annually in reduced processing costs. Two key areas where DOD needs to
focus its efforts are (1) better using available technology by developing
seamless, fully integrated payment systems and (2) streamlining and
simplifying, to the extent practical, its payment processes.
Let me give a few examples of the detailed accounting requirements that
Requirements Are a Burden on
DFAS payment personnel are faced with when paying a bill. These
examples clearly suggest the need for simplification.
DOD uses what is called a "long line of accounting" to accumulate
appropriation, budget, and management information for contract
payments. For all contracts, the buying activity assigns a two-character
code called an accounting classification reference number (ACRN) to each
accounting line containing unique information. Figure 1 is an example of
an accounting line--the type and quantity of information varies among the
Figure 1: Example of DOD's Long Line of Accounting