How IDA can enhance cash management

Abstract

The Integrated Disbursing and Accounting System (IDA) is a program to modernize the Navy's financial control system through the use of computer technology and a centralized data base. During the Navy's final design stage, the Treasury Department published guidelines to enable all agencies to achieve sound cash management throughout the federal sector. This study presents an analysis of the current method of processing commercial billing invoices, identifying the problems which prevent the system from complying with the Treasury's guidelines. Various alternatives are discussed to determine how to best meet the needs of the Navy and to comply with these guidelines. Based on the author's analysis, payment certification should be performed by the Funds Administering Activity (FAA) to optimize the computer technology and fully realize the benefits of cash management. The study concludes with a discussion of the decision made by the Navy.