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Intragovernmental Accounting and Eliminations Process

Intragovernmental Accounting and Eliminations Process. 2007 Federal Investments & Borrowings Seminar April 12, 2007 Presented by: Ella Hughes-Bailey ella.hughes-bailey@fms.treas.gov Financial Management Service, Governmentwide Accounting. Topics of Discussion.

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Intragovernmental Accounting and Eliminations Process

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  1. Intragovernmental Accounting and Eliminations Process 2007 Federal Investments & Borrowings Seminar April 12, 2007 Presented by: Ella Hughes-Bailey ella.hughes-bailey@fms.treas.gov Financial Management Service, Governmentwide Accounting

  2. Topics of Discussion • What are Intragovernmental Transactions? • Impact of Intragovernmental Transactions on the Financial Report of the U.S. Government (FR) • Investments & Borrowings Reciprocal Categories • Quarterly Intragovernmental Process • Yearend Intragovernmental Process • Tools to Resolve Borrowings and InvestmentsDifferences

  3. What are Intragovernmental Transactions?Transactions between two different Federal Government entities (includes both interdepartmental and intradepartmental transactions).

  4. Impact of Intragovernmental Transactions on the Financial Report on the U.S. Government (FR) • Unreconciled Intragovernmental Transactions are Still a Material Weakness at the Consolidated Federal Government Level • Impact of Agencies Intragovernmental Reconciliation on the FR • Resolving Intragovernmental Transactions Continue to Remain a Difficult Challenge

  5. Investments and Borrowings Reciprocal Categories (RC)

  6. QuarterlyIntragovernmental Process • Federal Program Agencies, Confirms Fiduciary Balances in IFCS Reminder: IFCS recertifications are due by April 30, 2007 • Verifying Agencies “F” Transactions Submissions Reminder: Files must me submitted in the required format per TFM • FMS Provides IRAS Reports to Agencies to Facilitate Reconciliations Change: Beginning 3rd quarter FY 2007, verifying agencies will generate IRAS reports • Agencies Submits Status of Disposition Certification to FMS Reminder: Unresolved confirmed vs. confirmed differences > $50 M will require a CFO action plan for the 3rd Quarter, FY 2007 Change: Unknown explanation of differences > $50 will also require a CFO action plan for the 3rrd Quarter, FY 2007 • FMS Provides Comparative Status of Disposition Report to Agencies

  7. Examples ofInvestments & Borrowings Reporting Differences(1st Quarter 2007)

  8. Yearend Intragovernmental Process • Verifying Agencies Identify Intragovernmental Trading Partners by Federal Line Item in GFRS Module 4 • Verifying Agencies Generates IRAS Reports Based on Closing Package Data • CFOs Certify Closing Package Material Differences/Status of Disposition Certification Report • FMS Provides Agencies Intragovernmental Comparative Closing Package Explanations of Differences Report

  9. Changes to Yearend Process CFO Representation • Due 3rd Quarter (August 7, 2007) Instead of Yearend IG Agreed Upon Procedures (Audit Requirements) • IGs Specifies Preferred Option for Implementation in FY 2007 Option 1 – IG AUPs Option 2 – IG AUPs, Performance Audit or Internal Control Reviews • Options 1 or 2 Due August 29, 2007 • Based on 3rd Quarter Data Instead of After FR is Issued

  10. Tools to ResolveInvestments and Borrowings Differences • OMB and Treasury Intragovernmental Reporting Requirements & Guidance • OMB Circular A-136, Financial Reporting Requirements • OMB Bulletin 06-03, Audit Requirements for Federal Financial Statements • OMB Memorandum M-03-01, Business Rules for Intragovernmental Transactions, Dated November 13, 2006 • Treasury Financial Manual, Part 2, Chapter 4700, Agencies Reporting Requirements for the Financial Report of the United States Government • Treasury Bulletin 2007-03, Intragovernmental Business Rules, Effective FY 2007 • Federal Intragovernmental Transactions Accounting Policies Guide • Agencies Policies and Procedures • Frequent Communication with Trading Partners • Intragovernmental Dispute Resolution Committee

  11. Quarterly Reporting Key Dates

  12. TentativeFYE 2007 Intragovernmental Key Dates

  13. In Closing . . . AGENCIES WHO RECONCILE DURING THE YEAR ARE MORE LIKELY TO HAVE RECONCILED BALANCES AT YEAREND!

  14. Questions!

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