1. InterAgency Agreement (IAA)
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

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

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

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

6. Questions? KFarington@omb.eop.gov Contact: Kim Farington
(202)

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

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
Program
Finance
Budget
BUYER
Acquisition
IAA
Program
Finance
Budget
Acquisition
Seller IT IT
Key:
Initiates
Approves

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

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

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: Under Publications –
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)

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

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