1.33.4  Financial Operating Guidelines

Manual Transmittal

December 16, 2014


(1) This transmits revised IRM 1.33.4, Strategic Planning, Budgeting and Performance Management Process, Financial Operating Guidelines.

Material Changes

(1) IRM, IFS Version Descriptions: revised to reflect the current budget versions in IFS and the elimination of Budget Version 1.

(2) IRM, Cash (Monetary) Awards and Time-Off Awards: revised to include sequestration updates.

(3) IRM, Treasury Franchise Fund: replaced the Working Capital Fund.

(4) IRM, Internal Order Codes: updated to reflect new requirements.

(5) IRM, Tracking Event-Related Spending: added new section.

(6) IRM, Training Programs: revised to include approval and tracking requirements.

(7) IRM, Food and Refreshments: updated to include guidance for tracking event-related spending.

(8) IRM, Business Systems Modernization (BSM): updated to reflect reporting requirements.

(9) IRM, Earned Income Tax Credit Procedures: revised to reflect current practices.

(10) Eliminated references to the Tuition Assistance Program, which has been terminated.

(11) Deleted references to funds reservations, which are no longer in use.

(12) Replaced references to GovTrip with Electronic Travel System.

(13) Deleted references to cost elements, which are no longer used. The cost element has been replaced by General Ledger Account.

(14) Eliminated Responsibility for Legacy Obligations of Mission Assurance and Security Services, because these accounts are now closed.

(15) Eliminated Competitive Sourcing, which is no longer relevant.

(16) Changed references to the support function Modernization and Information Technology Services (MITS) to Information Technology (IT); changed references to budget activity code (BAC) 99 to BAC 98; changed references to Internal Financial Management (IFM) to Financial Management (FM), and modified references to cash awards to read cash (monetary) awards.

(17) Included numerous editorial changes and website reference updates throughout. Updated Division Finance Officer (DFO) and Financial Plan Manager (FPM) titles, Selected Glossary, and Acronyms.

Effect on Other Documents

This IRM supersedes IRM 1.33.4, Financial Operating Guidelines, dated May 16, 2011.


The IRS budget community in all divisions and functions, especially the Division Finance Officers (DFOs), Financial Plan Managers (FPMs), and their staff.

Effective Date


Robin L. Canady,
Chief Financial Officer  (12-16-2014)
Overview of the Financial Operating Guidelines

  1. The Financial Operating Guidelines (FOG) assist Financial Plan Managers (FPM) and other budget and finance professionals in fulfilling their responsibilities to effectively manage budgetary resources.

  2. The FOG is published by the Chief Financial Officer’s (CFO) Corporate Budget (CB) Unit. Comments and change requests may be submitted to the Director, Systems and Analysis Office, CB.

  3. The IRM is not specific to a fiscal year (FY) and is in effect until superseded. These guidelines take precedence over any previous financial operating instructions.

  4. In the event of a Continuing Resolution (CR), specific CR operating guidance will be posted on the CB website. Where different and while in effect, CR guidance takes precedence over this IRM. After Congress passes the appropriations act or a substitute omnibus appropriation bill, the IRM takes precedence but may need revisions based on new or revised provisions in the enacted appropriations language.

  5. Future revisions, including interim guidance during the year, will be posted to the CB website.  (12-16-2014)

  1. This IRM, the Financial Operating Guidelines, provides internal guidance for the budget execution phase of the budget cycle to assist Financial Plan Managers in fulfilling their responsibilities to effectively manage budgetary resources.

  2. This guidance provides funds control regulations, as required by Office of Management and Budget (OMB) Circular A-11, Preparation, Submission and Execution of the Budget, Part 4, Section 150, Administrative control of funds.

  3. This guidance focuses on managing, monitoring, and controlling the money Congress appropriates to the IRS, including user fees. In compliance with the Antideficiency Act and applicable provisions of appropriations law, the IRS cannot spend or obligate more than Congress has appropriated and may use funds only for purposes specified in law. Additionally, the Antideficiency Act prohibits the IRS from spending or obligating funds in advance of an appropriation, unless specific authority to do so has been provided in law. Each FPM shall comply with the Antideficiency Act and appropriations law.

  4. This guidance is issued by the Chief Financial Officer, Corporate Budget.  (12-16-2014)

  1. Government Accountability Office’s (GAO) Principles of Federal Appropriations Law (aka Red Book).

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

  3. Chief Financial Officers Act of 1990, Pub. L. No. 101-576.

  4. Antideficiency Act, Pub. L. No. 97-258, 96 Stat. 923.

  5. Congressional Budget and Impoundment Control Act of 1974, Pub. L. No. 93-344, 88 Stat. 297.

  6. Economy Act, 31 USC §1535, §§1551-1555.

  7. Miscellaneous Receipts Act, 31 USC §3302.  (12-16-2014)
Related Resource

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

  2. Government Accountability Office's Principles of Federal Appropriations Law (aka Red Book).

  3. Office of Personnel Management's Guide to Processing Personnel Actions.

  4. Appropriation language, found on Congress.gov. Click on "Legislation" to select current-year bills and laws for the Financial Services Appropriation or a Continuing Resolution.

  5. The current IRS Financial Management Codes Handbook, found on the CB website.

  6. Chief Financial Officer website.  (12-16-2014)

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

    1. Accrued expenditure - An accounting transaction to record the receipt of goods or services without the issuance of cash, check, or Electronic Funds Transfer (EFT) at the end of an accounting period (e.g., the amount of unpaid payroll at the end of each month).

    2. Apportionment - A distribution made by OMB of amounts available for obligation in an appropriation or fund account into amounts available for specified time periods, programs, activities, projects, objects, or any combinations 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.

    3. Appropriation - A 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. In IFS, an appropriation is represented by the "Application of Funds" code.

    4. Bona fide needs rule - The principle that appropriations made for a definite period of time may be used only for expenses properly incurred during that time. Title 31 USC §1502(a) (the bona fide needs statute) provides: "The balance of an appropriation or fund limited for obligation to a definite period is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period of availability and obligated consistent with section 1501 of this title. However, the appropriation or fund is not available for expenditure for a period beyond the period otherwise authorized by law."

    5. Budget - The budget of the United States Government, which sets forth the government’s comprehensive financial plan and indicates the government’s priorities for federal spending.

    6. Budget authority - The 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.

    7. Closed appropriation - An appropriation for which, having passed the last expired year, the balances canceled and remitted to Treasury.

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

    9. Commitment Item - A subdivision of expense used to classify the organization's consumption of resources. The first two digits of the four-digit code represent the higher-level object class.

    10. Contract authority - Authority to incur obligations in advance of an appropriation, offsetting collections, or receipts to make outlays to liquidate the obligations. Typically, Congress provides contract authority in an authorizing statute to allow an agency to incur obligations in anticipation of the collection of receipts or offsetting collections that will be used to liquidate the obligations.

    11. Cost Center - A data element in IFS used to represent a clearly-defined location where costs incur and to represent the lowest level in the organizational hierarchy, below fund center. Cost center captures costs only, not revenue. Cost centers are usually linked to Treasury Integrated Management Information System (TIMIS) codes but can also be established for non-labor-related areas.

    12. Direct support - Support costs that can be reasonably identified and charged to a specific activity.

    13. Disbursement - An outlay; the issuance of cash, checks, or an electronic funds transfer (EFT).

    14. Division Finance Officer - The person, often an executive, who has been delegated by their division commissioner or chief with the ultimate responsibility for the funds control of their financial plan, as well as managing their plan through all phases of the budget cycle. See also, Financial Plan Manager.

    15. Expenditure - A receipt of goods or services, usually accompanied by the issuance of cash, checks, or electronic funds transfer to liquidate a valid obligation.

    16. Expired appropriation - An appropriation for which the period of availability established by law has passed, and for which new obligations may NOT be incurred. Balances are available only for upward and downward adjustments to existing or unrecorded obligations during the five years following expiration of obligation authority for annual and multiyear funds.

    17. Financial Plan Manager - The person who is responsible for day-to-day operations of monitoring and controlling a financial plan’s funds in the execution phase of the budget cycle. See also, Division Finance Officer.

    18. Fiscal Year - The Federal Government’s accounting period. It begins on October 1, ends on September 30, and is designated by the calendar year in which it ends.

    19. Full-Time Equivalent (FTE) - The basic measure of the levels of employment used in the budget. It is the total number of regular, straight-time hours (i.e., 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.

    20. Functional Area - A data element in IFS that represents an activity, such as Submission Processing.

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

    22. Fund Center - A data element in IFS used to subdivide budget expenses into organizational structures. Fund centers represent areas of responsibility within an organization responsible for funds management. They are organized into a hierarchy.

    23. Funds commitment - Funds that are reserved in the IFS Funds Management module; for example, entering a purchase request creates a commitment; entering a requisition creates an obligation.

    24. Indirect support - Support costs that cannot be reasonably identified and charged to a specific activity and will be charged to the predominantly benefiting functional area.

    25. Integrated Financial System (IFS) - The administrative accounting system used by the IRS. IFS is composed of four modules: Budget Control System (BCS), Materials Management (MM), Financial Accounting (FIA), and Controlling (CO). Key features of IFS include integrated modules covering many business functions, real-time data entry, online information, drill-down capability, enhanced reporting capability, and simplified research.

    26. Internal Order Code (IOC) - A data element in IFS that collects expenditure data for specific projects. Internal Order Codes are used to monitor costs and, in some instances, revenues of internal jobs and/or tasks.

    27. Material Group Code - A data element in IFS used to group materials and services according to their characteristics. The material group code points to the Federal Supply Code and General Ledger Account.

    28. Object Class (OC) - Classification of expense according to type as prescribed by OMB Circular A-11, Preparation, Submission and Execution of the Budget; such as personal services, travel, and equipment. This is traditionally a two-digit code (for example, OCs 11 and 25); however, the OMB OC is now a more detailed three-digit code (for example, OCs 11.1, 11.3, 25.1, 25.2). See also, Commitment Item.

    29. Obligated Balance - The cumulative amount of budget authority that has been obligated but not yet outlaid. It is also known as unpaid obligations (which are made up of accounts payable and undelivered orders), net of accounts receivable, and unfilled customer orders.

    30. Obligation - A binding agreement that will result in outlays, immediately or in the future. Budgetary resources must be available before obligations can legally be incurred.

    31. Operational Support Contracts - Contracts that support IRS operations that are not assigned to another specific project code. Operational support contracts and similar Interagency Agreements (IAA) are tracked by "K contracts." These operational support contracts and IAAs cover a wide spectrum of procurement mechanisms including, but not limited to, simple and large purchases for services and supplies (SS) and equipment; formal contracts for services and supplies and specialized equipment; IAAs between the IRS and other Federal/state/local governmental agencies; and other non-labor expenditures.

    32. Order Points - Offices represented by their Order Point Number (OPN) in the Order and Subscription Management System (OSMS). Books, IRMs, and National Distribution Center (NDC) products are shipped to specified order points through the Internal Management Documents Distribution System (IMDDS). For more information, see the Order and Subscription Management System.

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

    34. Reimbursable Obligation - An obligation financed by offsetting collections credited to an expenditure account in payment for goods and services provided by that account.

    35. Reprogram - To shift allocated funds within an appropriation or fund account to use them for different purposes than those contemplated at the time of appropriation (for example, obligating budgetary resources for a different object class from the one originally planned). While a transfer of funds involves shifting funds from one account (appropriation or fund) to another, reprogramming involves shifting funds within an account. See A Glossary of Terms Used in the Federal Budget Process.

    36. Rescission - A legislative action that permanently cancels new budget authority or the availability of unobligated balances of budget authority prior to the time the authority would otherwise have expired.

    37. Sequestration - A fiscal policy procedure, originally provided for in the Gramm-Rudman-Hollings Deficit Reduction Act of 1985, that is an effort to reform Congressional voting procedures to make the size of the Federal Government's budget deficit a matter of conscious choice rather than simply the arithmetical outcome of a decentralized appropriations process in which no one ever looked at the cumulative results until it was too late to change them. If the dozen or so appropriation bills passed separately by Congress provide for total government spending in excess of the limits Congress earlier laid down for itself in the annual Budget Resolution, and if Congress cannot agree on ways to cut back the total (or does not pass a new, higher Budget Resolution), then an "automatic" form of spending cutback takes place. This automatic spending cut is called "sequestration."

    38. Top Node – A budget address in IFS at the highest level of a code hierarchy. For example, "IRS Top Node" means a budget address as follows: Fund Center = IRS, Commitment Item = ALLOBJ, and Functional Area = ALFA.

    39. Training - As defined under the Government Employees Training Act, training must meet all of the following requirements: (a) the announced purpose of the training is educational or instructional; (b) more than half of the time is scheduled for an organized exchange of information between presenters and audience; (c) the content of the conference is relevant to improving individual/organizational performance, and (d) developmental benefits will be derived by attendance.

    40. Transfer - To move budgetary resources from one appropriation account to another.

    41. Treasury Franchise Fund (TFF) - An intradepartmental service operations fund operated by the Department of Treasury. The TFF provides goods and services such as telecommunications, printing and reproduction, and equipment. Treasury bureaus make an advance payment prior to the receipt of goods, services, or other assets.

    42. Unliquidated Commitment - An administrative reservation of funds that has not yet become an obligation or otherwise been decommitted.

    43. Unliquidated Obligation - An obligation that has not been expended.

    44. Unobligated Balance - The cumulative amount of budget authority that is not obligated and that remains available for obligation under the law.

    45. User Fees - Fees charged to users of goods or services provided by the government.  (12-16-2014)

  1. A select list of acronyms are referenced for budget execution. To search a comprehensive list of IRS acronyms, see SPDER’s Reference Net Acronym Database.

    3YRF 3-Year Rolling Forecast
    ACFO Associate Chief Financial Officer
    AUC Aging of Unliquidated Commitments
    AUO Aging of Unliquidated Obligations
    AVC Availability Control
    BAC Budget Activity Code
    BFC Beckley Finance Center
    BSM Business Systems Modernization
    BPS Business Planning and Simulation
    BU Business Unit
    CB Corporate Budget (OS:CFO:CB)
    CFO Chief Financial Officer
    COR Contracting Officer's Representative
    CR Continuing Resolution
    CTO Chief Technology Officer
    DFO Division Finance Officer
    EITC Earned Income Tax Credit
    ELMS Enterprise Learning Management Systems
    FOG IRM 1.33.4, Financial Operating Guidelines
    FM Financial Management (OS:CFO:FM)
    FPM Financial Plan Manager
    FTE Full Time Equivalent
    FY Fiscal Year
    GAO Government Accountability Office
    GLS General Legal Services
    GSA General Services Administration
    HCO Human Capital Office
    IAA Interagency Agreement
    IOC Internal Order Code
    IFS Integrated Financial System
    IPAC Intragovernmental Payment and Collection
    IPS Integrated Procurement System
    IS Information Services
    IT Information Technology
    NBU Non-Bargaining Unit
    OMB Office of Management & Budget
    OPM Office of Personnel Management
    RA Reimbursable Agreement
    ROG IRM 1.33.3, Reimbursable Operating Guidelines
    RWA Reimbursable Work Authorization
    SETR Single Entry Time Reporting
    SF Standard Form
    SOI Statistics of Income
    SWA Security Work Authorization
    TAPS Totally Automated Personnel System
    TIMIS Treasury Integrated Management Information System
    TFF Treasury Franchise Fund  (12-16-2014)

  1. This section provides responsibilities for:

    1. Funds Control Responsibility

    2. Individual Responsibility

    1. Associate CFO Corporate Budget

    2. Division Commissioners or Chiefs

    3. Division Finance Officers

    4. Financial Plan Managers

    5. Other individuals as needed  (04-16-2010)
Funds Control Responsibility

  1. The Antideficiency Act provides administrative and criminal penalties for overspending. See OMB Circular A-11, Part 4, Section 145,Requirements for Reporting Antideficiency Act Violations.  (05-16-2011)
Individual Responsibility

  1. The Associate CFO (ACFO) CB formally bears the legal responsibility to ensure that the IRS as a whole does not violate the Antideficiency Act. To meet the IRS collective funds management responsibilities, the ACFO CB relies on the Division Finance Officers (DFOs) for compliance with the law and these guidelines.

  2. The ACFO CB delegates funds control responsibilities to the division commissioners or chiefs for the funds in their financial plans.

    1. A financial plan is a subdivision of funds made by the IRS to high-level funds centers in the Integrated Financial System (IFS); each business unit (BU) may manage one or more financial plans. See the "Fin Plans" table in the current Financial Management Codes Handbook found on the CB website.

  3. The DFO bears the ultimate responsibility for the funds control of their financial plan, as well as managing their plan through all phases of the budget cycle. See Exhibit 1.33.4-1, Division Finance Officers and Financial Plan Managers.

  4. The Financial Plan Manager (FPM) is responsible for day-to-day operations of monitoring and controlling a financial plan's funds in the execution phase of the budget cycle. See Exhibit 1.33.4-1, Division Finance Officers and Financial Plan Managers.

  5. Funds control and document approval authority may be delegated to individuals within the organization as needed; for example, the Integrated Procurement System (IPS) identifies FPMs as those with delegated authority to approve documents that commit and obligate funds.  (12-16-2014)

  1. Financial Plan Managers must follow these budgetary policies, which encompass both internally and externally imposed guidance.  (04-16-2010)
Applicable Guidance

  1. 31 USC Chapters 13, 15, and 33 govern the budget execution process. Among these, the major laws are the Antideficiency Act, 31 USC §1341, the Impoundment Control Act, 2 USC §§601-688, the Economy Act, 31 USC §1535, the provisions that govern the closing of accounts, 31 USC §§1551-1555, and the Miscellaneous Receipts Act, 31 USC §3302.

  2. OMB Circular A-11, Preparation, Submission and Execution of the Budget, provides an overview of the budget process; discusses the basic laws regulating the budget process; defines the basic terms and concepts associated with the budget process; provides guidance on how to prepare and submit budget-related materials required for OMB's review; and provides instructions on budget execution, funds control, and periodic reporting.

  3. GAO's Principles of Federal Appropriations Law (aka GAO's Redbook), is a comprehensive collection of the body of law governing the expenditure of federal funds.

  4. Congress.gov tracks appropriation language. Click on "Legislation" to select current-year bills and laws for the Financial Services Appropriation or a Continuing Resolution.

  5. All FPMs and other budget and finance professionals must refer to and use these key regulations to manage, track, and report budgetary activities. Such individuals must have a working knowledge of the contents of OMB Circular A-11, Preparation, Submission and Execution of the Budget, (especially Part 4, Instructions on Budget Execution), the appropriations language, and this IRM.  (04-16-2010)
Overview of Critical Funds Control Concepts

  1. Appropriations law, including the Antideficiency Act, OMB Circular A-11, Preparation, Submission and Execution of the Budget, the GAO Redbook, and other applicable guidance, provides a great deal of detail on funds control concepts. Financial Plan Managers must know appropriations law concepts and often research specific details. A short overview of the most important concepts follows. The bulk of this section is copied directly from the GAO Redbook, which has a wealth of information about specific purchases and circumstances. GAO's Comptroller General (Comp. Gen.) decisions are referenced in several places to provide fuller explanations of concepts.

  2. Whether appropriated funds are legally available for obligation depends on three things:

    1. The purpose of the obligation or expenditure must be authorized.

    2. The obligation must occur within the time limits applicable to the appropriation.

    3. The obligation and expenditure must be within the amount Congress has established.

  3. In addition, no amount can be obligated before OMB apportions the appropriated funds.  (04-16-2010)
Purpose: the Necessary Expense Doctrine

  1. The necessary expense doctrine is described in GAO’s Legal Decision 6 Comp. Gen. 619, "... Where an appropriation is made for a particular object, by implication it confers authority to incur expenses which are necessary or proper or incident to the proper execution of the object, unless there is another appropriation which makes more specific provision for such expenditures, or unless they are prohibited by law, or unless it is manifestly evident from various precedent appropriation acts...."


    Since we have a specific appropriation for Business Systems Modernization (BSM), we must charge BSM expenses to that appropriation, not a more general appropriation.

  2. An appropriation for a specific object is available for that object to the exclusion of a more general appropriation, which might otherwise be considered available for the same object. The exhaustion of the specific appropriation does not authorize charging any excess payment to the more general appropriation unless there is something in the general appropriation to make it available in addition to the specific appropriation.


    We cannot charge BSM expenses to Operations Support, even if there are no BSM funds available.

  3. Where two appropriations are available for the same purpose, the bureau may select which one to charge for the expenditure in question. Once that selection has been made, the bureau must continue to use the same appropriation for that purpose unless the bureau, at the beginning of the following fiscal year, informs the Congress of its intent to change it.


    If we had some discretion to charge a new expense for printing taxpayer education materials to either Taxpayer Services or Operations Support, and we decide to charge it to Operations Support, we must continue to charge it to Operations Support (the "pick and stick" rule).

  4. When applying the necessary expense rule, an expenditure is justified after meeting a three-part test:

    1. The expenditure must bear a logical relationship to the appropriation to be charged. In other words, it must make a direct contribution to carrying out either a specific appropriation or an authorized agency function for which more general appropriations are available.

    2. The expenditure must not be prohibited by law.

    3. The expenditure must not be otherwise provided for; that is, it must not be an item that falls within the scope of some other appropriation or statutory funding scheme.  (04-16-2010)
Time: the Bona Fide Needs Doctrine

  1. The "bona fide needs" rule is set forth in 31 USC §1502(a): "The balance of an appropriation or fund limited for obligation to a definite period is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period of availability and obligated consistent with section 1501 of this title. However, the appropriation or fund is not available for expenditure for a period beyond the period otherwise authorized by law." In other words, current-year funds are used for current-year needs.

  2. GAO, in its A Glossary of Terms Used in the Federal Budget Process, defines an obligation as "A definite commitment that creates a legal liability of the government for the payment of goods and services ordered or received.... An agency incurs an obligation, for example, when it places an order, signs a contract, awards a grant, purchases a service, or takes other actions that require the government to make payments to the public or from one government account to another. The standards for the proper reporting of obligations are found in 31 USC §1501(a)." See OMB Circular A-11.


    The petitioner's attorneys made a joint motion to award attorney fees on September 5, 2006 (FY 2006). The tax court awarded over one million dollars in attorney's fees and expenses on October 4, 2006 (FY 2007). As a general rule, an agency must pay a claim from the appropriation available for the fiscal year in which the amount of the claim was determined and allowed. In this case, the IRS had no obligation to pay the one million dollars until the tax court issued its order. Because the Court issued its final determination on October 4, 2006, the IRS had to use its FY 2007 appropriation.

  3. Agencies may not purchase services or merchandise before appropriations are enacted and accounts are apportioned

  4. Appropriated funds should not be used to purchase anything unnecessary merely in order to use excess funds in a fiscal year at year-end.

  5. Year-End: Generally, current fiscal year funds may not be used for training that will occur in the next fiscal year. On an exception basis, current fiscal year funds may be used for training during the next fiscal year only if the following three conditions are met:

    1. The training meets a bona fide need of the current fiscal year.

    2. The scheduling of the course(s) must be beyond the agency's control.

    3. The time between procurement and performance must not be excessive. Please see comments related to GAO’s Decision B-321296. If a course normally is available from one or more vendors several times a year, it would be difficult to support that the scheduling was beyond the agency's control. For a complete explanation, see GAO’s 70 Comp. Gen. 296.

  6. Expired appropriations: No new obligations may be made against expired appropriations, even if there was a need for that item during that period. The expired appropriation remains available for five years only to pay obligations incurred prior to the account's expiration or to adjust obligations that were previously unrecorded or under-recorded. As provided in 31 USC §1552(a): "the account shall retain its fiscal-year identity and remain available for recording, adjusting, and liquidating obligations properly chargeable to that account." See IRM, Expired, Closed, and No-Year Appropriations.


    In FY 2008, we had to ratify payment of rental fees on a post office box, expenses incurred each year since FY 2003, but not previously obligated. This was an actual, unrecorded obligation to the government. The fees for the five years FY 2003 to FY 2007 had to be charged to each of the five expired appropriations for those years.


    Many administrative obligations (such as utilities or travel) are recorded based on estimated costs. When a bill comes in after a fiscal year has ended for more than the estimate, these obligation "adjustments" must be made from expired unobligated balances from the year the estimate was recorded.


    For a contract with a continuing need, a modification affecting cost within the scope of the contract may be chargeable to an expired appropriation, depending on the specifics, but a modification for an increased quantity must be charged to a new appropriation.

  7. Replacement Contracts: Where it becomes necessary to terminate a contract because of the contractor's default or where the contracting agency determines that a contract award was improper, the funds obligated under the original contract are available, beyond their original period of obligational availability, for the purpose of engaging another contractor to complete the unfinished work. Four conditions must exist to invoke this authority:

    1. A bona fide need must continue to exist.

    2. The replacement contract must not exceed the scope of the original contract.

    3. The replacement contract must be awarded within a "reasonable time" after termination of the original contract.

    4. The original contract had to be made in good faith.

  8. Multiyear Contracts: A multiyear contract is a contract that covers the needs of more than one fiscal year. This is not to be confused with a contract for needs of the current year, even though performance may extend over several years. For example, a contract to construct a ship that will take three years to complete is not a multiyear contract, but a contract to construct one ship a year for three years is. Appropriations law allows agencies to enter multiyear contracts only if it has available no-year funds or multiyear funds covering the entire term of the contract, or if the agency has specific statutory authority to do so.

  9. It is impossible to describe in this IRM every circumstance that may occur. Different types of purchases may follow rules that are not necessarily intuitive, and examples can be easily misinterpreted. So these examples are offered with a strong caution to research specific cases well. When in doubt, call your CB contact, who in turn may ask General Legal Services (GLS) for help interpreting the law on a case-by-case basis.  (12-16-2014)

  1. The total of all purchases or contracts that agencies enter into cannot exceed the appropriation for the year or the amount apportioned by OMB, whichever is lower.

  2. Agencies may not pay bills when there are no available funds.  (01-15-2008)
Legislative Policies

  1. IRS appropriated funds are provided through appropriation laws. The laws may be one of the annual appropriations (for annual or multiyear appropriations), an omnibus appropriation, a supplemental appropriation, a Continuing Resolution, or permanent law (i.e., mandatory appropriations and revolving funds). These laws often contain specific provisions regarding the execution of IRS and other government programs. All internal policies and procedures must reflect Congress’s direction given in these laws.  (12-16-2014)
Appropriation Transfers

  1. By law, no agency may transfer resources between appropriations except under specific legal provisions and with Congressional approval. It is unlawful to obligate or expend more than the appropriated amount (or the apportioned amount if lower). The administrative provisions of IRS appropriations language allow the IRS very limited authority to transfer funds between appropriations, with prior approval of the Department of the Treasury (Treasury), OMB, and Congress. This authority must be carefully controlled by CB. All requests for interappropriation transfers must be justified to and approved in advance by CB. See IRM, Appropriation Transfer Procedures.

  2. When possible, CB will broker realignments between accounts through corporate reserves, fund 0290.  (01-15-2008)
Reprogramming Guidelines

  1. Congress and the administration restrict reprogramming to exert control over the budget.  (05-16-2011)
Budget Activity Limitations

  1. Congress specifically limits the reprogramming of funds that augment or reduce funding of existing programs, projects, or activities. Currently, the limit is the lower of five million dollars or 10 percent. The House and Senate Committees on Appropriations must approve in advance any reprogramming in excess of the limits included in the appropriation language, which restricts reprogramming at the Budget Activity Code (BAC) level. In addition, prior approval is needed to create a new program or to eliminate an existing one through the reprogramming of funds.

  2. Any reprogramming between BACs requires advance approval from CB.

    Note: See IRM, Information Services (IS), BAC 98 Reprogramming Authority (internal reprogramming policies).  (01-15-2008)
Financial Plan Manager Responsibilities for Reprogramming Limitations

  1. Financial Plan Managers may reprogram between functional areas within an appropriation only to the extent they do not change the BAC levels. See IRM, Budget Activity Limitations. The relationship between functional areas and BACs is identified in the "BACs" table of the current Financial Management Codes Handbook found on the CB website.  (12-16-2014)
Internal Budget Execution Policies

  1. In addition to adhering to legislative policies, all reprogramming actions must be justified.

  2. Key points to consider:

    1. Reprogramming actions must support the financial plan's Strategy and Program Plan.

    2. Reprogramming justifications must be delineated by function/activity.

    3. Actions taken in the current year – such as hiring or position management decisions – must be consistent with budgeted resources and the objectives of the next fiscal year, as well as long-term strategic objectives.

    4. All nondiscretionary costs must be fully funded before additional funds can be expended on discretionary costs.  (12-16-2014)
Managing within Resource Availability

  1. Financial Plan Managers need to work within their resource availability to achieve program plans. The Business Performance Review (BPR) process focuses on IRS efforts to deliver programs and manage resources. After activity levels are set, funding changes should be an exception in program management. Any needs above the plan should first be resolved within the financial plan or through efforts to secure available funds from other organizations (with the caveat that realignments must not exceed appropriation or BAC limitations). If no resolution can be found, submit a request to CB with a full justification. If FPMs identify surplus funding within their financial plans, they should immediately notify CB and return those surplus funds.

  2. Corporate Budget monitors financial plans on a monthly basis and through a more comprehensive midyear review. Financial Plan Managers are required to identify any surpluses or out-of-cycle requests to CB at midyear. Corporate Budget will pull identified surpluses into corporate reserves to support approved corporate unfunded priorities through year-end.

  3. Business unit hiring actions are permitted as long as they have adequate labor resources and Full-Time Equivalents (FTE) in the current fiscal year, are consistent with hiring guidelines, and the hiring will not impact their budget for the following year as defined by the President’s Budget (excluding initiatives). Note, however, that exigent circumstances may require additional constraints on hiring; in those cases, any criteria or requirements put in place by directive of the Commissioner or the Commissioner’s designee(s) will supplement, and possibly supersede, the hiring protocols contained in this IRM.  (01-15-2008)
Financial Reviews

  1. Ensuring optimal and efficient use of IRS resources is a high priority. This IRM reinforces the need to minimize the amount of year-end obligations (i.e., after August 31), while maximizing obligations in support of business priorities. Business units participate in several financial reviews throughout the year, as needed, including the following formal reviews to ensure the optimal use of IRS resources.  (05-16-2011)
Labor Reviews

  1. Corporate Budget conducts labor reviews using the IFS Three-Year Rolling Forecast (3YRF). Specifics are included in the current 3YRF Labor Analysis Guidelines, found on the Business Warehouse & Business Planning/Simulation website. See IRM, Labor Projections.  (12-16-2014)
Budget Execution Activity Reports

  1. Corporate Budget prepares a Servicewide Budget Execution Activity Report monthly for senior management, with individual reports for each financial plan. Execution reports are used to analyze and report Servicewide spending patterns, realignment of resources, potential surpluses, and early identification of unfunded needs or resource shortfalls. These reports also support midyear reviews.  (12-16-2014)
Midyear/Spend Plan Review

  1. After the close of the second quarter, CB conducts a midyear/spend plan review with each BU to assess the financial position of the organization for internal and external stakeholders. This review:

    1. Evaluates the status of spending to ensure timely obligation of funds, per CFO and procurement guidance.

    2. Identifies potential unfunded needs and surpluses.

    3. Identifies potential base shortfalls that can be corrected in the multiyear planning process.

    4. Promotes timely posting of reimbursables.

    5. Provides necessary information for the Treasury midyear review, conducted within all Treasury bureaus.

    6. Finalizes the spend plans.

  2. Business units are required to meet commitment and obligation targets established jointly by the CFO and Procurement.

  3. In addition, BUs should meet the following targets for total obligations (labor and non-labor):

    1. 100 percent of procurement actions committed by July 31.

    2. 92 percent of budget obligated by August 31.

    3. 99.7 percent of budget obligated by September 30. Total obligations mean obligations, expenditures, and disbursements (OED). The ratios are calculated as a percent of the operating budget level (IFS Budget Version 0).


      These targets support the overall goal of using resources wisely. Do not use the targets as a reason to buy anything unnecessarily. See IRM, Time: the Bona Fide Needs Doctrine. If you cannot meet the targets, you might have excess budget that could be returned to CB and used toward corporate needs


  4. Specific guidance is issued by CB and is posted on the CB website at the beginning of the midyear review process.  (05-16-2011)
Aging of Unliquidated Commitments and Aging of Unliquidated Obligations Reviews

  1. The quarterly Aging of Unliquidated Commitments (AUC) and Aging of Unliquidated Obligations (AUO) reviews provide critical analyses of the spend plan, facilitate the management of the procurement process, and maximize use of funds. See IRM, Unliquidated Commitments/Obligations.

  2. The CFO FM Unit provides Fiscal Year-End Processing guidance for these reviews.  (05-16-2011)
Financial Plan Manager Authority

  1. Financial Plan Managers have the authority to implement reprogramming only in their assigned financial plans and are accountable for strict adherence to the limitations set forth above in IRM, Legislative Policies.

  2. Financial Plan Managers may limit or delegate their reprogramming authority for offices within their financial plans. In doing so, the FPM retains responsibility for ensuring that limitations contained in these operating guidelines are not violated, and at all times must be able to explain all reprogramming changes made in their financial plan. The individuals designated as FPMs are identified by position title in Exhibit 1.33.4-1, Division Finance Officers and Financial Plan Managers.

  3. Financial Plan Managers may delegate to others outside their BU the authority to make entries to their financial plan, as necessary to accomplish realignments between financial plans in IFS. All realignments between financial plans must be initiated by the sending FPM. See procedures in IRM, Realignments between Financial Plans.

  4. At times, CB makes entries to other financial plans. These occasions will be limited and CB will notify FPMs when their involvement is necessary.  (12-16-2014)
Segregation of Duties

  1. Segregation of duties separates roles and responsibilities to ensure that an individual cannot process a transaction from initiation through reporting without the involvement of others, thereby reducing the risk of fraud or error. Examples of situations requiring segregation of duties:

    1. Receiving checks and posting them in a financial system.

    2. Making purchases with the purchase card, authorizing purchases and payments, and certifying funding.

    3. Entering a requisition, creating the obligation, and then processing the invoice and paying the vendor.

  2. Financial Plan Managers should establish, develop, and monitor controls via segregation of duties to ensure that conflicting activities are not assigned to the same individual and are appropriately segregated.  (12-16-2014)
Managing the Integrated Financial System (IFS)

  1. Financial Plan Managers are required to routinely monitor their IFS budget data and ensure the data is correct.  (12-16-2014)
Integrated Financial System (IFS) Version Descriptions

  1. Below are the current IFS budget and FTE Versions:

    1. Budget Version 0 – the current budget; sets availability controls. Controls are by fund, fund center, functional area, and commitment item. IRS Availability Control (AVC) levels may vary depending on the BU. Use IFS transaction FMAVCR02 to view the AVC controls for your BU.

    2. Budget Version 999 – the current plan for FTE staffing resources; associated with Budget Version 0. This FTE budget has detail by fund, fund center, functional area, and activity type.

    3. Budget Version 20 – the budget extracted for Business Planning and Simulation (BPS) Plan Development for the budget load. The version cannot be realigned. It is strictly used during the budget load.

    4. Budget Version CR – the funding provided by the continuing resolution.

    5. Budget Version ENACT – the enacted budget. Corporate Budget populates this version after the budget is passed. This version represents the budget levels allocated for IRS appropriations and budget activities. Only Congressionally-approved budgetary changes or reprogramming requests are entered in Budget Version ENACT. Budget Version ENACT is used for reporting purposes and is compared to Budget Version 0 to identify changes.

    6. Budget Version OPER – the Operating Plan; i.e., how we will deliver the enacted budget. Corporate Budget populates Budget Version OPER.

    7. Budget Version 85 – the FTE associated with Budget Version OPER, the official operating plan. Corporate Budget populates Budget Version 85.  (12-16-2014)
Elimination of Budget Deficits in Version 0

  1. Integrated Financial System Availability Controls (AVC) help prevent the IRS from going antideficient for non-labor expenses. At a minimum, AVC is established to control budget by fund, fund center (financial plan level), commitment item (object class), and functional area. However, some BUs establish controls at an even lower level. Therefore, if there is insufficient budget at those levels, the system will reject the obligation. Availability controls are not configured to prevent labor postings. Labor expenses (object classes 11, 12, and 13) are the only expenses that can force the IRS into an antideficient status. This is most likely to occur in September in plans with significant reimbursable projects where the earnings have not been realized yet. Since budget can become deficient as a result of posting payroll, FPMs must research their budget deficits bi-weekly and correct them no later than one week after payroll posts. The FMAVCR02 report (Display Overall Values of Control Objects) in IFS will quickly identify budget deficits associated with labor. Subsequently, realignments must be processed to resolve the deficits. IFS transaction FMBB must be used to process the realignments. Further, FPMs must do everything possible to post reimbursable earnings timely throughout the year and especially at year-end. See IRM 1.33.3, Reimbursable Operating Guidelines.  (04-16-2010)
Elimination of Negative Disbursements

  1. Financial Plan Managers must eliminate a negative disbursement created by transferring disbursements in excess of what was disbursed in an accounting string. However, they do not need to eliminate a negative disbursement created by credits posting to current-year funds from charges, since they are legitimate credits. Plan managers must correct negative disbursements in active appropriations that extend beyond the current year through multi- or no-year authority, cancelling appropriations, and expiring reimbursable appropriations.  (04-16-2010)
Prohibition of "Top Node" Distributions

  1. When establishing new budget authority, CB pushes thebudget down through the IFS "top node" data elements; that is, commitment item ALLOBJ and functional area ALFA. However, FPMs may not post funds to the top node, because charges in ALLOBJ/ALFA create problems for financial reporting, cost allocations, and reprogramming limitation reports. All funds must possess a valid commitment item and functional area. Any funds remaining at the ALLOBJ/ALFA level should be pushed down accordingly.  (08-28-2006)
Keeping Full Time Equivalents (FTEs) Aligned With Labor

  1. Budget Version 999 must be maintained so that FTEs and labor dollars stay in proper relationship at all times. See IRM, FTE Utilization Policies.  (12-16-2014)
Financial Codes

  1. The validity and accuracy of IRS financial reports depends on the correct use of financial codes. Financial Plan Managers, all staff in budget organizations, and all parties responsible for assigning financial codes to documents must be familiar with the codes and definitions in the current Financial Management Codes Handbook found on the CB website.

  2. Internal Order Codes (IOC) are set up to track project-specific information. See IRM, Internal Order Codes. When necessary, the CFO will issue guidance or procedures for using specific Internal Order Codes for Servicewide activities or projects that need to be tracked. Such guidance will be posted on the CFO website or the CB website.

  3. Procedures for establishing new financial codes, referred to as IFS Master Data, are provided in Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.  (12-16-2014)
Reorganizations and Other Modifications Affecting Budget

  1. Financial Plan Managers are required to notify CB of any reorganization as soon as senior management approves the initial reorganization proposal. Congress directs CB to include in its annual Operating Plan the details on any planned reorganizations, job reductions, or increases to offices or activities within the agency, and modifications to any service or enforcement activity. Reorganizations are any significant planned staffing increases or decreases, establishment of new offices or functions, or elimination of any offices or programs. Please include:

    • Any budget dollars crossing appropriations, regardless of the amount involved

    • Transfers of dollars and/or FTE between business units

    • Staffing reductions of more than 20 FTE between business units

  2. Corporate Budget personnel will maintain the appropriate level of confidentiality regarding possible reorganizations, as requested by the FPM.

  3. To request new or revised financial codes, see Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.

  4. For more guidance on reorganizations, see IRM 1.1.4, Organizational Planning.  (08-28-2006)
Labor Costs Reprogramming

  1. Financial Plan Managers may reprogram funds from labor in order to maintain maximum resource flexibility, consistent with accountability for results.

  2. Fiscal accountability demands that FPMs balance labor and support so that FTEs are fully-costed and strategic plans are realized. For more information on managing FTEs see IRM, FTE Utilization Policies, and on hiring see IRM, Personnel Issues.  (12-16-2014)
Information Services, Budget Activity Code (BAC) 98 Reprogramming Authority

  1. All information technology resources reside in the Information Technology (IT) Financial Plan. Information Services (IS) is no longer a separate appropriation; it is a budget activity and must follow BAC reprogramming guidance. In addition, all requests for reprogramming affecting BAC 98, IS, must follow the IT Reprogramming Policy. Contact the IT Office of Financial Management Services for more information.

  2. For all IT execution information, see IRM 2.21.1, Requisition Processing for IT Acquisition Products and Services.  (08-28-2006)
Operating Procedures

  1. Financial Plan Managers must adhere to the following budgetary procedures, which provide more detailed guidance for budget execution.  (01-15-2008)
Chief Financial Officer Servicewide Procedures

  1. CFO Servicewide Procedures are developed and imposed by the CFO, as a result of high-level direction from a number of sources, including OMB, the Commissioner, and others.  (12-16-2014)
Corporate Budget Responsibilities

  1. Even though many budget execution activities are decentralized, CB continues to have Servicewide fiduciary responsibility.

  2. Corporate Budget monitors BUs’ budget execution activities to identify potential issues before they become corporate ones.

  3. Corporate Budget reports to the CFO each month on the status of BAC ceilings and floors at the Servicewide level.

  4. Corporate Budget periodically reviews reprogramming out of labor to verify the impact on current- or out-year resource levels. Corporate Budget will work with the FPMs to ensure reallocations make sound business sense.

  5. Corporate Budget is responsible for the Centralized Payments Plan 1111, the Undistributed Funds Plan 0290, prior-year funds, and IRS appropriation levels.

  6. On a regular basis, CB updates the CFO on hiring/attrition trends and projected labor needs in each account.  (04-16-2010)

  1. Corporate Budget has primary responsibility for overseeing budget execution policy.

  2. Within CB, an assigned Execution analyst is the primary point of contact for each Business Unit, for any questions or requests regarding budget execution or the FOG. Communications from Corporate Budget to the Financial Plan Managers should go through the assigned Execution Business Unit Analyst.

  3. For financial code change requests, the Financial Plan Manager should send the request directly to Corporate Budget’s Master Data Team, with a copy to the assigned Execution analyst. Procedures for Master Data changes are provided in Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.

  4. For any budget formulation questions or requests, the Financial Plan Manager should go directly to the assigned Formulation Business Unit Analyst.  (12-16-2014)
Preparation of a Servicewide Operating Plan

  1. The House Appropriations Committee directs the IRS to submit an operating plan after enactment of the new fiscal year appropriation. The number of days after enactment is detailed in the appropriations language. For example, the FY 2013 enacted language requires submission of the operating plan to Congress within 30 days of enactment of the FY 2013 appropriation.

  2. Corporate Budget prepares a table that crosswalks the budget request to the enacted level of funding and the current operating plan. The format is similar to the Explanation of Proposed Fiscal Year Budget Operating Level chart in the Congressional Budget Justification.

  3. Financial Plan Managers for the operating plan must distribute funds by OMB Object Class, functional area, and commitment item as they would be executed.

  4. Financial Plan Managers develop narrative to provide program, project, and activity information for each appropriation. The narrative must:

    1. Describe the major goals to be achieved with the funding provided and how funds for each BAC are to be used

    2. Discuss the impact of Congressional changes to the President’s Budget Request.

    3. Identify anticipated reprogramming actions of enacted funds.

    4. Provide information on major procurements and capital investments.

  5. Corporate Budget compiles and submits the crosswalk table and narrative referenced above.  (12-16-2014)

  1. An apportionment is an OMB-approved plan to use budgetary resources. It typically limits the obligations that may be incurred for specified time periods, programs, activities, projects, objects, or any combination thereof. It may also place limitations on the use of other resources, such as FTEs or property. An apportionment is legally binding, and obligations and expenditures (disbursements) that exceed an apportionment are a violation of, and are subject to reporting under, the Antideficiency Act. See OMB Circular A-11, Preparation, Submission and Execution of the Budget, Part 4, Section 120, Apportionment.

  2. Initial apportionments are due to OMB for a new fiscal year generally by the third week of August and within 10 calendar days of enactment of an appropriation bill. The initial apportionment includes estimates of expected reimbursables, carryover amounts and prior-year recoveries for multi- and no-year accounts, and anticipated user fee transfers to the no-year accounts. After enactment of an appropriation, an apportionment is due to OMB for annual accounts.

  3. For newly enacted, full-year appropriations, OMB automatically apportions 30 days of funds, calculated starting with the first day of enactment while CB awaits approval from OMB. If OMB has not approved a request on the 30th day after enactment, OMB automatically apportions agencies another 30 days of funds. The rate is the highest of:

    • the pro-rata share (1/365th for each day) of the prior year's enacted appropriations level

    • the pro-rata share (1/365th for each day) of the current year's enacted appropriation level

    • the historical seasonal level of obligations

    Once OMB approves a written apportionment, the automatic apportionment ceases to remain in effect.

  4. For the yearly appropriations, an amount not to exceed one percent of the total is apportioned to pay legitimate obligations related to canceled appropriations.

  5. OMB Circular A-11, Preparation, Submission and Execution of the Budget, provides automatic apportionments of prior-year recoveries of $400,000 or two percent of the annual appropriation, whichever is lower; however, OMB requires the IRS to have an apportionment in place before we can use these funds. The IFS does not have a control on prior-year recoveries to stop the usage of these funds. Therefore, BUs should ensure that no obligations are charged to these funds until such time as apportionments are obtained.  (12-16-2014)
Apportionments under a Continuing Resolution

  1. The OMB automatically apportions funding levels during a CR. After passage of final appropriations, CB prepares and submits revised apportionments to Treasury and OMB for approval. Corporate Budget has 10 days from enactment to request an apportionment from OMB even if the period of the CR has not expired. See OMB Circular A-11, Preparation, Submission and Execution of the Budget, Part 4, Section 123, Apportionments under continuing resolutions.  (12-16-2014)
Appropriation Transfer Procedures

  1. As stated in IRM, Appropriation Transfers, the IRS has limited flexibility to transfer funds between appropriations, subject to prior Congressional approval. All proposed interappropriation transfers must be justified to and approved by CB. If approved, CB will submit the transfer request for approval to Treasury, OMB, and the Congressional subcommittees. After receiving all approvals, CB will submit Standard Form (SF) 1151, Nonexpenditure Transfer Authorization, to Treasury. The appropriation transfer process may take an extended period of time, so we must plan accordingly. After the entire process is complete, the appropriate FPM will coordinate the transfer in IFS.

  2. When possible, CB will broker realignments between accounts through Corporate Reserves, Fund 0290.  (12-16-2014)
Interagency Transfers

  1. Corporate Budget controls funds transfers from the IRS to other agencies, documented with the transfer request SF 1151, Nonexpenditure Transfer Authorization. The SF 1151, Nonexpenditure Transfer Authorization, must cite the Public Law or other authority that authorizes the transfer. When a FPM needs to send or receive funds from another agency, the FPM must provide the following information via e-mail to CB:

    Required Information to Support Interagency Transfer
    Transfer (FROM/TO) [IRS information]
    1. IRS Fund Code

    2. Financial Plan & Fund Center

    3. Functional Area

    4. Commitment Item

    5. Internal Order, if appropriate

    6. Amount

    7. Justification for Request

    8. Date Needed

    9. Finance Contact Name & Phone Number

    10. Authorizing authority (such as Public Law, U.S. Code, etc.)

    11. Authorized by

    Transfer (TO/FROM) [other agency information]
    1. Agency

    2. Treasury Account Symbol

    3. Accounting Information, as available

    4. Agency Contact Name & Phone Number

    5. Backup Contact Name & Phone Number

  2. Some interagency transfers will require an Apportionment or Reapportionment Request, which must be approved by Treasury and OMB before the SF 1151, Nonexpenditure Transfer Authorization, may be forwarded. All approvals must be granted before funds may be moved in IFS.  (08-28-2006)
Realignments between Financial Plans

  1. Realignments between Financial Plans require coordination between the designated Financial Plan Manager representatives in both the receiving and the sending Financial Plans.  (01-15-2008)
Arrangements between Financial Plans

  1. In IFS, the sending FPM enters realignments using a Transfer Budget document, IFS transaction code FMBB. This applies to Budget Version 0 and/or 999. The sending FPM must ensure the entry does not exceed BAC reprogramming limitations. See IRM, Reprogramming Guidelines.

  2. The receiving FPM provides, via e-mail, to the sending FPM the appropriate receiver lines (TO lines) to use for the FMBB transaction including the fund, functional area, fund center, and commitment item.

  3. Within a week of receiving the e-mail, the sender must resolve any issues with the receiver and accurately enter the FMBB transaction into IFS. The sender attaches the receiver’s e-mail to the FMBB transaction as a "Long Text " note, and copies the TO lines directly into the FMBB transaction, providing a detailed audit trail in each budget address.

    Summary of Responsibilities for Realignments between Financial Plans
    Sending Financial Plan Manager Receiving Financial Plan Manager
    Ensures funds are available and coordinates with receiving FPM to ensure reprogramming limitations are not exceeded. Coordinates with the sending FPM to ensure that reprogramming limitations are not exceeded.
    Enters the FMBB (FROM and TO sides) using the receiver’s detailed TO lines. Provides accurate TO lines for FMBB.
    Enters FMBB transactions for FTEs (FROM and TO sides) into Budget Version 999. If salaries are transferred, ensures new FTE and labor levels in the sending plan are balanced. Provides accurate TO lines for receiving FTEs. If salaries are transferred, ensures remaining FTEs and labor levels in the receiving plan are balanced.  (08-28-2006)
Realignments Requiring Assistance from Corporate Budget

  1. Financial Plan Managers should first try to resolve funding issues by making realignments within their financial plan. Second, they should see if funds are available in other organizations that could be realigned without exceeding BAC limitations. Finally, if no resolution can be found, a FPM may submit a request to CB. The request should include a full justification and the Corporate Budget Funds Transfer template, which includes the accounting string necessary to process the reprogramming in IFS.

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