Condition: Fund Balance with Treasury

Description
	DOD continues to have inconsistencies related to in-transit disbursements, unmatched disbursements, negative Unliquidated obligations, unreconciled differences in suspense accounts, and unreconciled differences between U.S. Treasury records and DOD accounting records." [DOD IG Report 2010-002, p. 5] Example#1: The Component did not reconcile the "Statement of Differences-Deposits," within 2 months as a loss or overage of funds. As a result, there was a risk that actual losses of funds would not be identified in a timely manner and agency managers could overspend or overobligate because they did not have current and accurate information on amounts in their Fund Balance with Treasury accounts. Also, unreconciled differences could impact Fund Balance with Treasury amounts reported in the financial statements. Example#2: The Component continues to experience difficulties reconciling all transactions posted to the Fund Balance with Treasury general ledger account. These difficulties persist largely because of deficiencies throughout the accounting, reporting, and reconciling processes. Specifically, the Component had not established adequate procedures to identify and record in-transit disbursement and collection transactions, and could not provide complete information, including disbursement voucher numbers, for transactions included on the Cash Management Report and Detail Pile Report.
Parent Condition (1)
	Material Weakness
Child Condition(s) (0)

Condition Source

Busines Rule(s) (0)

Operational Activity(ies) (0)

BPM Process(es) (8)
	Distribute and Manage Budget Execute Rescission, Cancellation and Deferrals Manage Baseline for Reprogramming Manage Execution Fund Account Manage General Ledger Transactions Manage Report of Programs Perform Reporting Perform Treasury Operations
Measure(s) (17)
	Cash Reconciliations Collection Amounts in Suspense Accounts Delinquent Debts FBWT Differences FBWT Reconciliation FBWT Suspense Activity Number of FBWT Reconciling Items On-Time Billing On-Time Treasury Reporting (Future Metric) PDS Approval/Acceptance to Accrual Posting Procure to Pay Frequency of Unmatched Disbursements Procure to Pay Unsupportable Disbursements Rescission Unmatched Collections Unmatched Collections Aging Unreconciled Obligations Unsupported Collections