R 021732Z FEB 12 ALCOAST 045/12 COMDTNOTE 7500 SUBJ: FINANCIAL MANAGEMENT FOR TEMPORARY DUTY (TDY) TRAVEL ORDER - ACTION ORDER ONE A. ALCOAST 029/12 - FINANCIAL MANAGEMENT FOR TEMPORARY DUTY (TDY) TRAVEL ORDER - WARNING ORDER B. ALCGFINANCE 043/10 - INTERIM OBLIGATION POLICY FY 2011 C. FINANCIAL RESOURCE MANAGEMENT MANUAL (FRMM), COMDTINST M7100.3 (SERIES) D. ALCGFINANCE 041/11 - INTERIM PROGRAM ELEMENT RECONCILIATION POLICY AND GUIDANCE E. COAST GUARD SUPPLEMENTAL TO JOINT FEDERAL TRAVEL REGULATIONS, VOLUME 1, (CGS-JFTR), COMDTINST M4600.17 (SERIES) 1. THIS IS THE FIRST ACTION ORDER ISSUED IN SUPPORT OF REFERENCE A. IN THE FIRST 100 DAYS OF FISCAL YEAR 2012, MORE THAN 2,200 TRAVEL ORDER SETTLEMENTS WERE PAID TO TRAVELERS WHERE NO OBLIGATION EXISTED IN THE FINANCE AND PROCUREMENT DESKTOP (FPD), RESULTING IN A DIRECT EXPENDITURE IN THE CORE ACCOUNTING SYSTEM (CAS). THIS UNAUTHORIZED TRANSACTION IS IN VIOLATION OF REFERENCE B, RESULTS IN A MISSTATEMENT ON THE COAST GUARDS OFFICIAL FINANCIAL STATEMENTS, AND REQUIRES CORRECTIVE ACTION. 2. THERE ARE SIX PRIMARY CAUSES FOR THESE DIRECT EXPENDITURES: A. THE UNIT ISSUING THE TRAVEL ORDER NUMBER (TONO) FAILED TO ENTER AN OBLIGATION INTO FPD. B. THE TRAVELER SUBMITTED A REQUEST FOR SETTLEMENT WITH THE WRONG TONO AND/OR LINE OF ACCOUNTING. THE TRAVELER AND THE APPROVING OFFICIAL (AO) FAILED TO PROPERLY VALIDATE THE FINANCIAL DATA AND THE AO INAPPROPRIATELY APPROVED THE SETTLEMENT. C. THE UNIT ISSUING THE TONO ENTERED A ZERO DOLLAR OBLIGATION INTO FPD. D. THE UNIT ISSUING THE TONO ENTERED THE OBLIGATION INTO FPD AFTER THE TRAVELER WAS PAID. E. NO ACTIVITY IN FPD FOR 90 DAYS FOLLOWING A UNIT OBLIGATION FOR TDY TRAVEL ORDERS RESULTED IN AN AUTOMATIC DE-OBLIGATION. THE TRAVELER THEN FILED A REQUEST FOR SETTLEMENT. THE AO FAILED TO ESTABLISH A NEW OBLIGATION AND INAPPROPRIATELY APPROVED THE SETTLEMENT. F. THE ISSUING UNIT ENTERED THE TONO IN FPD BUT DID NOT APPROVE THE DOCUMENT. 3. EACH OF THE CAUSES IDENTIFIED IN PARA 2.A. THROUGH 2.F. ABOVE COULD HAVE EASILY BEEN PREVENTED HAD THE ISSUING AUTHORITY, AO, YEOMEN, STOREKEEPERS AND THE TRAVELER FOLLOWED EXISTING POLICY. THESE UNAUTHORIZED TRANSACTIONS CREATE SIGNIFICANT REWORK AS WELL AS INDUCE RISK INTO OUR FINANCIAL REPORTING AND ACCOUNTABILITY PROCESS. 4. ACTION: A. ALL COAST GUARD AREA, DISTRICT, AND UNIT COMMANDERS, COMMANDING OFFICERS, OFFICERS-IN-CHARGE, ASSISTANT COMMANDANTS, CHIEFS OF HEADQUARTERS STAFF ELEMENTS, COMMANDING OFFICERS OF HEADQUARTERS UNITS AND OFFICE CHIEFS, ARE ENTRUSTED WITH AND RESPONSIBLE FOR FINANCIAL STEWARDSHIP OF TAX PAYER DOLLARS AND SHALL COMPLY WITH THE FOLLOWING: (1) REVIEW SECTION 3.H.10 OF REFERENCE C AND ENSURE COMPLIANCE WITHIN YOUR RESPECTIVE AOR. (2) ENSURE PROGRAM ELEMENT STATUS (PES) REPORT RECONCILIATIONS ARE COMPLETED PER REFERENCE D. EXECUTING PES RECONCILIATIONS IN A PROPER AND TIMELY FASHION ENABLES A UNIT TO ACCURATELY TRACK THE FUNDS THAT ARE AVAILABLE FOR OBLIGATION, PROVIDES A VALUABLE INTERNAL CONTROL TOOL, AND REPRESENTS OUR LAST LINE OF DEFENSE FOR CATCHING ERRORS. THERE ARE TOO MANY CASES WHERE RECONCILERS IMPROPERLY PROCESSED FISCAL YEAR CHARGES, WHICH REQUIRE EXTENSIVE REVIEW AND LENGTHY CORRECTION OF THESE ADMINISTRATIVE ERRORS TO AVOID VIOLATIONS OF THE TIME ASPECT OF APPROPRIATIONS LAW. IT IS CRITICAL THAT THE PROPER FY IS RECORDED FOR TDY TRAVEL ORDERS. (3) ENSURE TRAVEL AOS COMPLY WITH THE FOLLOWING AS THEY REVIEW AND APPROVE REQUESTS FOR SETTLEMENT: (A) REVIEW REFERENCE B, SPECIFICALLY PARA 2.B. AND 2.E., THAT DISCUSSES RESPONSIBILITY FOR ENSURING APPROPRIATE OBLIGATIONS ARE ENTERED INTO FPD PRIOR TO APPROVING REQUESTS FOR TDY TRAVEL AND FOLLOW-ON REQUESTS FOR SETTLEMENT. THE AO MAY USE QUERY BY DOCUMENT (QBD) AT HTTP://CGWEB.FINCEN.USCG.MIL/QBD/INDEX1.HTM. THIS TOOL PROVIDES A HISTORY OF ACTIVITY ASSOCIATED WITH EACH DOCUMENT ID INCLUDING THE APPROVED OBLIGATION DOCUMENT. QBD DOES NOT REQUIRE SPECIAL FPD ACCESS. (B) AOS SHALL NOT APPROVE REQUESTS FOR SETTLEMENT (WITH EXCEPTION OF SUPPLEMENTAL CLAIMS) UNLESS THE TONO AND ACCOUNTING LINE MATCH THE OBLIGATION IN FPD AND THE OBLIGATION AMOUNT RECORDED IN FPD IS EQUAL TO OR GREATER THAN THE AMOUNT OF THE SETTLEMENT. (C) SUPPLEMENTAL REQUESTS FOR SETTLEMENTS WILL BE ADDRESSED IN FUTURE ACTION ORDERS. (4) BUDGET AUTHORITY, INCLUDING THE AUTHORITY TO CERTIFY THAT FUNDS ARE AVAILABLE AND TO OBLIGATE THOSE FUNDS, IS DELEGATED DOWN THE ADMINISTRATIVE CONTROL CHAIN OF COMMAND. COMMANDING OFFICERS THAT DELEGATE BUDGET AUTHORITY SHALL ENSURE THAT UNITS UNDER THEIR CONTROL: (A) APPROVE SINGLE TRIP ORDERS (DOCUMENT TYPE 11) PRIOR TO TRAVEL, TYPICALLY WITHIN THE QUARTER THAT TRAVEL WILL OCCUR, HOWEVER, NOT SO FAR IN ADVANCE THAT ORDERS ARE SUBJECT TO THE 90 DAY AUTO-DEOBLIGATION PROCESS. (B) OBLIGATE ORDERS WITH AN APPROPRIATE ESTIMATE THAT FACTORS IN ALL COSTS OF THE VALUE OF THE TDY TRIP AND MAINTAIN SUPPORTING DOCUMENTATION PER REFERENCE B. THE AO CHECKLIST IS AN EXCELLENT TOOL TO ASSIST TRAVELERS AND AOS IDENTIFY ALL ASSOCIATED TRAVEL COSTS AND CAN BE FOUND AT: HTTP://WWW.USCG.MIL/PPC/TRAVEL/AOCHECKLIST.PDF. (5) ENSURE TRAVELERS FILE THEIR TRAVEL CLAIMS WITHIN 3 BUSINESS DAYS OF COMPLETING DIRECTED TRAVEL PER REFERENCE E. B. RESOURCE MANAGEMENT OFFICES (RMOS) SHALL RESOLVE UNAUTHORIZED TRANSACTIONS WITH THE UNITS UNDER THEIR FINANCIAL ADMINISTRATIVE CONTROL. C. COMDT (CG-8C) WILL PROVIDE FUTURE COMMUNICATION VIA ALCGFINANCE ACTION ORDERS THAT ADDRESS SYSTEMATIC MONITORING, COMPLIANCE AND COMMAND NOTIFICATIONS OF NONCOMPLIANCE. IN THE INTERIM, UNITS ARE DIRECTED TO FOLLOW EXISTING TRAVEL POLICY AND IMPLEMENT CORRECTIVE ACTIONS IF DEVIATIONS EXIST. 5. POC: FOR QUESTIONS CONCERNING THIS ACTION ORDER, CONTACT CDR TONY ALARID, TONY.J.ALARID(AT)USCG.MIL. 6. MS. MARGO SHERIDAN, DIRECTOR OF FINANCIAL OPERATIONS/COMPTROLLER, SENDS. 7. INTERNET RELEASE AUTHORIZED.