Nashville Area Indian Health Service 2011 Annual Report

DIVISION OF FINANCIAL MANAGEMENT
The Division of Financial Management (DFM) successfully completed the endof-year
closeout for Fiscal Year 2011 and obligated 100% of funds with no loss of
resources. At year-end, the DFM reconciled 98% of the total schedules and 99% of
the invoices were paid on time. The Division of Financial Management also reduced
Converted Obligations with No Activity (CONA) by 82 documents this year. This is
important because CONA documents are old documents, and removing them from the
books ensures federal service units are maximizing their resources. Accounts Payable
(A/P) developed an alternative way to process and reconcile Centrally Billed Accounts
(CBA). Typically, processing and reconciling CBAs can take months; however, the
new workaround process allows Accounts Payable to complete this task on a monthly
basis.
Maintaining Financial Integrity
While the Catawba Service Unit was short on staff, the Accounts Receivable (A/R)
staff at the Nashville Area office took on the task to bring posting claims up-todate
to generate funds (allowances) for the Service Unit. In continuing to utilize
the G-Batch process, the Division of Financial Management reduced the number
of Journal Vouchers (JV) in 2011 by 70% when compared to 2010—a reduction
for three consecutive years! The staff of the DFM received an exceptional audit
report, and they are continuously striving for a perfect audit.
Cash Management
The Cash Management element cascades from the AD SES Elements. The purpose
of Cash Management is to ensure funding support for the delivery of health care
and assures appropriate administrative control of funds. Cash Management
reports are used to leverage UFMS data to maintain and/or improve health care
management and to achieve compliance with standards and benchmarks.
Did you know?
Nashville Area
Division of Financial
Management processed
$111.2 million to
Tribes, representing
84% of Area resources.
Accounts Receivable Payments
Additionally, IHS management monitors Cash Management, Procurement,
General Ledger, Accounts Payable and Project Accounting for improvements and
trends utilizing the IHS UFMS FMO (Financial Management Office) dashboard.
$649,734
$699,520
Comparing the 2010 and 2011 data, the Nashville Area has improved the Absolute
Suspense for Disbursements by 37% and the Absolute Suspense for Collections
by 68%. The number of reconciled schedules increased by 3% from 95% in
2010 to 98% in 2011, and the number of outstanding schedules decreased by
34% percent. Cash Management staff has made marked improvement in since the
implementation of UFMS.
2010 2011
Fiscal Year
The Division of Financial Management (DFM) executes the fiduciary responsibilities of the Nashville
Area Indian Health Service. Every financial obligation, whether through the 638 contracting process,
payroll, or procurement, is managed through the DFM.
82 www.ihs.gov/Nashville Nashville Area Indian Health Service