R 171407Z JAN 06
FM CMC WASHINGTON DC(UC)
TO AL MARADMIN(UC)
UNCLASSIFIED//
MARADMIN 016/06
MSGID/GENADMIN/CMC WASHINGTON DC PR RFA/-/-/-/-//
SUBJ/TRIANNUAL REVIEW OF COMMITMENTS AND OBLIGATIONS//
REF/A/LTR DOD FMR VOL 3/CH 8/-/-/-/-//
REF/B/LTR MCO P7300.21/CH 9/-/-/-/-//
NARR/REF (A) IS THE DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT
REGULATIONS (DOD) FMR), WHICH PROVIDES GUIDANCE FOR THE TRIANNUAL
REVIEW OF COMMITMENTS AND OBLIGATIONS FOR ALL MARINE CORPS
APPROPRIATIONS. REF (B) PROVIDES AMPLIFYING GUIDANCE ON VALIDATION
REVIEWS.//
GENTEXT/REMARKS/GENTEXT/REMARKS/1. BACKGROUND. THE PURPOSE OF THE
TRIANNUAL REVIEW IS TO ENSURE VALID COMMMITMENTS AND OBLIGATIONS ARE PROPERLY RECORDED IN THE ACCOUNTING RECORDS AND UTLIMATELY RESULT IN RECEIVING THE GOODS AND SERVICES COMMANDS ORDERED TO MEET MISSION REQUIREMENTS.
1.A. THE MARINE CORPS HAS SUSTAINED SIGNIFICANT REDUCTIONS IN OUR
OPERATIONS AND MAINTENANCE APPROPRIATION OVER THE LAST SEVERAL YEARS
DUE TO EXCESSIVE UNOBLIGATED (REVERTED) BALANCES. WE HAVE INCURRED
REDUCTIONS OF $15.7M (FY05) AND $10M (FY06) AND CURRENTLY FACE
FUTURE BUDGET REDUCTION MARKS OF $43.4M (FY07) AND $46.6M (FY08) ALL
DUE TO REVERTED BALANCES. THESE AMOUNTS ARE DIRECT CONGRESSIONAL
REDUCTIONS OF OUR OPERATING FUNDS. REVERTED BALANCES ARE CAUSED FOR
SEVERAL REASONS, BUT THE MAJOR CAUSE IS INVALID OBLIGATIONS
REMAINING IN THE ACCOUNTING SYSTEM AND NOT REMOVED DURING THE
CURRENT FY (WHERE FUNDS COULD BE RE-APPLIED TO PURCHASE GOODS AND
SERVICES) BUT REMOVED AFTER THE FISCAL YEAR CLOSES.
1.B. RENEWED COMMAND EMPHASIS MUST BE PLACED ON PERFORMANCE OF
TRIANNUAL REVIEWS TO ASSIST IN REDUCING PRIOR YEAR REVERTED BALANCES
WHICH ARE DIRECTLY IMPACTING MARINE CORPS AVAILABLE FUNDS DURING THE
CURRENT YEAR.
2. DISCUSSION. THE BELOW GUIDANCE PUBLISHES THE FY2006 DUE DATES FOR
TRIANNUAL REVIEWS OF COMMITMENTS AND OBLIGATIONS.
2.A. TRIANNUAL REVIEWS OF ALL COMMITMENTS AND OBLIGATIONS FOR FUNDS
CURRENTLY AVAILABLE FOR OBLIGATIONAL AUTHORITY WILL BE BASED ON
REPORTS PRODUCED AT THE CLOSEOUT OF THE MONTHS IDENTIFIED BELOW:
31 JANUARY
31 MAY
30 SEPTEMBER
2.B. PER REFERENCE (A), ACCOUNTING OFFICES SHALL PROVIDE FUND
HOLDERS WITH LISTING (S) OR AUTOMATED MEDIA IDENTIFYING BOTH
OUTSTANDING COMMITMENTS AND UNLIQUIDATED OBLIGATIONS RECORDED FOR
THE FUNDS HOLDER. THE ACCOUNTING OFFICE ALSO SHALL PROVIDE LISTING
(S) OR AUTOMATED MEDIA IDENTIFYING ACCOUNTS PAYABLE AND ACCOUNTS
RECEIVABLE WHICH ENABLE THE FUNDS HOLDER TO VERIFY PROPRIETARY
ACCOUNTS (AS WELL AS BUDGETARY ACCOUNTS) AND, THUS, ENSURE THAT
PROPRIETARY AND BUDGETARY ACCOUNTS ARE VALID, ACCURATE AND
RECONCILED. THE FUNDS HOLDER SHALL ACOMPLISH A REVIEW NO LATER THAN
14 DAYS FOLLOWING THE END OF JANUARY AND MAY, AS WELL AS BY
SEPTEMBER 30TH OF EACH FISCAL YEAR.
3. IMPLEMENTATION. DC PR (RFA) WILL PROVIDE, VIA THE P&R RFA PORTAL
WEBSITE, TO ALL FUND HOLDERS IN EXCELL SPREADSHEETS AS FOLLOWS:
(1) DORMANT DOCUMENTS; CONSISTING OF CONTRACTS 120 DAYS OR OLDER,
AND REQUISITIONS, TRAVEL ORDERS, AND OTHER MISCELLANEOUS DOCUMENTS
90 TO 179 DAYS OLD (2)DEOBLIGATION REPORT; CONSISTING OF
TRANSACTIONS OTHER THAN CONTRACTS THAT ARE 180 DAYS OR OLDER AND (3)
OUTSTANDING ACCOUNTS RECEIVABLE; CONSISTING OF ALL OUTSTANDING
RECEIVABLES REGARDLESS OF AGE. THESE REPORTS WILL BE THE BASIS FOR
PERFORMING VALIDATIONS AND REPORTING TRANSACTION STATUS BACK TO DC
PR (RFA). ANNOTATED STATUS CODES FOR EACH DOCUMENT WILL BE THOSE
CITED IN REFERENCE (B). COMPLETED REPORTS WILL BE UPLOADED INTO THE
TRI-ANNUAL REVIEW AREA PROVIDED ON THE P&R RFA PORTAL WEBSITE.
REQUIRED CONFIRMATION STATEMENTS AND SUPPORTING ATTACHMENT TEMPLATES
CAN BE DOWNLOADED FROM THE TRI-ANNUAL REVIEW AREA PROVIDED ON THE
P&R RFA PORTAL WEBSITE FOR COMPLETION AND SIGNATURE BY THE
COMPTROLLER.
3.A. REQUIRED CONFIRMATION STATEMENTS, UN-QUALIFIED OR QUALIFIED,
WITH SUPPORTING ATTACHMENTS SHALL BE COMPLETED BY THE 21ST DAY AFTER
THE CLOSE OF THE APPLICABLE TRIANNUAL REVIEW MONTH AND BY SEPTEMBER
30TH OF EACH FISCAL YEAR, BY THE MRI LEVEL COMPTROLLER. THE DUE
DATES ARE AS FOLLOWS:
24 FEBRUARY 2006
23 JUNE 2006
20 OCTOBER 2006
3.B. BASED ON THE PROVIDED EXCEL REPORTS THE SIGNED CONFIRMATION
STATEMENTS SHALL (1) CONFIRM THAT ALL OR PORTION OF THE COMMITMENTS
RECORDED IN THE SYSTEM HAVE BEEN VALIDATED TO A PAPER OR AN
ELECTRONIC DATA INTERCHANGE (EDI) REPRESENTATION SOURCE DOCUMENT.
(2) CONFIRM THAT ALL OR PORTION OF THE OBLIGATIONS RECORDED IN THE
SYSTEM HAVE BEEN VALIDATED TO A HARDCOPY OR AN EDI SOURCE DOCUMENT.
(3) CONFIRM THAT ALL OR PORTION OF ACCRUED EXPENDITURES UNPAID HAVE
BEEN VALIDATED TO AN ACCOUNTS PAYABLE RECORD OR AN EDI SOURCE
DOCUMENT. (4) CONFIRM THAT ALL PORTION OF REIMBURSEMENTS AND OTHER
INCOME EARNED HAVE BEEN VALIDATED TO AN ACCOUNTS RECEIVABLE RECORD
OR AN EDI SOURCE DOCUMENT. (5) CONFIRM THAT ALL OR PORTION OF
MISCELLANEOUS OBLIGATION DOCUMENTS, TRAVEL ORDERS, AND SUPPLY
REQUISITIONS RECORDED IN THE SYSTEM FOR MORE THAN 180 DAYS HAVE BEEN
DEOBLIGATED, UNLESS THERE IS SUPPORTING DOCUMENTATION FROM THE FUNDS
HOLDER ATTESTING TO THE PURPOSE AND VALIDITY OF THE OBLIGATION. (6)
CONFIRM THAT ALL OR PORTION OF THE COMMITMENTS THAT COULD NOT BE
SUBSTANTIATED OR VALIDATED AFTER A THOROUGH REVIEW BY THE FUNDS
HOLDER HAVE BEEN DECOMMITTED. (7) CONFIRM THAT ALL OR PORTION OF
OBLIGATIONS THAT COULD NOT BE SUBSTANTIATED OR VALIDATED AFTER A
THOROUGH REVIEW BY THE FUNDS HOLDER (AND/OR THE ACCOUNTING OFFICE)
HAVE BEEN DEOBLIGATED. (8) IDENTIFY PROBLEMS NOTED AS A RESULT OF
THE REVIEW. (9) ADVISE WHETHER, AND TO THE EXTENT, WHICH,
ADJUSTMENTS OR CORRECTIONS TO REMEDY NOTED PROBLEMS HAVE BEEN TAKEN.
(10) SUMMARIZE, BY TYPE, THE ACTIONS OR CORRECTIONS REMAINING TO BE
TAKEN, AND WHEN SUCH ACTIONS/CORRECTIONS ARE EXPECTED TO BE
COMPLETED. (11) IDENTIFY WHAT ACTIONS HAVE BEEN TAKEN TO PRECLUDE
IDENTIFIED PROBLEMS FROM RECURRING IN THE FUTURE. FUNDS HOLDERS
SHOULD ACCOMPLISH A THOROUGH REVIEW OF CURRENT YEAR DOCUMENTS ON 31
AUGUST TO ENSURE ONLY VALID OBLIGATIONS ARE POSTED AND TO RE-APPLY
ANY DE-OBLIGATED FUNDS TO CURRENT REQUIRMENTS.
3.C. SIGNED CONFIRMATION STATEMENTS WITH SUPPORTING ATTACHMENTS
SHOULD BE UPLOADED AS A PDF FILE TO THE P&R RFA PORTAL WEBSITE IN
THE TRI-ANNUAL REVIEW AREA. ALL FUNDHOLDER CONFIRMATION STATEMENTS
AND BACKUP VALIDATION DOCUMENTATION MUST BE RETAINED FOR 24 MONTHS
AND MADE AVAILABLE, UPON REQUEST, FOR AUDIT PURPOSES.
3.D. HQMC WILL BE TRACKING OBLIGATION RATES, REVERSIONS, AND ULO
REDUCTION GOALS. ALL IDENTIFIED REVERSIONS WILL BE PROVIDED TO HQMC
(RFO) FOR POTENTIAL WITHDRAWAL TO COVER CHANGE ORDERS, JUDGMENTS,
ETC.
3.E. FUND HOLDER RESOURCE EVALUATION AND ANALYSIS (REA) OFFICES WILL
USE THE PROBLEMS CITED IN THE CONFIRMATION STATEMENT FOR REVIEW OF
INTERNAL PROCESSES AND REQUIRED CHANGES TO CORRECT PROCESS
DEFICENCIES.
4. POC. THE PRIMARY POC'S FOR THIS IS MESSAGE IS CWO3 LAWHORN, DSN
224-2577; COMMERCIAL 703-614-2577; EMAIL = < LAWHORNSF@HQMC.USMC.MIL
>. ALTERNATE POC IS MS RAQUEL ESCRIBANO, DSN 224-2577/9823;
COMMERCIAL 703-614-2577/9823; EMAIL = < ESCRIBANOR@HQMC.USMC.MIL >.
//