1.33.3  Reimbursable Operating Guidelines (Cont. 1)

1.33.3.9 
Reimbursable Authority

1.33.3.9.3 
Financial Spend Plans

1.33.3.9.3.1  (02-11-2011)
Reconciliation and Alignment

  1. Financial Plan Managers and their respective Budget Office Reimbursables Coordinator are required to maintain accurate reimbursable budget plans. In addition to IRM 1.33.3.9.3.1.1, IFS Budget Version Alignment and IRM 1.33.3.9.3.1.2, Reimbursable Authority Alignment discussed below, it is recommended that coordinators maintain optimum account accuracy by:

    1. Maintaining open communications with the Reimbursables Project Coordinator on adjustments to reimbursable projects.

    2. Requesting reimbursable budget authority for new agreements promptly.

    3. Processing earnings transactions according to accounting time-frames promptly.

    4. Using IFS reports and analysis tools to identify and address accounting errors and misalignments during the fiscal year.

    5. Reconciling account irregularities promptly.

    6. Establishing advance plans and closing out reimbursable projects.

1.33.3.9.3.1.1  (10-09-2009)
IFS Budget Version Alignment

  1. IRM 1.33.4, Financial Operating Guidelines requires that IFS Budget Versions 0, 1, and 999 be managed and reconciled by Financial Plan Managers or their designee(s). This same requirement applies to managing and reconciling budget versions for reimbursable projects.

  2. Significant increases exceeding the agreement cost projection may require an amendment to the agreement, funds reservation, forecast of revenue, and budget to reflect actual costs.

1.33.3.9.3.1.2  (10-09-2009)
Reimbursable Authority Alignment

  1. Monitoring and analyzing reimbursable earnings against reimbursable authority is critical to knowing whether payments are occurring accurately and on schedule. Budget Office Reimbursables Coordinators must monitor individual projects based on the billing frequency set up in the agreement. Consistently monitoring progress toward a 100 percent earnings rate ensures proper oversight of reimbursable expenditures for each project.

  2. An additional quarterly tracking of all project earnings is recommended to assess whether intervention is needed to address earnings performance that falls below projections. Do this by evaluating total earning results at the end of each quarter or quarterly percent of year elapsed (e.g., 25, 50, 75, and 100 percent).

  3. Those projects that are expected to exceed agreement projections should be renegotiated and IFS documents updated accordingly. Provide Corporate Budget with an updated copy of the signed agreement and an updated Funds Reservation (FMX1) Worksheet. However, if earnings are significantly lower than originally projected, IFS projections must be reduced. It is not necessary to renegotiate those agreements with reduced earnings levels.

  4. Any administrative modification such as accounting codes changes or deobligations should be addressed promptly to ensure accurate earnings are posted in IFS.

  5. Beckley Finance Center issues standard billings according to the agreement billing frequency and may prompt business units should earnings fall behind schedule.

  6. Year-end earnings should reach 100 percent by the date established in the Mid-Year Review Guidance and Year-end Close Guidelines. See IRM 1.35.15, Administrative Accounting, Annual Close Guidelines.

1.33.3.10  (10-09-2009)
Budget and Accounting Procedures

  1. Corporate Budget, in coordination with IFM, provides administrative support and guidance to business units on the budget and accounting procedures necessary to complete each stage in the processing of reimbursable agreements.

  2. Trading partner requirements for agreements, billing/payment, accounting, and reconciliation procedures are setout in the Treasury Financial Manual, Volume 1, Bulletin No. 2011-04, Intragovernmental Business Rules. See http://fms.treas.gov/tfm/vol1/11-04.pdf

  3. This section provides the processing requirements and IFS document transactions needed to complete reimbursable business. Reimbursable earnings may be collected under a non-advance agreement or an agreement paid in advance.

1.33.3.10.1  (02-11-2011)
Processing Reimbursables

  1. All reimbursable agreements require the development of a Funds Reservation Worksheet, and the completion of certain IFS transactions such as the Forecast of Revenue (FMV1), Budget Transfer (FR58), Funds Reservation (FMX1), and earnings transactions. See IRM 1.33.3.10.2, IFS Transactions.

  2. From the initial Funds Reservation Worksheet to the final earnings transaction and closeout of the reimbursable project, the budget and accounting transactions conform to one of two collection methods: advance payments or non-advance IPAC payments.

    1. Advance payment are most often one-time payments with opportunities for upwards/downwards adjustments as the project nears completion.

    2. Non-advance payments are collected under an IPAC method and follow a pre-set billing frequency (e.g., monthly, quarterly, or lump-sum). For the most part, opportunities for upwards/downwards adjustments to non-advance reimbursables occur during the 4th quarter of the fiscal year. The processing steps for these collection methods follows.

1.33.3.10.1.1  (02-11-2011)
Funds Reservation Worksheet

  1. Once the Reimbursable Project Coordinator finalizes the agreement with the Buyer, a signed copy is provided to the Budget Office Reimbursables Coordinator, who then develops the Funds Reservation Worksheet projecting the fiscal year project needs. If the agreement is paid under an advance payment arrangement, then the Budget Office Reimbursables Coordinator must wait until both Beckley Finance Center and Corporate Budget confirm that the advance has been received. Otherwise, the Budget Office Reimbursables Coordinator may forward the Funds Reservation Worksheet at the same time as the signed agreement.

  2. All reimbursable projects must have a completed Funds Reservation Worksheet on file with Corporate Budget including updates for upwards and downwards adjustments to the project. The Funds Reservation Worksheet is a Corporate Budget financial control for ensuring the appropriateness and accuracy of reimbursable transactions. Most importantly, it is a required planning step toward ensuring that funds are available when needed.

  3. The worksheet represents an advance copy and official notification by the business unit of its intent to reserve or commit budget for anticipated but undefined expenses under the Reimbursable Fund.

  4. The Funds Reservation Worksheet contains standardized accounting data elements that are identical to the Funds Reservation (FMX1) transaction in IFS. It represents the business unit’s detailed funds allocation by General Ledger account. The coordinator inserts the project name, internal order code (e.g., RA2010B707), and projected costs by accounting code (e.g., Full-time Equivalents, Fund Center, Commitment Item, Functional Area, among others).

  5. Using the worksheet as a basis, Corporate Budget completes two allocation-related transactions: the Forecast of Revenue (FMV1) and the Budget Transfer (FR58) allocation to the business unit.

  6. Once a budget is reserved, it cannot be used for another purpose. As periodic earnings are posted in Financial Accounting, the reservation is automatically reduced. If funds reservations exceed fiscal year needs, the business unit must first contact Corporate Budget to revise the projection.

  7. During the fiscal year, the worksheet is updated as adjustments occur and re-submitted to Corporate Budget to maintain proper account alignment within IFS.

  8. The Funds Reservation Worksheet is available at : http://cfo.fin.irs.gov/IntFinMgmt/BFC/Forms/FMX1.xls

1.33.3.10.1.2  (02-11-2011)
Non-Advance Payments

  1. The following procedures address processing collections where the final reimbursable agreement specifies that collections be processed through IPAC transactions on a monthly, quarterly, or lump-sum schedule:

    1. The Reimbursables Project Coordinator negotiates with the Buyer on the terms and conditions of the reimbursable agreement, obtains the Buyer and Seller's final signatures, and then forwards a final copy of the agreement to the Budget Office Reimbursables Coordinator.

    2. The Budget Office Reimbursables Coordinator receives the final agreement and then develops the Funds Reservation Worksheet, including the reimbursable agreement internal order code and projected reimbursable costs by accounting code. The coordinator then e-mails the agreement and worksheet to Corporate Budget.

    3. Corporate Budget reviews the agreement for validity and the accounting for accuracy and then e-mails a final copy to the Beckley Finance Center.

    4. Within the same month, Corporate Budget enters the Forecast of Revenue (FMV1-FR) and Transfer Budget (FR58) and the Budget Office Reimbursables Coordinator enters the Funds Reservation (FMX1) document in IFS.

      Note:

      These reimbursables are typically Treasury or federal government agreements and not non-governmental, state, local, and foreign government agreements.

    5. Within the same month, these transactions must be completed:

      Transactions To Be Completed During the Same Month
        1) The Budget Office Reimbursables Coordinator completes and parks the earnings document (FV50-BZ).
        2) Beckley Finance Center posts and approves the earnings document (FV50-BZ), also known as the cost transfer from the Direct Fund to the Reimbursable Fund.
        3) Beckley Finance Center recognizes or acknowledges the unbilled revenue using document FV50-BW.

      Note:

      An example of the reimbursables earnings transaction (FV50-BZ) is located at the following website:http://cfo.fin.irs.gov/IntFinMgmt/BFC/Forms/FV50.xls

    6. Beckley Finance Center must also complete these transactions:

      BFC Transactions
        1) Invoice the Buyer.
        2) Collect receivables by processing related IPAC transactions against the Buyer's account.

    7. The Budget Office Reimbursables Coordinator reconciles the business unit reimbursable budget and funds reservations, as needed.

    8. Corporate Budget reviews and coordinates with the Budget Office Reimbursables Coordinator on ongoing reconciliation of the reimbursable budget and forecast of revenue.

1.33.3.10.1.3  (02-11-2011)
Advance Payments

  1. The following procedures address processing collections where the final reimbursable agreement and the IRS require an advance payment instead of using a prearranged billing cycle to collect payments.

    1. The Reimbursables Project Coordinator negotiates the terms and conditions of the reimbursable agreement and obtains the Buyer and Seller's final signatures. The coordinator and the Buyer review the agreement instructions on sending the advance payment to the Beckley Finance Center.

    2. The Buyer sends the advance payment and the final reimbursable agreement to the Beckley Finance Center using the payment instructions in the agreement. Advance payments can be made through electronic funds transfer (EFT), the Treasury Pay.gov site at: https://www.pay.gov, commercial check or money order. The Beckley Finance Center advance payment mailing address is at: IRM 1.33.3.10.2.4.3.

    3. The Reimbursables Project Coordinator simultaneously e-mails a copy of the final agreement to the Budget Office Reimbursables Coordinator, who in turn e-mails the copy to Corporate Budget for review.

    4. Corporate Budget reviews the agreement and then waits until the Beckley Finance Center provides a notification that a payment has been received from the Buyer, the amount of the payment, and whether it is a full or partial payment.

    5. Corporate Budget then requests that the Budget Office Reimbursables Coordinator complete and forward the Funds Reservation (FMX1) Worksheet referencing the advance amount received.

    6. Within the same month, the following transactions must be completed:

      Transactions To Be Completed During the Same Month
        1) Corporate Budget completes the Forecast of Revenue (FMV1-FA) and the Transfer Budget (FR58) transactions in IFS and forwards the transaction document number(s) to the Budget Office Reimbursables Coordinator.
        2) The Budget Office Reimbursables Coordinator completes the Funds Reservation (FMX1) transaction in IFS.
        3) Beckley Finance Center records the receipt of the Buyer's cash advance using document F-29-DZ.

    7. Within the same month, the following transactions must be completed:

      Transactions To Be Completed During the Same Month
        1) The Budget Office Reimbursables Coordinator completes and parks the earnings document (FV50-BZ).
        2) Beckley Finance Center posts the earnings document (FV50–BZ).
        3) Beckley Finance Center posts the receivable (FV70-AD).
        4) Beckley Finance Center posts an entry to clear the receivable (F-32-AB).

    8. The Budget Office Reimbursables Coordinator reconciles the reimbursable budgets and funds reservation, as needed.

    9. Corporate Budget reviews and coordinates with the Budget Office Reimbursables Coordinator on ongoing reconciliation of the reimbursable budget and forecast of revenue.

1.33.3.10.1.3.1  (02-11-2011)
Advance Payment Adjustments

  1. Before reimbursable work begins, the Beckley Finance Center must receive the advance payment amount and inform Corporate Budget of the amount received. As the reimbursable project moves toward completion, the Reimbursable Project Coordinator evaluates the ratio of project costs to the advance payment amount received. If the project costs exceed the advance payment amount, then the coordinator renegotiates an increase to the agreement and notifies the Buyer of the increase amount needed to complete the project. If the actual project costs are less than the advance amount received, then the coordinator renegotiates the agreement and notifies the Buyer that a decrease or refund will be issued.

  2. Establishing a process for routinely communicating with the Buyer on adjustments to their advance payment agreements is critical to both the Buyer and Seller accurately accounting for the goods and/or services the IRS provides. It is recommended that during the initial agreement negotiation process, the Reimbursable Project Coordinator develops a project completion time-line with specific dates and opportunities for revisiting the cost estimate based on new or reduced requirements.

  3. The terms and conditions set out in the advance payment agreement should make clear that advance payment funding applies to work accomplished within a fiscal year period. The IRS does not have authority for accomplishing multi-year reimbursable work.

  4. During the fiscal year, expenditures are reconciled against the amount of the advance payment and any unearned advance payments must be returned to the Buyer prior to year-end.

  5. Advance payment adjustments must be accounted for and earnings posted and reconciled according to the year-end close guidelines and deadlines. See IRM 1.35.15, Administrative Accounting, Annual Close Guidelines

1.33.3.10.1.3.1.1  (02-11-2011)
Increasing An Advance Payment

  1. In most cases, obtaining an increase to the advance payment amount requires the Reimbursable Project Coordinator to meet with the Buyer to renegotiate the dollar and FTE level, and any new terms and conditions. The new agreement is then signed and dated by the Buyer attesting to the approval of the additional cost increase. If there are no changes to the agreement terms and conditions and only minor cost increases, the IRS will accept the Buyer initialing and dating the revised agreement. The initialed agreement becomes the accounting documentation.

  2. When an agreement indicates an advance payment is required, the Beckley Finance Center will accept IPAC advance payments from federal government buyers/customers, including any justifications for increases to the agreement.

  3. Advance payment increases are sent directly to the Beckley Finance Center, using the mailing address at: IRM 1.33.3.10.2.4.3 or a pre-arranged electronic mailing address.

  4. Once the Beckley Finance Center reimbursables contact receives the revised agreement and advance payment, the funding is deposited or posted to the 6500 Suspense Account. An e-mail notification is sent to the Corporate Budget business unit analyst to allocate the budget increase to allow the continuation of reimbursable work and collections.

  5. The Budget Office Reimbursables Coordinator revises the Funds Reservation Worksheet by amending the line item(s) affected and indicates the increase and date in the adjustments column. http://cfo.fin.irs.gov/IntFinMgmt/BFC/Forms/FMX1.xls

  6. The coordinator sends the revised agreement and Funds Reservation Worksheet to the Corporate Budget business unit analyst.

  7. Corporate Budget completes the Forecast of Revenue Change (FMV2) and the Budget Transfer (FR58) for the advance increase based on the Funds Reservation Worksheet and agreement.

  8. Once the Forecast of Revenue Change (FMV2) is completed, Beckley Finance Center reverses the 6500 Suspense Account posting and posts directly to the Buyer's account using the line-item amount factoring in the advance increase.

  9. Corporate Budget e-mails the Budget Office Reimbursables Coordinator the IFS transactions numbers once the forecast and budget transaction increases are entered in IFS.

  10. The Budget Office Reimbursables Coordinator completes an IFS Funds Reservation Change (FMX2) for the increase.

  11. The Budget Office Reimbursables Coordinator parks and the Beckley Finance Center posts the FV50-BZ revised earnings documents according to the instructions at: IRM 1.33.3.10.1.3 , Advance Payments.

  12. After the FV50-BZ earnings transaction is posted by the Beckley Finance Center, then an invoice or receivable (FV70-AD) transaction is completed and a second transaction (F-32-AB) is completed to clear the invoice amount against the advance payment amount.

1.33.3.10.1.3.1.2  (02-11-2011)
Decreasing An Advance Payment

  1. The steps involved in processing a refund or downward adjustment are similar to those outlined under IRM 1.33.3.10.1.3.1.1, Increasing An Advance Payment except that decreasing transactions are required.

  2. Determining whether a refund is needed requires the Reimbursables Project Coordinator, the Budget Office Reimbursables Coordinator, and the Beckley Finance Center reimbursables contact(s) to work closely to monitor actual project costs. Once the project is completed, the Beckley Finance Center notifies the coordinator and Corporate Budget of the final refund amount.

  3. The Budget Office Reimbursables Coordinator, working with the project coordinator, ensures that the cost reduction is included in the revised reimbursable agreement, the Buyer initials the reduction, and that a revised copy of the agreement is forwarded to Corporate Budget along with the revised Funds Reservation Worksheet.

  4. The Budget Office Reimbursables Coordinator reduces the original funds reservation by completing a Funds Reservation Change (FMX2) transaction. This transaction must be completed to release the amount of the business unit's reimbursable budget that will be returned to the Buyer. It also releases the funding so that Corporate Budget can access the budget to transfer the refund to the next higher level in the accounting system.

  5. Corporate Budget completes the IFS Forecast of Revenue Change (FMV2) reduction and Budget Transfer (FR58) reduction and provides an e-mail notification to the Budget Office Reimbursables Coordinator and the Beckley Finance Center.

  6. Corporate Budget e-mails the revised agreement, and transaction numbers for the forecast and budget decreases to the Beckley Finance Center.

  7. Beckley Finance Center completes an IFS F-30-AH transaction to align the refund by General Ledger account and indicate the method of payment to the Buyer.

  8. Beckley Finance Center executes an F-110 payment program to generate a ZP payment document to pay the Buyer.

1.33.3.10.2  (02-11-2011)
IFS Transactions

  1. IFS supports the following reimbursable accounting transactions:

    1. Forecast of Revenue (FMV1) and Transfer Budget (FR58).

    2. Funds Reservation (FMX1).

    3. Schedule of Reimbursable Earnings (FV50-BZ).

    4. Advance Payment Receipts (F-29-DZ).

    5. Advance Payment Earnings (FV70-AD).

    6. Advance Payment Receivables Clearance (F-32-AB).

1.33.3.10.2.1  (02-11-2011)
Monthly Reporting Requirements

  1. The validity of reimbursable collections data reported in the central accounts and published in the financial reports of the U.S. Government depends upon the accuracy of the monthly statements of transactions submitted by all departments and agencies. The timeliness of reports depends on strict compliance with FMS-assigned deadlines and the Beckley Finance Center monthly billing and collection timetables.

  2. Adhering to the monthly reporting cycle is a critical element in maintaining IRS internal accounting controls. The IRS processes transactions according to formal IFS posting models. The posting models require certain transactions related to the monthly processing cycle be completed within the same month. For example, these four IFS transactions must be completed within a one-month period: FMV1, FR58, FMX1, and F-29-DZ.

  3. Late entries or those posted outside of the monthly cycle cause accounting relationships to become out of balance. Correcting an account misalignment requires the Office of Financial Reports to reconcile and complete adjustments before the Statement of Transactions (FMS 224) can be forwarded to FMS.

1.33.3.10.2.2  (02-11-2011)
Forecast of Revenue (FMV1) and Transfer Budget (FR58)

  1. Corporate Budget completes the Forecast of Revenue (FMV1) and Transfer Budget (FR58), using the Funds Reservation (FMX1) Worksheet submitted by the Budget Office Reimbursables Coordinator as a basis. The document transaction numbers are then e-mailed to the Budget Office Reimbursables Coordinator, who then completed the Funds Reservation (FMX1) transaction in IFS.

  2. Depending upon the type of reimbursable agreement, Corporate Budget may complete the transactions as either a non-advance or advance payment reimbursable. The document amount includes the fiscal year projection for the reimbursable project and may include budget accounting lines for more than one Buyer, and more than one business unit under the same agreement. The work instructions for both the FMV1 and the FR58 are available at: http://cfo.fin.irs.gov/IntFinMgmt/FinancialSystems/HTMLs/IFS-FAQs.htm.

1.33.3.10.2.2.1  (02-11-2011)
Non-Advance Payments

  1. The Budget Office Reimbursables Coordinator e-mails the final agreement and the Funds Reservation (FMX1) Worksheet to Corporate Budget to use as a basis for the forecast and budget allocation.

  2. Once completed, Corporate Budget e-mails the IFS document transaction numbers to the Budget Office Reimbursables Coordinator to establish the IFS FMX1 transaction.

1.33.3.10.2.2.2  (02-11-2011)
Advance Payments

  1. The Budget Office Reimbursables Coordinator receives the final agreement from the Reimbursables Project Coordinator and forwards the agreement to Corporate Budget. Corporate Budget ensures that the agreement meets the requirements of IRM 1.33.3.7.3,Agreement Covering Reimbursable Services (Form 5181), among other requirements.

  2. Once the Buyer's advance payment is received by the Beckley Finance Center, Corporate Budget is notified to accept the FMX1 Worksheet from the Budget Office Reimbursables Coordinator and to complete the FMV1 and FR58, allowing the allocation of budget and the startup of reimbursable work. The amount on the FMX1 must agree with the advance amount received.

  3. The FMV1, FR58, and FMX1 transactions must be completed during the same month that the Beckley Finance Center completes the F-29-DZ, recording the receipt of the Buyer's cash advance.

1.33.3.10.2.3  (10-09-2009)
Funds Reservation (FMX1)

  1. The funds reservation commits budget in the Reimbursable Fund for anticipated but undefined expenses to ensure that sufficient budget exists when needed. As periodic earnings are posted, the reservation is automatically reduced. Once a budget is reserved, it cannot be used for another purpose.

  2. Depending upon the type of Buyer, funds reservations can be established under a non-advance or advance payment agreement. Funds reservations include detailed accounting to the General Ledger, Fund Center, Commitment Item, Functional Area, and Full-Time Equivalent levels. Instructions for completing an IFS upload of an FMX1 are available at: http://cfo.fin.irs.gov/IntFinMgmt/IFS/HelpDesk/Work_Instructions/FMX1_Upload_Work_Instructions.doc.

  3. As the reimbursable project draws to an end and the final cost of the project is realized, the Funds Reservation Change (FMX2) transaction is used by the Budget Office Reimbursables Coordinator to adjust for the final year-end cost of the reimbursable project.

1.33.3.10.2.3.1  (02-11-2011)
Non-Advance Payments

  1. Once the Budget Office Reimbursables Coordinator receives the FMV1 and FR58 document transaction numbers from Corporate Budget, the coordinator establishes the FMX1 transaction or annual plan for the reimbursable agreement.

  2. The Budget Office Reimbursables Coordinator must complete the FMX1 transaction for non-advance payment agreements within the same month that Corporate Budget completes the FMV1 and FR58.

1.33.3.10.2.3.2  (10-09-2009)
Advance Payments

  1. Once the Beckley Finance Center e-mails Corporate Budget that the Buyer's advance payment has been received, Corporate Budget contacts the Budget Office Reimbursables Coordinator to request the FMX1 Worksheet.

  2. Corporate Budget completes the FMV1 and FR58 and emails the document transaction numbers to the Budget Office Reimbursables Coordinator.

  3. The coordinator completes the FMX1 transaction during the same month as the FMV1 and FR58 are completed by Corporate Budget and the F-29-DZ is completed by Beckley Finance Center.

1.33.3.10.2.4  (10-09-2009)
Schedule of Reimbursable Earnings (FV50)

  1. Most reimbursable earnings are considered offsetting collections that should be identified with IRS apportioned reimbursable authority. Reimbursable expenses are initially recorded against the Direct Fund appropriation codes ending with a "D." These expenses must be transferred to the Reimbursable Fund accounting string ending with an "R." The purpose of the Schedule of Reimbursable Earnings (FV50) is to transfer expenses from the Direct Fund to the Reimbursable Fund. When the expenses are moved under this transaction, it indicates or triggers a billing being issued to the Buyer.

  2. After the Beckley Finance Center records a receivable, the Enterprise Computing Center-Detroit (ECC-DET) generates and mails the invoice to the Buyer. Manual billing arrangements are usually an exception to this process.

  3. The instructions for completing an FV50 can be found at: http://cfo.fin.irs.gov/IntFinMgmt/IFS/HelpDesk/Work_Instructions/BZ%20BW%20EV%20Upload%20Work%20Instructions.doc

1.33.3.10.2.4.1  (02-11-2011)
Non-Advance

  1. When completing FV50 transactions for non-advance payment reimbursables paid under a pre-negotiated billing cycle, the Budget Office Reimbursables Coordinator follows these guidelines:

    1. Complete a separate FV50-BZ transaction for each trading partner or agency billed for services. This facilitates accurate billing and payment by the Beckley Finance Center. IFS documents allow only one trading partner per FV50-BZ transaction. For an FV50-BZ example, see the following website: http://cfo.fin.irs.gov/IntFinMgmt/BFC/Forms/FV50.xls.

    2. Enter actual earnings, not estimated earnings. Exception: Estimated earnings are accepted by the Beckley Finance Center during specific timeframes announced as part of the year-end closeout process and during designated IFS blackout periods for correction purposes only. Initial estimates will not be accepted after the established cut-off date for submission.

    3. Post earnings promptly, regardless of whether the agreement is accounted for monthly, quarterly, or less frequently. Prior month/quarter earnings should be posted in IFS no later than by the end of the 3rd week of the next month. This practice allows the Beckley Finance Center to process earnings during the fourth week of the month the earnings were posted. Within the same month, both the FV50-BZ and FV50-BW transaction must be completed.

    4. Ensure that the posting includes an authorized signature, billing requirements, and a short descriptive statement explaining the transfer.

    5. Convert the FV50 Excel Worksheet to a .pdf file with a valid digital signature and send an electronic copy of the FV50 to the Beckley Finance Center within two days of entering the document in IFS.

    6. Retain a copy of the FV50, billing information, and supporting documentation for the Budget Office Reimbursables Coordinator's record-keeping purposes and for auditing purposes should the Beckley Finance Center request a paper copy.

1.33.3.10.2.4.2  (10-09-2009)
Advance

  1. When completing FV50 transactions for advances, the Budget Office Reimbursables Coordinator follows these guidelines:

    1. Within the same month, the Budget Office Reimbursables Coordinator completes and parks the FV50-BZ earnings document or cost transfer from the Direct Fund to the Reimbursable Fund. Beckley Finance Center then proceeds to post the earnings document via the FV70-AD and clears the receivables under a F-32-AB transaction document.

1.33.3.10.2.4.3  (02-11-2011)
Beckley Finance Center Mailing Addresses and Contacts

  1. The Beckley Finance Center prefers electronic submission of reimbursable business accounting transactions, justifications, and documentation. However, hard copies are also acceptable. The following e-mail and mailroom addresses are most commonly used for forwarding these materials.

    1. BZ earnings documents should be forwarded to this electronic mailbox: *CFO BFC DCU Reimbursable Program.

    2. EV and OC documents should be forwarded to this electronic mailbox:*CFO BFC Electronic EV.

  2. Hard copies of advance payment checks, money orders, and supporting documentation should be sent to the first mailing address below. The second address is intended for fiscal Federal Express-type mailings.

    Beckley Finance Center
    P.O. Box 9002
    Beckley, WV 25802-9002




    Beckley Finance Center
    110 North Heber Street
    Beckley, WV 25801-4501

  3. When faxing reimbursable accounting materials to the Beckley Finance Center (e.g., EV, BZ, OC, among other documents), use the following fax number: 304-254-5976.

  4. The Beckley Finance Center assigns specific staff to each business unit's reimbursable projects. The reimbursable project inventory and contacts list is available at the following web-site:http://cfo.fin.irs.gov/IntFinMgmt/BFC/BFC_Index.htm.

1.33.3.10.2.4.4  (10-09-2009)
Invoicing the Buyer

  1. After the Beckley Finance Center records a receivable, the Enterprise Computing Center-Detroit (ECC-DET) generates and mails the invoice to the Buyer. Manual billing arrangements are an exception to this process.

1.33.3.10.2.5  (10-09-2009)
Advance Payment Requirements

  1. Advance payments are required for non-governmental entities and state, local, and foreign governments but are not required for intragovernmental agreements.

  2. For non-governmental entities, the Intergovernmental Cooperation Act (31 USC 6505) requires the following:

    1. Receipt of a signed reimbursable agreement.

    2. Receipt of the advance payment before the IRS begins the reimbursable work.

  3. The IRS requires the following notifications for advance payment agreements:

    1. During agreement negotiations, the Reimbursables Project Coordinator must notify non-governmental buyers of the advance payment requirements, and where to send the payment.

    2. The Reimbursables Project Coordinator must notify the Beckley Finance Center that an advance payment agreement has been signed, and to expect a final agreement and advance payment.

  4. The requirement that certain IFS advance payment transactions be completed during the same month serves the following funds control objectives:

    1. Ensures advance funds are received and accounted for by the IRS before a budget is allocated to the business unit and reimbursable work begins.

    2. Improves IRS capability to promptly reconcile and pay bills appropriate to reimbursable work performed.

    3. Ensures IRS reimbursable budget execution reports are accurate and auditable within the IRS, Treasury, GAO, and OMB.

1.33.3.10.3  (10-09-2009)
Financial Codes

  1. Reimbursable program expenditures are recorded initially in the Direct Fund and then transferred to the Reimbursables Fund to be tracked against the IRS reimbursable authority.

1.33.3.10.3.1  (10-09-2009)
Internal Orders

  1. An internal order is referenced on each agreement and is a critical data element. The internal order is a unique, ten-character alphanumeric code (for example, RA2010B741).

  2. An internal order code must be requested and received before reimbursable documents can be processed in IFS. It is referenced in the IFS Forecast of Revenue (FMV1), Budget Transfers (FR58), Funds Reservation (FMX1), and FV50 documents.

  3. Corporate Budget completes a fiscal year rollover of internal order codes in September for agreements that are renewed for the following fiscal year. Unless a project code has been deleted, only the fiscal year component of the internal order codes will change (for example, RA20XXB741).

  4. For a complete listing of valid internal order codes for reimbursable agreements, use IFS Transaction KOK5, querying on the current fiscal year and order type Z003.

1.33.3.10.3.2  (10-09-2009)
New Internal Order Codes

  1. To request new reimbursable internal order codes, also known as IFS "Master Data," go to http://cfo.fin.irs.gov/CPPD/HTML/BudgetPolicy.htm. See "Financial Management Code Information" to find the master data request procedures and financial codes request forms. The form includes multiple options, including reimbursable agreement internal orders.

1.33.3.10.3.3  (10-09-2009)
Buyer Numbers

  1. New Buyer numbers can be requested from the Beckley Finance Center. To obtain a number, submit a copy of the new project agreement to your Beckley Finance Center contact, and be sure to include the TIN/EIN and business address.

  2. IFS earnings posted against an erroneous customer number must be reversed. Line items with an erroneous Buyer number must be deleted on the Forecast of Revenue document (FMV1) and Funds Reservation (FMX1). This involves closing or "setting to complete" the erroneous accounting line and creating a new accounting line for processing future transactions.

1.33.3.10.4  (10-09-2009)
Reimbursables Project Oversight

  1. Business units are responsible for the financial management of IRS prior, current, and future year reimbursable accounts, including prompt posting of earnings, resolving refund issues, and projecting future needs.

1.33.3.10.4.1  (10-09-2009)
Prior-Year

  1. OMB Circular A-11 provides guidance on managing prior-year reimbursable agreements. See http://www.whitehouse.gov/omb/circulars/index.html, Circular A-11, Section 20, Terms and Concepts.

  2. In instances where there has been an overpayment of invoices or where advance payments exceed needs, contact the Beckley Finance Center for guidance on the treatment of refunds.

1.33.3.10.4.2  (10-09-2009)
Mid-Year Review

  1. After the close of the second quarter, Corporate Budget conducts a Mid-Year Review with each business unit. This review process is an opportunity for business units to review financial performance (October through March) and to evaluate the April through September reimbursables projections.

1.33.3.10.4.3  (10-09-2009)
Year-end Closeout

  1. Business units closing out reimbursable agreements at the end of the fiscal year must comply with IRM 1.35.15, Administrative Accounting, Annual Close Guidelines.

  2. These guidelines assist business units and operating divisions in facilitating and monitoring their respective year-end close activities.

  3. Budget Office Reimbursables Coordinator should also seek the technical assistance of Corporate Budget and/or the Beckley Finance Center if agreement closeout is problematic.

1.33.3.10.4.4  (10-09-2009)
Future Year Projections

  1. IRS Reimbursable Authority estimates for the next fiscal year must be updated by the first week in August so they can be included on the first set of apportionment requests for the coming year, which are due to OMB mid-August. Revised estimates and estimates for the following budget year will be included in the OMB budget submission, due to Treasury mid-to-late August and to OMB in early September.

  2. Corporate Budget analysts will work directly with their business unit contacts to refine and update these estimates. Further updates to these estimates, if needed, will be included in the Congressional Budget Justification.

1.33.3.10.4.5  (10-09-2009)
IFS Status Reports

  1. The following IFS reports support reimbursables monitoring and analysis:

    1. Budget Version Analysis Report: ZBUDCOMP. Compares IFS budget version statuses.

    2. Earmarked Funds Journal: S_P99_41000147 displays reimbursable projects for posted earnings and open balances.

    3. Reimbursable Analysis Report: ZREV provides a summary level comparison of the Funds Reservation, Forecast of Revenue, and Transfer Budget documents and allows the user drill down capability.

    4. BW2900 SOAF Reports provides historical FTE and budget statuses by fiscal year periods and various sorting options.

  2. The Budget Office Reimbursables Coordinators should routinely monitor the IFS Report ZFTEBUD to check reimbursable FTE alignment with project accounting line details. Contact your Corporate Budget business unit analyst on instructions to access this report.

Exhibit 1.33.3-1 
Selected Budget Definitions

Selected budget definitions are:

Selected Budget Definitions
Apportionment – OMB distribution of amounts available for obligation in an appropriation or fund account into amounts available for specified time periods, program, activities, projects, objects, or combinations thereof. The apportioned amount limits the level of obligations that may be incurred. Apportionments may be further subdivided by an agency into allotments, sub-allotments, and allocations.
Appropriation – provision of law (not necessarily in an Appropriations Act) authorizing the expenditure of funds for a given purpose. Usually, but not always, an appropriation provides budget authority.
Budget Authority (BA) – authority provided by law to incur financial obligations that will result in outlays. Specific forms of budget authority include appropriations, borrowing authority, contract authority, and spending authority from offsetting collections.
Commitment – administrative reservation of funds prior to obligation of funds. Typically, commitments are created by a purchase requisition.
Commitment Item – cost object used to classify commitments, obligations, expenditures, by object class and budget object class. Commitment items are organized into a hierarchy that describes classifications in an organization’s budget.
Continuing Resolution (CR) – legislation enacted by Congress to provide budget authority for federal agencies and/or specific activities to continue in operation until the regular appropriations are enacted.
Direct Costs – costs that can be directly, specifically or readily identified with producing a specific product or providing a specific service described in a reimbursable agreement. Examples include labor, capital expenditures specifically made for use in the reimbursable activity and other direct costs.
Expenditure – receipt of goods and/or services, usually accompanied by the issuance of cash, checks, or Electronic Fund Transfer (EFT) to liquidate a valid obligation.
Fiscal Year – the Federal Government’s accounting period which begins October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends.
Full-Time Equivalent (FTE) – total number of regular straight-time hours (not including overtime or holiday hours) worked by employees divided by the number of compensable hours applicable to each fiscal year. Annual leave, sick leave, compensatory time off, and other approved leave categories are considered "hours worked" for purposes of defining full-time equivalent employment. This definition is consistent with guidance provided by the Office of Personnel Management (OPM) in connection with reporting FTE data as part of the SF 113G reporting system.
Functional Area (FA) – grouping of related work operations which constitute a specific phase or portion of an overall work program. FAs are two-digit alpha/numeric codes that subdivide BACs. FAs are primarily used for internal management and financial planning purposes.
Fund – sources of financing for federal agencies. Types of funds are revolving funds, custodial funds, direct, and reimbursable appropriations.
Fund Center – financial centers used to subdivide budget expenses into organizational structures. Fund Centers represent areas of funds management responsibility within an organization.
Indirect Cost – overhead costs that cannot be specifically identified as reimbursable agreement activities but contribute toward completion of the reimbursable work. These costs must bear a significant relationship to performing the reimbursable service and be funded out of the performing agency’s available appropriations to be included in the reimbursable costs.
Integrated Financial System (IFS) – the administrative accounting system used by the IRS.
Obligated Balance – cumulative amount of budget authority that has been obligated but has not yet been outlaid. It is also known as unpaid obligations (which are made up of accounts payable and undelivered orders) net of accounts receivable and unfilled Buyer orders.
Obligation – binding agreement that will result in outlays, immediately, or in the future. Budgetary resources must be available before obligations can be incurred legally.
Outlay – payment to liquidate an obligation (other than the repayment of debt principal).
Overhead – indirect costs, falling into two major categories: operations overhead and general and administrative overhead. Operations overhead includes costs that are not 100 percent attributable to the activity being competed but are generally associated with the recurring management or support of the activity. General and administrative overhead includes salaries, equipment, space, and other tasks related to headquarters management, accounting, personnel, legal support, data processing management, and similar common services performed external to the activity, but in support of the activity being competed.

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