# Presentation: 162580

## Automated Accruals, VIAS Adjustments, and Manual Costs

- FY07 Financial Statement Workshop Presentation

## Automated Accruals
VIAS Accrual Adjustments
Manual Costs
What can you do?

- Automated Accruals
- VIAS Accrual Adjustments
- Manual Costs
- What can you do?

## I.  Automated Accruals

- Auditors were generally satisfied with the automated accrual process in FY06 and there were no findings released in this area.
- In Feb-07, the automated accrual program generated $249M of accruals on over 5,000 purchase orders.
- Improvements slated for FY07 include adding Reimbursable Work Funds, 00911 Funds, and PP&E Object Classes to the automated accrual parameters.

## I.  Automated Accruals...

- Refinement of parameters by Award Type needs to be completed by June 2007.
- Accrual=Daily Pmt Rate*Billing Cycle Factor.
- Current Billing Cycle Factors for Major Awards Types:
- DEAC (Contract) = 42 Days
- DEFC (Cooperative) = 54 Days
- DEFG (Grant) = 31 Days
- MISC (Miscellaneous) = 61 Days

## II.  VIAS Accrual Adjustments

- In Feb 2007, approximately 300 purchase orders were adjusted for additional accruals of $65M.
- In Feb 2006, there were no VIAS adjustments.
- All allottees are now participating to varying degrees except PNR and SNR.

## VIAS Accrual Adjustments...(Feb 2007 Activity)

| Allottee | Count of CID |  Sum of Total  |
| --- | --- | --- |
| 01 | 15 |  $      (1,786,813.24) |
| 02 | 6 |  $          404,556.44  |
| 30 | 3 |  $          479,567.25  |
| 31 | 214 |  $     (28,813,519.93) |
| 32 | 1 |  $           (99,372.08) |
| 33 | 28 |  $     (29,735,365.45) |
| 34 | 2 |  $      (1,390,384.83) |
| 35 | 1 |  $           (90,000.00) |
| 37 | 8 |  $          628,587.58  |
| 60 | 13 |  $      (4,161,879.02) |
| Grand Total | 291 |  $     (64,564,623.28) |

## II.  VIAS Accrual Adjustments...

- Your primary challenge is in continuously educating the VIAS user community on their new responsibilities.
- In FY06, auditors found unsupported VIAS user adjustments in a small HQ sample.
- In FY07, heavy audit scrutiny is anticipated and auditors will be reaching out to our respective program customers to validate adjustments and zero adjustments.

## III.  Manual Cost Entries

- These entries should not be reversed and are provided to EFASC each month.
- Any Purchase Orders placed on the PO Exclusions List require a cost report to be submitted to EFASC each month.
- ORFSC will not generate cost entries for items on the PO Exclusions List.

## III.  Manual Cost Entries...

- It is very important to run IDW and/or STARS reports to verify that your cost report submissions were recorded accurately and in the proper accounting period.  This was a finding in FY06 and the auditors will be looking closely at this as part of their follow-up procedures.

## IV.  What can you do?

- Verify that EFASC cost report entries were input accurately and in the correct period by using existing IDW and STARS reports.
- Use the Abnormal Balance Report for AP categories on a frequent basis.
- Use the 2108 Certification Standard Operating Procedures

## IV.  What else can you do?

- Use the DOE Accrual QA report – available in STARS GL Inquiry – to identify high profile Purchase Orders (Uncosted Balances) and associated VIAS activity.  This report should be used to sample the VIAS activity to ensure that users understand their responsibilities.
- Contact is g_[eoffrey.smith@hq.doe.gov](mailto:eoffrey.smith@hq.doe.gov)_,      CF-12.2, 301-903-2729