R 130240Z NOV 97 ZYB
FM CMC WASHINGTON DC//L//
TO ALMAR
UNCLAS //N04200//
ALMAR 385/97
MSGID/GENADMIN/CMC L//
SUBJ/DEPARTMENT OF THE NAVY FINANCIAL PROCEDURES FOR THE
/INTERNATIONAL MERCHANTS PURCHASE AUTHORIZATION CARD//
REF/A/MSG/271435OCT97/ASSTSECNAV//
REF/B/MEMO/USD(C)/27MAR97//
NARR/REF (A) IS A MSG RELEASED BY ASSTSECNAV (FMO) DETAILING NEW
DON-WIDE PROCEDURES FOR THE INTERNATIONAL MERCHANTS PURCHASE
AUTHORIZATION CARD (IMPAC). REF (B) IS A MEMO DETAILING NEW
DON-WIDE PROCEDURES FOR THE IMPAC//
RMKS/1. REF A STATES THE UNDER SECRETARY OF DEFENSE (COMPTROLLER)
(USD(C) ADVISED THE DEPARTMENT OF THE NAVY (DON) OF THE REQUIREMENT
TO RESOLVE THE UNACCEPTABLY LARGE NUMBER OF OUTSTANDING DELINQUENT
INVOICES AGAINST THE DEPARTMENT OF DEFENSE (DOD) INTERNATIONAL
MERCHANTS PURCHASE AUTHORIZATION CARD (IMPAC). AS OF THE END OF
SEPTEMBER 1997 IMPAC BILLING CYCLE, THE DON HAD 44.1 MILLION DOLLARS
OF OUTSTANDING DELINQUENT INVOICES. WHILE SIGNIFICANT EFFORT IS
BEING DEVOTED TOWARD RESOLVING THESE INVOICES USING EXISTING
PROCESSES, IT IS NECESSARY TO IMMEDIATELY BEGIN TO IMPLEMENT THOSE
ELEMENTS OF THE REENGINEERED IMPAC PROCESS DIRECTED BY THE USD(C)
WHICH WILL IMPROVE EFFICIENCY AND MINIMIZE FUTURE OUTSTANDING
DELIQUENCIES.
2. EFFECTIVE WITH THE NEXT IMPAC BILLING STATEMENT RECEIVED, DON
COMMANDS AND ACTIVITIES SHALL IMPLEMENT THE FOLLOWING PROCEDURES:
A. CURRENT DOD POLICY GUIDANCE AND IMPAC CONTRACT TERMS ALLOW
FOR A FULL 60-DAY PERIOD TO INITIATE DISPUTE PROCEDURES AND RESOLVE
ANY OUTSTANDING DISCREPANCIES. BASED ON THIS, COMMANDS AND
ACTIVITIES SHALL IMPLEMENT THE PAY AND CONFIRM PROCEDURES PRESCRIBED
BY THE USD(C) IN REF B AS FOLLOWS:
1. ITEMS CONTAINED ON MONTHLY IMPAC BILLING STATEMENTS THAT
HAVE NOT BEEN RECEIVED SHALL BE PROCESSED AND SUBMITTED FOR PAYMENT
SUBJECT TO SUBSEQUENT VERIFICATION OF RECEIPT AND ACCEPTANCE BY THE
ORGANIZATION. IF THE ITEM(S) IS NOT RECEIVED AND ACCEPTED WITHIN 45
DAYS AFTER BILLING, THE CHARGE SHOULD BE FORMALLY DISPUTED, IAW
CURRENT PROCEDURES. (PLEASE NOTE THAT THE PRUCHASE CARD IS NOT
AUTHORIZED FOR USE IN SITUATIONS WHERE A MERCHANT BILLS FOR ORDERED
GOODS IN ADVANCE OF SHIPMENT OR DELIVERY.)
2. DEFECTIVE MERCHANDISE WHICH HAS BEEN RECEIVED SHOULD ASLO
BE PROCESSED FOR PAYMENT SUBJECT TO THE ORDERING ACTIVITY FIRST
CONTACTING THE MERCHANT TO ARRANGE FOR THE REPLACEMENT, EXCHANGE, OR
RETURN OF THE DEFECTIVE ITEM FOR CREDIT. IF THE MERCHANT DOES NOT
AGREE TO TAKE APPROPRIATE ACTION, THE CHARGE SHOULD BE DISPUTED.
DISPUTE PROCEDURES SHOULD ALSO BE FOLLOWED IF THE REPLACEMENT,
EXCHANGE, OR CREDIT HAS NOT BEEN RECEIVED WITHIN 45 DAYS OF THE
BILLING.
3. COMMANDS AND ACTIVITIES SHALL DEVELOP AND IMPLEMENT
INTERNAL CONTROLS AND FOLLOW-UP PROCEDURES TO ENSURE RECEIPT OF ITEMS
DESCRIBED IN PARAGRAPHS (A1) AND (A2) ABOVE.
4. UNAUTHORIZED, ERRONEOUS, ALTERED, AND DUPLICATE PURCHASE
CARD CHARGES SHOULD BE DISPUTED IMMEDIATELY.
5. WHEN PROCESSING INVOICES UNDER THE PAY AND CONFIRM
PROCEDURES DESCRIBED ABOVE, ACTIVITIES ARE CERTIFYING THAT ITEMS
CONTAINED ON THE MONTHLY STATEMENT ARE EITHER (1) VALID ORDERS (I.E.,
AUTHORIZED ITEMS PURCHASED WITH CORRECT DOLLAR VALUES) FOR WHICH
PAYMENT SHOULD BE MADE OR (2) ITEMS WHICH ARE BEING DISPUTED BECAUSE
OF CONDITIONS LISTED IN SUBPARA.A.4 ABOVE.
B. COMPTROLLERS/RESOURCE MANAGERS SHOULD TAKE APPROPRIATE ACTION
TO ENSURE THAT ADEQUATE FUND OBLIGATIONS ARE ESTABLISHED IN THE
OFFICIAL ACCOUNTING SYSTEM. DFAS OPLOCS CURRENTLY PREVALIDATE
TRANSACTIONS AND THE LACK OF FUNDS IS ONE REASON THAT AN INVOICE
PAYMENT COULD BE DELAYED, CAUSING AN INVOICE TO BECOME DELINQUENT.
DFAS IS REVIEWING OPLOC PAYMENT PROCEDURES TO EXPEDITE PROCESSING
WHERE POSSIBLE.
C. THE CURRENT PLAN IS FOR ALL ACTIVITIES ULTIMATELY TO HAVE
AUTOMATED LINKAGES ESTABLISHED BETWEEN LOCAL PURCHASE RECONCILIATION
SYSTEMS (E.G., EXPRESS PURCHASE FOR CHECKBOOK) AND DFAS OPLOC
ACCOUNTING/PAYMENT SYSTEMS. IN THIS FUTURE ENVIRONMENT, THE
ADDITIONAL DFAS WORKLOAD ASSOCIATED WITH MULTIPLE LINES OF ACCOUNTING
(LOA) DETAIL IS MINIMIZED. FOR THOSE ACTIVITIES WHERE THESE
AUTOMATED INTERFACES WILL NOT BE ESTABLISHED IN THE NEAR TERM,
SUBSEQUENT GUIDANCE WILL BE ISSUED, ESTABLISHING PROCESSES TO
MINIMIZE LINES OF ACCOUNTING FOR MICRO PURCHASES WITH ADVANCED
RESERVATION (I.E., BULK OBLIGATION) OF FUNDS. IMPLEMENTATION OF
THESE CHANGES WILL PROVIDE ANOTHER MEANS OF REDUCING THE POTENTIAL
THAT SUFFICIENT FUNDS WILL NOT BE AVAILABLE UPON PREVALIDATION AS
WELL AS SIGNIFICANTLY REDUCING DFAS CHARGES TO THE DON. BEGINNING
IN FY 98, DFAS WILL ASSESS APPROXIMATELY 12 DOLLAR CHARGE PER LOA.
3. THE PROCEDURES DISCUSSED IN PAGRGRAPHS 2A AND 2B ABOVE ARE TO BE
FOLLOWED BY ALL COMMANDS AND ACTIVITIES. THESE PROCEDURES WILL BE
INCLUDED IN THE OVERALL DON IMPAC GUIDANCE WHICH WILL BE ISSUED
SHORTLY.
4. REQUEST ALL ADDEES EXPEDITIOUSLY READDRESS THIS MESSAGE
TO THEIR SUBORDINATE COMMANDS AND ACTIVITIES THAT USE THE IMPAC
PURCHASE CARD. APCS SHOULD PROVIDE A COPY OF THIS MESSAGE TO THEIR
RESOURCE MANAGERS AND CARDHOLDERS AND COORDINATE THE IMPLEMENTATION
OF THESE PROCEDURES IMMEDIATELY.//
BT