These randomly selected CIDs represent
        the minimum that field CFOs must validate to source documents
        prior to certifying the 2108 report. Field offices may perform
        additional validations at their own discretion.)**

    2.  Verify that the total of the report agrees with the total of
        Column 9 on the allotee 2108.

    3.  All IC undelivered orders balances should be reviewed at least
        once per fiscal year. Confirm that the undelivered orders
        balances in STARS for IC's agree with total cumulative
        obligations on the authorizing document less total cumulative
        costs as reported by the IC. The IC undelivered orders balance
        on the 2108 should tie to the cumulative obligations less
        cumulative costs in the PO module.

    4.  Review and explain any CID's with a negative balance. Run the GL
        Inquiry STARS Report DOE Abnormal Balances Report (CSV output)
        for Category 120, Budgetary UDO, to identify the abnormal
        balances and analyze them in accordance with the Abnormal
        Balance Review SOP.

10. Column 10 - Accounts Payable and Other Liabilities

    1.  In GL Inquiry, run the STARS Report DOE Budgetary Accounts
        Payable Report (a paper report) or DOE Budgetary Accounts
        Payable Report (CSV output) (a data dump) for the parent fund to
        identify a random sample of CIDs for review. Review cost
        accruals made to the contract and verify that any manual
        accruals or changes to the automated accrual process adjustments
        are properly supported. If the undelivered order balance
        exceeded \$1 million at period-end and the approving official
        did not make an accrual adjustment through VIAS, verify that no
        change should have been made. If accrual adjustments were made,
        verify that the adjustment is supported by documentary evidence.
        This may require interaction with the VIAS approving official.
        (Note: The DOE Accrual QA report, available from the STARS GL
        Inquiry, is a CDR-based report that provides detailed
        information on your site's automated accruals, VIAS adjustments
        and VIAS users). When analyzing GL Journal Detail Reports for
        specific Purchase Orders, the following information should help
        you formulate pivot tables to analyze cost accruals.

  -------------------------- ------------------- ------------------------
  **Transaction**            **Journal Source**  **Journal Name**

  Automated Accrual          55                  \"Automated Accrual\"

  VIAS Accrual Adjustment    55                  \"Accrual Adjustment\"

  Manual Accrual             Purchasing          \"Receiving\"
  -------------------------- ------------------- ------------------------

> **(Note: A random sample of accounts payable transactions will be
> selected from the STARS report. An asterisk on the report will denote
> the selected sample. The sampling criterion is based upon 5% of the
> total transactions or 10 random transactions, whichever is less,
> excluding ICs. Based upon the results of your sample, take appropriate
> actions. Identified discrepancies should be corrected and the sample
> should be expanded if systemic discrepancies are found. These randomly
> selected CIDs represent the minimum that field CFOs must validate
> prior to certifying the 2108 report. Field offices may perform
> additional validations at their own discretion.**)

2.  Verify that the total of the report agrees with the total of Column
    10 on the allottee 2108.

3.  Review and explain any CID's with a negative balance. Run the GL
    Inquiry Report DOE Abnormal Balances Report (CSV output) for
    Category 100, Budgetary AP, to identify the abnormal balances and
    analyze them in accordance with the Abnormal Balance Review SOP.

4.  Verify that there are no balancing edit 28/911, 29/912, or 30/913
    errors that indicate a material misstatement of the budgetary
    accounts payable balances. (There is a GL Inquiry STARS Report DOE
    GL Budgetary vs Proprietary Tie Point Differences (CSV output) that
    mirrors these edits when run at the summary level for Display Type
    DOE Unpaid Expended. This report can be used to get more detailed
    AFF data than that provided in the edits.)

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11. Column 11 - Unobligated Balance

    1.  Review, research, and explain any abnormal (in most cases that
        means negative) balances in Column 11.

> (NOTE: Negative balances in Column 11 are normal balances for
> unrealized discounts (RT7=911) and unamortized discounts/premiums of
> zero coupon bonds (RT7=931). Other negative balances are considered
> abnormal.)

2.  Other 2108 Review Procedures

    1.  Review all Treasury Appropriation Fund Symbols (TAFS) that are
        to be canceled at year-end and take action to assure that all
        reimbursements earned (Column 7), unfilled customer orders
        (Column 8), undelivered orders (Column 9), and accounts payable
        (Column 10) balances have been eliminated by year-end.

    2.  Run the prior year 2108 for the quarter and compare to the
        current quarter. Explain any total column quarter variances of
        25% that are greater than \$5 million.

3.  Negative balances at the TAFS level for cash (Column 5),
    reimbursements earned (Column 7), unfilled customer orders (Column
    8), undelivered orders (Column 9), accounts payable (Column 10), and
    unobligated balance (Column 11) should be footnoted. Those footnotes
    must be provided to HQ as an attachment to the CFO certification of
    the 2108. The following are sample footnotes:

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a.  The credit balance of (\$4,462,236.62) in column 5 for 89X0240 is
    the result of a credit cash balance in the federal reimbursable fund
    00910 that is fully offset by reimbursements earned balances in
    column 7.

b.  The credit balance of (\$23,073.11) in column 10 for 89X0240 is the
    result of a timing difference between payments made and collections
    received for CID AB00001 in fund 00911 (Inter-entity activity).

c.  The credit balance of (\$759.25) in column 9 for 894/50243 is the
    result of duplicate cost entries for CID AB00002. This error was
    identified after year-end close and will be corrected with October
    data.

    1.  Review Unfilled Customer Orders with Advance (SGL 4222)
        balances. (Note: While SGL 4222 is not included on the 2108,
        these balances have a direct impact on the 2108 cash balances.)

        1.  Review and explain any WFOs with an abnormal balance. Run
            the GL Inquiry STARS DOE Abnormal Balance Report (CSV
            output) for Category 135, Budgetary UCO with Advance, to
            identify the abnormal balances that need to be reviewed.

        2.  Verify that there are no balancing edit 7 or 99 errors that
            indicate a material misstatement of the unfilled customer
            orders with advance balances. (There is a GL Inquiry STARS
            Report DOE GL Budgetary vs Proprietary Tie Point Differences
            (CSV output) that mirrors these edits when run at the
            Summary level for Display Type DOE Unfilled Customer orders.
            This new report can be used to get more detailed AFF data
            than that provided in the edits.)

        3.  Run the DOE 2108 Fund 1 & 2 -- Allottee report and verify
            that the cash collections are sufficient cover the UDO
            (column 9) and AP (column 10) balances in each fund. There
            should be no negative balances on this report.

    2.  Review Undelivered Orders -- Prepaid/Advances (SGL 4802)
        balances. (Note: While SGL 4802 is not included on the 2108,
        these balances have a direct impact on the 2108 cash balances.)

        1.  Review and explain any CIDs with a negative balance. Run the
            GL Inquiry STARS DOE Abnormal Balance Report for Category
            105, Budgetary Prepayments, to identify the abnormal
            balances that need to be reviewed.

        2.  Verify that there are no balancing edit 5 or 904 errors that
            indicate a material misstatement of undelivered orders --
            prepaid/advances. (There is a GL Inquiry STARS Report DOE GL
            Budgetary vs Proprietary Tie Point Differences (CSV output)
            that mirrors these edits when run at the summary level for
            Display Type DOE Advances. This new report can be used to
            get more detailed AFF data than that provided in the edits.)

# Field Office 2108 Certification

3.  Field CFOs are required to certify the 2108 report for the second,
    third, and fourth quarters. Second and third quarter certifications
    are due to the Director, Office of Finance and Oversight, 30 days
    after the end of the quarter. Fourth quarter certification due dates
    will be published as part of the Year-End Financial Statement
    Analysis and Footnotes Requirements issued annually by the Office of
    Finance and Accounting.

> The 2108 certification consists of the CFO 2108 certification and
> checklist and appropriate attachments. (See Appendix B for a copy of
> the checklist and CFO certification statement).

##  

# Appendix A -- Procedures for Running STARS Field 2108 Reports

### DOE FMS 2108 By Allottee Report 

**THE FOLLOWING STARS FMS 2108 REPORTS CAN BE RUN BY ALLOTTEE:**

DOE 2108 BY ALLOTTEE FMS 2108 by allottee with information at

> the Treasury Appropriation Fund Symbol (TAFS) level. [This is the
> report that should be certified.]{.underline}

DOE 2108 BY ALLOTTEE & SGL FMS 2108 by allottee with TAFS information
given provided by SGL.

DOE 2108 BY ALLOTTEE & FUND FMS 2108 by allottee with TAFS information
provided at the fund level.

DOE 2108 BY ALLOTTEE, FUND, SGL FMS 2108 by allottee with TAFS

Information provided by fund and SGL.

DOE 2108 Fund 1 & 2 -- Allottee FMS 2108 by allottee with Non-Federal RW
Funds

**TO RUN THE FMS 2108 IN STARS:**

1.  After logging into STARS select GL Inquiry from the Applications
    screen.

2.  Under Reports click on Request Financial.

3.  Under the Individual Report Tab, enter one of the following in the
    Report field:

    -   DOE 2108 BY ALLOTTEE

    -   DOE 2108 BY ALLOTTEE & SGL

    -   DOE 2108 BY ALLOTTEE & FUND

    -   DOE 2108 BY ALLOTTEE, FUND SGL

    -   DOE 2108 Fund 1 & 2 - Allottee

4.  Fill in the Period field (JUN-05, JUL-05, etc.).

5.  Tab over to place the cursor in the Segment Override field.

6.  Double click on the List of Values (LOV) icon (...) to bring up the
    Accounting Flexfield (AFF) screen.

7.  Click the Clear button. You will need to enter the allottee. Click
    OK.

8.  Place a check mark beside your report, click the Submit button, and
    record your Request ID.

9.  To locate and run your report, click on View from the Menu bar and
    select Requests.

10. Ensure that the All My Request button is selected and click Find.

11. Click the Refresh Data button periodically until your report is
    completed. There should be a blue bar next to your report with the
    corresponding Request ID number.

12. Click on the View Output button after the report Phase indicates
    "Completed" and the Status is "Normal" to view the report on the
    screen.

13. To print a copy of the report, close the view screen and click on
    Tools from the Menu bar and select reprint. Fill in the number of
    copies you want, select the printer and click OK.

### DOE FMS 2108 Column Reports 

**TO RUN THE DOE FMS 2108 COLUMN REPORTS IN STARS:**

1.  After logging into STARS select GL Inquiry from the Applications
    screen.

2.  Under Others double click on Run and choose Single Request and click
    the OK button.

3.  Click on the List of Values (LOV) icon (...) for the Request Name
    and select one of the following reports:

    -   DOE Budgetary Reimbursements Earned Report

    -   DOE Budgetary Reimbursements Earned Report (CSV output)

    -   DOE Budgetary Reimbursements Earned w/o Activity for 12 Months
        Report

    -   DOE Budgetary Reimbursements Earned w/o Activity for 12 Months
        Report (CSV output)

    -   DOE Unfilled Customer Orders Report

    -   DOE Unfilled Customer Orders Report (CSV output)

    -   DOE Unfilled Customer Orders w/o Activity for 12 Months Report

    -   DOE Unfilled Customer Orders w/o Activity for 12 Months Report
        (CSV output)

    -   DOE Undelivered Orders Report

    -   DOE Undelivered Orders Report (CSV output)

    -   DOE Budgetary Accounts Payable Report

    -   DOE Budgetary Accounts Payable Report (CSV output)

    -   DOE Budgetary Accounts Payable w/o Activity for 12 Months Report

    -   DOE Budgetary Accounts Payable w/o Activity for 12 Months Report
        (CSV output)

4.  Click the OK button.

5.  Complete the required report parameters as follows:

    a.  Click on "Allottee From" LOV (...)

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a.  Fill out "Allottee Low" and "Allottee High" with allottee (01, 02,
    etc.)

b.  Fill out "Fund Parent" with [S2108]{.underline} to select all funds
    in the 2108

c.  Fill out the "Period Name" with the year-to-date period (MAR-06,
    etc.).

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6.  Once report parameters are filled out click on OK button.

7.  The View Request Screen will come up.

8.  Click the Refresh Data button periodically until your report is
    completed. There

> should be a blue bar next to your report with the corresponding
> Request ID number.
>
> 9\. Click on the View Output button after the report Phase indicates
> "Completed" and the Status is "Normal" to view the report on the
> screen.
>
> 10\. To print a copy of the report, close the view screen and click on
> Tools from the Menu bar and select reprint. Fill in the number of
> copies you want, select the printer and click OK. (NOTE: CSV output
> provides a data dump that can be downloaded into excel and manipulated
> via pivot tables.)

# Appendix B -- CFO FMS 2108 Checklist and Certification Statement

  -----------------------------------------------------------------------------
  **Title & Column** **Procedure**                               **Completed/
                                                                 N/A (\*)**
  ------------------ ------------------------------------------- --------------
  **General          BEARS/FCDS reconciliations to STARS         
  Guidance**         completed.                                  

                     GL to PO Reconciliations completed.         

                     IC trial balance reconciliation process     
                     completed.                                  

                     STARS to FDS Allocation Reconciliation      

  **Cash (Column     Review and explain negative balances.       
  5)**                                                           

  **Reimbursements   Report total agrees with column total.      
  Earned**                                                       

  **(Column 7)**     Review and explain WFO numbers with a       
                     negative balance.                           

                     Verify receivable balances by WFO reconcile 
                     to source documents for random sample.      

                     Verify there are no balancing edit 20/908,  
                     22/910 or 111 items materially impacting    
                     the budgetary reimbursements earned         
                     balance.                                    

                     Review WFO numbers with no activity for 12  
                     months.                                     

  **Unfilled         Report total agrees with column total.      
  Customer**                                                     

  **Orders (Column   Review and explain WFO nos. with a negative 
  8)**               balance.                                    

                     Verify WFO numbers for random sample        
                     reconcile to source documents.              

                     Review WFO numbers with no activity for 12  
                     months.                                     

  **Undelivered      Report total agrees with column total.      
  Orders and**                                                   

  **Contracts        Review and explain CIDs with a negative     
  (Column 9)**       balance.                                    

                     Verify CIDs for random sample reconcile to  
                     source documents.                           

                     Review CIDs with no activity for 12 months. 

                     Review IC undelivered orders balances once  
                     a year.                                     

  **Accounts         Report total agrees with column total.      
  Payables and**                                                 

  **Other            Review and explain CIDs with a negative     
  Liabilities**      balance.                                    

  **(Column 10)**    Review cost accruals, manual accruals, and  
                     VIAS accrual adjustments for random sample. 

                     Verify that there are no balancing edit     
                     28/911, 29/912, or 30/913 errors that       
                     indicate a material misstatement of the     
                     budgetary accounts payable balances.        

                     Review CIDs with no activity for 12 months. 
  -----------------------------------------------------------------------------

+----------------+------------------------------------------+---------+
| **Title &      | **Procedure**                            | **Com   |
| Column**       |                                          | pleted/ |
|                |                                          | N/A     |
|                |                                          | (\*)**  |
+----------------+------------------------------------------+---------+
| **Unobligated  | Review, research, and explain any        |         |
| Balance**      | abnormal (in most cases that means a     |         |
|                | negative) balances.                      |         |
| **(Column      |                                          |         |
| 11)**          |                                          |         |
+----------------+------------------------------------------+---------+
| *              | Review all TAFS to be cancelled at year  |         |
| *Comprehensive | end.                                     |         |
| Review of**    |                                          |         |
+----------------+------------------------------------------+---------+
| **the 2108**   | Compare current quarter 2108 to prior    |         |
|                | quarter 2108.                            |         |
+----------------+------------------------------------------+---------+
|                | Footnote TAFS level negative balances    |         |
|                | for Columns 5, 7, 8, 9, 10, and 11.      |         |
|                | Provide footnotes to HQ with CFO         |         |
|                | certification.                           |         |
+----------------+------------------------------------------+---------+
|                | Review and explain UCO with Advance (SGL |         |
|                | 4222) having an abnormal balance.        |         |
+----------------+------------------------------------------+---------+
|                | Verify that there a no balancing edit 7  |         |
|                | or 99 errors that indicate a material    |         |
|                | misstatement of UCO with Advance.        |         |
+----------------+------------------------------------------+---------+
|                | Verify that cash collections for         |         |
|                | Non-Federal RW are \> the unpaid         |         |
|                | obligations.                             |         |
+----------------+------------------------------------------+---------+
|                | Review and explain Budgetary Prepayments |         |
|                | (SGL 4802) having an abnormal balance.   |         |
+----------------+------------------------------------------+---------+
|                | Verify that there are no balancing edit  |         |
|                | 5/904 errors that indicate a material    |         |
|                | misstatement of Budgetary Prepayments.   |         |
+----------------+------------------------------------------+---------+

\* On a separate attachment to this checklist, provide a brief
explanation of any exceptions noted in your review

### CFO FMS 2108 Certification 

**[CFO Certification]{.underline}**

I certify that the obligation balances in each appropriation account of
the field office reflect proper existing obligations and that
expenditures from the account since the preceding review were supported
by a proper obligation of funds and otherwise meet the criteria of 31
USC 1501(A). This FMS 2108 certification checklist has been completed in
accordance with the Obligation Reconciliation and 2108 Standard
Operating Procedures.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Field CFO Signature Date