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The Standard InterAgency Agreement (IAA) August/September 2010.

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Presentation on theme: "The Standard InterAgency Agreement (IAA) August/September 2010."— Presentation transcript:

1 The Standard InterAgency Agreement (IAA) August/September 2010

2 Background The inability to account for and reconcile intragovernmental transactions between departments has been a long-standing audit finding on the US Government’s financial report * Improving intragovernmental reporting is one of OMB’s Office of Federal Financial Management’s reform activities ** FY 2012 is the target to reduce the intragovernmental transactions material weakness to an immaterial level ** * 2009 Financial Report of the United States Government ** 2009 Federal Financial Management Report 2

3 Progress Improved Performance on Key Indicators October 2009: o Financial Management Line of Business (FMLoB) standard business processes, including Reimbursables published o Since March 2009: o OMB and FMS have been working over the last year and a half to develop a standard Inter-Agency Agreement (IAA) template o Incorporated IAA template into FMLoB Reimbursable Standard Business Processes, which was vetted by agencies o Developed a working group o Analyzed 9 different agency agreements, to include OFPP’s IAA for assisted acquisitions o Developed standard IAA form o Creating adobe acrobat template o Developed proposed implementation plan o Developing outreach plan/communication strategy 3

4 Proposed IAA Implementation Strategy Goal is to accommodate stakeholders Paper Community - agencies processing IAAs through paper forms Automated Community – agencies processing IAAs through automated systems 4

5 Next Steps OMB and Treasury to work with stakeholders Determine Intragov (IG) Transactions Types Determine Implementation Strategy OMB Implementation Memorandum Agency Outreach: –Communication –Training –Implementation NSF Pilot 5

6 Questions? Contact: Kim Farington (202)

7 IAA Update Agency Implementation Department of Treasury, Financial Management Services (FMS) 7

8 Governmentwide Goals Change how the Government does reimbursable business Stop elimination entry issues before they start Facilitate communication between trading partners Agree on the terms of the transaction before business begins Move money AFTER completed work has been invoiced

9 Communication is the Key the IAA is the Tool IAA Key: Initiates Approves 9 Program Finance Budget BUYER Acquisition Program Finance Budget Acquisition Seller IT

10 Managing Reimbursable (Buy/Sell) Agreements - Governmentwide Buyer Seller IAA Invoice Key: Initiates Approves 10

11 Reducing Elimination Entries Reconciliation Issues Daily Reimbursable [Buy/Sell] Agreements (IAA) Trading Partner – Quarterly Reporting and Reconciliation Annual Department Financial Report 11

12 Accomplishments Created a Standard IAA Form General Terms and Condition (GT&C) Section Order Requirements and Funding Information (Order) Section Instructions Developed the Fillable IAA Form See FMS Standardization Page

13 In Progress Treasury Financial Manual (TFM) – Intragovernmental Business Rules OMB IAA Implementation Memorandum In Clearance at OMB

14 – Agency Leadership – take this opportunity to lead this change Be Pro-active Develop an Implementation Plan Identify your “population/inventory” of reimbursable activity Identify how to move each activity to the IAA

15 Developing Your Agency Implementation Plan Ask: Where does your agency use a paper form now? Which activities can you move NOW to the fillable IAA Are you using an automated process? Work with OMB on when to update Create Agency Specific Standard Operating Procedures Instruction Word Document available on FMS Standardization page Work with your trading partners Contact FMS/OMB for working/training sessions

16 Agency Implementation Be pro-active Implement the IAA as soon as possible Review current business processes to determine best course of action to incorporate IAA

17 For Information: Agency Action Item: Subscribe to updates Under Publications – Financial Management and Budget Standardization

18 Contact & Information Robin Gilliam, CPA, PMP GWA Systems and Standards Integrator, Treasury, FMS (202) 18

19 NSF Pilot of the Standard Interagency Agreement (IAA) Form

20 20 NSF’s Interest in IAAs Participated in government-wide initiative with the FSIO Reimbursable Focus Group on IAAs Developed an internal cross-divisional workgroup on IAAs under NSF’s CFO office –To focus on compliance with FY07 business rules on intragovernmental transactions –To improve financial business processes within NSF Initial efforts addressed Seller agreements Current year activities concentrates on Buyer agreements

21 21 Piloting of New IAA Forms How did NSF become a pilot agency on the use of the new IAA forms? Lacked a well developed business process for our Buyer agreements –Needed an IAA form –Opted to leverage the newly created standard IAA forms rather than “reinventing the wheel” Invited by OMB & Treasury to pilot the forms

22 22 Initiating the Pilot Process Held Town Hall session for NSF program and administrative staff to introduce use of new standard IAA forms on Buyer agreements –OMB & Treasury participated in Town Hall session and emphasized the intragovernmental reconciliation issues –New forms highlighted need to change NSF’s business processes on IAAs Developed training materials and conducted training –Prepared pre-populated IAA form for NSF staff –Distilled detailed standard instructions for NSF-specific use –Made resources available on NSF’s internal website

23 23 NSF Challenges Seller program offices not knowing the financial contacts especially if the agency has decentralized financial operations Implemented use of standard forms on new agreements rather than existing agreements for smoother transition Discovered a wider range of agreements than originally anticipated that compelled us to figure out how to meet the broader needs Difficulty in introducing financial information and requirements to non-financial staff Highlighted importance of re-educating staff on Appropriation Law and statutory authorities governing IAAs

24 24 Changes in NSF’s Business Model Negotiating agreements with other agencies up front before any transactions occur Front ending all players of the process instead of stove- piping them by their functions Changing our view on future business practices and systems development

25 25 NSF Contact Information Karin Dasuki, Chief, Financial Systems Branch NSF Division of Financial Management / Lori Wiley, Staff Associate NSF Division of Grants and Agreements /


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