1.35.9 Integrated Financial System Payroll

Manual Transmittal

September 27, 2019

Purpose

(1) This transmits revised IRM 1.35.9, Financial Accounting, Integrated Financial System Payroll

Material Changes

(1) Program Scope and Objectives, updated Audience, added to conform to the new internal control requirements described in IRM 1.11.2, IRM Process

(2) IRM 1.35.9.1, Program Scope and Objectives, Rearranged and updated existing IRM content to place information involving internal controls for the IRM under this subsection. All other subsequent subsections were renumbered, accordingly.

(3) IRM 1.35.9.1, Program Scope and Objectives, Changed Audience and Signature.

(4) IRM 1.35.9.1(5)(6), Program Scope and Objectives, replaced ‘Financial Management Systems (FMS)’ with ‘FMS’, replaced ‘National Finance Center (NFC)’ with ‘NFC’.

(5) IRM 1.35.9.1.1, Background, created bullet (2) from para from IRM 1.35.9.1.4 Program Management and Review.

(6) IRM 1.35.9.1.3, Responsibilities, updated.

(7) IRM 1.35.9.1.3(a), Responsibilities, DACFO for Financial Management, title renamed Deputy Associate CFO for Financial Management.

(8) IRM 1.35.9.1.3(b), Responsibilities, corrected acronym.

(9) IRM 1.35.9.1.3.1, DACFO for Financial Management, title renamed Deputy Associate CFO for Financial Management.

(10) IRM 1.35.9.1.3.1(1), DACFO for Financial Management, added ‘The’.

(11) IRM 1.35.9.1.3.2 (a), Director, Financial Management Systems, added ‘Prepared By Client’ and ‘Federal Information Security Management Act‘.

(12) IRM 1.35.9.1.3.3 (d) (e), Director, Financial Reporting, added ‘Accrued Funded Payroll’ and ‘Fund Balance with Treasury’.

(13) Previous IRM 1.35.9.7.1, Chief Financial Officer, deleted.

(14) Previous IRM 1.35.9.7.1, deputy Chief Financial Officer, deleted.

(15) Previous IRM 1.35.9.7.2, Associate Chief Financial Officer for Corporate Budget, deleted.

(16) IRM 1.35.9.1.3.4, Director, Financial Management Systems Office, updated.

(17) IRM 1.35.9.1.4.1, Program Reports, consolidated into IRM 1.35.9.1.4 Program Management and Review and deleted.

(18) IRM 1.35.9.1.6, Terms/Definitions, updated.

(19) IRM 1.35.9.1.6, Terms/Definitions, edited introductory sentence to read ‘The following terms and definitions apply to this program.’.

(20) IRM 1.35.9.1.6.1 (o), Terms/Definitions, deleted ‘Tivoli’.

(21) IRM 1.35.9.1.6.1 (a, c, e, h, m, q, r, s), Terms/Definitions, deleted ‘(ABCO)’, ‘(CAPS)’, ‘(IFS)’, ‘(PACS)’, ‘(PROJ)’, ‘PACS WEEK1’, ‘PACS WEEK2’ and ‘(VLDA)’.

(22) IRM 1.35.9.2, Automated Interface to the National Finance Center Payroll Accounting Interface Overview, updated.

(23) IRM 1.35.9.2.1, Payroll Accounting Transaction Files, updated.

(24) IRM 1.35.9.2.1(1), replaced ‘ECC’ with ‘Enterprise Computing Center’.

(25) IRM 1.35.9.2.2(7), Personnel Transaction File, replace ‘HR’ with ‘Human Resources’.

(26) IRM 1.35.9.3, Payroll Accounting File Handling Overview, updated.

(27) IRM 1.35.9.3(1)(a), Payroll Accounting File Handling Overview, delete ‘Validation’.

(28) IRM 1.35.9.3(3), Payroll Accounting File Handling Overview, replace ‘CB’ with ‘Corporate Budget’.

(29) IRM 1.35.9.3(4), Payroll Accounting File Handling Overview, added ‘PACS’ to ‘WEEK1 and ‘WEEK2’.

(30) IRM 1.35.9.3(6), Payroll Accounting File Handling Overview, changed ‘The’ to ‘A’.

(31) IRM 1.35.9.3, Payroll Accounting File Handling Overview, added bullet (9).

(32) Previous IRM 1.35.9.9.1, Personnel/Standard Form -50 Process, deleted..

(33) Previous IRM 1.35.9.9.2, Biweekly Examination and Analysis Record File Validation, deleted.

(34) IRM 1.35.9.3.1, Personnel Data Verification, updated.

(35) IRM 1.35.9.4, Accounting Distribution Overview, updated.

(36) IRM 1.35.9.5, Payroll Accounting File Processing Overview, updated.

(37) IRM 1.35.9.5(2)(a-d), Payroll Accounting File Processing Overview, capitalized first letter after hyphen.

(38) IRM 1.35.9.5(4), Payroll Accounting File Processing Overview, add hyphen to ‘email’.

(39) IRM 1.35.9.5.1, Reconciliation Overview, updated.

(40) IRM 1.35.9.5.1.1, Automated Internal Balancing, updated.

(41) IRM 1.35.9.5.1.3(2), edited Enterprise Resource Planning Central Component Payroll Reconciliation to Treasury.

(42) IRM 1.35.9.5.2(4), added Automated Interface to the National Finance Center Payroll System Accrual Process Overview.

(43) IRM 1.35.9.5.2.1(2), Payroll Processing Schedule, added ‘See’ and ‘for more details’

(44) IRM 1.35.9.5.2.2, Accrued Funded Payroll Reconciliation, updated.

(45) IRM 1.35.9.5.2.3.1, Projecting and Automated Posting of Accrual Dollars, updated.

(46) IRM 1.35.9.5.2.5, Fiscal Year-End Accrual Processing, updated.

(47) IRM 1.35.9.5.2.5(b) Note, Fiscal Year-End Accrual Processing, removed bold for ‘Projecting and Automated Posting of Accrual Dollars’.

(48) IRM 1.35.9.1.7, Acronyms, updated.

(49) IRM 1.35.9.1.7, Acronyms, edited introductory sentence to read ‘The following acronyms apply to this program.’.

(50) IRM 1.35.9.1.7, Acronyms, deleted ‘BU’, CB’, ’CARS’, ’COTS’, ‘DR’, ‘ECC-DCC’, ‘ECC-MTB’, ‘EFTU’, ‘EMFL’, ‘EOM’, ‘ESS’, ‘FBWT’, ‘FISMA’, ‘FTE’, ‘FTP’, ‘FY’, ‘FPAY’, ‘GAO’, ‘GL’, ‘HR’, ‘NDM’, ‘SGL’, ‘SOC’, ‘TAPS’, ‘TIMIS’, ‘USDA’, ‘WEEK1’, ‘WEEK2’ and ‘YTD’.

(51) IRM 1.35.9.1.7, Acronyms, added ‘PACS WEEK1’, ‘PACS WEEK2’, and ‘VLDA’.

(52) IRM 1.35.9.6, Reports Overview, updated.

(53) IRM 1.35.9.7(3), Error Correction Overview, add (3), add ‘See’ and ‘for more details’.

(54) IRM 1.35.9.7(4), Error Correction Overview, deleted ‘of current fiscal year error transactions’.

(55) IRM 1.35.9.7(5), Error Correction Overview, deleted the word ‘information’, added the word ‘details’.

(56) IRM 1.35.9.7.1(1,4) Error Correction Process, deleted ‘the mainframe housed repository (Control-D)’.

(57) IRM 1.35.9.7.1(5) Error Correction Process, added ‘for more details’.

(58) Previous IRM 1.35.9.7.3, Associate CFO for Financial Management, deleted.

(59) Previous IRM 1.35.9.7.4, Director, Beckley Finance Center (BFC), deleted.

(60) Previous IRM 1.35.9.7.5, Director, Office of Financial Management Policy (FMP,) deleted.

(61) IRM 1.35.9.1.3.3, Director, Financial Reporting, added tasks formerly under previous IRM 1.35.9.7.4, Director, Beckley Finance Center.

(62) This revision includes changes throughout the document for the following:

  1. Rearranged and updated existing IRM content to reflect proper placement. All subsequent subsections were renumbered accordingly.

  2. Updated CFO office names.

  3. Minor punctuation changes.

  4. Minor editorial changes.

Effect on Other Documents

IRM 1.35.9, dated March 31, 2016, is superseded.

Audience

Offices within CFO.

Effective Date

(09-27-2019)

Michael Gomes, Deputy Associate CFO (DACFO) for Financial Management.

Program Scope and Objectives

  1. Purpose: This IRM provides guidance and process flow for payroll expenses received from the National Finance Center (NFC) to the IRS’s Integrated Financial System (IFS).

  2. Audience: All offices of Financial Management Systems (FMS).

  3. Policy Owner: Deputy Associate CFO (DACFO) for Financial Management (FM).

  4. Program Owner: CFO Financial Management Systems Office (OFMS).

  5. Primary Stakeholders: All offices of FMS.

  6. Program Goals: To ensure that all payroll expenses received from the NFC are recorded correctly and timely to IFS.

Background

  1. The IFS is the financial accounting system of record for the IRS. The IRS’s Automated Interface to the National Finance Center (AINFC) is the interface between the NFC payroll system and IFS.

  2. The AINFC Interface consists of four major processes: Payroll Accounting Process, Personnel/SF-50 Process, Balancing and Reconciliation Process and Report Generation Process in BW. These processes produce a series of AINFC interface extract files for other systems including the IFS, Payroll Accounting Reporting, and Grade Structure/Staff Year Reporting and BW.

  3. The interface provides extracts that are used to measure the integrity and accuracy of financial reporting and payroll data. Reconciliations are performed to ensure that all labor expenses have been recorded correctly and timely to prepare financial statements.

Responsibilities

  1. This section provides responsibilities for:

    1. Deputy Associate CFO for Financial Management (FM).

    2. director, Financial Management Systems Office (OFMS).

    3. director, Financial Reporting (FR) Office.

Deputy Associate CFO for Financial Management
  1. The DACFO for FM is responsible for overseeing compliance with accounting policy and procedures for the processing of payroll expenses, payroll-related financial reporting procedures and data integrity standards and controls.

Director, Financial Management Systems
  1. The director, OFMS Office, is responsible for:

    1. Supporting IFS operations and maintenance activities, including the recording of payroll expenses, providing audit Prepared By Client (PBC) support and Disaster Recovery (DR) support for Federal Information Security Management Act (FISMA) required functional testing.

    2. Processing and monitoring bi-weekly AINFC payroll transactions and providing payroll extract files for entry to IFS subsystems ERP (Enterprise Resource Planning), ERP Central Component (ECC) and Business Warehouse (BW).

    3. Systematic administration for payroll accruals, corrections and adjusting entries.

    4. Providing payroll-related functional user support to business units and other CFO organizations.

Director, Financial Reporting
  1. The director, FR, is responsible for:

    1. Providing financial information and accounting policy support to other organizations and offices.

    2. Administering and advising on payroll accruals and adjusting entries.

    3. Preparing, reviewing and approving payroll-related work papers in support of the financial statements and PBC deliverables for audits.

    4. Providing review and sign off on the Accrued Funded Payroll (FPAY) Reconciliation.

    5. Reconciling to the Fund Balance with Treasury (FBWT) Management Summary report.

Program Management and Review

  1. Program reports:

    1. The AINFC process includes creation of various reports, logs and statistics produced each pay period for use in internal reconciliation and error resolution.

    2. The Control-D repository stores reports, logs and statistics in text format, which can be printed and/or saved electronically to a restricted access folder.

  2. The payroll process is monitored and reviewed throughout by management and Ancillary Systems staff.

  3. Program effectiveness is measured by timely and accurate recording into IFS of all payroll transactions from NFC, per pay period, every two weeks.

Program Controls

  1. Validate that the payroll transaction counts match the NFC Trailer record counts in the payroll transaction files.

  2. Validate the IFS postings to the detail AINFC files; when totaled, match the original trailer records sent from NFC.

  3. During AINFC execution, an automated job creates the Automated Internal Balancing sheet, which is annotated, as needed, to reflect error corrections made between pay periods.

  4. A Reconciliation step (NFC to AINFC) is performed to ensure that all data received from NFC is accounted for in processing.

Terms/Definitions

  1. The following terms/definitions apply to this program:

    1. Administrative Billings and Collections - The accounting transaction type for administrative billings and collections accounting transaction type, representing receivables and collections owed to the IRS from its employees.

    2. Accounting period - A length of time, usually a month, in which transactions are recorded in IFS.

    3. Consolidated Adjustment to the Payroll System - Adjustment transactions other than ABCO or Miscellaneous Transactions (MISC); for example, corrections to Thrift Savings Plan contributions.

    4. Fiscal year - The federal government's accounting periods, from October 1 to September 30.

    5. Integrated Financial System - The IRS’s official administrative financial management system.

    6. Interface - A one way or two way automated process run on a pre-determined schedule. Data is received from a host source and reformatted for use by a host recipient.

    7. MISC - Miscellaneous accounting transaction type, representing recertified payments to IRS’s employees.

    8. Payroll accounting transactions - Payroll accounting expense transactions.

    9. Pay period - The two-week period from Sunday through Saturday, an 80-hour work week.

    10. Payroll accrual - An expense incurred for work performed, but not yet paid.

    11. Payroll component - The payroll information from the NFC converted to IFS-readable format.

    12. Personnel component - The personnel information for employment details, compensation and benefits.

    13. Project - Project or Internal Order Code.

    14. SF-50 - Reference for standard form initiated for a personnel action.

    15. UNIX - Type of computer operating system.

    16. Validation Data - Valid accounting string made up of cost center, functional area and appropriation by fiscal year.

    17. NFC Time and Attendance File - This file contains 99% of the payroll accounting transactions for a pay period.

    18. NFC Time and Attendance Previous Pay Period File - This file contains late payroll accounting transactions and most of the administrative billing and collection accounting transactions for a pay period.

Acronyms

  1. The following acronyms apply to this program.

    ACRONYM DESCRIPTION
    ABCO Administrative Billings and Collections
    AINFC Automated Interface to the National Finance Center
    BEAR Biweekly Examination and Analysis Record
    BFC Beckley Finance Center
    BW Business Warehouse
    CAPS Consolidated Adjustment to the Payroll System
    ECC ERP (Enterprise Resource Planning) Central Component
    EMDB Employee Database
    IFS Integrated Financial System
    MISC Miscellaneous Transactions
    NFC National Finance Center
    ORGA Organizational Segment to Accounting Distribution Table
    PACS Automated Payroll Accounting Transactions
    PACS WEEK1 NFC Time and Attendance File
    PACS WEEK2 NFC Time and Attendance Previous Pay Period File
    PPDF Pay Period Detail File
    PROJ Project
    VLDA Validation Data

Related Resources

  1. Related resources for this IRM include:

    1. IRM 10.8.60, IT Service Continuity Management (ITSCM) Policy and Guidance.

    2. IRS’s Financial Management Codes Handbook.

    3. Treasury Financial Manual, Part 2, Chapter 5100, Reconciling Fund Balance with Treasury Accounts.

    4. Beckley Finance Center Desk Procedure, Chapter 60, Payroll Reconciliation Procedures.

    5. Financial Reports Desk Procedure, Chapter 111, Accrued Funded Payroll (FPAY) Reconciliation.

Automated Interface to the National Finance Center Payroll Accounting Interface Overview

  1. The automated interface between NFC and IRS provides personnel/payroll data IRS uses received from NFC to account for payroll obligations and monitor the movement and cost of personnel.

  2. Payroll information is validated and formatted by the automated interface process for use in IFS.

  3. The NFC calculates IRS's timekeeping and benefit payroll data to record payroll expense.

  4. Payroll interface processing includes two components:

    1. Personnel information includes employment, compensation and benefits data.

    2. Payroll processing uses the NFC payroll data and converts it to an IFS-readable format.

  5. Extract files are generated, which represent subsets of personnel/payroll data by type of transaction for processing in the ECC and BW subsystems.

Payroll Accounting Transaction Files

  1. The Enterprise Computing Center - Martinsburg retrieves two automated PACS files each pay period.

  2. The NFC generates the first PACS WEEK1 file on the second Sunday following the end of a pay period, eight days after the end of the pay period. This file contains about 99% of the transactions for the pay period.

  3. The NFC generates the PACS WEEK2 file the following week. This file contains any late PACS transactions and most of the ABCO transactions.

  4. PACS transaction records consist of only the expenses incurred by the IRS. The IFS receives transactions from the NFC that affect the IFS.

    Note:

    This is an important distinction that defines the interface. IFS only receives IRS-paid expenses from NFC. Not included are Employee-paid expenses, such as insurance, savings plans, garnishments, taxes and liens.

Personnel Transaction File

  1. The file of IRS’s employee personnel transactions (SF-50s) is the BEAR file and consists of SF-50 transactions for each IRS’s employee for the pay period.

  2. The NFC generates this file at the same time as the PACS WEEK1 file.

  3. The BEAR file is automatically processed through the interface to provide the data used for personnel reports and queries in IFS.

  4. The BEAR file consists of personnel transactions and “snapshot” records.

  5. A BEAR personnel transaction record indicates that a valid personnel transaction (action) has been initiated for an employee. This action may be for the current pay period or an adjustment to a prior pay period.

  6. A BEAR “snapshot” record contains the most recent status of each IRS’s employee in the NFC system.

    Note:

    Only active IRS’s employees have a BEAR snapshot record. The BEAR file is not an employee database.

  7. The BEAR file is used to create the Human Resources (HR) extract files for employee payments in IFS, other than payroll.

Payroll Accounting File Handling Overview

  1. Before the start of the automated interface processing, valid accounting data elements are automatically interfaced from IFS and loaded into AINFC, in two primary tables:

    1. VLDA

    2. PROJ

  2. A similar interface process is used to automatically load into AINFC the Organizational Segment (ORGSEG) to the ORGA bi-weekly data. This table is maintained by Corporate Budget and provided to Ancillary Systems bi-weekly.

  3. The ORGA and the reference tables are used for validation in accordance with the data contained in the IRS’s Financial Management Codes Handbook. The data is reviewed and approved by business unit representatives, Corporate Budget staff and Ancillary Systems personnel prior to the start of the new fiscal year.

  4. The automated interface processes the PACS files retrieved from NFC, the previous pay period PACS WEEK2 file and the current pay period PACS WEEK1 file.

  5. The automated interface process next validates the values of the data within the accounting transactions. The automated interface process replaces invalid data with derived values from the validation and reference tables. It places any unresolved transactions in a suspense file for review by an analyst in Ancillary Systems.

  6. A Personnel/SF-50 process uses accounting data to update the personnel data.

  7. The PPDF file is created that contains validated payroll accounting transactions. This file provides the data for all extract files created and reports used in IFS.

  8. Transactions that do not pass validation are written to the recycled error file for further review and correction by an analyst in Ancillary Systems.

  9. See IRM 1.35.9.13, Error Correction Overview for more details.

Personnel Data Verification

  1. Once the payroll process updates the personnel data with the proper accounting distribution, an automated internal consistency check is done for each personnel record.

Employee Database (EMDB) and Standard Form 50 File

  1. The EMDB file contains the most current employee status as reflected in the BEAR file. As such, that same consistent database is used by the automated interface process to generate the accounting transactions, ending status of the employee's SF-50, attrition reports, input for employee listings and employee locator reports.

  2. The SF-50 file contains each personnel transaction in an interface-ready format. For the fiscal year-to-date SF-50 and attrition reports, the SF-50 file contains each active IRS employee's status at the beginning of the fiscal year. Many of the SF-50 and all of the attrition reports show the movement of IRS’s employees throughout the fiscal year. The reports include all relevant personnel actions such as hiring, termination, promotion, salary change and demotion.

  3. The NFC personnel system maintains the organizational segment and the organizational segment is the basis of the accounting distribution.

  4. For detailed and user-funded payroll accounting transactions, where the Personnel/SF-50 automated interface process does not determine the accounting distribution, the AINFC interface validates and derives the other significant fields (Fund Code and EC Code) to be consistent with the accounting distribution.

Accounting Distribution Overview

  1. The accounting distribution is used to post employee labor data (dollars and hours) for the accounting transaction. It is also used to determine the organization to which an employee is assigned. The accounting for an employee may be derived by either directly entering the information by the employee (or designee) or systemically generating the accounting codes from the employees' personnel code (ORGA Table) in the automated interface process.

  2. The automated interface process uses the automated ORGA Table process to lookup valid accounting codes or Organizational Segment Code (ORGSEG), which consists of Appropriation Code, Cost Center, Functional Area, Valid From and To Date.

  3. If the payroll transaction has invalid or missing accounting codes when received from NFC, the automated interface process uses the automated ORGA Table process to determine and assign a valid ORGSEG.

  4. Only the PACS transactions have an ORGSEG when received from NFC.

Accounting Distribution

  1. The payroll process derives normal accounting distributions from an employee's location and detailed distributions for an accounting transaction from timekeeper-entered information.

  2. The automated interface process validates user-funded distributions, which occur when a timekeeper enters a change to the permanent accounting distribution of an IRS’s employee without a personnel transaction. The business units process user-funded distributions for certain types of temporary assignments filled with a permanent employee.

Payroll Accounting File Processing Overview

  1. The automated payroll process creates payroll accounting extract files to record payroll expenses accurately and to ensure the data is reconciled with the U.S. Department of the Treasury (Treasury) and NFC.

  2. The automated payroll process generates the following files from the PACS (WEEK1/WEEK2) NFC transactions and the EMDB table for posting in the ECC subsystem:

    1. PPDF - Contains the complete set of payroll accounting transactions processed by the automated payroll process in a given pay period.

    2. ABCO - Contains the payroll-related receivables and collections in a given pay period.

    3. MISC - Contains recertified payments.

    4. CAPS - Contains Consolidated Adjustment to the Payroll System transactions.

  3. The extract files are recorded in the ECC and BW subsystems for use in reporting and related queries.

  4. The extract files and trigger files are stored on the mainframe UNIX partition. Ancillary Systems forwards an e-mail notification that the files are available for retrieval and requests that the IFS automated processing jobs be initiated.

  5. Prior to creation of the extract files, the automated interface process ensures all transactions received from NFC are processed successfully and accounted for through an automated internal balancing process. In the event of an error, or receipt of incomplete or mis-identified transactions, NFC is contacted to conduct research and provide a new file.

Reconciliation Overview

  1. A monthly reconciliation of payroll transactions provides the basis for verifying that cash disbursed by Treasury matches cash disbursements posted in IFS. Additional reconciliations are done at the general ledger account level and Treasury account level.

  2. The components of the reconciliation process include:

    1. Automated internal balancing

    2. IFS General Ledger reconciliation

    3. Treasury account reconciliation

  3. The reconciliation process provides a foundation for ensuring both system integrity and proper accounting of payroll-related cash disbursements, at the Agency and Treasury account level.

    Note:

    The reconciliation process does not address personnel issues, placement of employees or cost distribution.

Automated Internal Balancing
  1. During the AINFC automated interface process, automated internal balancing occurs using biweekly payroll dollars, record counts and control hash totals. This automated process ensures all incoming NFC transactions are accounted for and all transactions submitted by NFC have been processed.

  2. The automated interface process produces an internal balancing sheet provided to Ancillary Systems.

Enterprise Resource Planning Central Component Reconciliation of Integrated Financial System General Ledger
  1. The automated reconciliation consists of comparisons of the detailed employee level data received from NFC to the posting in IFS and the corresponding general ledger cash postings. The detail information includes PPDF, ABCO, CAPS and MISC postings, as well as any manual payroll corrections.

  2. The reconciliation ensures the data received from NFC has been fully accounted for in IFS after the posting jobs for ECC have completed.

Enterprise Resource Planning Central Component Payroll Reconciliation to Treasury
  1. An FMS-224, Statement of Transactions is prepared biweekly for payroll disbursements. The payroll reconciliation accountant in the FR Reports and Reconciliation Section uses Treasury’s Central Accounting Reporting System Account Statement to identify the payroll disbursements reported by NFC. The FR analyst performs an external reconciliation of payroll transactions processed by AINFC to ensure cash (payroll) disbursed by NFC and reported to Treasury via the FMS-224, Statement of Transactions, agrees with cash (payroll) posted to the General Ledger.

  2. See Desk Procedure, Chapter 60, Payroll Reconciliation Procedures for more details.

Automated Interface to the National Finance Center Payroll System Accrual Process Overview

  1. The AINFC automated interface process utilizes a reference table, referred to as the Payroll Processing Schedule, to automatically record a payroll accrual in IFS to account for unpaid days in a given month/year. The monthly payroll accrual in IFS is based on prorating/projecting the last paid payroll for the month, over the remaining unpaid workdays through the end of the accounting period/month.

  2. The table is maintained by Ancillary Systems on a fiscal year basis.

  3. Additionally, FR personnel further validate the system accrual by recalculating the unpaid IRS obligation owed to its employees.

  4. See IRM 1.35.9.11.2.2, Accrued Funded Payroll Reconciliation (FPAY) for more details.. See also, Financial Reports Desk Procedure, Chapter 111, Accrued Funded Payroll (FPAY) Reconciliation.

Payroll Processing Schedule
  1. The processing of payroll data files from NFC is performed in a bi-weekly automated interface and uses the Payroll Processing Schedule (by Fiscal Year) as a guide for timing and accrual posting. The Payroll Processing Schedule is maintained by the Ancillary Systems.

  2. See Payroll_Processing_Schedule_Explained(Ver3-0502) for more details.

Accrued Funded Payroll Reconciliation
  1. The purpose is to validate the system generated payroll accrual, ensure the accrual affects the appropriate liability accounts and confirm the system accrual for the prior period was properly reversed in the current period.

Actual Paid Payroll Charges
  1. Actual paid payroll charges posted in IFS include an employee's basic salary for time worked (or leave taken), supplemental pay for overtime, Sunday overtime, night rate differential and other incentive payments, such as retention and recruiting bonuses and gainsharing employer contributions to employee retirement, Social Security, Medicare, life insurance, health insurance and the Thrift Savings Plan are also included among the payroll charges.

Projecting and Automated Posting of Accrual Dollars
  1. The actual charges for a given pay period are used as the basis for projecting accrual dollars - days worked but not yet paid until the last workday of the month.

  2. The system accrual process factors include:

    1. The period of time begins with the Sunday following the last paid payroll end date within the accounting period.

    2. The automated payroll process extends the current hourly rate of pay, including benefit factors, times the number of work/holiday hours remaining through the last day of the month.

Enterprise Resource Planning Central Component Reversal of the Automated Accrual
  1. After the completion of the month-end closing automated process in IFS, an analyst in Ancillary Systems manually initiates the reversal process in IFS for the previously posted payroll accrual, using Transaction Code F.80 (accrual reversal).

Fiscal Year-End Accrual Processing
  1. An automated accrual process accounts for all remaining days between the time of automated payroll (pay period) processing and the last work day of September.

    1. A normal payroll accrual is automatically posted with the last pay period processed in August, using the criteria in IRM 1.35.9, Section 5.2.3.1, Projecting and Automated Posting of Accrual Dollars.

    2. Accruals are reversed on the first day of September. Immediately following this activity, a new accrual is automatically posted to reflect the work days remaining until the end of the month and including the work days remaining after the last August pay period end date.

      Note:

      The automated accrual process is different at year-end because it records an accrual for all work days remaining in the fiscal year from the time of each automated payroll posting until the last work day of September. The automated accrual method used during the other months uses the ending date of the last full pay period to post that month, counting the work days from the pay period end date to the last work day of the month. See IRM 1.35.9, Section 5.2.3.1, Projecting and Automated Posting of Accrual Dollars for more details.

Reports Overview

  1. The AINFC interface process includes reports, logs and statistics produced each pay period for use in internal reconciliations.

  2. The Personnel/SF-50 file, created by the automated interface, provides the basis for the SF-50 and attrition reports, which show movement of IRS’s employees and the cost of those employees.

  3. Verification and other reports are available through the mainframe-housed reports repository (Control-D), which stores reports, logs and statistics in text format, which can be printed and/or saved electronically to a restricted access folder.

  4. Work instructions and job aids for SF-50 and related personnel reports are available through the IFS BW system. Additional information on IFS reports and queries can be found on the IFS web page.

Error Correction Overview

  1. The accumulated AINFC error file contains pay period transactions that failed the AINFC validation process and therefore could not be posted in IFS.

  2. Each pay period, the accumulated AINFC error file is processed through the payroll process which attempts to match all records containing an invalid Treasury Integrated Management Information System (TIMIS) Code to the AINFC LEDGERS files and acquire a valid TIMIS Code. Matched records are processed through the ORGA process to obtain a valid accounting string. Any records where valid accounting string data cannot be determined, the characters "ZZ" are placed in the REGION field.

  3. See IRM 1.35.9.9, Payroll Accounting File Handling Overview for more details.

  4. Ancillary Systems reviews the mainframe- housed repository (Control-D) listings.

  5. See 0454_DO1_Manual_Corrections_User_Manual_v01 for more details.

Error Correction Process

  1. A payroll analyst in Ancillary Systems reviews, each pay period, the Control-D listing of current fiscal year error transactions.

  2. Research includes accounting string information necessary for processing corrections in a subsequent pay period.

  3. An automated error correction process is used to correct errors. A spreadsheet is used, containing key data fields, which determine a match to the transaction being corrected.

  4. Verification reports are available through Control-D.

  5. See 0454_DO1_Manual_Corrections_User_Manual_v01 for more details.