US Treasury: dfirecon elim intragov bal

8/14/2019 US Treasury: dfirecon elim intragov bal

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Intragovernmental Impact onIntragovernmental Impact on

Governmentwide AuditGovernmentwide AuditMaterial Weakness cited by theMaterial Weakness cited by theGovernment Accountability Office (GAO):Government Accountability Office (GAO):

FMS is not able to fully eliminateFMS is not able to fully eliminateintragovernmental activity in the preparationintragovernmental activity in the preparationof the Financial Report of the U.S. Governmentof the Financial Report of the U.S. Government(FR).(FR).

Impact of Agencies IntragovernmentalImpact of Agencies IntragovernmentalReconciliation on the Financial Report:Reconciliation on the Financial Report:

Assurance that FR is not viewed as possibleAssurance that FR is not viewed as possiblematerial misstatement.material misstatement.Meaningful eliminations.Meaningful eliminations.



Intragovernmental FiduciaryIntragovernmental Fiduciary

Confirmation System (IFCS)Confirmation System (IFCS)GOALS II Internet ApplicationGOALS II Internet Application

Official confirmation system for federal agenciesOfficial confirmation system for federal agenciesthat engage inthat engage in fiduciaryfiduciar

y intragovernmentalintragovernmentaltransactions.transactions.

Agencies are required to confirm and reconcileAgencies are required to confirm and reconcile

the following transactions:the following transactions:Investments with BPDInvestments with BPDBorrowings with BPD and FFBBorrowings with BPD and FFBFECA transactions with DOLFECA transactions with DOLEmployee Benefit Program transactions with OPMEmployee Benefit Program transactions with OPM





IFCS Roles & FunctionsIFCS Roles & FunctionsDepartment AdministratorDe

partment Administrator : assigns fund symbols to confirmation users;: assigns fund symbols to confirmation users;view/print forms and reportsview/print forms and reports

Department UserDe

partment User : read-only access: read-only access

Confirmation UserConfirmation User : edit/view/print confirmation form (assigned only): edit/view/print confirmation form (assigned only)

Fiduciary UserFiduciar

y User : read-only access (fiduciary agency only): read-only access (fiduciary agency only)

Governmentwide UserGovernmentwide User : FMS & GAO access only: FMS & GAO access only

Dept Admin/Confirmation UserDe

pt Admin/Confirmation User : assigns fund symbols to confirmation users,: assigns fund symbols to confirmation users,view/print forms and reports, edit/view/print confirmation forms (assignedview/print forms and reports, edit/view/print confirmation forms (assigned

only)only)

Dept User/Confirmation UserDe

pt User/Confirmation User : edit/view/print confirmation forms (assigned: edit/view/print confirmation forms (assigneddepartment only)department only)

Dept Admin/Fiduciary UserDe

pt Admin/Fiduciary User : assigns fund symbols to confirmation users;: assigns fund symbols to confirmation users;view/print forms and reports (fiduciary agency only)view/print forms and reports (fiduciary agency only)



IFCS User RecertificationIFCS User Recertification

Annual process to re-verifyAnnual process to re-verify each IFCS user's needfor access and the level of that access.

A recertification form with accompanyinginstructions is sent to each user's supervisor viaemail. The form is completed by indicating either"continued" access or "revoke" access for thespecified user's role in the system. Therecertification form must be signed by thesupervisor and faxed to FMS by the designateddue date.

All IFCS users will need to be recertified by May



Intragovernmental ReportingIntragovernmental Reporting

and Analysis System (IRAS)and Analysis System (IRAS)Microsoft Access database softwareMicrosoft Access database softwareapplication used as aapplication used as a tooltool to facilitateto facilitate

reconciliation between reporting agencyreconciliation between reporting agencyand its trading partners.and its trading partners.

Developed to conduct detail analysis toDeveloped to conduct detail analysis tothe fund group level, and to synthesizethe fund group level, and to synthesizequarterly intragovernmental trial balancequarterly intragovernmental trial balancedata extracts, IFCS, and GFRS data.data extracts, IFCS, and GFRS data.



IRAS CapabilitiesIRAS Capabilities

Isolates intragovernmental activity byIsolates intragovernmental activity byreciprocal category, trading partner, andreciprocal category, trading partner, andUSSGL account.USSGL account.

Compares federal agencies quarterlyCompares federal agencies quarterlyintragovernmental trial balance extracts tointragovernmental trial balance extracts toIFCS confirmations and Closing PackageIFCS confirmations and Closing Packagereporting.reporting.

Generates reports at the detail andGenerates reports at the detail and

summary levels for submission to 35summary levels for submission to 35



Reciprocal Categories forReciprocal Categories forFiduciary TransactionsFiduciary Transactions

AccountingImpact

DescriptionReciprocalCategory

Assets/Liabilitiesrelated to Interest

Receivable/Payable

Interest onInvestments (BPD)

with Treasury

02

Revenue/ExpenseInterest on

Borrowings (BPD &FFB) with Treasury

05

Gains/LossesFederal Borrowings06

Revenue/ExpenseGains/Losses

Interest onInvestments (BPD)

with Treasury

03

Assets/Liabilitiesrelated to Principle,Discount, Premium,

Amortization, Debt

Investments in Treasury/BPD

Securities

01



Fiduciary TransactionsFiduciary Transactions

(cont.)(cont.)

Revenue/Expenserelated to

Employee Benefits

Employee Benefits:Labor – FECA

OPM – Health, Life,Retirement

26

Assets/Liabilitiesrelated to BenefitsReceivable/Payable

Employee Benefits:Labor – FECA

OPM – Health, Life,Retirement

21

Asset/Liabilitiesrelated to Loans

Receivable/Payable

BPD/FFBBorrowings from

Treasury

17

AccountingImpact

DescriptionReciprocalCategory



Intragovernmental ReportingIntragovernmental ReportingProcessProcess

IFCS confirmations (quarterly)IFCS confirmations (quarterly)

Agency “F” transaction filesAgency “F” transaction files(quarterly)(quarterly)IRAS Reports (quarterly & year-end)IRAS Reports (quarterly & year-end)

CFO Representations (year-end)CFO Representations (year-end)IG Agreed-Upon Procedures (year-IG Agreed-Upon Procedures (year-end)end)



IFCS Confirmation ProcessIFCS Confirmation ProcessCentral Fiduciary Agencies submit files to FMSCentral Fiduciary Agencies submit files to FMS quarterlyquarterly (BPD, FFB, DOL, OPM).(BPD, FFB, DOL, OPM).

System Administrators upload fiduciary files into IFCS.System Administrators upload fiduciary files into IFCS.

Agencies are able to confirm balances within a designatedAgencies are able to confirm balances within a designatedtime period.time period.

Explanations must be provided for all differencesExplanations must be provided for all differencesAccounting ErrorAccounting Error

Timing Difference Timing DifferenceAccounting MethodologyAccounting MethodologyUnknownUnknownRounding DifferenceRounding DifferenceConfirmed ReportingConfirmed Reporting



Accounting MethodologyAccounting MethodologyDifferences for BPDDifferences for BPD

InvestmentsInvestmentsOMB Business Rules state that “BPD and trading partnerOMB Business Rules state that “BPD and trading partneragencies will use theagencies will use the effective interest methodeffective interest method forforamortization on market-based notes, bonds, and zero-amortization on market-based notes, bonds, and zero-

coupon bond securitiescou pon bond securities . BPD and the trading partner. BPD and the trading partneragencies will use theagencies will use the straight-line method for market-basedstra ight-line method for market-basedbillsbills .”.”

Provisions:Provisions:Amortization of market-based premiums to call dateAmortization of market-based premiums to call date

Held-to-maturity vs. Available-for-saleHeld-to-maturity vs. Available-for-saleInventory Relief Method for redemptions prior to maturityInventory Relief Method for redemptions prior to maturity

Differences in accounting methodology for investments is aDifferences in accounting methodology for investments is areporting/reconciliation issue for BPD and Federal Agencies.reporting/reconciliation issue for BPD and Federal Agencies.



Agency “F” Transaction FilesAgency “F” Transaction Files

Quarterly submission of intragovernmental balances for allQuarterly submission of intragovernmental balances for allproprietary USSGL accounts (proprietary USSGL accounts ( onlyonly transactions with the Federaltransactions with the Federal“F” attribute) .“F” attribute) .

Agencies derive intragovernmental balances directly from theirAgencies derive intragovernmental balances directly from theirdepartmental trial balances used as the basis for constructingdepartmental trial balances used as the basis for constructingquarterly unaudited financial statements for OMB.quarterly unaudited financial statements for OMB.

Text or Excel File Format Text or Excel File Format

Elements of Text/Excel File:Elements of Text/Excel File:Department Code (2-digit)Department Code (2-digit)Bureau Code (2-digit)Bureau Code (2-digit)

Fund Group (4-digit)Fund Group (4-digit)USSGL AccountUSSGL AccountFederal “F” AttributeFederal “F” Attribute

Trading Partner (2-digit) Trading Partner (2-digit)Dollar AmountDollar AmountExchange “X” or Nonexchange “T” AttributeExchange “X” or Nonexchange “T” AttributeDuplicate Partner Code Identifier (DPCI)Duplicate Partner Code Identifier (DPCI)



IRAS ReportsIRAS Reports

Generated from agency “F” transaction files:Generated from agency “F” transaction files:Intragovernmental Activity Detail ReportIntragovernmental Activity Detail ReportIntragovernmental Activity Summary ReportIntragovernmental Activity Summary ReportIntragovernmental Reciprocal Category Detail ReportIntragovernmental Reciprocal Category Detail ReportIntragovernmental Reciprocal Category Summary ReportIntragovernmental Reciprocal Category Summary ReportQuarterly Data vs. IFCS Agency Benefits ReportQuarterly Data vs. IFCS Funds (Investments &Borrowings) ReportMaterial Differences/Status of Disposition CertificationIntragovernmental Comparative Explanations of Differences ReportIntragovernmental Closing Package vs. Fourth QuarterSubmission Comparative Data Report (only at year-end)



CFO RepresentationsCFO Representations

Chief Financial Officer (CFO) providesChief Financial Officer (CFO) providesresponses to representations for eachresponses to representations for eachintragovernmental issue cited on theintragovernmental issue cited on the

representation form.representation form.

Elements of CFO Representation:Elements of CFO Representation:Consistency between agency audited financialConsistency between agency audited financial

statements and Closing Package data.statements and Closing Package data.Closing Package reconciliation with tradingClosing Package reconciliation with tradingpartner, by reciprocal category.partner, by reciprocal category.Explanation of Closing Package MaterialExplanation of Closing Package MaterialDifferences.Differences.



IG Agreed-Upon ProceduresIG Agreed-Upon Procedures

Inspector General (IG) uses the Agreed-UponInspector General (IG) uses the Agreed-UponProcedures to assist with accounting for andProcedures to assist with accounting for andeliminating intragovernmental activity & balanceseliminating intragovernmental activity & balancesin the preparation of agency andin the preparation of agency andGovernmentwide financial statements.Governmentwide financial statements.

Elements of IG Agreed-Upon Procedures:Elements of IG Agreed-Upon Procedures:Attest to all elements of representations from CFO.Attest to all elements of representations from CFO.Compare IRAS (Closing Package) data to subsidiaryCompare IRAS (Closing Package) data to subsidiaryrecords.records.

Test reconciliation of material intragovernmental Test reconciliation of material intragovernmentalactivity/balances with trading partners.activity/balances with trading partners.

Test intragovernmental controls for financial reporting. Test intragovernmental controls for financial reporting.

IG must perform the procedures regardless of IG must perform the procedures regardless of audit opinion on agency’s financial statements.audit opinion on agency’s financial statements.



Performance MeasuresPerformance Measures

Annually, FMS reviews reporting efficiency of Annually, FMS reviews reporting efficiency of federal agencies and provides feedback to thefederal agencies and provides feedback to theagency CFO & IG on their performance.agency CFO & IG on their performance.

IFCS Performance Indicator: Reconciliation of IFCS Performance Indicator: Reconciliation of Unexplained DifferencesUnexplained DifferencesElementElement : 4: 4 thth Qtr unexplained difference is less than 10%Qtr unexplained difference is less than 10%of agency’s IFCS reporting total for each central fiduciaryof agency’s IFCS reporting total for each central fiduciaryagency.agency.Overall ResultsOverall Results : 30 agencies in compliance (86%): 30 agencies in compliance (86%)

5 agencies non-compliance (14%)5 agencies non-compliance (14%)

Differences with BPD Investments/BorrowingsDifferences with BPD Investments/Borrowingswere all explained.were all explained.



Intragovernmental AuthorityIntragovernmental Authority

FASAB StandardsFASAB StandardsOMB Bulletin 01-09 (Form & Content)OMB Bulletin 01-09 (Form & Content)OMB Business Rules (Memo # M-03-OMB Business Rules (Memo # M-03-01)01)

Treasury Financial Manual (TFM) Treasury Financial Manual (TFM)Vol I, Part 2, Chapter 4700Vol I, Part 2, Chapter 4700

Federal IntragovernmentalFederal IntragovernmentalAccounting Policies GuideAccounting Policies Guide



IFCS Key DatesIFCS Key Dates

33 rdrd Quarter, FY 2005Quarter, FY 2005IFCS Opens:IFCS Opens: 7/11/057/11/05

IFCS Closes:IFCS Closes: 7/25/057/25/05

44 thth Quarter, FY 2005Quarter, FY 2005

IFCS Opens:IFCS Opens: 10/7/0510/7/05IFCS Closes:IFCS Closes: 10/19/0510/19/05





ContactsContacts

IFCS System AdministratorsIFCS System AdministratorsLena LewisLena Lewis [email protected]@fms.treas.gov

Sheila MillerSheila Miller 202-874-8305202-874-8305

[email protected]@fms.treas.gov

IRAS/Treasury Intragovernmental LiaisonIRAS/Treasury Intragovernmental LiaisonBenjamin SussmanBenjamin Sussman 202-874-9898202-874-9898Benjamin.Sussman@[email protected]

Intragovernmental Team LeaderIntragovernmental Team LeaderElla Hughes-BaileyElla Hughes-Bailey 202-874-6389202-874-6389Ella.Hughes-Bailey@[email protected]

mailto:[email protected]














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US Treasury: dfirecon elim intragov bal

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