LEAD ∙ TRANSFORM ∙ DELIVER

G-Invoicing

USSGL Board 2020

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G-Invoicing Summary

Initiative Overview 
        - Government Invoicing (G-Invoicing) is the long-term sustainable solution to improve the quality of Intragovernmental Transactions (IGT) - Buy/Sell data in support of more accurate financial management by Federal Trading Partners
        - G-Invoicing will address current Buy/Sell accounting and reporting challenges by:
        - Providing common platform for brokering all IGT Buy/Sell activity
        - Implementing a Federal IGT Buy/Sell Data Standard and providing transparent access to a common data repository of brokered transactions

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        - In today’s Buy/Sell Transaction process, there are several challenges including:
        - Lack of an automated broker
        - Lack of communication and concurrence between partners
        - Lack of governmentwide data standards
        - Lack of central repository
        - $24 Billion in IGT Buy/Sell elimination differences in FY19
        - 22 fiscal years, the U.S. Government Accountability Office (GAO) issued a disclaimer of opinion on the FY 2018 Financial Report of the U.S. Government. 
        - GAO cited the government's difficulty to "adequately account for and reconcile intragovernmental activity and balances between federal entities" as a material weakness and a major impediment to expressing an opinion.

Why G-Invoicing

Buy/Sell largest sub-category of differences after General Fund categories

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G-Invoicing Will Provide
        - Federal Trading Partners will collaboratively engage through G-Invoicing to broker all IGT Buy/Sell transactions in accordance with the standard processes outlined in the Treasury Financial Manual (TFM)
        - Required data exchanges will align to the Federal Intragovernmental Data Standard (FIDS), ensuring consistent data attributes are shared between Trading Partners
        - Accurate, agreed-upon data will be available in a common repository to support the preparation of timely and accurate United States Standard General Ledger (USSGL) entries representing IGT Buy/Sell activity
        - Data captured in G-Invoicing will aid with identifying issues regarding reciprocal USSGL entries
        - Provide full transaction traceability through a common identifier to assist with reconciliations and reporting functions
        - G-Invoicing will go through a SSAE 18 audit for agencies to leverage for their audit

Value Proposition

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Agencies Identify Implementation Challenges

Agency Implementation Plan feedback identified the following concerns: 
        - Readiness. Target survey showed only five agencies could meet current mandate for new Orders; and only three could meet it for in-flight Orders.
        - Conversion. Assistance is needed with converting in-flight activity.
        - Enhancements. Additional agency requested system enhancements could ease Agency onboarding and change management activities.
        - Prioritization. Agencies need to align G-Invoicing with implementation of other governmentwide initiatives (e.g., COVID-19, UEI, FM QSMO).

TFM Bulletin No 2018-10

Published September 2018:

Established the implementation date of June 30, 2021 for all Orders with a period of Performance extending beyond that date.

Background:

Original implementation date was vetted through the Financial Management Standards Committee in Summer of 2018.

Readiness 5 ready were USDA, VA, DOC, DHS, and USAID, 3 for in-flight USDA, VA, and DOC. Treasury indicated that they would comply with new mandate except for IRS

Support on In-Flight, heavy lift for agencies to convert old agreements and Orders, especially during fiscal year

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Solution: Readiness | New Phased Approach

New phased approach to implementation will help facilitate successful governmentwide implementation of G-Invoicing.
        - Revising the implementation date of G-Invoicing
        - Phasing the implementation of G-Invoicing

In summary all new Orders for FY23 should be in G-Invoicing and any Orders that have a POP over multiple fiscal years should be converted by FY24.

New date of June 30, 2022 is when our system will be available with all the new enhancements for agencies to put in their new Orders (can go in before but not all the bells and whistles will be ready)

Notice these Period of Performance take into account fiscal year-end as noted by agencies in target survey

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        - Whether or not an Order will need initiated or converted to the G-Invoicing application can be determined by using two rules, if the answer is Yes to either, then the Order will need initiated or converted to G-Invoicing:

Implementation Deadline Rule for New Orders: Is the beginning Period of Performance on the Order on or after October 1, 2022?

Implementation Deadline Rule for “In-Flight” Orders: Is the ending Period of Performance extending beyond September 30, 2023?

New Implementation Date(s)
| Order Period of Performance | Rule 1            | Rule 2 | Needs Implemented? | Implementation Deadline |
|-----------------------------|-------------------|--------|--------------------|-------------------------|
| Beginning POP               | Ending POP        |
| Before 10/01/2022           | Before 09/30/2023 | No     | No                 | No                      | N/A |
| On/After 10/01/2022         | Before 09/30/2023 | Yes    | No                 | Yes                     | October 2022 |
| Before 10/01/2022           | After 9/30/2023   | No     | Yes                | Yes                     | October 2023 |

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Current: June 30, 2021 (All)
        - Considered the entire system lifecycle (large scope).
        - Allotted vendors 18 months to develop solution.
        - Allotted agencies 12 months to consume solution.
        - Final Specifications were delivered in April 2019.
        - Major Vendors were able to meet that timeline (12-18 Months).

Proposed: October 1, 2022 (Phased)
        - Scope of work for new agency requested enhancements is much smaller than initial development effort. There are some core functionality enhancements and roughly a 5% increase in the # of FIDS collected.
        - Allots additional 15 months for vendors to incorporate enhancements.
        - Allots agencies additional 12 months for consume solution.
        - Final specifications for major enhancements will be delivered by June 2020.

Solution: Why we think this timeframe will work

Provides a more complete and customer centric solution to agencies

Original Mandate  Timeline

New Mandate Timeline

Vendor timeline:

In the September 2018 mandate we estimated 18 months for vendor implementation and 12 for agency consumption were considered in developing the implementation date. We released our Performance Specifications vendors needed 12-18 months to develop their solution.
          - CGI 7.8 Core Function 18 months; started immediately upon receiving performance specifications, and was giving their customers 12 months
          - Oracle 12.2.7 Patch 12 months: didn’t start until 1st QTR 2020, gave agencies 6 months
          - SAP 12 months beginning 2nd QTR Calendar 2020, solution April 2021 (agencies 2-3 months)
          - Note these vendors were developing a front to end solution in that timeframe from GT&C to Performance (Unison 7.4 18 months)
          - This is a smaller scope as we are adding enhancements to a baseline solution, hence we went from 18 months to we would expect vendors to be able to accomplish this in 12-15 months

Very little impact in terms of FIDS we are adding interfaces for SFO, and API for new Access Model, and a new Performance type that are will require time to develop/implement for agencies.

This is not a huge decrease and we are being more specific of when we want vendors to have a solution available. We obviously didn’t allot enough time the last time

We have informally ran this by most of our target 13 agencies and received positive feedback

Enhancements/Policy:

Configurable workflows

Seller Facilitated Orders

New data elements ‘Funding Agency Code’ and ‘Funding Office Code’

Refund functionality

Organizational Access Model

New policy on what will trigger an accrual entry

Working group to determine if/how a streamlined approach will be used for certain use cases (example low dollar transactions)

Rules of Engagement guidance to help with trading partner alignment

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Advantages
        - Gives additional time to ensure readiness of G-Invoicing application, software providers, and governmentwide community during their change management processes.
        - Gives additional time to Software Providers to develop agency identified enhancements and for agencies to prepare for consumption.
        - Reduces burden of converting existing Orders to the G-Invoicing application.
        - Allows Treasury to explore potential conversion tools to assist agencies’ conversion of “in-flight” Orders.
        - Allows agencies to prioritize competing initiatives and resource adequately (e.g., new COVID-19 requirements).

Risks
        - Full impact to Software Provider schedules will not be known until new enhancement requirements defined and specifications evaluated.
        - Delay in determining requirements for new enhancements could delay development timelines (low likelihood).
        - Agencies may be required to gather new data for existing Orders therefore potentially being more labor intensive.
        - Some agencies have legacy Orders that extend beyond one year.

Implementation Approach Considerations

Got Feedback from10 of Target 13 agencies in general supportive of approach

Other Approaches considered:

Considered Big Bank Approach (like we currently have), but this approach will reduce agency burden, and allow more time for conversion activities that were identified as a key pain point. Though a big bank in theory would reduce the need for dual processes.

Considered a phased approach for business lines as well as “in-flight” vs “new” Orders

The team has discussed this in the past and identified some issues:
          - Forces agencies to have multiple ways to handle buy/sell transactions for undefined time
          - Agencies would already have a staggered approach and tasked with monitoring their trading partner readiness. This would add another layer to that complexity
          - How do we enforce this activity?
          - Would open the program up to other common business lines and their inclusion
          - Treasury would have to define the scope of these transactions

We also recognize the following benefits to this type of approach:
          - More Efficient ways to process these business lines
          - Standardization across the government
          - Though it would add another layer of complexity, it could potentially help us organize the implementation in more detail

When it comes to these business line examples, communicate the following:
          - The Low Dollar/High Volume working group will develop the scope of these transactions that will not be part of the June 30, 2022 implementation date but also propose the solution to these and timeline for implementation
          - The Seller Facilitated Orders Working Group with GSA on Rent and Fleet will continue to work to develop an enhanced solution (in necessary) to address these business lines, the functionality being built does allow agencies to execute these transactions
          - The team will work with agencies that identified business lines that may not fit the current process and whose current business process in needed and efficient
          - Additional guidance in the TFM will be included, giving agencies a formal process to identify these transactions

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Solution: Alignment | Governmentwide Initiatives

GSA Unique Entity Identifier (UEI)
        - Agencies transitioning from DUNS to UEI (due date TBD) and using similar resources.
        - New implementation date will reduce agency burden and allow them to adequately resource both initiatives.

Phased approach will ease agencies’ burden as they seek to align and prioritize multiple governmentwide initiatives.

Financial Management QSMO
        - G-Invoicing requirements with enhancements will be included in baseline configuration requirements targeted for completion by June 2021.
        - Commercial Vendors are scheduled to have marketplace solutions available in late 2022 (the 15-month timeline for QSMO aligns with G-Invoicing timeline).

COVID-19
        - New implementation date provides additional time needed to address the impacts from the COVID-19 pandemic.

UEI doesn’t reduce agency burden in regards to work that needs to be done, but does allow them to prioritize work and ensure adequate resources are available. Current goal is December of 2020 but we know from talking to agencies this will slip into 2021

QSMO alignment in regards to we are asking vendors to go 15 months from specifications to a solution

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Program Milestones

Of note we will have major system enhancements specifications out by June, knowing there will likely need to be minor tweaks going forward

Gives Agencies/Vendors plenty of time to implement G-Invoicing with Enhancements

Other dates to note

December of 2020 we plan to have identified tools/resources needed for conversion

June of 2021 SFO functionality will be deployed and GT&C Workflow other enhancements running thru the open for business date

Agencies can use before open for business just won’t have al the bells and whistles.

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        - Release 3.3 planned for June 4 (in Production)
        - QA scheduled for June 12
        - Organizational Administrators may point SDAGs at organizational Groups
        - Improvements to user experience for organizational maintenance
        - Contains the 12 Order data standard changes announced recently
        - Quarterly Implementation Plan Update Reminder
        - 3rd Quarter Implementation Plan Updates are due to Treasury by June 30, 2020
        - TFM Update in June
        - G-Invoicing is currently included in TFM Chapter 4700 Appendix 6 but we have moved IGT Buy/Sell and G-Invoicing information to it’s own Appendix 8
        - Will include:
        - New Implementation Date
        - Quarterly Implementation Plan Update information
        - Performance and Accrual information

Program Updates

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G-Invoicing Program Contacts

	For IGT Program Management and Agency Outreach Support

	Andy Morris

	Manager, Intragovernmental Transaction & Reconciliation Branch (ITRB)

	Bureau of the Fiscal Service

andrew.r.morris@fiscal.treasury.gov

	Wes Vincent

	Senior Accountant / G-Invoicing Product Owner

	ITRB 

	Bureau of the Fiscal Service – Fiscal Accounting

wesley.vincent@fiscal.treasury.gov

	Keith Jarboe

	IGT Agency Outreach, Engagement & Onboarding

	Bureau of the Fiscal Service – Fiscal Accounting

keith.jarboe@fiscal.treasury.gov

For Intragovernmental Transactions Working Group Information

IGT@fiscal.treasury.gov

https://www.fiscal.treasury.gov/g-invoice/