# Presentation: 207850

## 
SF224 Centralization Project 

Speaker – Mike Goodwin
304-480-5311

_***SF224 Centralization Project***_* *
- Speaker – Mike Goodwin
- 304-480-5311

## GOAL

Report Federal Investment Activity Processed by Public Debt on a Single SF224

 WHY

Improve the Overall Quality of Receipt and Disbursement Classifications
Potential Savings for Agencies
Standard Reporting Rules for Most Investment Funds
Facilitates Move to Governmentwide Accounting and Reporting (GWA)
Provide Better Government Wide Contingency

- Report Federal Investment Activity Processed by Public Debt on a Single SF224
-  _**WHY**_
- Improve the Overall Quality of Receipt and Disbursement Classifications
- Potential Savings for Agencies
- Standard Reporting Rules for Most Investment Funds
- Facilitates Move to Governmentwide Accounting and Reporting (GWA)
- Provide Better Government Wide Contingency

_***SF224 Centralization Project***_* *

**Notes:**
Goal – We want to centralize all investment activity into one reporting entity at BPD.  We feel like there is a good opportunity to leverage our systems and  handle this monthly reporting task for our customers not only because it makes sense but because it can save our customers money.
Why – 
Quality – Today there are many possible points of failure.  229 points to be exact.. And each month brings opportunity for error and reconciliation costs.  Reconciling your investment activity with the 6653 shouldn’t be a time consuming event.  One source for reporting means one possible point of failure.
Savings – With BPD being the single point of reporting that means Agencies will be able to spend more time on other tasks and priorities.
Standardization – The rules for reporting are fairly uniform and standard.  The rules for classifying disbursements and collections vary with the type of fund an agency has... e.g. Trust (4000) Special (5000), etc.  
GWA – is on the way... and with that is the elimination of the 224.  It is a natural transition to go from reporting your 224 activity for you to reporting your daily GWA reporting for you.   One leads to the other.  
Contingency -  Continuity of operations is important to us.  Instead of having 229 agencies to that have to deal with contingency situations, why not let BPD handle the reporting and manage the information flow.  Our systems and procedures are the foundation for our plan.

## BACKGROUND BY THE #’s

78% of Agencies Surveyed Say their SF224 Reporting is Done Manually 
22% are Automatically Generated from Internal Systems 
McKinsey & Co. – Federal Government Could Save $ by Centralizing Reporting 
90% of Agencies Surveyed Either Support Centralization or are Open to the Idea

 EXPERIENCE SO FAR 

Public Debt Handles SF224 Reporting for 7 Investment Funds Today 
Improved Reporting
Foundation has been Built (i.e. FedInvest and InvestOne)

- 78% of Agencies Surveyed Say their SF224 Reporting is Done Manually
- 22% are Automatically Generated from Internal Systems
- McKinsey & Co. – Federal Government Could Save $ by Centralizing Reporting
- 90% of Agencies Surveyed Either Support Centralization or are Open to the Idea
-  _**EXPERIENCE SO FAR**__** **_
- Public Debt Handles SF224 Reporting for 7 Investment Funds Today
- Improved Reporting
- Foundation has been Built (i.e. FedInvest and InvestOne)

_***SF224 Centralization Project***_* *

**Notes:**
We conducted a survey of our customers and asked them about their current reporting process for the 224..
Talked with representatives from 42 Agency Location Codes (equates to @100 accounts) and asked them how their current 224 process works.  Manually creating 224 vs. automatically creating 224’s from their internal systems..  Overwhelming majority manually create their 224 and transmit it via the online process to FMS.  Minority have their 224 automatically created from their system and subsequently transmit a file via the bulk file transmission process.
BPD participated in an internal study that was managed by McKinsey and Co.  Federal Investments program was reviewed among other programs within BPD.  It was estimated that if BPD centralized the 224 reporting process that it could potentially save the government a couple of million dollars.  When asked during the survey whether or not agencies would support or be open to the idea of centralization, the large majority of folks said they would be.  

So far – BPD has franchise agreements with 7 investment accounts to handle SF 224 reporting.  Customers are satisfied that we are providing the service they expect and that our reporting of their activity is accurate and timely.  BPD cornerstone systems are InvestOne and FedInvest.  These two systems are stable and mature enough to handle the reporting for all 229 of the Investment accounts.   

## AUTHORITY 

Mandate from Treasury
Work with Financial Management Service to Update Treasury Financial Manual (TFM)

 SHORT TERM PLAN

Convert Customers Interested Now
Convert Most Customers by October 2005 Reporting Cycle
Delay Implementation for Customers with System Issues
Report for all Customers by January 2006
Pilot with FMS using GWA

- Mandate from Treasury
- Work with Financial Management Service to Update Treasury Financial Manual (TFM)
-  _**SHORT TERM PLAN**_
- Convert Customers Interested Now
- Convert Most Customers by October 2005 Reporting Cycle
- Delay Implementation for Customers with System Issues
- Report for all Customers by January 2006
- Pilot with FMS using GWA

_***SF224 Centralization Project***_* *

**Notes:**
Treasury has given us their blessing to pursue this initiative.  In addition we will be working with the Financial Management Service to get the TFM updated to reflect the new procedures for Federal Investment reporting.

Short Term Plan is to sign up interested customers between now and when the new process will be implemented.  Our goal is to convert most of all customers by the October 2005 reporting cycle.  We will need to talk with those customers that have significant investments in their current process and work out a solution for converting those folks as well.  Implementation for these customers will be delayed however, our goal is to have all customers converted by Jan. 06.  All the meanwhile, we are getting geared up for GWA and the daily reporting requirements that will be needed for that FMS system.  The SF224 centralization project is a natural transition into our long-term plan of handling all Federal Investment reporting for GWA when required.  

## LONG TERM PLAN

Discontinue Reporting SF224 to FMS Sometime in 2006
Begin Reporting Daily Transactions to GWA 

CONSIDERATIONS

System Changes - Customer
Oddball Transactions (Zero’s and TIPS) -  Public Debt and Customer
Receipt and Disbursement Transactions not Handled by Public Debt - Customer
Financial Reporting and SGL 1010 (Cash) - Customer

- Discontinue Reporting SF224 to FMS Sometime in 2006
- Begin Reporting Daily Transactions to GWA
_**CONSIDERATIONS**_
- System Changes - Customer
- Oddball Transactions (Zero’s and TIPS) -  Public Debt and Customer
- Receipt and Disbursement Transactions not Handled by Public Debt - Customer
- Financial Reporting and SGL 1010 (Cash) - Customer

_***SF224 Centralization Project***_* *

**Notes:**
Our Long term plan really follows the GWA project timeline for eliminating sf224’s and replace with daily fund symbol reporting to GWA.

Some key considerations include system modifications (customers) to accommodate the responsibility change, Oddball transactions that require different than the norm reporting rules for the SF224.  These oddballs include specific securities such as the Zero’s and TIPS securities.  Transactions not handled by BPD include initial deposits or warrants to the accounts and Payments out of the account.  One side benefit is that better SF224 reporting should make for easier reconciliations with agencies financial reporting and the 6653.  6653’s should reconcile easier back to the financial statements 1010 account.

## SF224 Centralization Project 

_***SF224 Centralization Project***_* *

**Example –**