# Presentation: 086527

## Improving 

- USDA – OCFO
- Controller Operations Division (COD)
- IPAC Control Branch (ICB)
- May 25, 2004

**Improving **
**IPAC Processing**
**Presented by: Charles Kyser**

## COD-ICB - IPAC Services

- The USDA-Controller Operations Division (COD) IPAC Control  Branch (ICB) processes IPAC payments and collections for most USDA agencies.
- ICB acts as a “middleman” between its USDA customer agencies           and IPAC.
- COD-ICB services 18 separate USDA ALC’s.
- ICB assures:
-            1. Cash reconciliation for IPAC transactions,
-            2. 100% processing of all IPAC transactions, and
-            3  Accurate IPAC suspense balances in the GL.

- Improving IPAC Processing

## COD-ICB - IPAC Services (cont.)

- Submits bills through IPAC for USDA customer agencies
- Works with USDA and other Federal Agency personnel to clear unprocessed bills
- Seeks new ways to improve efficiency in IPAC processing

## The Problems

- Improving IPAC Processing

**The Problems**

**    *****  Paper, Paper Paper     *    Telephone Calls      *         Faxes                             **
**    *****  Invalid MO’s         *    No MO’s provided         *    Charge-backs****	**
**    *****  Begging for MO’s    *      Insufficiently funded MO’s**
**    ***** Locating agency contacts   *    Invalid MO dates     **
**    *****  Invalid Vendor Codes on MO’s    *    More Telephone calls**
**    *****  Manual Entry of documents**
**  **

*V****alid Reference data is needed for each IPAC bill . . .***
*       **However, most of the time, it just isn’t there. . . . *
*             **resulting problems include . . . . .*

***Processing IPAC Bills can be costly!***

## IPAC Suspense - Changes

- New Process:   For bills received . . .
- Suspense entry will _not_ be made for all bills.
- Suspense entry is made only if valid chargeable reference                  data is unavailable upon receipt of bill.
- Suspense entries are made for each IPAC transaction line item without valid reference data.
- DD Generator (DD GEN) is the new system to be used.
- New process is partially implemented, currently used       for GSA FEDSTRIP bills.

- Improving IPAC Processing

## Current vs. New Process

- _New Process_
- Suspense entry is _not_ made for all bills received.
- IPAC record is loaded to automated system and can  process automatically.
- Suspense entry is made _by line item_ only when no valid accounting is present.

- Improving IPAC Processing

- _Current Process_
- Suspense entry is made for all bills received.
- Manual analysis and data entry is necessary for _all_ bills.
- Suspense entry is made for _entire_ bill amounts.

## “Eliminating IPAC Suspense” The DD GEN Concept

- Suspense entries are made only for rejects.
- IPAC charges are processed on a clone DD document  (OD), without manual intervention.
- ICB personnel manually _work rejects only_.
- It is a USDA-OCFO initiative to eliminate IPAC suspense                    and manual processing.  To accomplish this, we are                    working with Vendors to put DRN’s on all IPAC bills.

- Improving IPAC Processing

*“****Eliminating IPAC Suspense”***** ****The DD GEN Concept**

**X**

-   Automated processing of IPAC bills upon receipt.
-       Load the IPAC file directly to DD GEN, theoretically, NO PAPER!

- 12F3885

- X

## The Perfect IPAC World

- Improving IPAC Processing

**The Perfect IPAC World**

**The USDA Customer Agency. . .**
**    **
- Establishes an MO in FFIS and
- Provides MO as billing reference data to vendor.
**The Vendor Agency . . .**
- Submits charge through IPAC, with USDA	                             reference data in the correct IPAC field.

## The Perfect IPAC World (cont.)

- Improving IPAC Processing

**The Perfect IPAC World (cont.)**

**USDA-COD-ICB . . .**
- Downloads IPAC bills from IPAC and uploads to DD GEN.
- OD’s (DD clones) are created, with no manual efforts, applying charges to existing obligations.
**No manual processing effort, same day processing . . . .**
-  ***                       ****** ******THE PERFECT IPAC WORLD! ***

## Details

- Improving IPAC Processing

**USDA Customer Agency / Procurement Personnel Must Do the following: **
- Establish an MO in FFIS prior to ordering.
- Assure the Vendor Code is correct for Vendor ALC.
- Assure the MO is sufficiently funded.
- Whenever possible, limit the MO to one line.
- Provide the Obligating Document Reference Number **(DRN)**                                     to the Vendor upon ordering.
-         The **DRN** is the Transaction Code and Document Number, followed by a pound sign (#), and the line number, i.e. MO43456#001 (no spaces).

## Details (cont.)

- Improving IPAC Processing

- Instruct the Vendor Agency to include this DRN on the IPAC bill.
- Instruct the Vendor agency to input your DRN in the Purchase Order Number field of the IPAC bill.
- If  multiple lines from an  MO, or multiple MO’s are chargeable, instruct the Vendor agency to put multiple DRN’s and amounts on separate IPAC bill detail lines.  _ONLY_, if this is not possible, request multiple DRN’s be put in the Transaction Description field of the IPAC bill.
- Instruct the Vendor agency to include your name and telephone number on the IPAC bills as a point of contact.
*See OCFO bulletins included in handouts for further details.*

## DD GEN Implementation

- Improving IPAC Processing

_**March 2004 **_
- GSA FEDSTRIP (FEDS) bills were loaded to the DD Generator.
_**December 2004**__** **_
- GSA FTSP (Federal Telephone Charges) and MPOL (Motor Vehicle Lease Charges) will be processed through the DD GEN system.   The old NFC FTSP and MPOL systems will be shut down.
_**FY 2005**_
- Other types of bills will be brought into DD GEN on a TBA schedule.
-       **Note:**  In order to realize the full benefits and cost savings possible from implementation of DD GEN, cooperation is needed from Federal Vendor Agencies to put the USDA Obligating Document Reference Numbers in the appropriate IPAC bill reference field.

## CY 2003 IPAC Statistics 

- Improving IPAC Processing

- CY 2003 IPAC Statistics
- (Statistics are based on 18 ICB-COD Serviced ALC’s)

**39,390   IPAC Bills were Received (approximately 3,200 per month) **
**  ****3,213   Charge-backs of IPAC bills were issued**
**25,330   IPAC bills were initiated/generated**
**        ****5,136     ALC Transfer bills were generated by ICB**
**      ****20,194  * New Bills were issued by Agencies, using the following mechanisms:**
-                      7,064  using IBIL
-                      7,459  using FFIS Direct entered BD documents.
-                      4,688  using PCAS
-                         609  using the PPQ-FFIS Interface (special interface system used only by APHIS)
-                         374  using SUBI (special interface system used only by OCIO)
-     *Of  the new bills issued by agencies, 12,017 bills were between USDA agencies which represents 59.5_%_ of  all bills issued.  * (This does not include over 3000 Intra-USDA bills                 created to distribute central charges from ALC 12-40-0001 to other USDA ALC’s .)*

## Intra-USDA IPAC’s

- Improving IPAC Processing

_**Correcting the Problem**_
- Obtain the DRN (MO and line number) from customer.
- Follow procedures that will assure the DRN is on the IPAC bill.            *(See OCFO Bulletins.)*
- Choose IBIL as the method for issuing IPAC bills whenever possible. IBIL provides more efficient processing on both sides of the bill.

**ICB**

_**The Problem**_
- There is a large volume of Intra-USDA IPAC Bills.
-      * **(Over 1⁄2 of the IPAC bills issued are Intra-USDA)*
- Majority of bills **DO NOT** contain the customer agency MO.
- ICB is stuck in the middle, and must perform research, input chargebacks and/or mediate to obtain information.  The process is costly.

## COD-ICB 2004 Initiatives

- Improving IPAC Processing

- Educate USDA personnel to create _CLEAN_ obligations for IPAC transactions.  *(Clean obligations are defined as single line, adequately funded MO’s with the correct Vendor Code.)*
- Work with Federal Vendors to include USDA DRN’s in the Purchase Order Number field on every IPAC bill.
- Work with USDA Vendors to meet the needs of all Federal Agency customers.  This will reduce chargeback transactions.
- Work with agencies to use IBIL for IPAC billings instead of direct entry BD documents.

## Reminders . . .

**Reminders . . .**

- Improving IPAC Processing

- Ensure procurement personnel properly provide DRN’s (i.e. MO and line number) to vendors.
- Download OTRS Unprocessed Bill reports from                             the NFC Reporting Center.
- For bills older than 14 days, contact ICB with DRN or MO data necessary for processing.

- To improve current IPAC processing and reduce suspense, agencies should continue to  . . .

## ICB IPAC Contacts

**ICB IPAC Contacts**

**Charles Kyser, **ICB Branch Chief
-                (504) 426-5082
-                charles.kyser@usda.gov
**Eddie Reso, **IPAC Control Section Supervisor (ICS)
- 		 (504) 426-5064
-                 eddie.reso@usda.gov
**Esther Wood, **IPAC Processing Section Supervisor (IPS)
- 		 (504) 426-5094
-                esther.wood@usda.gov

- Improving IPAC Processing

## Documents Provided 

**Documents Provided **

- Improving IPAC Processing

- IPAC related Bulletins and other documents have been provided, in the handouts, and are divided into four categories:
- Billing and Collecting Through IPAC
- Procurement / Payment Activity / Clearing Suspense
- General Intra-Governmental Transaction Regulations
- Draft Bulletins to be Issued

## Questions?

**Questions?**

- Improving IPAC Processing