# Presentation: 323862

## Reimbursable Process

**Report to Code C Management Team**
**January 20, 2004**

## Membership

- Sharon Mathis (Executive Sponsor)
- Don Nickison
- Karen Gentry
- Kathy Giffin
- Fran Jonasson
- Pat Crooks
- Kris Robles
- Karen Tambua
- Marissa Travers
- Kim Washington
- Herb Finger (Facilitator)

## Rules of Engagement

- SAP will not change
- Software capability and configuration are fixed by HQ/Competency Center and changes are too slow to effect our effort
- HQ _can_ change
- Change must be “reasonable”
- Tom Moyles will have to be our advocate
- Ames _can_ change
- Should be our primary focus
- We will advocate to Code C Management (and beyond?)
- FOCUS ON THE IDEAL PROCESS

## Reimbursable Process

- Acceptance

- Budget
- Execution

- Sales Order
- Processing

- Cost
- Management

- Billing

- Collection

- Reporting

- Budget
- Formulation

- Refunds

- Closeout

## Budget Formulation

- CFG (Karen)
- receives
- Reimbursable call
- from HQ

- Call
- forwarded to
- Directorates

- Individual Org
- send Reimbursable
- estimates thru
- Directorates to CFG

- _Customer detail_Air ForceNavyState of CaliforniaD.O.T.Commercial

- CFG
- generates
- POP
- w/ detail

- POP
- emailed
- to HQ

- Reimbursable POC
- Mission Directorates

- POP
- emailed
- to RMO

- CFG
- responses to
- questions

## Recommendation #1

- Recommendation
- Establish Reimbursable Team responsible for all aspects from Budget Formulation through Execution
- Currently 4.5, add 3.0 prior NSSC, 1.0 less after NSSC
- Origin of Requirement
- Local
- What it accomplishes
- Concentrates knowledge and expertise in a single area
- Reduces BF calls to Directorates and performing orgs
- Enables team members to back each other up and/or assist during “crunch” periods
- Impacts (Risks)
- Need to make sure that the “separation of duties” rules are not violated
- Training to ensure all team members can efficiently carry out all duties
- Whose action
- Code C Mgmt

## Recommendation #2

- Recommendation
- Ensure Corporate G&A and Contract Administration are included in Ames Budget System
- Origin of Requirement
- Local
- What it accomplishes
- Allows Full Cost build up of all reimbursable orders
- Impacts (Risks)
- If not currently in software design, may lengthen the ABS development schedule or push to version 2
- Whose action
- Code CS development team

## Recommendation #3

- Recommendation
- Have Reimbursable Budget Formulation take single path to NASA HQ
- Current one goes directly to Mary Ellen Wirsing, the other through RMO
- Origin of Requirement
- Local
- What it accomplishes
- Reduces workload
- Provides consistent response to HQ
- Impacts (Risks)
- May be hard to implement
- Whose action
- Code C Mgmt

## Recommendation #4

- Recommendation
- Press HQ to create a consistent (documented) BF process year after year
- Origin of Requirement
- HQ
- What it accomplishes
- Enable centers to plan for reimbursable submission
- Forces HQ (ISO Certified) to execute their process
- Impacts (Risks)
- Someone at HQ actually uses the data to make a decision
- Whose action
-  Code BF HQ

## Recommendation #5

- Recommendation
- Reduce the amount of detail required for Reimbursable Budget Formulation
- Less customer detail (move to “Federal, other government, commercial)
- Plan to the 5-digit level only
- No variance requirement (currently variance from last year required)
- Origin of Requirement
- HQ
- What it accomplishes
- Eliminates a requirement to provide information that is a “guess”
- Reduces the effort to a reasonable requirement
- Impacts (Risks)
- Someone at HQ actually uses the data to make a decision
- Whose action
-  HQ

## Acceptance Phase

- Negotiation
- Between
- Customer
- & Perf. Org.

- Estimated Price
- Report by
- Perf. Org.

- Who is it from; who is it for
- WBS / BLI
- Full cost distribution
- Period of performance

- Request
- EPR
- from Perf. Org.

- Request
- Signatures
- from Perf. Org.

- Should include
- WBS Request

- CFG
- Request
- WBS
- from CC

- Code CF Process

- Includes G&A
- but no ASP

- Agreement
- w/ 2 sigs?

- No

- Yes

- SAA?

- No

- Yes

- Wait for
- vendor check -
- advanced payment
- required

- Legal AuthorityCan be Fixed Price, IDIQ, or Cost PlusShould include Support Agreement

- Collection Processor receives check and copies Reimbursable Specialist

- SAA	= Space Act Agreement
- MIPR	= Military Interdepartmental Purchase Request
- IAA	= Inter-Agency Agreement
- EULA	= Enhanced Use Lease Agreement
- EPR	= Estimated Price Report

- MIPR?

- No

- Yes

- Reimbursable
- Specialist
- sends Letter of
- Acceptance

## Recommendation #6

- Recommendation
- Add Estimated Price Report (EPR) and WBS Request to Commercial Technology agreement templates
- Origin of Requirement
- Local
- What it accomplishes
- Ensures that submitters provide EPR early in process to reduce delays
- Brings resource folks into agreement at an early stage
- Impacts (Risks)
- Routing for EPR is different from SAA and will have to be clearly identified
- Whose action
- Code C, Code EP

## Recommendation #7

- Recommendation
- Automate routing of SAA, IAA, EULA, etc.
- Automate routing of EPR and WBS request
- Origin of Requirement
- Local
- What it accomplishes
- Eliminates a slow manual routing process
- Enables parallel routing where appropriate and enables tracking
- Some information only “stops” would no longer hold up the process
- Impacts (Risks)
- Electronic signatures (PKI) or another tool would have to be enabled
- Training of individuals in the e-signature technology
- Whose action
- Code EP, Code C, and Code JT jointly -- possibly DL

## Recommendation #8

- Recommendation
- Add Technical Contact’s Name (printed), Phone, and Email to EPR and WBS form
- (Not needed if electronic routing is implemented)
- Origin of Requirement
- Local
- What it accomplishes
- Provide clear indication of who signed and how to contact them if there are questions
- Impacts (Risks)
- Need to modify form and distribute
- Whose action
- Code C, Code EP

## Recommendation #9

- Recommendation
- Eliminate the Support Agreement for EULA (Commercial tenants)
- Origin of Requirement
- Local
- What it accomplishes
- Eliminates a document that seems to be no value added
- Not needed by tenants nor Code E
- Impacts (Risks)
- Does CFO office need it?
- Whose action
- Code C management

## Recommendation #10

- Recommendation
- Collect “taxes” (Corporate G&A, etc.) up front, but do not distribute until Reimbursable funds are costed
- Origin of Requirement
- Local
- What it accomplishes
- Full Cost refunds would be able to be done without a major effort
- HQ gets the funds they are entitled to, but not what they shouldn’t
- Impacts (Risks)
- Process for pooling the taxes will be required
- Whose action
- Code C management

## Recommendation #11

- Recommendation
- Create a standard process that notifies Performing Org that checks have arrived from customers
- Origin of Requirement
- Local
- What it accomplishes
- Enables Performing Org to verify with customer that all requirements are in place
- Impacts (Risks)
- Some minor workload addition
- Whose action
- Code C management

## Budget Execution

- received from
- C.C.

- Reimbursable Spec
-  enters
- into SAP

- Reimbursable Spec
- distributes $$ in
- accordance with
- Est. Price Report

- Reimbursable Spec
-  notifies
- G&A Analyst and
- Performing Function

**Budget Execution**

- BLI Authority usual arrives 80% during CR Period

- Reimbursable Spec
-  notifies
- Sales Order
- Specialist

- Fund Reservation Number

## Sales Order Processing

- Completed
- Sales
- Order

- Receive
- copy of Agreement
-  & EPR from
- Reimbursable Spec.

- Get Customer
- info from
- Norma?

- Create
- New
- Sales Order

- Enter
- Sales Order
- data

- Only have one contact person who has access to input new customer’s into SAP. Other person is not trained for this transaction.

## Cost Management

- Direct
- Citing

## Billing

- Get Monthly
- “Actuals” from SAP

- Must be completed during the first 2 working days of the month

- Complete
- Sales Order
- Billing Process
- in SAP

- Mail out
- bills
- to customer

- Complete
- Sales Order
- Liquidation Process
- in SAP

- Mail out
- status update
- to customer

- Day 1

- Day 2

## Collection

- Check / IPAC
-  sent to
- Collection Agents

- Collection Agent
- enters in
- Collection Log

- Copy of check
- sent to
- Sales Order Spec.

- Deposit Processor
- deposits check
- in Credit Union

- Sales Order Spec.
- applies
- $$$ to sales orderin SAP

- For Collection, there are _two_ persons who handle this process.
- Norma handles the processing IPAC to be sent out to customers and also receiving IPAC’s from other government agencies. She also gives the Sales Order Specialist copies of all the checks which have been recorded into the Collection log.
- Leo is responsible for recording IPAC’s received for other government agencies and posting them into the collection log  for SAP. Also, responsible for giving the Sales Order Specialist copies of all IPAC’s received.

- CFS person handles is function

## Refunds

_**Refund Customer Down Payment in Suspense**_
**STEP 1:****	****The posting of the down payment in suspense must be reversed out by the Center.**
**STEP 2:****	****The cash should be posted as a collection of cash into Accounts Receivable against the customer that requires a refund**
**STEP 3:****	****If the customer is non-federal, the refund process requires the creation of a payment proposal in SAP whereby the Treasury will issue a check to the customer. A payment method of “5” will be required to be entered on the collection document. The payment proposal will automate the appropriate cash out postings and post them into SAP.**
** **
**	****If the customer is federal, the user will refund the money through the manual IPAC system. The user will then create the cash out postings in SAP. The postings are provided later in this document.**
_**Refund of Down Payment through IPAC**_
**STEP 1:****	****Clear the liquidation documents that are linked to the down payment document and setup the refund **
**STEP 2:****	****Create the cash refund document **
**STEP 3:****	****Process refund through the manual IPAC Process **
_**Refund of Down Payment through the Treasury Payment Program**_
**STEP 1:****	****Clear the liquidation documents that are linked to the original down payment document and setup the refund **
**STEP 2:****	****Setup the down payment document that has NO LIQUIDATIONS for the refund. **
**STEP 3:****	****Update customer master for refund to be handled by the Treasury Payment Program **
**STEP 4:****	****Process Treasury Refund by creating the Payment Proposal for Treasury**

- After doing one of these three procedures, a problem will arise either on the GL side of the house or Accounts Payable side of the house making it hard to get a refund processed.
- The procedure for doing a _Treasury payment_ needs to be reevaluated. The other two process work reasonably well.
- Problem occurs when there have been liquidations processed against the down payment.

## Close out

- After the end of each fiscal year, the expired sales orders are reviewed and a letter sent to the program/project manger for completion sign off.
- Upon receipt of the letter, FMD closes the WBS and generates refunds if necessary.
- The close date is entered to the sales order in SAP and also to the close out file.

## Reports

- Monthly

## Recommendation #12

- Recommendation
- Create web site with IFMP reports (with description) by area of interest(e.g.: reimbursable, DSP, labor reporting, etc.)
- Origin of Requirement
- Local
- What it accomplishes
- Ensures entire user community has necessary (and common) BW and SAP reports -- everyone on the same page
- Eliminates each individual creating reports that already exist
- Impacts (Risks)
- Some work to identify what reports target what groups
- Whose action
- Code CS

## Recommendation #13

- Recommendation
- Semi-annual Report of Payments Accepted from a Non-Federal Source (In-Kind Travel) be processed and prepared by travel personnel.
- Origin of Requirement
- Local
- What it accomplishes
- Streamlines the reporting process to be consistent with travel regulations.
- The report does not exist in the current processes in regards to the receipt of reimbursable budgets.
- Impacts (Risks)
- Transfer workload to appropriate person(s) in travel.
- Whose action
- Code CF

## Issues

- Need consistent (predictable) G&A and ASP Rates
- Center management needs to honor promise to hold institutional costs to current level plus inflation
- Process needed for accounting and tracking Reimbursable funds transferred in ASPs or G&A (expiring funds)
- Pseudo codes are needed for Reimbursable WBSs
- Clear guidance needed for restrictions on commercial reimbursables
- Why do non-government $$$ have an expiration date
- Do EUL fund expire (depends)
- Reimbursable Travel must be invoiced before the expiration date
- May not be easily achieved
- Still awaiting O-CFO approval of changes to cost recovery method - distribution of Fringe, etc.

## Issues (cont.)

- FMM is out of date
- FMR does not yet include Reimbursable guidance
- Bills to customer (from SAP Sales Order) do not show details
- Customers call wanting more information -- workload
- CF will create a process to direct to the Technical POC
- Sales Order Condition Type is very detailed
- Creates extra Sales Order transactions to match actuals vs. planned
- More people needed
- Funds adjustments very problematic in Sales Order module
- Moving funds from CS labor to contract labor for example
- SAP Issue
- WBS delayed because it needs to go the Competency Center
- Can be 3-4 weeks sometimes (especially at year start-up)

## Issues (cont.)

- Assessments (G&A, ASP, Labor) need to be timely
- Before the end of the month to make it into Billing
- Billing & Liquidation must be completed in the first 2 days of the month (C.C.)
- Billing takes about 9-10 work-hours
- Need more people
- BW Reports are still in the learning stage
- Same with SAP
- In FY05, Wind Tunnel Pool can’t bring reimbursable into CS Labor Pool -- problem
- MIPR & IAA may not cover Labor, ASP
- Most Federal Agencies are NOT Full Cost (may lose customers)

## Issues (cont.)

- Two week delay for a new WBS to be available in WebTADS
- Cannot go back and correct
- If Reimbursable Labor charges exceed budget WebTADS upload to SAP shuts down
- Data transfer from SAP to IPAC (for refund) is manual
- IPAC - Interagency Payment and Collection
- Need more people or get automated
- Norma is a single point of failure in the Sales Order Process
- Only one who can add a customer to SAP
- Need more people
- Only 5 people have the role of Budget Maintainer
- My, Dan H,, Ron L., Mildred, and Karen
- Need to increase number of roles or improve distribution