1.1.21 Chief Financial Officer

Manual Transmittal

March 02, 2020

Purpose

(1) This transmits revised IRM 1.1.21, Organization and Staffing, Chief Financial Officer.

Material Changes

(1) IRM updated to reflect CFO Financial Management realignment.

(2) IRM 1.1.21.1, Mission and Strategic Goals, added CFO mission and strategic goals.

(3) IRM 1.1.21.5, Related Resources, updated section.

(4) IRM 1.1.21.6, Definitions, updated section.

(5) IRM 1.1.21.7, Acronyms, updated section.

(6) Minor editorial changes were made throughout the IRM.

Effect on Other Documents

IRM 1.1.21, dated January 24, 2018, is superseded.

Audience

All business units

Effective Date

(03-02-2020)

Ursula S. Gillis
Chief Financial Officer

Mission and Strategic Goals

  1. The CFO’s mission is leading IRS’s financial management operations with integrity and accountability and providing expert planning and financial advice to IRS leadership.

  2. The CFO strategic goals include:

    1. Deliver sound financial leadership and promote agility, efficiency and effectiveness in operations.

    2. Collaborate with stakeholders to promote risk awareness and sound internal control practices.

    3. Cultivate a well-equipped, diverse, flexible and engaged workforce.

Overview

  1. This IRM provides the responsibilities of the CFO. The CFO organization manages a portfolio of corporate-wide activities, including budget formulation, budget execution, strategic planning, accounting, financial management, travel services, credit card services and internal controls.

  2. The CFO, Financial Management, Administration office, develops and maintains this IRM.

Background

  1. The Chief Financial Officers Act of 1990 (CFO Act) is a federal law intended to regulate the accounting, auditing and financial reporting practices of the federal government. In accordance with the CFO Act, each agency or department vests its financial management functions in its CFO.

  2. The CFO Act:

    1. Brings more effective general and financial management practices to the federal government.

    2. Provides for improvement in each federal agency of accounting systems, financial management and internal controls to assure the issuance of reliable financial information and to deter fraud, waste and abuse of government resources.

    3. Produces complete, reliable, timely and consistent financial information for use by the executive branch of the federal government and the Congress in the financing, management and evaluation of federal programs.

Authorities

  1. The authorities for this IRM include:

    1. Government Performance Results Modernization Act of 2010

    2. Accountability of Tax Dollars Act of 2002 (ATDA) PDF, Pub. L. No. 107-289

    3. E-Government Act of 2002 PDF, Pub. L. No. 107-347

    4. Federal Information Security Management Act of 2002 (FISMA), Pub. L. No. 107-347

    5. IRS Restructuring Reform Act of 1998 (RRA 98)

    6. Federal Financial Management Improvement Act of 1996 (FFMIA), Pub. L. No. 104-208

    7. Government Management Reform Act of 1994 (GMRA) PDF, Pub. L. No. 103-356

    8. Government Performance and Results Act of 1993 (GPRA), Pub. L. No. 103-62

    9. Chief Financial Officers Act of 1990, Pub. L. No. 101-576, section 902

    10. Federal Managers' Financial Integrity Act of 1982 (FMFIA), Pub. L. No. 97-255

    11. Treasury Directive 40-02, Corresponding with the General Accounting Office (GAO)

    12. Treasury Directive 40-03, Treasury Audit Resolution, Follow-Up, and Closure

    13. Treasury Directive 40-04, Treasury Internal (Management) Control Program

Related Resources

  1. Related resources for this IRM include:

    1. Office of Management and Budget (OMB) Circular A-11, Preparation, Submission, and Execution of the Budget

    2. OMB Circular A-25, User Charges

    3. OMB Circular No. A-123, Management's Responsibility for Enterprise Risk Management and Internal Control PDF

    4. OMB Circular No. A-136, Financial Reporting Requirements PDF

    5. Financial Management Codes Handbook

    6. Principles of Federal Appropriations Law (Red Book)

    7. Federal Accounting Standards Advisory Board (FASAB) Handbook of Federal Accounting Standards and Other Pronouncements, as amended PDF

Definitions

  1. In this IRM, the terms below have the following meanings:

    1. Apportionment - An OMB distribution of amounts available for obligation in an appropriation or fund account into amounts available for specified time periods, programs, activities, projects, objects or any combination of these. The apportioned amount limits the obligations that may be incurred. An apportionment may be further subdivided by an agency into allotments, sub-allotments and allocations.

    2. Appropriation - A provision of law (not necessarily in an appropriation act) authorizing the expenditure of funds for a given purpose. Usually, but not always, an appropriation provides budget authority and funds to operate for the full fiscal year. IRS’s funding may come in its regular appropriation, the “Financial Services and General Government Appropriations Act,” as part of an omnibus appropriation or in a supplemental appropriation. If Congress does not authorize full-year funding through one of these, it may pass a continuing resolution. In the Integrated Financial System (IFS), an appropriation is represented by the “application of funds” code.

    3. Asset - Tangible or intangible items owned by the federal government which would have probable economic benefits that can be obtained or controlled by a federal government entity.

    4. Budget - The budget of the U.S. government that sets forth the government’s comprehensive financial plan and indicates the government’s spending priorities.

    5. Budget authority - The legal authority 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.

    6. Commitment - An administrative reservation of funds prior to obligation of funds. Typically, commitments are created by a purchase requisition.

    7. Disbursement - An outlay, including the issuance of cash, a check or an electronic funds transfer (EFT).

    8. Expenditure - A receipt of goods or services, usually accompanied by the issuance of cash, a check or an EFT, to liquidate a valid obligation.

    9. Financial Plan- A subdivision of funds in IFS, which may be further divided into fund centers. Typically, there is a one-to-one relationship of financial plan to business unit, but a few business units manage multiple financial plans.

    10. Financial statements - The components of the IRS’s annual financial statement, including balance sheet, statement of net cost, statement of changes in net position, statement of budgetary resources and statement of custodial activity. In addition to the financial statements, federal agencies prepare note disclosures, required supplementary information and other accompanying information.

    11. Fiscal year - The federal government's accounting period, which begins on October 1 and ends on September 30, and is designated by the calendar year in which it ends.

    12. Full-time equivalent (FTE) - The basic measure of employment levels reported in the budget. It is the total number of regular straight-time hours (that is, not including overtime or holiday hours) worked by employees divided by the fiscal year’s compensable hours. Annual leave, sick leave, compensatory time off and other approved leave categories are considered hours worked for purposes of defining FTE employment.

    13. Fund - A source of financing for federal agencies. Types of funds include revolving funds, custodial funds and direct or reimbursable appropriations. In IFS, the fund field indicates the appropriation.

    14. Integrated Financial System (IFS) - The IRS’s administrative accounting system.

    15. Obligation - A binding agreement resulting in outlays, immediately or in the future. Budgetary resources must be available before obligations can legally be incurred.

    16. Outlay - A payment to liquidate an obligation (other than the repayment of debt principal).

    17. Receipt and Acceptance - Receipt acknowledges that goods were received and/or services were rendered. Acceptance acknowledges that an authorized IRS official determined that the goods received and/or services rendered conform to the contract requirements.

    18. Redesigned Revenue Accounting Control System (RRACS) - The IRS automated system used to provide accounting control for all revenue accounting transactions.

    19. Three-Year Rolling Forecast (3YRF) - An IFS tool for the business units to monitor their financial plans during the fiscal year. It projects full-time employees, permanent and temporary basic salaries, non-basic labor costs, benefits and non-labor requirements. Projections are for the current year, the plan year and the budget year. Budget projections are used to align the financial plan with program objectives, provide advice to management, maintain financial controls and determine reprogramming capabilities and needs.

    20. User fees - Charges levied by a federal agency on individuals or entities directly benefiting from a service provided by a government program or activity. User fees are charged for federal activities that provide recipients with benefits greater than those provided to the general public.

Acronyms

  1. The following chart contains acronyms that are used throughout this IRM:

    Acronyms Description
    ACFO Associate CFO
    FASAB Federal Accounting Standards Advisory Board
    FISMA Federal Information Security Management Act
    FTE Full-Time Equivalent
    GAO Government Accountability Office
    IFS Integrated Financial System
    OMB Office of Management and Budget
    RRACS Redesigned Revenue Accounting Control System
    TIER Treasury Information Executive Repository

Responsibilities

  1. This section provides responsibilities for:

    1. CFO and deputy CFO

    2. CFO staff office

    3. Corporate Budget

    4. Financial Management

    5. Internal Controls

CFO and Deputy CFO

  1. The CFO organization oversees the IRS’s budget and planning, financial management and reporting, and internal control practices; and provides expert planning and financial advice to IRS leadership. The CFO manages IRS’s financial activities in compliance with the CFO Act.

  2. The CFO reports to the Deputy Commissioner for Operations Support (DCOS).

  3. The CFO and the DCFO are responsible for:

    1. Serving as the principal IRS authority for the Servicewide activities the CFO organization oversees and providing expert financial advice to IRS leadership.

    2. Developing operational and performance goals, prioritizing funding for programs and investments, and developing the IRS’s annual budget request.

    3. Administering, monitoring and reporting on the financial resources that support the IRS’s mission and strategic plan.

    4. Administering Servicewide internal control and assessment activities.

  4. The CFO and DCFO lead the CFO organization, including its four subordinate units:

    1. CFO staff office

    2. Corporate Budget

    3. Financial Management

    4. Internal Controls

CFO Staff Office
  1. The CFO staff office supports the CFO organization in accomplishing its overall mission and objectives.

  2. The CFO staff office reports to the DCFO.

  3. The CFO staff office responsibilities include:

    1. Internal employee programs

    2. Administrative functions

    3. CFO systems and related security

Corporate Budget
  1. The Corporate Budget organization leads the Service’s Planning, Programming, Budgeting and Execution System that supports the IRS’s vision, mission, goals and objectives; defines its performance measures and targets; and supports agency-wide investment decisions. The Corporate Budget office also leads the IRS’s governance process.

  2. The Corporate Budget organization is responsible for:

    1. Preparing budget requests, apportionments, operating plans and strategic plans; managing the related hearings and appeals processes; and liaising between the IRS, Treasury, OMB, Congress and external stakeholders (Government Accountability Office (GAO)/TIGTA) on all budget issues.

    2. Executing the IRS budget in an integrated and cohesive manner by managing and distributing IRS budget authority, including user fees, using sound budgetary and investment management principles.

    3. Providing budget guidance and analytic expertise to senior IRS leadership and the IRS business units.

    4. Chairing the Program and Budget Advisory Committee (PBAC) governance board.

  3. The Associate CFO (ACFO) for Corporate Budget leads the organization, including its five subordinate offices:

    1. Budget Formulation

    2. Financial Planning and Analysis

    3. Budget Execution

    4. National Headquarters Budget

    5. Strategic Planning

Budget Formulation
  1. The Budget Formulation office develops and submits IRS budget requests that justify the resources that the IRS needs to accomplish its mission and goals.

  2. The Budget Formulation office is responsible for:

    1. Preparing IRS’s three budget requests - Treasury, OMB and Congressional - in accordance with OMB Circular A-11, Preparation, Submission and Execution of the Budget, and written guidance from Treasury and OMB. Each budget cycle includes establishing the current year base budget; computing the additional costs of maintaining current levels; developing program changes with the business units, to include base changes, new resource requests, and program decreases; and managing hearings, passbacks and appeals.

    2. Serving as liaison between the IRS, Treasury and OMB, and coordinating with the IRS business units for all budget formulation issues.

    3. Ensuring the completion of the President’s budget appropriation language and narrative statements, as specified in OMB Circular A-11, Part 2, Section 95, Budget Appendix and Print Materials.

Financial Planning and Analysis
  1. The Financial Planning and Analysis office manages the plan development process and supports the budget formulation and execution processes. This office develops independent ad hoc reporting tools to respond to complex inquiries from internal and external customers.

  2. The Financial Planning and Analysis office is responsible for:

    1. Issuing guidance and managing the plan development and continuing resolution processes and distributing available resources.

    2. Preparing and submitting apportionments (initial, newly enacted, user fees) in compliance with OMB Circular A-11, Part 4, Instructions on Budget Execution. Apportionments and inter-appropriation transfers are submitted on Standard Form 1151, Nonexpenditure Transfer Authorizations.

    3. Developing and maintaining the unit cost rate calculator used to cost investments, and providing IFS systems support for the budget formulation, plan development, Funds Management and Three-Year Rolling Forecast modules.

    4. Projecting FTE for budget submissions, operating plans, and obligation and employment reporting.

  3. The Financial Planning and Analysis office maintains IRM 1.33.4, Financial Operating Guidelines.

Budget Execution
  1. The Budget Execution office monitors the execution of IRS’s operating plan, and provides guidance, develops execution policies and establishes controls on appropriated funds. This includes prior year accounts until they close, and the remaining resources are returned to the general fund.

  2. The Budget Execution office is responsible for:

    1. Preparing, managing and executing the IRS operating plan in accordance with 31 United States Code (USC) Chapters 13 and 15 - Anti-deficiency Act (codified at 31 USC Section 1341), Economy Act (31 USC Section 1535), and IRM 1.33.4, Financial Operating Guidelines.

    2. Monitoring and controlling IRS spending by conducting periodic reviews, including a mid-year review and uncommitted/unobligated balance reviews.

    3. Preparing and publishing the financial management codes handbook and maintaining IFS master data management.

    4. Coordinating year-end close issues with Financial Management and the Office of Procurement and monitoring year-end spending.

    5. Providing budgetary oversight, accountability and overall management of the IRS reimbursable program.

  3. The Budget Execution office maintains IRM 1.33.3, Reimbursable Operating Guidelines.

National Headquarters Budget
  1. The National Headquarters Budget office manages and monitors NHQ and CFO financial plans. This office performs detailed analyses of resource utilization and coordinates with the internal and external stakeholders to ensure funds are obligated effectively.

  2. The National Headquarters Budget office is responsible for:

    1. Coordinating plan development, continuing resolutions, operating plans and year-end close activities for assigned plans using IRM 1.33.4, Financial Operating Guidelines.

    2. Monitoring and controlling spending and producing monthly customer resource reports.

    3. Managing the reimbursable operations for assigned plans using IRM 1.33.3, Reimbursable Operating Guidelines.

Strategic Planning
  1. The Strategic Planning office develops and leads agency-wide strategic management processes for strategic and annual planning, investment analysis, performance management and governance.

  2. The Strategic Planning office is responsible for:

    1. Developing and updating the IRS strategic plan, identifying the goals, objectives, opportunities and future direction of the IRS, per Treasury guidance and in accordance with OMB Circular A-11, Part 6, Strategic Plans, Annual Performance Plans, Performance Reviews and Annual Program Performance Reports; and tracking and reporting on its implementation.

    2. Performing investment analysis to allocate resources to support critical programs and strategic priorities through the PBAC process.

    3. Managing the IRS’s performance measurement and reporting processes, including monitoring and maintaining the IRS budget-level and oversight board performance measures and reporting performance results to both internal and external stakeholders.

    4. Managing the IRS governance process that supports and promotes transparency and accountability.

  3. The Strategic Planning office maintains IRM 1.5.1, The IRS Balanced Performance Measurement System.

Financial Management
  1. The Financial Management organization oversees financial management and reporting activities.

  2. The Financial Management organization is responsible for administering, monitoring and reporting on the financial resources that support the IRS’s mission and strategic plan.

  3. The ACFO for Financial Management leads the organization, including its six subordinate offices:

    1. Travel Management

    2. Audit and Review

    3. Administration

    4. Credit Card Services

    5. Administrative Financial Management

    6. Custodial Financial Management

Travel Management
  1. The Travel Management office administers Servicewide travel programs.

  2. The Travel Management office is responsible for:

    1. Providing policy and program guidance.

    2. Managing and improving travel products and services.

  3. The Travel Management office maintains:

    1. IRM 1.32.1, IRS Local Travel Guide

    2. IRM 1.32.4, Government Travel Card Program

    3. IRM 1.32.10, Reporting on Event-Related Spending

    4. IRM 1.32.11, IRS City-to-City Travel Guide

    5. IRM 1.32.12, IRS Relocation Travel Guide

    6. IRM 1.32.13, Relocation Services Program

    7. IRM 1.32.14, Gainsharing Travel Savings Program

    8. IRM 1.32.20, Using Appropriated Funds to Purchase Meals and Light Refreshments

  4. The Travel Management office has four subordinate sections:

    1. Travel Services East and Travel Services West

    2. Travel Policy and Review

    3. Travel Operations

Travel Services East and Travel Services West
  1. The Travel Services East and Travel Services West sections are responsible for:

    1. Managing the IRS travel help desk.

    2. Providing technical support for the IRS travel management system.

    3. Providing travel policy guidance for IRS business travelers.

Travel Policy and Review
  1. The Travel Policy and Review section is responsible for:

    1. Developing and administrating travel and relocation policy guidance in accordance with the Federal Travel Regulation.

    2. Performing compliance reviews and analyses of travel vouchers.

Travel Operations
  1. The Travel Operations section is responsible for:

    1. Managing the travel, relocation and state and federal tax payments including the Federal Form 941, Quarterly Federal Tax Returns.

    2. Processing manual travel and relocation vouchers and disbursements.

  2. The Travel Operations section has one subordinate unit, the Travel Processing unit.

Audit and Review
  1. The Audit and Review office manages the IRS financial statement audit. The office also oversees Financial Management’s A-123 audit, and other audits and reviews.

  2. The Audit and Review office maintains IRM 1.35.14, IRS Annual Financial Statement Audit.

  3. The Audit and Review office has two subordinate sections:

    1. Audit

    2. Program and Process Review

Audit
  1. The Audit section manages the IRS financial statement audit and other audits affecting Financial Management.

  2. The Audit section is responsible for:

    1. Coordinating and overseeing the IRS financial statement audit.

    2. Coordinating and overseeing other audits where Financial Management is the lead or in a supporting role.

    3. Coordinating Joint Audit Management Enterprise System (JAMES) activity for the financial statement audit recommendations and planned corrective actions.

Program and Process Review
  1. The Program Process and Review section oversees Financial Management’s A-123 audits and reviews.

  2. The Program Process and Review section is responsible for:

    1. Coordinating and overseeing Financial Management’s A-123 activities and risk register.

    2. Performing quality assurance reviews of Financial Management’s programs.

Administration
  1. The Administration office provides administrative support services to the Financial Management organization, ensuring accountability, effectiveness, efficiencies and optimal performance.

  2. The Administration office is responsible for:

    1. Coordinating Financial Management personnel and training activities.

    2. Leading the CFO Internal Management Document program.

    3. Overseeing and maintaining the Financial Management budget.

    4. Managing Financial Management web pages and SharePoint sites.

  3. The Administration office has one subordinate section, the Technical and Training Support section.

Credit Card Services
  1. The Credit Card Services office administers the IRS purchase and travel card programs.

  2. The Credit Card Services office is responsible for:

    1. Managing the IRS credit card contract.

    2. Ensuring accurate and timely payments for the centrally billed and purchase card programs.

  3. The Credit Card Services office maintains IRM 1.35.4, Purchase Card Program.

  4. The Credit Card Services office has four subordinate sections:

    1. Credit Card Administration and Assistance

    2. Procedures, Analysis and Review

    3. Account Maintenance and Support

    4. Purchase Card Payments

Credit Card Administration and Assistance
  1. The Credit Card Administration and Assistance section is responsible for:

    1. Providing outreach, education and assistance to support an efficient credit card program.

    2. Serving as credit card misuse referral for inappropriate use of the purchase and travel card.

Procedures, Analysis and Review
  1. The Procedures, Analysis and Review section is responsible for:

    1. Updating, reviewing and maintaining policies, procedures and web resources for the purchase and travel card programs.

    2. Approving purchase card official application processing.

    3. Reviewing purchase and travel card compliance.

Account Maintenance and Support
  1. The Account Maintenance and Support section is responsible for:

    1. Providing purchase and travel card customer support.

    2. Performing account maintenance and control reviews for the purchase and travel card, including managing the clearance program and processing exemption/exception requests.

Purchase Card Payments
  1. The Purchase Card Payments section is responsible for:

    1. Processing purchase card transaction payments to the credit card contractor.

    2. Auditing vendor invoices and verifying valid obligations.

    3. Providing funds management and reports for purchase card transactions.

Administrative Financial Management
  1. The Administrative Financial Management organization ensures proper accounting and timely reporting of IRS appropriated funds.

  2. The Administrative Financial Management organization is responsible for:

    1. Overseeing IRS financial reporting and ensuring IRS compliance with federal financial reporting requirements.

    2. Serving as the owner of the IRS’s financial management systems and ensuring compliance with accounting standards and internal controls per the CFO Act, FASAB, Treasury, OMB, federal financial system requirements and other financial requirements.

  3. The deputy ACFO for Administrative Financial Management leads the organization, including its five subordinate offices:

    1. Accounts Payable Financial Operations

    2. Government Payables and Funds Management

    3. Cost Accounting and User Fees

    4. Financial Management Systems

    5. Financial Reporting

Accounts Payable Financial Operations
  1. The Accounts Payable Financial Operations office processes all commercial accounts and miscellaneous programs payables.

  2. The Accounts Payable Financial Operations office is responsible for:

    1. Timely processing of payables to meet the prompt pay guidelines.

    2. Supporting Treasury review and daily schedules.

  3. The Accounts Payable Financial Operations office maintains:

    1. IRM 1.35.3, Receipt and Acceptance Guidelines

    2. IRM 1.35.18, Imprest Funds

  4. The Accounts Payable Financial Operations office has two subordinate sections:

    1. Accounts Payable

    2. Accounts Payable and Miscellaneous Payables

Government Payables and Funds Management
  1. The Government Payables and Funds Management office oversees administrative accounts receivables, cash receipts, reimbursable billing to other government agencies and government accounts payables.

  2. The Government Payables and Funds Management office is responsible for:

    1. Validating commercial and government obligations through aging unliquidated obligations and aging unliquidated commitments reviews.

    2. Providing prompt pay reports and 1099 reporting.

    3. Processing accounts receivable, obligation and de-obligation requests, cash receipts, and user fee deposits and refunds; and posting reimbursable earnings, and payroll and inter-appropriation expenditure adjustments.

    4. Processing IRS accounts payables.

    5. Ensuring the validity of obligations, vendor codes and accounting code changes.

  3. The Government Payables and Funds Management office maintains:

    1. IRM 1.35.13, Administrative Waiver

    2. IRM 1.35.24, Establishing IRS Commitments and Obligations

    3. IRM 1.36.4, Administrative (Non-Tax) Debt Management

  4. The Government Payables and Funds Management office has two subordinate sections:

    1. Government Payables

    2. Funds Management

Cost Accounting and User Fees
  1. The Cost Accounting and User Fees office maintains, interprets and ensures compliance with policies and procedures for cost accounting, user fees and trust fund administrative costs.

  2. The Cost Accounting and User Fees office is responsible for:

    1. Developing, communicating and updating cost allocation methodologies, overhead rates and other cost standards.

    2. Managing the biennial user fee review and facilitating new user fees.

    3. Reviewing and maintaining trust fund costs.

    4. Running and reconciling the monthly cost allocation cycles and summarizing IRS user fee collections.

  3. The Cost Accounting and User Fees office maintains:

    1. IRM 1.35.16, Managerial Cost Accounting

    2. IRM 1.35.17, Estimating Trust Fund Costs

    3. IRM 1.35.19, User Fees

  4. The Cost Accounting and User Fees office has one subordinate section, Cost.

Financial Management Systems
  1. The Financial Management Systems office oversees IRS’s data integrity and user security controls for administrative Financial Management.

  2. The Financial Management Systems office is responsible for:

    1. Managing user access and providing users with system user guides, training materials, system outage notifications, and help with executing transactions.

    2. Facilitating fiscal year-end/annual close system activities and the annual budget load.

    3. Supporting Administrative Financial Management reporting requirements.

  3. The Financial Management Systems office maintains:

    1. IRM 1.35.9, Integrated Financial System Payroll

    2. IRM 1.35.23, Integrated Financial System Security

  4. The Financial Management Systems office has three subordinate sections:

    1. IFS Operations

    2. System Security and Compliance

    3. Ancillary Systems

Integrated Financial System Operations
  1. The Integrated Financial System Operations section is responsible for:

    1. Providing testing, functional support and defect resolution for IFS and Business Warehouse system requirements.

    2. Conducting master data updates and data quality assurance checks on inbound and outbound interface execution.

Systems Security and Compliance
  1. The Systems Security and Compliance section is responsible for:

    1. Managing IFS security profiles.

    2. Providing user access and support.

    3. Conducting external reviews of data system integration with IFS.

    4. Overseeing the annual IFS FISMA process.

Ancillary Systems
  1. The Ancillary Systems section is responsible for:

    1. Providing functional support for IRS’s travel and relocation systems.

    2. Providing quality assurance and support for the Procurement for Public Sector and invoice processing platform shopping cart to payment transactions; and posting and ensuring the integrity of payroll data.

Financial Reporting
  1. The Financial Reporting office maintains financial data integrity by overseeing IRS’s financial and accounting processes and deliverables.

  2. The Financial Reporting office is responsible for:

    1. Preparing monthly financial reports to Treasury.

    2. Producing periodic and year-end financial statements.

    3. Ensuring compliance with the Digital Accountability and Transparency Act of 2014.

    4. Supporting the GAO financial statement audit.

  3. The Financial Reporting office maintains:

    1. IRM 1.35.5, Advances, Prepaid Expenses and Other Assets

    2. IRM 1.35.6, Property and Equipment Accounting

    3. IRM 1.36.2, Treasury Information Executive Repository

  4. The Financial Reporting office has four subordinate sections:

    1. General Ledger

    2. Reports

    3. Review and Reconciliation

    4. Property and Equipment

General Ledger
  1. The General Ledger section is responsible for monitoring, analyzing, reconciling and documenting IRS’s general ledger accounts.

Reports
  1. The Reports section is responsible for submitting IRS financial data to the Treasury Information Executive Repository (TIER) and preparing the year-end financial statements.

Review and Reconciliation
  1. The Review and Reconciliation section is responsible for monitoring, reconciling and preparing work papers for designated general ledger accounts, Fund Balance with Treasury, Intra-governmental Eliminations and the Treasury Report on Receivables.

Property and Equipment
  1. The Property and Equipment section is responsible for monitoring, analyzing, reconciling and documenting fixed asset accounts for classification and data validity.

Custodial Financial Management
  1. The Custodial Financial Management organization ensures proper accounting and timely reporting of IRS tax-related activities.

  2. The Custodial Financial Management organization is responsible for:

    1. Accounting and reporting for all tax assessments, tax revenue receipts, refund activities and unpaid assessments to comply with CFO Act, FASAB, Treasury and OMB guidance.

    2. Establishing and maintaining custodial accounting policies and procedures.

    3. Ensuring that the business units inform or share any changes in operational or system processes that may affect custodial financial systems or reporting.

    4. Providing financial system modernization development support and ensuring financial system requirements and other financial requirements are addressed.

  3. The deputy ACFO for Custodial Financial Management leads the organization, including its four subordinate offices:

    1. Unpaid Assessments and Analysis

    2. Custodial Accounting

    3. Campus Accounting East

    4. Campus Accounting West

Unpaid Assessments and Analysis
  1. The Unpaid Assessments and Analysis office maintains the integrity and accuracy of the data and business rules used to segment the inventory of unpaid assessments for operational and financial reporting purposes and is responsible for analyzing custodial data to accurately present it to the Department of the Treasury, Congress and GAO.

  2. The Unpaid Assessments and Analysis office is responsible for:

    1. Financial reporting and oversight for unpaid assessments.

    2. Addressing financial reporting system noncompliance issues.

  3. The Unpaid Assessments and Analysis office maintains IRM 1.34.4, Unpaid Assessments.

  4. The Unpaid Assessments and Analysis office has two subordinate sections:

    1. Custodial Analysis and Reporting

    2. Unpaid Assessments and Accounting Analysis

Custodial Analysis and Reporting
  1. The Custodial Analysis and Reporting section analyzes custodial data including unpaid assessments and oversees sequestration activities.

  2. The Custodial Analysis and Reporting section is responsible for:

    1. Reporting unpaid assessments financial information.

    2. Delivering statistical information to report net taxes receivable as an asset.

Unpaid Assessments and Accounting Analysis
  1. The Unpaid Assessments and Accounting Analysis section ensures that unpaid assessments are accurately recorded in accordance with the federal accounting standard categorization requirements for financial reporting.

  2. The Unpaid Assessments and Accounting Analysis section is responsible for:

    1. Performing technical evaluations of unpaid assessment data, including the evaluation of IRS’s compliance with laws related to tax accounts reviewed during the GAO custodial financial statement audit.

    2. Communicating audit findings and providing technical guidance and assistance to the business units.

Custodial Accounting
  1. The Custodial Accounting office ensures compliance with federal financial management and reporting activities for custodial accounting and is responsible for internal and external reporting requirements and the preparation of the annual financial statements.

  2. The Custodial Accounting office is responsible for:

    1. Reporting internal and external custodial accounting activities.

    2. Establishing policies and procedures for all journal activities to produce timely and accurate reports.

    3. Supporting field and headquarters custodial general ledger activity reported through the Redesigned Revenue Accounting Control System (RRACS).

  3. The Custodial Accounting office maintains:

    1. IRM 1.31.7, Operating Procedures for the Custodial Systems and Headquarters (HQ) Accounting Section in the National Headquarters Office

    2. IRM 3.17.41, Excise Reporting

    3. IRM 3.17.50, Redesigned Revenue Accounting Control System (RRACS) Procedures

    4. IRM 3.17.63, Redesigned Revenue Accounting Control System

  4. The Custodial Accounting office has two subordinate sections:

    1. Custodial Reporting

    2. Custodial Systems and Headquarters Accounting

Custodial Reporting
  1. The Custodial Reporting section compiles and prepares monthly Treasury and annual financial reports including the IRS statement of custodial activity, financial statement footnotes and supplemental information, and custodial accounting related Data Book sections.

  2. The Custodial Reporting section is responsible for:

    1. Reporting financial information to Treasury and OMB, including the TIER submission.

    2. Analyzing and ensuring the integrity of master file extracts for custodial revenue receipt and disbursements activities.

    3. Ensuring the Centers for Medicare and Medicaid Services advanced premium tax credit, basic health plan and state innovation waiver programs are funded, and the activity is recorded accurately.

    4. Reviewing legislation to determine the effect on custodial reporting.

Custodial Systems and Headquarters Accounting
  1. The Custodial Systems and Headquarters Accounting section maintains the custodial systems and coordinates custodial revenue accounting activities.

  2. The Custodial Systems and Headquarters Accounting section is responsible for:

    1. Maintaining and enhancing the custodial financial systems to meet system changes required by new regulations or legislation.

    2. Maintaining the headquarters general ledger for refundable credit activity and providing procedural guidance for the campus custodial general ledger (RRACS).

Campus Accounting East and West
  1. The Campus Accounting offices consist of Revenue Accounting Control System (RACS) teams, as well as reports and RACS analysts.

  2. Campus Accounting RACS teams are responsible for:

    1. Recording RRACS transactions while ensuring each transaction is aligned to the proper general ledger account.

    2. Ensuring that assessments are recorded properly and signed timely.

  3. The Campus Accounting East and West offices maintain:

    1. IRM 3.17.15, Accounting Reports Analyst - Responsibilities

    2. IRM 3.17.244, Manual Assessments

    3. IRM 3.17.64, Accounting Control General Ledger Policies and Procedures

Internal Controls
  1. The Internal Controls organization administers the IRS internal control program and coordinates and executes processes that assess the completeness and effectiveness of internal controls and support annual assurance activities.

  2. The Internal Controls organization is responsible for:

    1. Testing and reporting on internal controls for IRS programs and processes, including financial transactions and other business activities.

    2. Providing assurance to external stakeholders, through comprehensive documentation of internal control testing and results reporting, that the IRS has an effective system of internal controls in place.

    3. Educating the IRS on the meaning and importance of effective internal controls.

  3. The ACFO for Internal Controls leads the organization, including its three subordinate offices:

    1. Internal Reviews

    2. Assurance Review and Testing

    3. Outreach and Reporting

Internal Reviews
  1. The Internal Reviews office is responsible for:

    1. Evaluating the effectiveness of internal controls through studies and program assessments.

    2. Coordinating the development of significant year-end reporting materials for the financial statement audit and other deliverables.

    3. Testing and assessing the efficacy of IRS quality assurance programs.

    4. Evaluating the effectiveness of operational controls over IRS programs and the implementation of planned corrective actions for past auditor recommendations.

  2. The Internal Reviews office maintains:

    1. IRM 1.4.31, IRS Quality Assurance Program

    2. IRM 1.4.32, Internal Control Review Program

  3. The Internal Reviews office has three subordinate sections:

    1. Quality Assurance Review

    2. Internal Control Review Section A

    3. Internal Control Review Section B

Assurance Review and Testing
  1. The Assurance Review and Testing office is responsible for:

    1. Ensuring the IRS complies with federal laws and regulations for financial transaction controls.

    2. Leading financial transaction control testing mandated by statute and regulation.

    3. Aggregating information on the presence and effectiveness of IRS internal controls.

    4. Documenting that internal controls are in place and functioning appropriately at an enterprise level to mitigate the risk of mismanagement, waste, fraud and abuse in IRS operations.

    5. Monitoring and testing controls over IRS appropriations and custodial revenue activities to verify compliance with OMB Circular A-123 Appendix A, Management of Reporting and Testing Data Integrity Risk.

  2. The Assurance Review and Testing office maintains IRM 1.4.3, Financial Assurance Controls Testing.

  3. The Assurance Review and Testing office has two subordinate Financial Assurance Control Testing sections - one for administrative transactions and one for custodial transactions.

Outreach and Reporting
  1. The Outreach and Reporting office is responsible for:

    1. Developing corporate control reporting deliverables for the financial statement audit and for Treasury Department publications.

    2. Managing control oversight processes through the Management Controls Executive Steering Committee.

    3. Coordinating analysis and reporting for the IRS improper payments program, consistent with the requirements of OMB Circular A-123, Appendix C, Requirements for Payment Integrity Improvement.

    4. Leading education and outreach efforts for control activities.

    5. Aggregating Servicewide data on the status of internal controls through surveys, assessments and other mechanisms.

  2. The Outreach and Reporting office maintains:

    1. IRM 1.4.2, Monitoring and Improving Internal Control

    2. IRM 1.4.4, Improper Payments (future publication)

  3. The Outreach and Reporting office has one subordinate Reporting Coordination section.