InterAgency Agreement (IAA) & Internet Payment Platform (IPP) Intra-Gov Briefing

1. InterAgency Agreement (IAA) & Internet Payment Platform (IPP) Intra-Gov Briefing Department of Agriculture APHIS Annual Agreements Meeting Wednesday, June 22, 2011

2. Agenda InterAgency Agreement (IAA) Internet Payment Platform (IPP) Intra-Gov Module Intra-Gov Automated Buy/Sell Pilot Sign up for eMail Updates

3. InterAgency Agreement (IAA) Wanda Simmons 3

4. The IAA is a Standard Template for doing reimbursable business between Federal Trading Partners with standard data elements to: Support FMLoB Reimbursaable Standard Business Processes Account for and reconciles intra-governmental (IG) transactions between Trading Partners Provide correct information for receipt and acceptance of authorized work Why was the IAA Developed? 4

5. The IAA is a Standard Template for doing reimbursable business between Federal Trading Partners with standard data elements to: Address the long-standing audit finding on the US Government’s financial report (FR) $26.2 Billion elimination entry between departments DoD = 4.34 Billion Reduce future elimination entries between agencies Why was the IAA Developed (cont)? 5

6. Reducing Elimination Entries Reconciliation Issues Annual Department Financial Report Trading Partner – Quarterly Reporting and Reconciliation Daily Reimbursable [Buy/Sell] Agreements (IAA) 6

7. IAA History • March 2009 – November 2010: • Developed Standard IAA • Tiger Team • Finance, Budget, Acquisition • GSA, GSA-FAS, DoD, Education, NSF, Health agencies, IC • Identified standard data elements using 9 different agency Interagency Templates including the OFPP June 2008 policy guidance for assisted acquisitions • Developed Standard IAA Form • 2 versions: Oct 2009 and July 2010 • Introduced to Agencies • NSF piloted form starting in March 2010 V.1 7

8. IAA Implementation Guidance In November 2010, FMS released the updated Intra-Gov Business Rules - IAA guidance, TFM Bulletin 2011-4 http://fms.treas.gov/tfm/vol1/11-04.html 8

9. History of IAA (cont) • December 2010 – February 2011: IAA “Paper” Pilot • IAA Agency Pilots used the paper IAA form for actual reimbursable business transactions • Collected comments by each data element (IAA Block) • March 2011: consolidated and analyzed pilot comments • April 2011 – Present (Version 3): • Updating standard IAA data elements • Developing data dictionary • Developing automated requirements • Working with OMB on updated policy 9

10. The IAA is: One Form with Two Sections General Terms and Conditions (GT&C) Section captures the partnership/relationship between the parties, identifying the: agencies entering into the agreement authority permitting the agreement, and agreement action, period, and type Each IAA must include one GT&C and at least one Order Order Requirements and FundingInformation section (Order) contains specific information about the: Products/Services being exchanged Bona fide need Funding information – accounting data elements Shipping information Authorization & Points of contact for the Buyer and Seller 10

11. The IAA Form: • Is Flexible enough for all types of Government business • Expands or Contracts depending on Trading Partner needs • Only complete sections that relate to your reimbursable business type 11

12. The Paradigm Shift 12

13. Communication is the Key The IAA is the Tool IAA Program Program Acquisition Legal Legal Acquisition Seller BUYER Finance Budget Finance Budget IT IT 13

14. Managing Reimbursable Agreements Governmentwide IAA Seller Buyer Invoice Receipt & Acceptance 14

15. Agency Reconciliation • Currently, Agencies reconcile between trading partners. • Who’s books are right? • The Governmentwide Goal is for agencies to reconcile their Intra-Gov activities with data from an authoritative source • Intra-Gov Buy/Sell Portal

16. Internet Payment Platform (IPP) Intra-Governmental Transaction Module Briefing Peter Moore 16

17. IPP Intra-Governmental Automation The Internet Payment Platform (IPP) is a U.S. Treasury program for processing electronic orders, invoices and payment information It is provided by U.S. Treasury at no charge to agencies IPP was originally set up to handle commercial transactions between agencies and suppliers It has been enhanced to support Intra-Governmental Buy/Sell transactions between agencies (IPP Intra-Gov)

18. IPP Intra-Gov Project Goals Facilitate a standard business process for agencies to transact and reconcile buy/sell activity Implement a digital version of the new standard InterAgency Agreement (IAA) Improve Buy / Sell management

19. IPP Intra-Gov Project Goals (cont.) Support the complete process flow from the IAA to settlement confirmation in one central location Provide visibility for both trading partners throughout the transaction lifecycle 19

20. IPP Intra-Gov IAA Implementation Challenges The new standard IAA is in the process of being introduced to agencies today, and is being finalized There is no central digital system available to all agencies to implement the new standard business process Migration to a single standard across agency trading partners with multiple processes and systems is difficult 20

21. IPP Intra-Gov Project Approach Leverage the current IPP commercial capabilities and best practices Leverage IPAC’s intra-governmental transaction settlement capabilities Enhance and integrate the two platforms to allow IPP to serve as a frontend to IPAC and automate support for buy/sell transactions 21

22. IPP Intra-Gov Project Approach (cont.) Support new standard IAA, initially via entry in IPP in Phase I, additionally via integration with agency systems in Phase II or III Proactive controls to ensure that only valid reference data values are used (BPN, TAS/BETC, etc.) Incorporate agency feedback on proposed changes Implement the new standard process and automated solutions government-wide 22

23. Intra-Gov Buy/Sell Modernization Phases Multi-phased roll out:

24. Intra-Gov Buy/Sell Modernization Phases Phase I (May 2011): IPP and IPAC integrated business process flow • Trading Partner setup • IAA order and invoice capability with full set of standard data elements • Buyer or Seller may create / approve IAA GT&C online • Buyer creates IAA Order from open GT&C • Seller creates invoice from IAA Order • Buyer approves or rejects the invoice • Settlement requests sent directly from IPP to IPAC • IPP receives and displays IPAC confirmation data • Online GT&Cs, Orders and Invoices visible to both trading partners

25. Intra-Gov Buy/Sell Modernization Phases Phases II (Dec 2011) and III (date tbd): Enhanced IPP and IPAC integrated business process flow • IAA standard rules applied to GT&C and Order processing • IG invoice workflow configuration • IPAC request file records display and reporting • Advance Payment functions • File integration with agency Core Financial Systems • Configurable invoice validation rules and transaction event notifications • Reimbursable Transaction Accounting Reporting Features will be assigned to releases based on Phase I feedback

26. Intra-Gov Buy/Sell Transaction Flow

27. Automated Intra-Gov Buy/SellPilot 27

28. Intra-Gov Buy/Sell Pilot Pilot Benefits: Supports entire Buy/Sell Process Supports Receipt and Acceptance of goods/services Flips Orders to Invoices to IPAC payment files Allows agencies to provide feedback for requirements on: IAA – Buy/Sell current Process Reporting & Reconciliation 28

29. Intra-Gov Buy/Sell Pilot (cont) Be Proactive - Sign Up for the automated pilot FMS will help: Develop an Implementation Plan Work with you and your trading partners Review and access feedback Develop any related requirements 29

30. Sign Up for eMail Updates 30

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32. Subscribe For IAA and Financial Management Standardization Information: http://www.fms.treas.gov/finstandard/index.html Subscribe to email updates Under Publications: Financial Management and Budget Standardization 32

33. Contacts & Information Peter Moore, IPP Agency Outreach LiaisonTreasury, Financial Management Service (FMS) peter.moore@fms.treas.gov (202) 874-6578 Paul Lionikis, IPP Strategic Agency Relations DirectorBoston Federal Reserve Bankpaul.lionikis@bos.frb.org(617) 973-3637 Pavita Murthi, IPP Program Manager Treasury, Financial Management Service (FMS) pavita.murthi@fms.treas.gov (202) 874-3685 Wanda Simmons, Treasury, FMS (202) 874-7932wanda.simmons@fms.treas.gov Robin Gilliam, CPA, PMP GWA Systems and Standards Integrator, Treasury, FMS robin.gilliam@fms.treas.gov(202) 874-9133 IAA@fms.treas.gov for email questions 33