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Internal Revenue Manual - 1.33
Internal Revenue Manual - 1.33
Part 1. Organi ation, Finance and Management Chapter 33. Strategic Planning, Budgeting and Performance Management Process Section 3. Reimbursable Operating Guidelines
1.33.3 Reimbursable Operating Guidelines
1.33.3.1 1.33.3.2 1.33.3.3 1.33.3.4 1.33.3.5 1.33.3.6 1.33.3.7 1.33.3.8 1.33.3.9 O A R D A R A C R
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Documentation on statutory authorities, apportionments, contracts, legal opinions, and other substantiating materials should be maintained by the agency/party in addition to reimbursable agreements.
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A. OMB Circular A-11, Preparation, Submission, and Execution of the Budget, found on http://www.whitehouse.gov/omb/circulars_index-budget/, Part 4, Section 150, Administrative Control of Funds. B. GAO's Principles of Federal Appropriations Laws (otherwise known as the Red Book) found on http://www.gao.gov/legal.htm. C. The Treasury Department Reimbursables Handbook, found on http://intranet.treas.gov/mgt-budget/smm/ch56/6_27.pdf. D. Treasury Financial Manual, Volume 1, Bulletin No. 2011-04, Intragovernmental Business Rules, dated November 8, 2010, can be found on http://fms.treas.gov/tfm/vol1/11-04.pdf . E. Treasury Financial Manual, Volume 1, Bulletin No. 2007-06 Intragovernmental Payment and Collection (IPAC) System - TAS/BETC Reporting found on http://fms.treas.gov/tfm/vol1/07-06.pdf. F. IRM 1.33.4, Financial Operating Guidelines provides comprehensive internal budget execution guidance. G. IRM 1.35.15, Administrative Accounting, Annual Close Guidelines provides annual fiscal year-end close guidelines for reimbursable accounting and collections. H. IRS Financial Management Codes Handbook http://cfo.fin.irs.gov/CPPD/HTML/BudgetPolicy.htm. This handbook provides a comprehensive listing of financial codes, coding schemes, and code combinations valid for use by the IRS. I. Federal Account S stem and Titles (FAST) Book I and FAST Book II. This is a Department of the Treasury, Financial Management Service publication of the official Treasury Account Symbols for the U.S. Government. See 2-digit Department Regular Codes for the IRS starting on p. A-78 at the following website:http://www.fms.treas.gov/fastbook/fastbook_sept2010.pdf J. IPAC TAS, BETC, and TAS Component. This is the Department of the Treasury, Financial Management Service reference tool for locating IRS's current codes, including a crosswalk to the new TAS Component codes. See https://www.fms.treas.gov/gwa/IPAC_TAS_BETC_20100831.xls, rows 24991, 24994, 24996 for the IRS codes. K. Federal Accounting Standards Advisory Board (FASAB), Statement of Federal Financial Accounting Standards (SFFAS) No. 4, Managerial Cost Accounting Concepts and Standards for the Federal Government, issued July 1995. L. IRM 1.32.3, Servicewide Financial Policies and Procedures, Managerial Cost Accounting (MCA). This IRM provides guidance on federal MCA concepts and requirements for MCA within IRS.
most cases, the IRS BPN number requested under the Agreement Covering Reimbursable Services (Form 5181)
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most cases, the IRS BPN number requested under the Agreement Covering Reimbursable Services (Form 5181) is 040539587 but there may be exceptions. To access the Business Partner Network, see http://www.bpn.gov. E. Bu er a trading partner that is purchasing goods and/or services for all types of intragovernmental activity. The Buyer is the requesting agency (also known as the customer). F. Collection the money collected by the Federal Government and recorded as a receipt, an offsetting collection, or an offsetting receipt. G. Federal Program Agenc (FPA) a permanent or semi-permanent organization of government that is responsible for the oversight and administration of specific functions. http://www.fms.treas.gov/asap/fpa_handbooks.html. H. Funds Reservation a reservation or commitment of budgetary resources for anticipated but undefined expenses for an internal order, used to enter future costs that are expected to occur at an unknown time. IFS Funds Reservation (FMX1) transaction codes are sequentially numbered 10-digit codes beginning with "92" . I. Governmentwide Accounting provides the central/financial accounting and reporting infrastructure for federal payments, claims, collections, central accounts and other financial transactions. J. Government On-line Accounting Link Information Access S stem (GOALS) II the system that allows the Financial Management Service (FMS) to receive agency accounting data and forward the data to various systems within FMS for final processing and distribution to be used under agency accounting reports. http://www.fms.treas.gov/goals/index.html K. Interagenc Agreement (Recommended Standard IAA) the recommended trading partner agreement for reimbursable agreements. It is the standard template and communication tool between the Buyer and Seller enabling the two to agree on data elements and terms of the reimbursable transaction before business begins. The recommended standard IAA has two sections, the General Terms and Conditions (GT&C) Section and the Order Requirements and Funding Information (Order) Section. Each recommended standard IAA must always have one GT&C and at least one Order. An IPAC is required for agreements between federal agencies. L. Internal Order Code the specialized accounting code assigned to each reimbursable project (e.g., RA2010B399). This is a required field when entering data in IFS. M. Intragovernmental Transaction the transaction created when a federal agency provides/receives goods and/or services to/from another federal agency. Intragovernmental transactions include interagency agreements, reimbursable agreements, and non-procurement actions between agencies. N. Intragovernmental Pa ment and Collection S stem (IPAC) an internet-based GOALS II application that allows for the intragovernmental transfer of funds, with descriptive data, from one FPA to another. The Beckley Finance Center records the IPAC disbursements and collections into GOALS II, where funds are automatically transferred from one agency's disbursement account to another agency's collection account. To view the FMS IPAC website, visit http://www.fms.treas.gov/ipac/index.html. O. Miscellaneous Receipts any excess income or reimbursements related to reimbursable activities that must be returned to the Buyer or deposited in the General Fund as miscellaneous receipts (unless there is legislation to the contrary). P. Parked Document the transaction used by the Budget Office Reimbursables Coordinator to "park" an initial Direct Fund cost transfer to the Reimbursable Fund (FV50-BZ) for later posting by the Beckley Finance Center. This type of "tandem" transaction requires each of two separate offices to complete its respective side of the transaction. The Budget Office Reimbursables Coordinator "parks" or saves the transaction making it available for the second office to act on. The second office, the Beckley Finance Center, accesses the transaction, reviews for accuracy, and approves the transaction by "posting" or saving the document. This two-step process ensures appropriate financial controls are in place during earnings reconciliation. Q. Posting Parked Documents the transaction used by the Beckley Finance Center to "post" or approving expenditure transfers from the Direct Fund to the Reimbursable Fund. R. Reimbursable Agreement the signed agreement between the IRS and an outside Buyer that sets out the terms and conditions under which reimbursable work will be performed. Reimbursable agreements are typically expenditure transfer payments. The paying account reports the obligations and outlays. The receiving account reports the offsetting collections. For purposes of this IRM, the term reimb rsable means that the IRS is the Seller or performing agency (not the Buyer of services or the requesting agency). In most cases, the Agreement Covering Reimbursable Services (Form 5181) is used to execute an agreement. For a pdf version of Form 5181, see: http://core.publish.no.irs.gov/forms/public/pdf/42330e09.pdf. S. Reimbursable Budget Authorit the budgetary resource category on an apportionment submitted to OMB for approval. Standard Form (SF)-132, Apportionment and Reapportionment Schedule is used to set and or adjust reimbursable budget authority. T. Reimbursable Forecast of Revenue and Budget Allocation the accounting transaction process under which Corporate Budget establishes a Forecast of Revenue (FMV1) to be earned and then sub-allocates budget authority to a business unit under a Transfer Budget (FR58) transaction to allow reimbursable costs to be incurred for work performed under the terms of the reimbursable agreement.
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U. Reimbursables Earned
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U. Reimbursables Earned a category that appears on the SF-132, Apportionment and Reapportionment Schedule and the SF-133, Report on Budget Execution and Budgetary Resources. V. Seller the general term used for a trading partner that is providing goods and/or services for all types of intragovernmental activity. The Seller is also the servicing agency. W. Ta pa er Identification Number (TIN) an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS. A Social Security number (SSN) is issued by the SSA whereas all other TINs are issued by the IRS. The IRS TIN number requested under the Agreement Covering Reimbursable Services (Form 5181) is 52-1782822. X. Trading Partners the Buyer and Seller are collectively known as the "trading partners." For a current listing of vendors and trading partners, see: http://cfo.fin.irs.gov/IntFinMgmt/BFC/Forms/IPAC-Trading-Partners.xls Y. Trading Partner Agreement (TPA) a requirement for all intragovernmental transactions that includes both trading partner's accounting information, including but not limited to the Agency Location Code (ALC), BPN, TAS/BETC, U.S. Government Standard General Ledger (USSGL), and terms and conditions of the agreement. There are many types of intragovernmental transactions, including, but not limited to reimbursable agreements. Trading partners must mutually agree on what TPA format to use for their intragovernmental transactions. For example, the recommended standard IAA is the TPA format for FPAs engaged in intragovernmental reimbursable agreements. Z. Treasur Account S mbol (TAS) a two-character agency code denoting Treasury, and a four-character account code denoting the appropriation. An additional three-character sub-account code can be added. The Department of the Treasury's Financial Management Service assigns TAS numbers, which are a requirement of the IPAC System. See IRM 1.33.3.3 , Rela ed G ideline and Re o ce . For purposes of Form 5181, the IRS TAS number begins with 20 for Treasury, and a space, followed by the four-digit appropriation funding the reimbursable. For example, 20 0912, 20 0913, 20 0919. For a complete listing of the IRS TAS codes and updates to the TAS numbering system, refer to the following website, http://www.fms.treas.gov/fastbook/fastbook_sept2010.pdf.
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2. Advance payments are required for agreements with state, local, and foreign governments, commercial organizations, and private businesses because their accounting systems are not interfaced with the Federal Government s accounting systems.
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It is especially important that all non-federal buyers provide the Taxpayer Identification Number (TIN). This code is required before the Buyer's master data record can be established in IFS for account billing purposes. The TIN is also used to track and verify other related accounting data for non-federal buyers. Foreign buyers are excluded from providing TIN numbers. G. Federal buyers must include four additional accounting data elements: Federal Bu er Accounting Data for Form 5181 Agency Location Code (ALC) Business Partner Network (BPN) number or Dun and Bradstreet's Data Universal Numbering System (DUNS) number Treasury Account Symbol (TAS) Business Event Type Code (BETC) H. Agency Seller, Buyer, and respective finance contacts, including phone numbers and e-mail addresses to resolve accounting questions and requests for additional information. I. Directions on special requirements such as delivery requirements and compliance procedures. J. Approval (signature and date) of the Buyer's financial management/budget office that funds are available. K. Statement that the IRS and its respective business units shall resolve intragovernmental disputes and major agreement differences through the process delineated in Treasury Financial Manual, Volume 1, Bulletin No. 201104, In ago e nmen al B ine R le found on http://fms.treas.gov/tfm/vol1/11-04.pdf. L. Approval (signature and date) of the agreement by authorized IRS officials of the participating program organizational units. 2. Form 5181 (Agreement Covering Reimbursable Services) includes detailed instructions on completing the form.
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1.33.3.7.4 (10-09-2009)
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1. All business units executing reimbursable agreements or MOUs with federal agencies, states, and other external stakeholders must comply with the delegation and re-delegation authorities contained in IRS Delegation Order 1-47. IRS Delega ion A ho i ie Fo Ag eemen Signa e Agreement Scope Authori ing Official 1. MOUs, implementing agreements, and other agreements with federal Deputy Commissioners agencies, states, and other external stakeholders. 2. MOUs, implementing agreements, and other agreements that do not require Deputy Division Commissioners and the obligation or use of Modernization and Information Technology Service s Deputy Chiefs for MOUs and (MITS) resources, and require the obligation or use of resources of fewer than agreements requiring the obligation or three IRS Operating or Functional Divisions. use of their Division s resources. *** 3. MOUs, implementing agreements, and other agreements that do not require or Directors for MOUs and agreements allow for 1) the exchange of return or return information, 2) the obligation or use requiring the obligation or use of of MITS resources, and 3) the obligation or use of more than one IRS Operating resources within their jurisdiction. or Functional Division.
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***If the MOU, implementing agreement, or other agreement allows for the exchange of return or return information, the document must be coordinated with the Director, Government Liaison and Disclosure before the delegated authority may execute the agreement.
SFFAS No. 4 provides an order of preference framework for cost assignment. The cost assignment process links
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SFFAS No. 4 provides an order of preference framework for cost assignment. The cost assignment process links accumulated costs with cost objects in specific reporting periods. There are three methods of cost assignment as follows: A. Directly trace costs wherever feasible and economically practicable. B. Assign costs on a cause-and-effect basis. C. Allocate costs on a reasonable and consistent basis. These methods should be used by all Reimbursable Project Coordinators to develop full cost projections for the cost of the products and/or services provided during the course of the reimbursable project(s). This includes labor, services, and overhead or facility usage costs, among other costs, required to produce the Buyer's product. 2. The cost assignment methods are consistent with the Generall Accepted Accounting Principles (GAAP). 3. One of the five standards for federal managerial cost accounting, as stated in SFFAS No. 4, is "determining the full costs of government goods and/or services." The full cost of an output is the total amount of resources used to produce the output. This includes direct and indirect costs that contribute to the output, regardless of funding sources. The full cost of an output produced by a business unit is the sum of: A. The cost of resources consumed by the business unit that directly or indirectly contribute to the output. B. The cost of identifiable support services provided by support business units and sustaining business units within the IRS. 4. When reimbursable projects use the same types of goods and/or services as direct-funded projects, the reimbursable project costs will use the same rates and basis of consumption as the direct-funded projects. 5. Recognition of Earned Reimbursements: In accordance with the SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetar and Financial Accounting, "earned" or "exchanged" revenues are earned once the Seller provides goods and/or services to the Buyer for the amount negotiated in the agreement. In short, the payment or revenue should not be recognized until costs are incurred from providing goods and services. 6. Agreement cost estimates will contain direct and indirect or overhead costs.
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F. Services to acquire and operate property, plant and equipment. G. Publication, reproduction, graphics and video services. H. Research, analytical, and statistical services. I. Human resources/personnel services. J. Library and legal services. 4. Indirect costs can be incurred within a business unit as a result of its own activities, or when the business unit receives products or services generated by other business units. The business unit s indirect costs are assigned internally in accordance with cost allocation methodologies outlined in IRM 1.32.3.2.5, Co Alloca ion Me hodologie . 5. The majority of indirect costs accumulate within identifiable business units. However, some costs such as depreciation and facilities costs cannot be linked to an identifiable business unit. In those instances, such costs are allocated based on cost allocation methodologies.
1. When an employee is detailed to another government agency, the responsibility for recommending, approving, and
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