CFO Council Financial Acceleration Committee FY 2004 TreasuryOMB

							           CFO Council
Financial Acceleration Committee
 FY 2004 Treasury/OMB Forum
          May 18, 2004

  Government-wide “Intragovernmental”
          Reporting Session

                                        1
             Part I
     Implementing the
Management Control Plan for
 FY 2004 Closing Package

              Presented by:
            Ella Hughes-Bailey
    Ella.hughes-bailey@fms.treas.gov
      Financial Management Service


                                       2
What is the Management Control Plan?

• Addresses a Material Weakness Cited by
  GAO in FR
• Identifies & Tracks Intragovernmental
  Material Differences
• Covers 5 Elements (Roles/Responsibilities, CFO
  Representation Process, Status of Disposition, F/S Audit Process & IG AUP)

• Effective 2nd Quarter, FY 2004


                                                                          3
                FMS Role
• Administers/Utilizes IRAS as Reporting
  Repository
• Provides Qtrly. Reports & Yearend Closing
  Package Reports
• Provides Reconciliation Oversight
• Analyzes Intragovernmental Activity/Balances
• Interfaces IFCS, GFRS (Closing Package Data
• Reviews CFO Representations & IG AUP
• Discloses/Summarizes Results for GAO/OMB
                                                 4
            Threshold
 (Reconciliation Assurance Level)
Material Differences Records Based on 4 Factors
• FMS/GAO Assurance Agencies Are Complying
  with OMB Bulletin 01-09
• Obtain GAO Assurance that Out-of-Balance
  Conditions are Sufficiently Explained
• Obtain Equity in Agency’s Explanation of
  Differences
• Select Minimum # of TP/RC Instances while
  Maximizing Out-of-Balance Condition

                                                  5
             FPA/CFOs Role
• Provides Qtrly. Intragovernmental Data to FMS
• Reconciles with Trading Partners
• Provides Qtrly. Status of Disposition Certification
• Submits Closing Package Data by Federal Line Items &
  TP
• Approves Closing Package in GFRS by November 18,
  2004
• Crosswalks Agency F/S Notes to FR Notes via
  Workpaper & Provide to IG (as well modules 2 – 6
  documents)
• Submits Intragovernmental CFO Representation by
  11-23-04

                                                         6
          CFO Representation
• Links Mgmt. Assertions to CP Reporting

• Standard Form (http://fms.treas.gov/irri/index.html)

      Section I:    General Intragovernmental
                    Reporting Results
      Section II:   Summarized Explanation of Closing
                    Package Differences

                                                         7
                  IG/IPA Role
• Reviews/Acknowledges Closing Package in GFRS by 11-
  18-04

• Uses “Comparative Status of Disposition Report” to Plan
  testing of Intragovernmental Activity

• Perform 5 Steps in Plan, Package it with Auditor Report &
  Provide to FMS & GAO

• Completes “IG Agreed-Upon Procedures” by
  12-02-04

                                                         8
   IG Agreed-Upon Procedures
• Standard Form (http://fms.treas.gov/irri/index.html)
• Perform IG AUP in Accordance with Closing Package
  TFM




                                                         9
            Part II

OMB’s Business Rules Update
             &
      Audit Guidance

             Presented by:
               Dana James
     dana_m._james@omb.eop.gov
     Financial Management Service


                                    10
    Update on Business Rules for
   Intragovernmental Transactions

• Issued in M-03-01 in October of 2002
• Effective January 1, 2003 (exchange) and
  October 1, 2003 (fiduciary)
• Issues regarding Advances
• Status of IGTE Portal


                                             11
 Closing Package Audit Guidance

• Amend OMB Bulletin 01-02 to include
  section on audit of the reclassified
  statements and notes in closing package
• IG representatives, GAO and AICPA
  collaborated on guidance and report
  language
• Effective for FY 2004
• CFO and IG communities have seen drafts
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