CARS Reclassification OverviewAgency Outreach

XXX XX, 2021

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Reclassification Traceability

Reclassification Solutions

Agency Outreach

Reclassification Groupings

Review Agency Outreach Spreadsheet

Topics

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The purpose of the CTA reporting for Section I is to classify (non Reporters) or reclassify (non Reporters and Reporters) transactions that were reported in Section II (IPAC & TDO Payments) and Section III (CIR & PIR).  

For Reporters, when the auditors select a transaction that was reported on CTA, Section I they are expecting these transactions to be reclassifications (reversals and restatements) and are wanting to be able to trace these transactions back to the original transaction (transaction that was reversed in reclass) reported by a source system.

Currently, there are many reasons that complicates or prevents this taking place.  

Our plan is to: 

Identify the reasons why the agency is reclassing - come up with short-term and long-term solutions to reduce/eliminate the population and 

Identify inaccurate reporting scenarios  - come up with short-term and long-term solutions that will improve/strengthen the reporting accuracy.  

Reclassification Traceability

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Eliminate as many reasons an agency has to reclassify, therefore eliminating the need to trace reclassifications to source transactions. 

Working toward the end-state definition of a “Reclassification”.

End state definition = reporting a correction (reversal and restatement) to a TAS and/or BETC on cash transaction (source transactions - CIR, PIR, IPAC, TDO Payments) that was reported to an ALC.

Moving transactions that do not meet the end state definition (Non-Reclassifications) to another CARS entry point.

Create CARS screens – Reclassifications and Non-Reclassifications.

Reclassification Solutions

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Non-banking transactions (entries needed for reporting purposes and Inter-ALC transfers)

Scenarios that Fiscal Service systems/processes are requiring the ALC to reclass.

We will be working with Payment Management (PM), Revenue Collections Management (RCM), and Federal Reserve Banks (FRB) to come up with solutions to eliminate where feasible

Agency does not know the TAS/BETC at time of transaction reported

Agency Human error

Need more information to classify - categorize. 

Agency using reclass for Inter-Agency and Intra-Agency transfers

Scenarios that agency's systems/processes are requiring the ALC to reclass

“Reasons to Reclass” Groupings

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Broke out #4 Agency System/Human Error – modified #4 and added #7 --- we are not expecting the reasons to reclass to grow.  We may have to break out more to make items more detailed – to improve tracking 

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Netting BETCs 

$200 DISB + $100 COLL = $100 DISB

Unable to trace to source

Unable to identify what transaction is being corrected

Sources/Mechanisms intermingled 

Summarizing reclassifications correcting both a CIR and PIR transaction or multiple mechanisms

CIR and PIR share same default TAS

Reclassification reversal BETC is not the adjusting BETC of the originating source transaction

Other transactions reported in reclassifications

String TAS reporting

Reporting to suspense accounts

Impacts to Traceability and/or Reporting

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ALCs with a high percentage of reclassification activity compared to source system activity.

ALCs with high reclassification transaction counts.

ALCs with reclassifications and no source system activity.

ALCs with no reclassifications with source system activity that never reported a reclassification or rarely reports a reclassification.

Agency Outreach - Prioritize

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Providing questionnaire for agencies to complete.

Providing Reclassification Template for agencies to document reclassification scenarios for a month that Fiscal Service selected.

Fiscal Service will use the information collected to document the “Reasons to Reclassify” to develop a short and long-term solutions.

Agency Outreach

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Spreadsheet tabs:

Reasons to Reclass List

Questionnaire

Reclass Template

Reclassifications Reported

Source Transactions Reported

Review Agency Outreach Spreadsheet

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Originating Source Transaction 

Reported by CIR, PIR, IPAC, TDO Payment

Reclassification – Reversal 

Reported by agency via CTA, Section I

Reclassification – Restate

Reported by agency via CTA, Section I

Parts of Reclassifications

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No source

In

Out

Parts of NonReclassification

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Example of completed spreadsheet

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