Accounts Receivable MOCAS & Debt Management Office

Transcription

1 Accounts Receivable MOCAS & Debt Management Office Defense Finance and Accounting Service Rob Heffron May 2016 Integrity - Service - Innovation Integrity - Service - Innovation

2 Overview Commercial Debt Lifecycle Overview Debt Management Office Overview MOCAS Collections Trend Analyses MOCAS Accounts Receivable Office Overview MOCAS Collection Process Documentation Requirements Contractor Actions to Improve Collection Process MOCAS Prioritization MOCAS A/R Expedite Escalation Process/Timeline Questions 5/4/2016 Integrity - Service - Innovation 2

3 Commercial Debt Lifecycle Overview 1 30 Days Days Days Demand Letter Issued Attempt Alternate Contact Search Available Collocated Invoices for Offset Centralized Offset Program (COP) Systemic Search All Available DoD Invoices for Offset > 120 Days Refer Eligible Debts to Treasury Administered by DFAS Columbus Debt Management Office 5/4/2016 Integrity - Service - Innovation 3

4 Debt Management Office Overview DFAS DMO Primary Mission Administer Uncollected Public Debts not Eligible for Treasury As of March 31, / $503.8M Litigation 55 / $478.7M Forbearance 278 / $126.1M Department of Justice 15 / $ 3.1M Dispute 287 / $313.2M Other Administer Uncollected Public Debts Referred to Treasury DFAS Accounts Receivable Offices Refer Directly to Treasury via DMO As of March 31, ,046 / $138.6M - Treasury Contracting Officer Final Demands DFAS Contract Debt System (DCDS) Checklist [email protected] 5/4/2016 Integrity - Service - Innovation 4

5 Debt Management Office Overview Discussion Topics How are Collections Applied to the Debt? Contingency Fees, Penalties, Administrative Fees, Interest, then Principal Invoice Offsets Implications to Contractors and DoD Treasury Efficient Collection Agency Fees Upwards of 32% May be Charged to the Debtor Deferment of Payment Requests DFAS is Still Required to Collect Until Deferment is Granted for COFDs Installment Agreements can be Utilized during Deferment Request Process DFAS is not Involved in Deferment Request Approval Process Contractor Request / ACO Coordination / DoD Component FM / DPAP Settlements Notify DFAS if Settlement Negotiations are Occurring DFAS is Still Required to Collect During Negotiations if COFD Received 5/4/2016 Integrity - Service - Innovation 5

6 DFAS Debt Management Office (DMO) Directory Robert Heffron...(614) Chief, Debt Management Division FAX...(216) DMO Public DMO ACCOUNTANTS Primary Areas of Responsibility: Anthony Duda...(614) iControl / Desk Procedures / Reporting [email protected] (Primary Designated Reviewer) Pat Dickerson...(614) MOCAS A/R Detail [email protected] (Suspense Account Reconciliation) Jack Johnson (614) D, G, L, N, O, R, V, 1, 9 [email protected] (Backup Designated Reviewer) Emmanuel Leigh...(614) E, F, K, M, P, T, 2, 3, 4, 5, 8 [email protected] Charlie McNulty...(614) Q, S, 6, 7 [email protected] (Loss of Funds Project Officer) Vivian Martin...(614) A, B, I [email protected] Jerald Wheat...(614) C, H, J, U, W, X, Y, Z, 0 [email protected] DMO Support Staff Theresa Herold...(614) MOCAS A/R & DMO Detail [email protected] Bob Langdon...(614) Records Custodian [email protected] Carrie Perry...(614) DMO Collections & Refunds Technician [email protected] Effective Date: April 1, 2016

7 MOCAS Collections Trend Analyses as of 04/14/2016 MOCAS Collections by Fiscal Year Inflow Outflow 25,000 Universe of Unprocessed Collections ,053 12,913 12,607 12,835 11,981 12,043 10,792 9,694 11,234 10,301 13,566 12,263 17,771 20,137 20,000 15,000 10,000 5,000 # of MOCAS Collections FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Estimate Quantity Dollars 6,000 5,000 $60M $50M $40M $30M $20M $10M $0M 3,471 3,968 4,262 4,909 4,616 3,734 3,341 2,825 4,000 3,000 2,000 1,000

8 MOCAS Accounts Receivable Office Overview Primary Mission Process Collections for MOCAS Contracts FY ,415 / $0.89B FY2014 9,803 / $1.02B Collect Debt from MOCAS Contractors Contracting Officer Final Demands DCMA & DoD Service Components DFAS Initiated Demands Discussion Topics Collection Supporting Documentation Unsolicited vs. Solicited Collections FAR Revision Contract Close-outs Negative Unliquidated Obligations (NULOs) 5/4/2016 Integrity - Service - Innovation 7

9 MOCAS Collection Process All Collections Flow Through Disbursing Including Pay.gov Collections Non-MOCAS Collections MOCAS Contract Collections Process Begins Collections Received via Hard Copy or Pay.gov Support Technicians Process Applicable K Codes Collections Systemically Distributed to Technicians for Processing Technicians Process Collections on a FIFO Basis Collections Processed by Technician Collections Reviewed by Approving Officials Support Technician Prepares Collection Package for Tiering in EDM Support Technician F Codes Collection in MOCAS Process Ends 5/4/2016 Integrity - Service - Innovation 8

10 Documentation Requirements MOCAS Contracts Contract Number Posting Instructions Distribution Amounts ACRN(s) / CLIN(s) / Shipment Number(s) Credit BVN / Credit Invoice, if applicable Invoice Attached to Hard Copy Check Submissions Invoice ed to [email protected] for Pay.gov Submissions Collections not Related to a Credit BVN / Credit Invoice Detailed Explanation and Documentation for Collection 5/4/2016 Integrity - Service - Innovation 9

11 Contractor Actions to Improve Collection Process 1 Contract/Shipment per Remittance Ensure MOCAS-ACCS Pay.gov Form is Used Debits to Cancelled ACRNs Cannot be Processed Posting Instructions Ensure ACRN/CLIN Data is Current Supporting Documentation 5/4/2016 Integrity - Service - Innovation 10

12 MOCAS Prioritization Collections are Assigned and Worked Based on a FIFO Basis and the Priorities Established by Management Approved Exceptions Include Expedite and the Reasons in Red Related to the Reason for Expedite in the Subject Line [email protected] Collection is Preventing an Invoice from Going API Collections Pertaining to a Debt in the DFAS Contract Debt System (DCDS) DCMA Request to Expedite Collection Due to Collection Preventing Contract Close-out, Final Invoice, etc. DFAS Columbus Contract Reconciliation Request to Expedite Collection to Facilitate Reconciliation, J-Coded Invoice, etc. Cancelling Year Collections will be Expedited Beginning May 1, /4/2016 Integrity - Service - Innovation 11

13 MOCAS A/R Expedite Escalation Process/Timeline MOCAS Workflow Mailbox (3 Business Days) MOCAS A/R Branch Chief (2 Business Days) MOCAS A/R Lead Accounting Technician (2 Business Days) MOCAS A/R Accountant (2 Business Days) MOCAS A/R Division Chief 5/4/2016 Integrity - Service - Innovation 12

14 Questions 5/4/2016 Integrity - Service - Innovation 13