# Presentation: 162607

## Treasury’s Borrowing Program

- InvestOne
- Gale Daggett
- Accountant, Federal Borrowings Branch
- April 12, 2007

**Notes:**
Good afternoon everyone, My name is Gale Daggett and I am here to talk to you today about InvestOne on behalf of Treasury’s Borrowing Program.  

## Summary

- Overview of the System
- Creating Accounts
- Creating Securities
- Transaction Processing
- Common User Interface
- Reporting
- Future Enhancements

**Notes:**
We are here today to present to you an off the shelf accounting system that has been responsive to our needs and we want to share with you what some of InvestOne’s capabilities are in case any of you are wanting to move to an off the shelf system. 

Today we will present an overview of the InvestOne System.
We will provide examples of how we create accounts and securities in InvestOne, 
We will show how the transactions are processed in the system.
Explain the Common User Interface or (CUI) and its ease of use with reporting
And finally go over some of the future enhancements that are coming soon.

(Pause)

## Government Wide Initiatives 

- President’s Management Agenda
- Expanding Electronic Government
- Improved Financial Performance
- OMB
- Business Rules for Intragovernmental Transactions
- Exhibit 300

**Notes:**
Before we get into some of the background of InvestOne, we want to give you some of the reasons behind why we decided to go to an off the shelf accounting system and why we think you should consider InvestOne if any of you are interested in switching to such a system

There were a couple of motivations that lead us to the switch..  The first is that it falls in line with the President’s Management Agenda by helping to expand Electronic government and improve financial performance with the accounting controls and efficiency that the system provides.

We also received guidance from OMB’s Business Rules for Intragovernemental Transactions and Section 300 of the A-11 Circular on the budget justification of switching over to an off the shelf system.

So today we are going to share a lot of information as it has to do with Invest One with you and encourage any of you that are thinking of switching over to an off the shelf system to consider InvestOne because if we are using the same system we can together support a more efficient government by eliminating our differences.

(Pause)

## InvestOne

- Off-the-shelf investment management and accounting system offered by SunGard
- Accounts for virtually all types of investment portfolios, transactions, and securities
- Processes over 40,000 investment portfolios of all types
- Representing more than $10 trillion in assets
- Serves more than 25,000 customers around the world
- Leading banks, asset managers, pension fund administrators, and mutual fund companies

**Notes:**

InvestOne was developed by Sungard, a global leader in integrated software and processing solutions, primarily for financial services and higher education.  SunGard serves more than 25,000 customers (comprised of leading banks, asset managers, pension fund administrators, and mutual fund companies) This includes the world's 50 largest financial services companies so there is a good chance that the trust department where you bank is using InvestOne for holdings of their wealthier clients.  

## Public Debt and InvestOne

- System utilized since 1999 by OPDA
- Borrowings since 2003
- Accounts for approximately 80 credit and non-credit reform funds
- Equates to approximately 9,000 loans
- $238 billion in principal outstanding as of 02/28/2007

**Notes:**
.  
InvestOne has first used in OPDA by federal investments and treasury managed trust funds in 1999

You might be asking why this investment accounting system works for loans and the answer is because a loan is just the opposite side of an investment, 
So with that logic in mind, the Borrowings branch started using InvestOne in 2003.

Now the system accounts for approximately 9,000 loans through approximately 80 credit reform and non credit reform funds and this constitutes around $238 billion in principal outstanding as of 2/28/07

## Features

- Real-time processing, portfolio valuation and cash management
- Flexible to allow addition of new transactions and securities
- On-line access to all data to facilitate decision making
- Automates most accounting functions to increase productivity

**Notes:**
InvestOne is an on-line investment management and accounting system that handles virtually all types of investment portfolios, transactions, and securities.

The system:
     Does its work in real time which allows us to meet deadlines
              (We can input your 9/30 transactions in the system and see the results  
              instantly).
     It has the flexibility to add new transactions and securities
     Provides on-line access to all data to facilitate decision-making
     Automates most accounting functions to increase productivity

## InvestOne the System

- System architecture is Virtual Storage Access Method (VSAM) files, currently moving to DB2
- Operates on IBM Mainframe or Unix platform
- Offers Application Service Provider (ASP) or in-house installed

**Notes:**
The system architecture that InvestOne currently uses is Virtual Storage Access Method (VSAM) files but will be moving to DB2, which is an enhanced version of VSAM.  If you have any questions about this slide we have systems people that could probably answer them better but what I do know is that 
We are currently operating InvestOne on Mainframe but it can be used on a Unix platform as well.

The system is offered as an Application Service Provider (ASP) or in-house installed, we are in-house installed in OPDA

(The advantage of DB2 is that is more fast and flexible, every field is potentially a key) 

(Long Pause)

## Example of CR Borrowing

**Notes:**
Now we want to get into how we use the system to establish new accounts and set up securities on existing accounts.  We first want to show you how we use GWA to get the process started.  This is one of the transactions from GWA that came over on 3/21/07 and we are just going to use this one as an example of a credit reform borrowing.   This is a borrowing from treasury account 12X4212 (Agricultural Credit Insurance Fund Direct Loan Financing).

If we were going to process this transaction, the first thing we want to do is verify the effective date and the maturity date to make sure they are correct.  The effective date should always be 10/1 of the current fiscal year and the maturity date should always be 9/30.  I also want to make note of the cohort year, subcohort year, and the borrowing amount, we will use this information in the following screens.

The next screen we are going to show you is where we would set up this account if it hadn’t already been done.

(move to the next slide quickly)

## Creating Accounts

**Notes:**
And this screen is called the AAAD screen.

This is where we start to define the account and start the process of creating it.

This screen contains general account information, such as the account number, short name which would be 12X4212, various dates, and codes.

The short name is is what will be displayed on some of the batch reports, 
the processing dates would be the inception date – the date the account began, 
balance and scheduled dates – which at the beginning would be the same as the inception date  .... these dates are automatically updated by the system each time a new accounting period is opened

Just to go over some of the codes used ....the Data Source Code – in this example is set to M for manual the other option would be I for interface, 
the Fiscal Year End field – the options are 1 to 12, this tells the system when the year-end will be , in this example the field is 9 for September, 
and finally the transaction generator (on the bottom right)....  it will usually be set to Y which allows the system to automatically generate interest and maturity payments on whatever the payment date is.

There are a few other steps in the process of creating the account but I just wanted to hit the major fields so for now the account is on our books and fund 12X4212 is ready to do business with us.

## User Defined Fields

- Ability to establish user defined fields for accounts, securities, and transactions

**Notes:**
After the account is set up, InvestOne gives us the ability to establish user defined fields.  We can establish user defined fields for accounts, securities, and transactions. In this screen shot here, The AAUD or Account User Definition screen stores the department code and IPAC Pay code for account 12X4212.  In our case we are defining these two fields for our reporting purposes but you could add fields as needed to suit your reporting needs.

## Security Categorization

- Allows hierarchical levels of categorization
- Ability to sort and group reports by category level

- 101 Sub-Cohort has Cohort Years 1992 to 2007
- 17 denotes 101 Sub-Cohort in Invest One
- 1992 to 2007 denotes the actual Cohort Year in Invest One

**Notes:**
Security Categorization is done to identify the subchohorts and cohorts for our reporting purposes and this is done for credit reform accounts only. INVEST ONE allows up to four levels of categorization but we are only using the first two columns, the one on the left is the subchort and the one to the right of that is the cohort year.  If you notice to the right the 101 subcohort is listed there at the top and our corresponding segment or subcohort on our side is in the left column and is 0017.  

## Creating CR Securities

**Notes:**
After we know what our cohort and subcohort information is, we go to the BOBD screen to create the security.  In the security number field, we use the first two and last two digits of the treasury account number to start, followed by the subcohort 101, which we saw on the GWA screen print, then comes the maturity year and finally the cohort year.  Again I want to stress this how we set up this field but you could set it up however you wanted to.

A few of the other key fields here that we enter information into is the segment, we showed you earlier that the 101 subcohort would be identified in the system as 0017.....Beside that, the category would be 2007 for the cohort year and again if you go back to the gwa screenprint you’ll see that this information matches up.  

## CR Security Terms

**Notes:**
After all the necessary information is entered in the previous screen and is done so correctly, hitting enter will automatically prompt you to the BOSB screen shown here.  This is where you would enter your annual rate type, accrual method, and maturity date.  

In this cas the annual rate type is 360R, the accrual method is E, and the maturity date is 9/30/2011.

(Long Pause)

## Comprehensive Accounting Capabilities

- For all industry standard income accrual methods
- Accrual methods are selected by the user at the security level to provide maximum flexibility
- Accruals automatically calculated by the system over any period of time (daily)

**Notes:**
Over the next couple of slides we wanted to touch on accruals.

INVEST ONE has comprehensive accounting for all industry standard income accrual and amortization methods. 

The accrual methods are selected by the user at the security level to provide maximum flexibility and they are automatically calculated by the system over any period of time, in our case daily.

## Accrual Methods

**Notes:**
Here is a  screen print that shows some of the different accrual methods that the system uses.  

The most common accrual method we use is E for Credit Reform and non credit reform will vary depending on the loan agreement.

## Variable Interest Rates

**Notes:**
If we would need to set up a variable interest rate, this is where we would do it, in the DECR screen.   The rate that we input here will be an estimated rate until we receive the actual rate from OMB at the end of the year.  When the actual rate is put in the system, InvestOne will adjust the accruals for us.  

In this example the estimated rated would be 3.93.

(Long Pause)

## Example of NCR Borrowing

**Notes:**
Now I want to shift gears over to a non credit reform borrowing for account 70X4236 and show how we set those securities up.  First we want to look at gwa here and note the transaction amount 50,000,000, for the accounting period 01/2007, the effective date 01/31/2007, and the supplemental information which is the maturity date 01/31/2010, the interest rate 4.50%, and again the loan amount 50,000,000.  

## Creating NCR Securities

**Notes:**
The information we need to enter into InvestOne when creating non credit reform securities will vary from fund to fund and will depend on the loan terms.  

We define the security number a little different from credit reform, we still use the first 2 and last 2 numbers in the treasury account symbol but as you can see there is no subcohort to enter like we did with credit reform. We still use the maturity date to follow and this time we are going to use the rate to define the last field.  

We want to keep in mind when setting up the security, that the rate could be variable or fixed, the accrual method will be different depending on the loan agreement, and the payment terms could be monthly, quarterly, semi annual, or annual whereas with credit reform the payment term is always annual.

## NCR Security Terms

**Notes:**
The next screen here is the BOSB screen again and we will enter in the first coupon date, which in this case I believe we have the first quarter end of the initial borrowing year.  This is also when the first payment is due.  

Take a look at the interest rate field, if the interest rates shows up here on the BOSB screen, then we know that the loan has a fixed interest rate.  If the rate was variable, the rate and the payment dates would be entered on the DECR screen.  In this case here, the rate is fixed at 4.5%.

The payment frequency, there below the interest rate, is set on S for Semi-Annual.  This could be 

We will set up the accrual method, and if I didn’t tell you this already, if you just double click where it says A beside the accrual method, a screen will pop up where you can choose the method that you need.  (pause) We will also enter the issue date, 01/31/07, and the maturity date, 01/31/2010.  

(Pause)

## Transaction Processing

- Efficiently processes large volumes of transactions
- Inbound Messaging Interface
- Outbound Messaging Interface
- Manually Entering Transactions
- Ability to add new transactions, modify, delete, and reverse existing transactions
- Automatic Transaction Generation

**Notes:**
Now that we’ve shown you some of the screens in invest one and how we used them for both credit reform and non credit reform funds, we will move on to show you more of what the system’s capabilities are starting with transaction processing.  

InvestOne can efficiently process a large amount of data through its inbound and outbound messaging interfaces. The inbound messaging interface for us would be GWA download and the outbound messaging would be the standard general ledger reporting in PARS which I’ll show you in the next slide.  To give you an idea of what we mean by large volumes of transactions, FFB had over 13,000 transactions last quarter alone. 
In some instances the transactions have to manually entered to InvestOne and this can be done in the system easily 
We might need to do this 
When we are entering Non Credit reform transactions
When the messaging job breaks down somewhere and we aren’t picking up the transaction from GWA.  
When we have to do an interest adjustment OR
When an agency needs to reverse a borrowing.  

And the last point there, Automatic Transaction Generation I’ll get back to here in a few more slides.
(pause)

## GWA, InvestOne, and PARS

- GWA Download

**In-bound messaging**

**Out-bound messaging**

**Notes:**
This slide shows an overview of the messaging jobs that we’re talking about.  The agency will start the process with their borrowing or repayment transaction in GWA and we have a program that does our GWA download for us and messages this job into invest one or the subsidiary ledger.  Here the borrowing or repayment is processed and messaged outbound to our summary ledger or PARS and from there the information will go out to Treasury Reporting.

## Repair Station

- Edit process for transactional data
- Incomplete transactions for messaged data are held into a pending transaction status
- Held for subsequent review
- Released by authorized operator
- Transactions dated outside of the open accounting period

**Notes:**
If the messaged data is incomplete or there is an error, the data will go to the repair station and can be seen on the (VSPT) screen. They will be held there and will not be processed until the authorized operator makes the appropriate changes to release it from pending status. Most of the time either a security needs created or there is a wrong date that may have been entered.  The two pending transactions here happen to be FFB,account 4521, and the fund manager is just waiting on some information to complete the transaction.  You could actually set the system up where every transaction would go to this station to be verified and released if you wanted to.

(Pause)

## Manually Entering Transactions

**Notes:**
If we needed to manually enter a transaction we go to the TRN7 screen, this screen here is actually the VSTE screen which is a view screen for the TRN7 screen.  For non credit reform accounts, we would us this screen for manually entering borrowings, repayments, and interest adjustments.  

Some of the important fields here would be the external id, where we would enter the GWA control number followed by the transaction date.  This is entered here for auditing purposes. We would enter the borrowing amount if it happens to be a borrowing transaction and in this case it is.   We can also double click beside Tran Code, and select the type, in this case it would be a buy.  

These transaction codes are an important element of InvestOne because......(pause) next slide....

## Transaction Codes

- All transactions processed have a TRAN code
- Codes determine the general ledger effects of the transaction
- Examples:  BUY, SELL, MATU, RBUY, RSELL, RMATU, INT, INT+, INT -

**Notes:**
InvestOne is transaction code driven.  These codes determine the general ledger effects of the transaction.

This diagram shows all the different codes that can be used in InvestOne, but our most common transactions codes are

Buy=borrowing 
Sell=repayment
MATU=maturity (which is system generated)
RBUY=reversal of a borrowing
RSELL=reversal of a repayment
RMATU=reversal of a maturity
INT=interest payment (which like the MATU is system generated)
INT+=interest adjustment to the positive
INT-=interest adjustment to the negative

In borrowings, we can do most of our business with these handful of codes but keep in mind it can be set up however would work best for you.  
(go directly to next slide)

## Automatic Transaction Generation

- Automatically generates predictable transactions
- Generated transactions can either:
- Assume payment on pay date
- Set-up a past due receivable for tracking until payment is received

**Notes:**
A couple of those codes, the MATU and INT transaction codes from the previous slide would be examples of how InvestOne’s design is geared for efficiency by automatically generating predictable transactions. These generated transactions can either assume payment on the pay date or set up a past due receivable until the actual receipt occurs.  The payment frequency and payment terms can be set up on a fund by fund basis.

(pause)

## Real-Time Error Correction 

- Ability to correct an error and the system will re-calculate all values
- Ability to post transactions that occurred in prior periods, but should only affect current accounting periods

**Notes:**
Let’s say somewhere in the process of creating a security we made a mistake and put the wrong interest rate in the system which would throw off our accruals. Since Invest One has the ability to re-calculate all the values in real-time, we don’t have to spend hours making all kinds of adjustments.....InvestOne does it for us.

(pause)

## Integrated General Ledger

- Module that interprets transaction input and automatically creates balanced journal entries
- Chart of accounts flexible enough to accommodate 10,000 different income and expense accounts
- Standard features: trial balances, journal entry inquiries, financial statements, and supporting audit trails

**Notes:**
InvestOne also has an integrated general ledger. 

This is not an interface to a general ledger system, but a module which is intelligent enough to interpret transaction input and automatically create balanced journal entries for you.

The chart of accounts is flexible enough to accommodate 10,000 different income and expense accounts. 

Trial balances, journal entry inquiries, financial statements, and supporting audit trails are all standard within INVEST ONE’s general ledger.

(next slide immediately)

## Detailed Audit Trails

- Audit trails maintained before and after critical activities
- Maintenance activity reported by user, account, security, memo number, or specified date range

**Notes:**
(Slowly)
These audit trails are maintained before and after critical activities so you can see who did what at the most detail level, clear down to a single transaction even. 

(next slide immediately)

## Comprehensive Access Control

- Controls access security at the user and screen level
- Ability to control access to particular functions by user
- Ability to control the user rights within a function (view, update, report)

**Notes:**
(Slowly)
You can also control which users have access to a particular function or whether or not they can view, update, or gain access to reports.  

(VERY long pause)

##   Common User Interface (CUI)

- PC-driven front end to InvestOne, which takes advantage of Microsoft Windows technology
- Dramatically improves the ease of use and ‘look and feel’

**Notes:**
Now we would like to take a few minutes and talk to you about InvestOne’s Common User Interface or CUI.  CUI is a PC-driven front end to Invest One, which takes advantage of Microsoft Windows technology to improve the ease of use and the “look and feel” of  InvestOne.  This screen shot here shows you what it looks like when you first log onto to the system. If you know what activity you want to perform you could type it in beside activity or you could click on activity and choose the activity you want.  

## CUI Features

- Integrated PickLists of valid values by field
- Mouse driven processing
- ‘Click’ between related screens
- User-designed formats for any screen
- User-defined fonts and colors
- User-defined help messages
- User-defined edits and defaults for input data elements

**Notes:**
Here are some of the features that CUI has to offer....
 Integrated picklists of valid values by field to virtually eliminate the need to remember codes
 Mouse driven processing or a simple ‘Click’ between related screens
 User designed formats for any INVEST ONE screen
 fonts and colors that you can change
 help messages
 User-defined edits and defaults for input data elements

(next slide fast)

## CUI Editor Mode

- Ability to:
- Delete fields, move fields, and add static text to screens
- Add field forwarding, edits defaults, data lists, and change the size of any field
- Authorized access to this function

**Notes:**
The CUI editor mode allows users to customize any InvestOne screen.

As you can see in the blue area, users can delete fields, move fields, add static text to screens, add field forwarding, edit defaults, and change field sizes.

The editor mode can be set up so that only authorized users can have access to this function as well.  

Keep in mind you don’t necessarily have to use purple as your background color....

## Customized Menus

- Set of default menus provided for the new user
- Veteran users can skip the menus and go directly to the screen (by command)
- Ability to tailor menus

**Notes:**
CUI provides a set of default menus that will guide new users through all screens in InvestOne.  You can also go directly to the screen you need by typing in a command if you are more familiar with the system.

You also have the ability to develop your own menus if, for example, you want to restrict certain people to certain functions or tailor the system to your existing operation.

## Customized Error Messages

- Set of default messages
- Ability to customize error messages
- To a particular classification
- Give user specific instructions for particular error

**Notes:**
All the error messages in InvestOne are stored on a separate file and the user has the capability to change any of them.

Of course, you can use the default messages that come with the system; but sometimes it helps to be able to customize error messages to adapt them to your particular classification or to give the operator specific instructions for particular errors.

## On-line Help

- Every data element in the system has a complete screen of help documentation associated with it
- Ability to customize or elaborate on the HELP screen

**Notes:**
Sometimes the error message itself is not enough. This is often the case with new users who are still learning. 
For these situations INVEST ONE provides an on-line HELP facility.  If you need more information to correct an error, simply key the word HELP and a screen appears with a full explanation for that error message. 

(long pause)

## Powerful Reporting

- Standard Reports
- Over 300 standard reports available
- Spectra an Integrated Ad-Hoc Report Writer
- Provides the user with quick access to important information displayed in a user-defined format
- Allows user to design, view, print or download an unlimited number of custom reports
- No longer have to wait for overnight processing to see printed results

**Notes:**
One of the most important aspects of InvestOne, and one that has probably helped me save the most time in the functions that I personally perform on a daily basis is the reporting capabilities with CUI spectra.

InvestOne provides over 300 standard reports with Spectra which is the Integrated report writer. Each report is user-requested and produced at any time of day and these can be set up any way that fits your needs so you don’t have to wait for overnight processing to see the printed results. 

In your handouts there is another Spectra slide following this but I just combined them together for the slide show.  

## Spectra Data Requests

- Security Distribution Analysis
- Fund Trend Analysis
- Pricing/Exchange Rate Trend Analysis
- Transaction Analysis
- Spectra includes a consolidated reporting module

**Notes:**
Spectra provides real time user access to several general types of data requests as follows:

Security Distribution Analysis - (this is like the balance sheet of a fund or group of funds as of a certain date)
Fund Trend Analysis -
Pricing and Exchange Rate Trend Analysis – 
Transaction Analysis - (this is like an income statement for whatever period you define)

It also features a Consolidated Reporting module, which lets you run reports across the various data types defined above. We use the consolidated reporting tool for the monthly reporting that we post to our website.  

## Distribution Reporting

**Notes:**
Here are a couple of simple examples of a couple of the reports.  The first one is a distribution report on account 11X4137.........
This shows the balance of each cohort year within the DEBTRD sub-cohort the rate for each year, the balances, as well as the interest earnings on the right.  

This is just one example of a fund that we could fit on the screen and one that you should be able to see on your handouts,  but keep in mind the flexibility that you have to build these reports however you wanted.

## Transaction Analysis Reporting

**Notes:**
The next report is an example of what our transaction analysis (or Trans) report looks like. 
The totals represent the repayments and the interest income for the month of March up through the 28th.

There are actually two separate transactions here, the TRAD sub-cohort had a repayment for 80,122 on March 23rd  and the SUPP Sub-Cohort had a repayment for 12,654 on March 26th.   

Again this is very simple example, you could customize the report to show just they buys, just the sells or filter out by memo numbers, so you have many options on how to set the reports up and InvestOne makes it extremely easy to accomplish that.

## Reporting Capabilities

- Spectra Data Request Displays:** **
- Text to Screen
- Text to Printer
- Pie Chart
- Bar Chart
- Text to File

**Notes:**
This is just one example of a bar chart displaying our credit reform borrowings for the month of March.  

The data request displays could also be set up to be:
 Text to screen
 Text to Printer
 A Pie Chart
 Or Text to File (where you can open up in excel if you wanted to)

The smaller screen print there behind the graph would be the screen where you can format and sort the information that you want displayed.
In a matter of seconds you can have a report formatted exactly the way you need the information to appear.

(Long Pause)

## InvestOne Enterprise

- Enhanced data access and dissemination, improved workflow, and new reporting capabilities
- Utilizes a browser-based architecture for accessing data via an Internet/Intranet client workstation
- Data-driven architecture that helps users to customize the application around their particular needs
- Drill-down feature
- Data dictionary and data extraction with formulas
- Ability to create fields and add logic
- Public Debt to implement in 2nd Quarter Fiscal Year 2008

**Notes:**
Finally the want to talk about the future of InvestOne, which is InvestOne Enterprise.  

Invest One Enterprise has enhanced data access and dissemination, improved workflow, and new reporting capabilities
It Uses a browser-based architecture for accessing data via an Internet/Intranet client workstation
A new Web-based portal designed to give the fund accountant access to tools required to support the fund accounting process – whether that functionality is housed in InvestOne or in other applications. 
It provides support for Web-based functions like search, help, and favorites that help simplify navigation for users.  
Public debt is on target to implement Enterprise by the 2nd Quarter of Fiscal Year 2008.

## Question and Answer

**Notes:**
This concludes Borrowings InvestOne information sharing session and I would like to open the floor up to anyone who has any questions at this time.