Accounts Payable Account Receivable and Fund Balance with

Accounts Payable, Account Receivable and Fund Balance with Treasury Daily Status Review Monday, February 4, 2008 National Aeronautics and Space Administration 1

AP/AR/FBw. T Daily Status Review Agenda - Monday, February 04, 2008 • Status of Critical Contact Center Systems • Askew • Customer Contact Center Metrics • Askew • Status of Critical IT Systems • Kilgore • Invoice Workload – Daily Document Imaging Volumes • Kilgore • Daily Performance Metrics for Key Indicators – Accounts Payable • Caldwell/Epperson • Accounts Payable Performance Trend Charts • Caldwell/Epperson • Internal Controls • Mosteller • Audit Activity • Mosteller • Status of ORR Action Items – NSSC • Daniels/Mosteller • Status of ORR Action Items – Dryden, Marshall, SSC • Center Reps • Outstanding Issues – Accounts Payable/Receivable • Daniels • Outstanding Issues – Accounts Payable/Receivable Trend Charts • Daniels • Outstanding Issues – Fund Balance with Treasury • Mosteller • Outstanding Issues – Fund Balance with Treasury Trend Chart • Mosteller • Feedback National Aeronautics and Space Administration 2

AP/AR/FBw. T Daily Status Review Agenda • Weekly Slides • Monthly Slides National Aeronautics and Space Administration 3

Status of Critical Contact Center Systems Telephone System is operational Called 1 -877 -NSSC 123, listen to recording and menu and connect to an agent. Daily at 7: 00 a. m. Remedy Help Desk is operational Logged in and checked the Console, Flashboards and Bulletin Board. Daily at 7: 00 a. m. Centergy Server is up Checked Quickcom and the Reader Board. Daily at 7: 00 a. m. Centergy Manager is operational Logged in. Daily at 7: 00 a. m. Voicemail – After Hours Messages – cleared Checked voice message light to confirm messages have been read and deleted. Daily at 7: 00 a. m. Emergency After Hours Requests entered into Remedy Checked Remedy to confirm any after hours inquiries have been input. Daily at 7: 00 a. m. After Hours Telephone messaging system is operational Called 1 -877 -NSSC 123 after hours recording. Verify option 1 rolls to voice mail and option 2 rolls to after hours on-call Manager. Daily at 7: 00 p. m. Quality and Accuracy of Information Randomly selected live calls and email responses reviewed. Daily Time to Answer Reviewed time to answer Centergy and Report. Daily National Aeronautics and Space Administration All times Central 4

Customer Contact Center Metrics Calls by Activity National Aeronautics and Space Administration 5

Customer Contact Center Metrics Calls by Inquiry National Aeronautics and Space Administration 6

Customer Contact Center Metrics Aging Help Desk Tickets National Aeronautics and Space Administration 7

Customer Contact Center Daily Trend Chart by Activity Accounts Payable National Aeronautics and Space Administration 8

Customer Contact Center Daily Trend Chart by Activity Accounts Receivable National Aeronautics and Space Administration 9

Customer Contact Center Daily Trend Chart by Activity Fund Balance with Treasury National Aeronautics and Space Administration 10

Customer Contact Center Daily Trend Chart by Activity Other National Aeronautics and Space Administration 11

Status of Critical IT Systems SYSTEM STATUS AWMS GREEN IAW GREEN ACa. RT GREEN KOFAX-IR GREEN PCC GREEN PAY. GOV GREEN CIDT GREEN REMEDY GREEN SAP GREEN National Aeronautics and Space Administration DOWNTIME UPTIME COMMENTS PUT IN PRODUCTION FRIDAY 12

Invoice Workload Daily Document Imaging Volumes National Aeronautics and Space Administration 13

Daily Performance Metrics For Key Indicators Accounts Payable * Interest Paid on invoices that were received and processed at the Center National Aeronautics and Space Administration 14

Daily Performance Metrics For Key Indicators Accounts Payable – Invoice Workload Performance Trend Charts and Graphs - Invoices Received National Aeronautics and Space Administration 15

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Fund Balance With Treasury Recommendation NASA should consider strengthening its communications with the centers by developing and implementing a communication plan that keeps the centers up to date on control monitoring requirements. The FBw. T Service Delivery Guide and process narratives should be updated as the process evolves. Additionally, NSSC and Center process owners should standardize the names of roles and process steps and conduct training sessions to gain a clear understanding of their roles and responsibilities in the processes. In accordance with Treasury's rules and regulations regarding suspense accounts, NASA should consider modifying the SAP to Treasury reconciliation process to eliminate suspense Journal Voucher (JV). NASA should request a waiver from Treasury to be able to post to suspense until NASA can update the process and eliminate the need to post to suspense Blank Fund Review-NSSC should consider performing the CMP/PMC review of blank commitment items as recommended in the FMR, Volume 19, Chapter 22. National Aeronautics and Space Administration Proposed Resolution Status The NASA OCFO will respond. Open After further discussion with PWC, there appeared to be confusion with the accounting functional Service Provider role titles and the IT Service Provider role titles. The NSSC will update the FBWT SDG to clarify the accounting functional Service Provider role title by changing the title from "Service Provider" to "Accounting Service Provider. " The NASA OCFO will respond. The NSSC will perform blank fund, blank ALC, blank commitment item and blank functional area reviews on a daily basis. The SDG will be updated to reflect the addition of daily blank commitment item reviews. Open 16

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Accounts Payable Recommendation Proposed Resolution The NSSC should designate an individual within the Center's Accounts Payable or Procurement department to update the NSSC Vendor Invoice Processor of changes regarding Center's authority listing. In addition, a back-up designee should be assigned for each Center. The NSSC AP will obtain invoice approval lists from Center Procurement and Finance and implement a process to receive the POC list for Contract Assignments from Center Procurement. Procedure will require regular updates from and follow-ups to Procurement and Finance to ensure both lists are kept up to date. All incoming vendor and FI invoices should be submitted to the NSSC directly from the vendor to be uploaded into SAP. Each Contracting Officer (CO) or Contracting Officer Technical Representative (COTR) should approve his/her invoices daily to verify goods have been received and services performed. This change in the process will require a control to be put in place that will detect invoices sent to the centers for approval have been returned to the NSSC for processing. This was a Center observation. All incoming vendor and FI invoices that are received at the NSSC will be scanned and routed through the Accounts Payable Work Management System (AWMS). AWMS will allow the NSSC to track status of invoices, to identify aged invoices, invoices not returned/approved, etc. and to follow-up with approving officials to ensure accurate and timely processing of invoices. After the transition go-live date, some of the invoices will be incorrectly sent to centers instead of to the NSSC. The Centers will need to send these invoices to the NSSC for processing. The NSSC will coordinate with the Centers to ensure that all of these invoices are accounted for. These invoices will be logged and tracked. During the transition stabilization period, there will be daily meetings with the Centers. Status of invoices will be one of the topics of discussion. National Aeronautics and Space Administration Status Open 17

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Accounts Payable Recommendation Proposed Resolution The NSSC Vendor Payment Processor should validate that services have been rendered and the IPAC was approved by the applicable CO or COTR before posting to SAP. The NSSC sees the process differently. At the time the IPAC is received by NASA the U. S. Treasury has already reduced NASA's funding by the amount of the IPAC transactions so there is little need to hold these transactions out of the accounting system pending some additional approval. Posting the valid and complete transactions upon receipt actually allows NASA records to remain in balance with U. S. Treasury records. Currently the NSSC performs the following IPAC validations based on downloaded information from GOALS: Purchase Order Number, Obligation Amount in SAP, Type Payment, Originating ALC, Customer ALC, Document Reference Number, Dollar Amount, Accomplish Date. After validation, the IPAC is posted to SAP. For Goods Receipt related IPACs the NSSC also checks SAP to ensure the goods receipt transaction has been processed in SAP. For services related IPAC the NSSC posts the IPAC transactions upon receipt/validation and then notifies the responsible activity of the posting and asks for confirmation/approval of services claimed on invoice/IPAC. If the responsible activity disapproves the posting the NSSC will work with the charging entity to reverse the IPAC or take other required action. The NSSC recognizes that not all NASA Centers are using an approval prior to posting process for IPAC. Therefore the NSSC will develop a standard IPAC posting procedure and coordinate it with the OCFO to standardize the process across NASA. National Aeronautics and Space Administration Status Open 18

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Accounts Receivable Recommendation Proposed Resolution The Revenue and Receivables Service Delivery Guide and process narratives prepared should be updated as the process evolves. Additionally, NSSC and Center process owners should participate in training sessions to gain a clear understanding of their roles and responsibilities in the processes. The Revenue and Receivables Service Delivery Guide and process narratives are now and will be in the future updated as the process evolves. Coordination between NSSC and center process owners is ongoing and will continue throughout the workload transition, stabilization and ongoing future operations. Intra-Governmental Reimbursable Agreements-The combination the safe(s) should be changed on a semi-annual basis to maintain security integrity. A work order has been established to provide locksmith service to change the safe combination upon employee departure or at six month intervals. The applicable Service Delivery Guide has also been updated to include this requirement and the procedure for requesting locksmith service. There should be an additional documented review and reconciliation of the deposit log, Paper Check Conversion (PPC) Summary Report, check batch listing, SF-215, and CA$HLINK Report by the Deposit Processor Supervisor. The additional documented review and reconciliation of the deposits using PCC Summary Report, check batch listing, SF-215 and Cash link report will be completed by the Senior Reimbursable Accountant at least weekly. This requirement has been documented in the applicable Service Delivery Guide. National Aeronautics and Space Administration Status Closed 19

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Accounts Receivable Continued Recommendation Proposed Resolution Non-Federal Reimbursable Agreements-The combination the safe(s) should be changed on a semi-annual basis to maintain security integrity. A work order has been established to provide locksmith service to change the safe combination upon employee departure or at six month intervals. The applicable Service Delivery Guide has also been updated to include this requirement and the procedure for requesting locksmith service. There should be an additional documented review and reconciliation of the deposit log, Paper Check Conversion (PPC) Summary Report, check batch listing, SF-215, and CA$HLINK Report by the Deposit Processor Supervisor. The additional documented review and reconciliation of the deposits using PCC Summary Report, check batch listing, SF-215 and Cash link report will be completed by the Senior Reimbursable Accountant at least weekly. This requirement has been documented in the applicable Service Delivery Guide. National Aeronautics and Space Administration Status Closed 20

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Accounts Receivable Continued Recommendation Proposed Resolution Customer File Maintenance-There should be a documented review of the new customer accounts once input into the Customer Maintenance File to verify that entries were correctly made. The review should be performed by the Customer Master Maintainer Supervisor. New customer accounts for direct accounts Closed receivable will be established by the NSSC. The NSSC process will include an additional review of the new customer accounts once the new account has been established. New customer accounts for reimbursable accounts receivable are established by the centers. The NSSC procedure has been documented in the applicable Service Delivery Guide. There should be a documented review of updates/edits made to an existing customer account once input into the Customer Maintenance File to verify that entries were correctly made. The review should be performed by the Customer Master Maintainer Supervisor. New customer accounts for direct accounts Closed receivable will be established by the NSSC. The NSSC process will include an additional review of the new customer accounts once the new account has been established. New customer accounts for reimbursable accounts receivable are established by the centers. The NSSC procedure has been documented in the applicable Service Delivery Guide. National Aeronautics and Space Administration Status 21

Internal Controls Status of resolution – NSSC Transitioning Process Design Assessment Accounts Receivable Continued Recommendation Proposed Resolution Freedom of Information Act Receivables-The combination the safe(s) should be changed on a semi-annual basis to maintain security integrity. A work order has been established to provide locksmith service to change the safe combination upon employee departure or at six month intervals. The applicable Service Delivery Guide has also been updated to include this requirement and the procedure for requesting locksmith service. There should be an additional documented review and reconciliation of the deposit log, Paper Check Conversion (PPC) Summary Report, check batch listing, SF-215, and CA$HLINK Report by the Deposit Processor Supervisor. The additional documented review and reconciliation Closed of the deposits using PCC Summary Report, check batch listing, SF-215 and Cash link report will be completed by the Senior Reimbursable Accountant at least weekly. This requirement has been documented in the applicable Service Delivery Guide. e. Payroll Receivables-There should be a Direct Debt Management Division established at the NSSC that will track all e. Payroll receivables for each Center. As of February 1, 2008, the NSSC is totally responsible for accounts receivable (reimbursable and non-reimbursable) for the Wave 1 centers. This includes: establishing, tracking, monitoring and ensuring collection of all accounts receivables. This function will transfer to the NSSC based on the transition dates for the waves. National Aeronautics and Space Administration Status Closed 22

Status of Action Items NSSC Action Item Status POC Date SSC – No Variances Noted Dual Processing for FBWT Mosteller DFRC - No Variances Noted MSFC – No Variance Noted Reimbursable Billing Analysis Respond to PWC Internal Control Report National Aeronautics and Space Administration Daniels Mosteller Draft response submitted to Cathy 2/1/08 Claunch All times Central 23

Status of Action Items Dryden Action Item Center Readiness Status (Post Transition Cleanup) Data on next slide POC Date Moore Send Reminder Vendor Letters Moore Send Reminder Customer Notices Moore National Aeronautics and Space Administration Status All times Central 24

Status of Action Items Dryden (continued) National Aeronautics and Space Administration 25

Status of Action Items Marshall Action Item Center Readiness Status (Post Transition Cleanup) Data on next slide Send Reminder Vendor Letters POC Status Date Black Walker - Non-reimbursables Send Reminder Customer Notices Martin-Lalor - Reimbursables National Aeronautics and Space Administration All times Central 26

Status of Action Items Marshall (continued) National Aeronautics and Space Administration 27

Status of Action Items SSC Action Item Center Readiness Status (Post Transition Cleanup) Data on next slide Send Reminder Vendor Letters Send Reminder Customer Notices National Aeronautics and Space Administration POC Status Date Guin Sullivan All times Central 28

Status of Action Items SSC (continued) National Aeronautics and Space Administration 29

Feedback • OCFO • Core Transition Team Members • Wave 1 Center CFOs, DCFOs • Wave 1 Center On-Site Representatives • NSSC National Aeronautics and Space Administration 30

National Aeronautics and Space Administration 31