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Treasury Department Building

Financial Innovation & Transformation (FIT)


Improving Accountability for Intra-governmental Transactions (IGT)

Improving accountability for money that is transferred from one federal agency to another (intra-governmental transactions [IGT]), was one of FIT's earlier initiatives. FIT worked with agencies to develop solutions to improve accountability for funds transferred between federal agencies (i.e., intra-governmental transactions). These solutions included changes to people, processes, and technology.

FIT has since turned this project over to the Bureau's Government-wide Accounting (GWA) function within the Fiscal Accounting Office (FAO). GWA can now identify IGT differences early, and reconcile and resolve them quickly and efficiently.

GWA proactively monitors and measures IGT differences and meets with representatives of federal program agencies each quarter to discuss the status of resolving differences and progress on needed improvements for IGT.

What problem was FIT seeking to solve?

For many years, the federal government had a material weakness on the consolidated Federal Report because it was unable to adequately account for IGT transactions and balances between federal agencies. Several groups worked together to solve this problem. Representing the Department of the Treasury, FIT and GWA collaborated with:

  • the Government Accountability Office (GAO)
  • the Office of Management and Budget (OMB)
  • the Office of Personnel Management (OPM)

What solutions were developed and how do these solutions help?

The team addressed the problem in several ways:

  • organizing a new unit (people)
  • enhancing guidance, rules, and standards (processes)
  • providing an automated tool (technology)

People

The Fiscal Service’s IGT Organizational Unit leads the development of the new processes and technology. They also help resolve IGT issues, develop training, and collaborate with subject matter experts on fiduciary transactions.

Processes

The IGT Organizational Unit:
  • reviewed and enhanced the IGT Policy Guide (Treasury Financial Manual [TFM], Volume 1, Part 2, Chapter 4700) and continues to update the Guide as needed
  • specified (and continues to specify) General Fund (GF) business rules in the TFM for the appropriate use of the GF trading partner code
  • developed new audit standards to evaluate the accuracy, timeliness, and completeness for each department or agency for how they:
    • report and record IGT
    • reconcile IGT
    • communicate with trading partners about differences in reconciling IGT
  • issues quarterly scorecards that identify the most problematic IGT differences and errors
We share the scorecards with the federal program agencies, OMB, and the audit community. The scorecards help improve accountability for IGT.

Technology

The IGT Organizational Unit also provides an automated tool that helps agencies properly identify and account for intra-governmental transactions.

With this new suite of people, processes, and technology, the government:

  • saved money that agencies were spending in reconciling IGT
  • can more adequately account for and reconcile intra-governmental transactions and balances

How to learn more about IGT:

http://tfm.fiscal.treasury.gov/v1/p2/c470.html
https://www.fiscal.treasury.gov/fsservices/gov/acctg/ipac/ipac_home.htm
https://www.fiscal.treasury.gov/fsservices/gov/acctg/g_invoice/g_invoice_home.htm


Quick References

OMB 16-11, Improving Administrative Functions Through Shared Services

Circular No. A-123 Appendix D, Compliance with the Federal Financial Management Improvement Act of l996

OMB M 13-08, Improving Financial Systems Through Shared Services

OMB M 10-26, Immediate Review of Financial Systems IT Projects



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