single stock fund slides
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1 Financial Management School
Single Stock FundSingle Stock Fund
AWCFDEPOT
WHOLESALERETAIL
LOGISTICSOWNERSHIP
2 Financial Management School
Terminal Learning ObjectiveTerminal Learning Objective
Action: Identify the four tenets of Single Stock Fund (SSF) and the financial systems impacted by SSF.
Condition: Without references.
Standard: Identify the four tenets of SSF and how financial transactions occur under SSF with 100% accuracy.
3 Financial Management School
Single Stock FundSingle Stock Fund
What it is!
• Army initiative that tears down logistics and financial ownership barriers
• What it is not!
• A substitute for the Army’s Resource Allocation Process
• The end state for Logistics & Financial Information Technology Systems
4 Financial Management School
AWCF ElementsAWCF Elements
InformationServices
FY 01 Sales$0.11B
OrdnanceFY 01 Sales
$0.67BDepotMaintenanceFY 01 Sales
$1.2B
Supply Managed Army (SMA)
$4.7B FY01, Split into
Wholesale and Retail
S S F
Wholesale& Retail
Inventory Funded by the AWCF-SMA:
– Secondary Army Managed Items (Excluding Class V)
– Selected Non-Army Managed Items
5 Financial Management School
“Fragmented logistics and financial systems are causing inefficient inventory management, unacceptable lack of financial predictabilityand hinder our ability to logistically support
future concepts of operations.”
Extract from VCSA Decision Briefing,
18 Nov 97
The ProblemThe Problem
6 Financial Management School
Right #1
Army initiative that tears down
logistics and financial
ownership barriers
and improves
logistics support
The Solution:The Solution:Single Stock FundSingle Stock Fund
7 Financial Management School
Single Stock Fund DefinitionSingle Stock Fund Definition
An Army business process re-engineering initiative aimed at:
… Improving Warfighter Support: Worldwide Access to
stock; AWCF Funds ASLs
… Consolidating separate wholesale and retail elements into
a single fund
… Integrating and simplifying supply and financial processes
… Integrating logistics and financial automated information systems
8 Financial Management School
The Four SSF TenetsThe Four SSF Tenets
Single Point of Sale - Linking O&M Customers to the National System
Single Credit Process- Eliminating current tiered credit systems
Integrated Requirements Determination - National visibility and decision-making
National Maintenance Management - Fixing the right stuff, right place, right standard
Tearing down ownership barriers Setting conditions for other process & organizational changes
Moving the Army towards standardization
Driving the Changes
9 Financial Management School
SSF Tactical Flow Process SSF Tactical Flow Process AcronymsAcronyms
SARRS Standard Army Retail Supply System
MRF Management Review File
CCSS-Log Commodity Command Standard System-Logistics
CCSS-F Commodity Command Standard System-Finance
FTP File Transfer Protocol
ISB Installation Supply Buffer
ODS Operational Data Store
ILAP Integrated Logistics Analysis Program
STANFINS Standard Financial System
DAAS Defense Automated Address System
10 Financial Management School
DAAS
CCSS(NICP)
AMI
SARSS-Gateway
SARSS-2AC/B(CMMC)
SARSS-2AD(DMMC)
SARSS-1(SSA)
ULLS(Unit)
ULLS(Unit)
SARSS-1(INSTALLATION
DOL)
SAMS(DSU)
SAMS(DSU/GSU)
ICP(DLA, GSA,
et al)
AMCISS(AMCINST)
SDS(MAINTDEPOT)
TAV
STARFIARS-MOD
STANFINS
DSS(DIST
DEPOT)RASFIARS
SOMARDS
Interfund Bill
NAMI
F02, F08, F09
Legend Financial Systems
Supply Systems
Management Reporting System (ILAP)
Management Reporting System (TAV)
Other Systems
AMCRETAIL
ARMYRETAIL
Wholesale
Shortcomings
• Multiple points of sale• Multiple levels of
ownership• Multiple levels of
financial accounting• Limited asset visibility• Redundant Inventories• Limited redistribution• Variable credit• Non standard business
practices• Sub-optimized
requirements determination
Changes
Before SSF Systems ArchitectureBefore SSF Systems Architecture
dCAS
3
2
1
4
11 Financial Management School
ICP
DAAS
CCSS(NICP) AMI
& NAMI
SARSS-Gateway
SARSS-2AD(DMMC)
SARSS-1(SSA)
ULLS(Unit)
ULLS(Unit)
SARSS-1(INSTALLATION
DOL)
SAMS(DSU)
SAMS(DSU/GSU)
(DLA, GSA,et al)
AMCISS(AMCINST)
SDS(MAINTDEPOT)
TAV
ISB
STANFINS
DSS(DIST
DEPOT)
SOMARDS
Interfund Bill
F09
ILAP
ILAP
Legend
Financial Systems
Supply Systems
Management Reporting System (ILAP)
Management Reporting System (TAV)
Other Systems
ACIF
AFMIS
ACIIPS
FAS
IFS
TAMMIS
PRISM
080file
SARSS-2AC/B(CMMC)
SingleStockFund
NAMI
OSC
Middleware
RTRP
• Non-SARSS Consumer Funded
dCAS
ODS
1
2
34
SSF Systems InterconnectivitySSF Systems Interconnectivity
12 Financial Management School
SSF SolutionSSF Solution
SARSS2AC/B
ISB
SARSS Gateway DAASCCSSSupply(LSSC)
SSF Middleware
CCSSFinancial(DFAS)
SARSS2AD
SARSS1
OMASARSS1
ULLS SAMS
STANFINS
UNITILAP
UNITILAPSERVER
MACOM/CORPSINSTALLATIONILAPSERVER
CORPS
DIVISION
BN/BDE
UNITI
XX
XII
XXX
dCAS
Reconciliation tools ILAP and dCAS
ODS
1
2
3
13 Financial Management School
SSF Key System ChangesSSF Key System Changes
• Middleware passes SARSS transactions to ISB (not normally passed outside of SARSS)
• ISB processes SARSS Transactions
• ODS is a financial bridge from ISB to STANFINS
• ILAP is a management information tool which takes data from multiple sources, integrates the data, and allows managers to access this data for their functional needs.
• ILAP should be looked at as a data warehouse. Data is stored on all the ILAP servers and aggregated at different levels
14 Financial Management School
SSF SolutionSSF Solution
SARSS2AC/B
ISB
SARSS Gateway DAASCCSSSupply(LSSC)
SSF Middleware
CCSSFinancial(DFAS)
SARSS2AD
SARSS1
OMASARSS1
ULLS SAMS
STANFINS
UNITILAP
UNITILAPSERVER
MACOM/CORPSINSTALLATIONILAPSERVER
CORPS
DIVISION
BN/BDE
UNITI
XX
XII
XXX
dCAS
Reconciliation tools ILAP and dCAS
ODS
1
2
3
15 Financial Management School
Army Credit PolicyArmy Credit Policy
Complex Tiered, Credit Process
Single Process
Wholesale Credit
• NSN-by-NSN
• Changes IAW NAP
Retail Credit
• DA Alternate Credit
• Determined by RAC
AWCF-SMA Credit
• NSN-by-NSN • LOCKED Annually
– Serviceable– Unserviceable– AMI/NAMI
• AMI:– Serviceable: AMDF price - surcharge– Unserviceable: varies, based on National need
• NAMI:– General Rule:
– Serviceable: 3%– Unserviceable: 0%
– FLR on active repair program:– Serviceable: 83%– Unserviceable: 57% (historical average of unit price - loaded repair costs)
• Stable• Predictabl
e• Simple
• MACOM Retained Credit
Yesterday 1 Oct 00
Currently 104 NAMI FLRs on active repair programs
16 Financial Management School
Credit UpdateCredit Update
Goal: Credit issued to the
customer within 7 days from
turn-in to the AWCF
An Average
17 Financial Management School
Obligation Authority credit capitalization and cash management for AWCF-SMA will be managed by AMC
AMC will report to HQDA all financial aspects of the AWCF-SMA. CCSS financial will be the single general ledger for SSF and provide appropriate reports to Integrated Material Management Centers and HQ ALC for all AWCF operations (Retail Stocks will be de-capitalized).
Budget submission and defense will be ALC’s responsibility along with Unit Cost Goal management
Financial ManagementFinancial Management
18 Financial Management School
Varying PerspectivesVarying Perspectives
• Changed Inventory Ownership
• Reduced ability to generate and migrate funds
• Changed credit flows (eliminating retail-level credits)
• National direction of General Support (GS) Repair
– Workforce associated with GS repair funded by AWCF vs O&M
– All repairs based on National need
• Changed billing procedures, billed from wholesale to O&M customer
• Modernized Army Supply System – Merged Retail and Wholesale stocks– Optimized stockage of inventory
• Integrated Requirements Determination Processes
• Offset procurements through redistribution of excess inventory Army-wide
• National Maintenance Management
• Streamlined and improved efficiency of AWCF Financial Management processes
• Elimination of redundant financial transactions - Sales and Credit
Benefits From The Army Perspective
Impacts From aField Perspective
19 Financial Management School
The Army Single Stock Fund
The Army Single Stock Fund
The Army Single Stock Fund
The Army Single Stock Fund
The Army Single Stock Fund ProgramThe Army Single Stock Fund Program
AMC
DOL
RM
WarFighter
SSF - Depends on Where You AreSSF - Depends on Where You Are
20 Financial Management School
The Four SSF TenetsThe Four SSF Tenets
Single Point of Sale - Linking O&M Customers to the National System
Single Credit Process- Eliminating current tiered credit systems
Integrated Requirements Determination - National visibility and decision-making
National Maintenance Management - Fixing the right stuff, right place, right standard
Tearing down ownership barriers Setting conditions for other process & organizational changes
Moving the Army towards standardization
Driving the Changes
21 Financial Management School
ReviewReview
• True/False – Is the single credit process tenet meant to provide a stable, predictable and simple credit process to customers?- True
• What are the four tenents of the SSF? - Single point of sale, single credit process,
integrated requirements determination, and a national maintenance management system
• True/False – Is local maintenance management a benefit that the SSF provides the Army? - False
22 Financial Management School
Terminal Learning ObjectiveTerminal Learning Objective
Action: Identify the four tenets of Single Stock Fund (SSF) and the financial systems impacted by SSF.
Condition: Without references.
Standard: Identify the four tenets of SSF and how financial transactions occur under SSF with 100% accuracy.