R 081711Z NOV 12

ALCGFINANCE 050/12
SUBJ: FY2013 OBLIGATION VALIDATION PROCEDURES
A. FINANCIAL RESOURCES MANAGEMENT MANUAL (FRMM), COMDTINST M7100.3
B. DHS COMPONENT REQUIREMENTS GUIDE FOR FINANCIAL REPORTING
C. ALCGFINANCE 018/12 FY2012 INTERIM OBLIGATION VALIDATION POLICY
UPDATE
1. PURPOSE: TO PROVIDE OBLIGATION VALIDATION PROCEDURES FOR FY2013.
2. IAW REF A, PROGRAM ELEMENT MANAGERS (PEMS) ARE RESPONSIBLE FOR:
     A. REVIEWING AND VALIDATING OBLIGATIONS FOR ALL ENTRUSTED
PROGRAM
ELEMENTS (PE) OF EXPIRED AND UNEXPIRED APPROPRIATIONS.
     B. TAKING ACTION TO DEOBLIGATE OBLIGATIONS NO LONGER NEEDED.
     C. MAINTAINING SOURCE DOCUMENTS FOR OBLIGATIONS THAT ARE STILL
VALID.
3. IAW REF B AND C, OBLIGATIONS WILL BE VALIDATED QUARTERLY USING THE
OPEN OBLIGATION VALIDATION APPLICATION (OOVA). OOVA PRESENTS
OBLIGATIONS REQUIRING VALIDATION UNDER THE FOLLOWING CRITERIA:
     A. CURRENT AND PRIOR YEAR OBLIGATIONS COMPRISING THE TOP 80
PERCENT IN DOLLAR VALUE WILL BE VALIDATED QUARTERLY.
     B. CURRENT AND PRIOR YEAR OBLIGATIONS COMPRISING THE BOTTOM 20
PERCENT IN DOLLAR VALUE WILL BE VALIDATED ANNUALLY. CONSIDERING THE
LARGE NUMBER OF OBLIGATIONS IN THIS CATEGORY, A PORTION SHALL BE
VALIDATED EACH QUARTER TO ACHIEVE 100 PERCENT BY FISCAL YEAR CLOSE.
     C. OBLIGATIONS LESS THAN 90 DAYS OLD ARE EXCLUDED FROM
VALIDATION.
4. THE OOVA SCORECARD, HTTP://FINMS-HK3APP024/OOVA/DEFAULT.ASPX,
DISPLAYS QUARTERLY VALIDATION RATES FOR BOTH PRIOR AND CURRENT YEAR
OBLIGATIONS. TO VIEW THE DOCUMENTS REQUIRING VALIDATION BY QUARTER
END, CLICK ON THE PERCENTAGE WITHIN THE BAR GRAPH. THE OOVA SCORECARD
IS THE ONLY SOURCE TO OBTAIN AN ACCURATE LIST OF DOCUMENTS REQUIRING
VALIDATION AND IS REFRESHED DAILY.
5. PEMS SHALL DETERMINE WHICH VALIDATION STATUS IS MOST APPROPRIATE
USING THE OOVA STATUS MATRIX. THE OOVA STATUS MATRIX, DESK GUIDE AND
FAQS ARE LOCATED AT HTTP://FINSMS-HK3APP024/OOVA/REFERENCES.ASPX. AS
A REMINDER, THE STATUS OF COMPLETE AND IN CLOSEOUT ARE ONLY FOR DOC
TYPE 23, 24, 28 AND 37 REQUIRING CONTRACTING OFFICER (KO) ACTION. THE
STATUS OF IN CLOSEOUT SHALL ONLY BE USED IF THE PEM RECEIVES
CONFIRMATION THAT THE KO IS ACTIVELY CLOSING THE CONTRACT. IAW REF B,
OBLIGATIONS VALIDATED AS IN CLOSEOUT SHALL BE DEOBLIGATED WITHIN THE
CURRENT FY.
6. OBLIGATIONS VALIDATED AS NO LONGER NEEDED IN THE CURRENT YEAR MUST
BE DEOBLIGATED IN TIME TO EXECUTE FUNDS FOR OTHER NEEDS. GROWTH IN
UNOBLIGATED BALANCES IMPLIES THAT PROGRAMS WILL NOT BE IMPACTED BY
REDUCED FUTURE-YEAR APPROPRIATIONS AND HAS RESULTED IN CONGRESSIONAL
RESCISSIONS AND REDUCTIONS TO OUR BUDGET. OBLIGATIONS VALIDATED AS NO
LONGER NEEDED SHALL BE DEOBLIGATED WITHIN 30 DAYS.
7. DURING AUG AND SEP UDO AND EXPENSE SAMPLING, EXTERNAL AUDITORS
REVIEWED OOVA VALIDATION STATUS AND COMMENTS TO HELP DETERMINE
VALIDITY OF OBLIGATIONS OVER 365 DAYS OLD. IT IS IMPERATIVE THAT PEMS
PROVIDE ACCURATE AND UP TO DATE COMMENTS, AND BE PREPARED TO PROVIDE
SUPPORTING DOCUMENTATION.
8. RESOURCE MANAGEMENT OFFICES (RMO) SHALL PROVIDE TRAINING AND
OVERSEE VALIDATION AND DEOBLIGATION EFFORTS OF UNITS WITHIN THEIR
AOR.
9. POC: FOR QUESTIONS CONCERNING VALIDATIONS OR THE OOVA TOOL CONTACT
MR. ED ENG (757) 579-6136, EDWARD.N.ENG (AT) USCG.MIL.
10. CAPT S. R. MURTAGH, CHIEF, OFFICE OF RESOURCE MANAGEMENT SENDS.
11. INTERNET RELEASE AUTHORIZED.