Funds-Control to Loan-System Reconciliation Gap
RD operates multiple legacy loan systems (PLAS, DLS, CLSS, GLS, LoanServ, AMAS, ECMS) that feed obligation, disbursement, and balance data into FMMI funds-control records and Treasury reporting, and reconciliation gaps between loan-of-record and funds-control-of-record drive both the OIG ULO finding and recurring monthly closeout exceptions.
Why It Matters
Continuous reconciliation is the foundation of FCRA-compliant cohort accounting, A-123 internal control, and DATA Act submission integrity. A reconciliation that breaks once breaks the cohort balances, the financing-account interest, the Treasury report, and the OMB credit supplement at the same time.
HSG's Approach
- 1Build an automated daily reconciliation engine pulling extracts from each RD loan system and comparing line-for-line to FMMI funds-control records.
- 2Wrap reconciliation in a workflow that auto-categorizes exceptions (timing, transposition, missing transaction, mis-coded TAS) and routes to NFAOC analysts with proposed corrective journal entries.
- 3Apply OMB A-11 §185 cohort discipline — every loan extract tagged to its cohort year (FY 1992 onward) so reconciliation breaks land in the right cohort model.
- 4Stand up monthly 'ten-day-close' target with exception aging heat map for OBP and NFAOC management.
- 5Document Treasury USSGL Credit Reform Guidance and TFM Part 2 Chapter 4600 traceability for every reconciling item.
Expected Deliverables
- Daily reconciliation engine (Python / SAS / dbt) with documented data lineage
- Exception categorization rulebook and disposition workflow
- Cohort-tagged reconciliation outputs feeding BICS and Essbase
- Monthly close-by-day-10 dashboard
- SOP and runbook for NFAOC reconciliation analysts
Expected Outcome
Reduce average exception aging from 45+ days to under 10 days and cut monthly closeout overruns by 40% while restoring auditable cohort-level reconciliation across all RD credit programs.