# Presentation: 435899

## Intragovernmental Business Rules

- Scott Chayette
- Office of Finance and Oversight
- March 20, 2007

## History/Background

- For the last 10 years GAO has issued a Disclaimer of Opinion on the Financial Report of the U.S. Government
- GAO cited the 3 main reasons for the disclaimer as follows:
- Serious financial management problems at the Department of Defense
- The Federal government’s inability to adequately reconcile intragovernmental activity and balances between federal agencies
- The Federal government’s ineffective process for preparing the consolidated financial statements

- OMB issued first set of Intragovernmental Business Rules (IBR) on 10/04/02 to address the intragovernmental reconciliation shortcomings.
- All intragovernmental transactions were to flow thru a soon-to-be established Intragovernmental Transactions Exchange (IGTE) system
- Required all agencies to register with Dun & Bradstreet (D&B) and obtain DUNS numbers (now referred to as BPN numbers) in order to do business with other Federal agencies

- OMB’s Business Rules never got off the ground
- IGTE was never established
- DoD never really “signed on”
- No enforcement provisions
- OMB’s Business Rules and the IGTE effort were effectively terminated in 2005
- In 2006 the CFO Council established an Intragovernmental Sub-committee to develop a new set of Intragovernmental Business Rules
- In May 2006 the sub-committee submitted its final draft of the revised IBR to the Council/OMB
- On 11/15/06 Treasury Bulletin No. 2007-03 officially issued the revised set of IBRs

## Summary of the Main Provisions of the new IBR

- Effective retroactively to 10/1/06
- Addresses 3 main types of transactions
- Buy/Sell – Reimbursable Work/Inter-Entity (Shared Services)
- Fiduciary
- Transfers
- Establishes dispute resolution procedures
- Requires all interagency agreements to contain numerous data including:
- A common agreement number (generally the buyer’s agreement #)
- The buyer’s funding source
- The Treasury Appropriation Symbol (TAS) for both trading partners
- The Business Event Type Code (BETC) for both trading partners
- The Business Partner Network (BPN) numbers for both trading partners

## DOE’s Implementation Strategy

- The Office of Finance and Oversight (OFO) has the lead responsibility for DOE implementation of the IBR
- Field Offices/PMAs need to identify an IBR POC for their site
- DOE is basically already in compliance with the Fiduciary and Transfer provisions.  Any procedures modifications will mainly involve actions taken at HQ
- A phased-in implementation approach is planned over the next several years  for the buy/sell provisions/requirements
- The 1st phase, which has already began here at HQ, will focus on those transactions where DOE is the seller of goods/services to other Federal agencies (Reimb. Work)
- The 2nd phase, which will involve transactions where DOE buys goods/services from other Federal agencies (ie. shared services from GSA), probably won’t begin until FY 2008

## Major Tasks Ahead

- Review and update of DOE’s original Business Partner Network (BPN) structure and data
- Field Offices/PMAs review and update of current BPN structure and data (Spring 2007)
- OFO to work with D&B to revise official DOE BPN hierarchy (Spring 2007)
- Field Offices/PMAs annual review of their BPNs (Summer 2008)
- Ensure Interagency Agreements contain the required IBR data
- HQ Procurement Policy to issue guidance to all field Procurement offices (Spring 2007)
- OFO to issue guidance to Field Offices/PMAs outlining the CFO responsibilities with respect to ensuring applicable program offices include required IBR information on all RW Interagency Agreements (Spring 2007)

- Enhancements to STARS capabilities to allow for intragovernmental reconciliation efforts for RW activity
- Establish additional Work for Others (WFO) DFF table to enable STARS to produce reports/data needed to reconcile RW activity with other Agencies (Spring 2007)
- Determine if PMAs will be required to establish a WFO number for each of their interagency agreements.  If yes, PMAs will be required to include applicable WFO data with their quarterly files (Spring 2007)
- Select Agencies to begin initial reconciliation effort (Spring 2007)
- Field Offices/PMAs to populate WFO DFF table as applicable (Spring/Summer 2007)
- Provide additional DOE revenue information to pilot agencies (Summer 2007)
- Make a determination as to whether to expand reconciliations to other agencies (Winter 2008)
- Field Offices/PMAs to update and maintain WFO DFF table as applicable (Spring 2008)

- Addressing issues where DOE is the customer agency
- Identify specific issues related to shared services agreements with other agencies (Winter 2008)
- Review current shared services agreements and other interagency agreements where DOE is the buyer to ensure proper cost accruals are being recorded (Spring 2008)
- Work with STARS staff to ensure that all required data is available to meet the new IPAC TAS/BETC requirements in August 2008 (Spring 2008)
- Develop strategies to replace the suspense account/0911 fund usage related to shared services activity (Spring 2008)

## Additional Information

- _HQ Contacts_
- POC for IBR Implementation – Scott Chayette (301) 903-9705
- Questions related to cost accruals, memo obligations, etc. – Geoff Smith (301) 903-2729
- Director, Office of Finance and Oversight – Rick Loyd (301) 903-4190
- Director, EFASC – Wendy L. Miller (301) 903-5858
- _DOE BPN Information_
- _[www.bpn.gov](http://www.bpn.gov/)_
- _Revised Intragovernmental Business Rules_
- _[www.fms.treas.gov/tfm/vol1/07-03.pdf](http://www.fms.treas.gov/tfm/vol1/07-03.pdf)_