Intragovernmental Business Rules

June 1, 2009

• Office of Management and Budget (OMB) Bulletin 2007-03 regarding intragovernmental business rules became effective October 1, 2006

• Rules are mandatory for all Departments and Agencies

• Rules apply to all intragovernmental business transactions

Intragovernmental Busines Rules

• Buyers and Sellers (Trading Partners) negotiate the exchange of goods or services and create an Inter-Agency Agreement

• Implementing standardized procedures will facilitate the reconciliation of intragovernmental balances and help resolve a material weakness of the U.S. Consolidated Financial Statements

Required Information on Agreement

• Agreement Number

• Treasury Account Symbol (TAS) for both Trading Partners

• Business Event Type Code (BETC) for both Trading Partners

• Agency Location Code (ALC) for both Trading Partners

• BPN number for both Trading Partners

• Signatures of both Trading Partners

• Effective date and period of performance

Required Information on Agreement

• Purpose or description of services

• Amount and method of payment

• Frequency of billing

• If applicable, provision for advance payments

• Accounting/finance office point of contact information, such as name, location, and telephone number

• Any special accounting data that needs to be on the IPAC or other billing documents, in order for the bill to be accepted by the receiving agency

• The Buyer’s accounting system should capture all detailed transactions associated with the order

• At least quarterly, the Buyer should accrue expenses for goods/services that have been received but not billed

• The Buyer should monitor the activity and age of the order

• The Buyer should determine the reason for inactivity and inform the seller of the intent to deobligate the remaining funds once complete

Buyer Responsibilities

Seller Responsibilities

• The Seller’s accounting system should capture all detailed transactions associated with the order

• At least quarterly, the Seller should accrue revenue consistent with generally accepted accounting principles

Method of Payment

• Electronic payments are required between Federal Government agencies

• The standard payment method is through the Intra-Governmental Payment and Collection (IPAC) system

Procurement Requirements

• Federal agencies that acquire or provide goods/services to other federal agencies, must do the following:

-- Obtain a Data Universal Numbering System (DUNS) number

-- Register in the BPN Federal Agency Registration (FedReg) system

• The full text of Bulletin No. 2007-03 regarding Intragovernmental Business Rules can be viewed online at:

www.fms.treas.gov/goals/ipac/07-03.pdf