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TFM Transmittal Letters|
TFM Volume I Table of Contents
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TFM Transmittal Letters|
TFM Volume I Table of Contents
This chapter provides new Federal entities with the instructions necessary to establish basic fiscal operations as prescribed by the Department of the Treasury's (Treasury's) Financial Management Service (FMS), and the Office of Management and Budget (OMB).
This Treasury Financial Manual (TFM) chapter addresses startup procedures. Appendix 1 provides a "checklist" for those procedures. The "References" column in Appendix 1 directs users to relevant TFM chapters and sections.
According to 31 United States Code (U.S.C.) 3513, the Secretary of the Treasury must prepare reports on the financial operations of the U.S. Government. This code also requires that each executive agency furnish information and reports about its financial condition and operations if requested by the Secretary of the Treasury.
In addition, OMB Circular No. A-127-Revised (Transmittal Memorandum No. 1), section 7-a, establishes the following requirement for agencies regarding financial systems:
"The design of the financial management systems shall reflect an agency-wide financial information classification structure that is consistent with the U.S. Government Standard General Ledger, provides for tracking of specific program expenditures, and covers financial and financially related information."
Users may access the U.S. Government Standard General Ledger (USSGL) Web site at http://www.fms.treas.gov/ussgl.
Treasury, in collaboration with OMB and the relevant administrative agency, assigns, amends, changes, and discontinues account symbols and titles. These account symbols represent, by agency and bureau, individual appropriations, receipts, and other fund accounts. Agencies post appropriations or spending authorizations granted by the Congress. They use account symbols to report to Treasury and OMB.
FMS establishes or changes new appropriation account symbols derived from the 11 annual appropriation bills without an agency request. However, agencies must send a letter of request for new account actions pursuant to other legislation. To establish new accounts, agencies must:
(1) Contact OMB for approval (see OMB Circular No. A-11, section
79.3).
(2) Submit a letter to FMS requesting new accounts, including the following:
Agencies should submit all account action requests to FMS as early in the month as possible to allow for agency reporting in the appropriate month.
FMS assigns account symbols and titles, fund groups, and fund account definitions per the principles and guidelines in Title 7 of the GAO Policy and Procedures Manual for Guidance of Federal Agencies. See the Government Accountability Office Web site at www.gao.gov/special.pubs/ppm.html.
Treasury issues an FMS 6200: Department of the Treasury Appropriation Warrant, to establish the amount and period of availability of monies the agency is authorized to withdraw from Treasury's central accounts. Congress passes 11 annual appropriation acts, as well as supplemental appropriation acts, each year. These appropriation acts provide budget authority to obligate and expend funds from Treasury for specific purposes.
If Congress does not enact a regular appropriation, Treasury issues a continuing resolution warrant by agency request. Refer to TFM Volume I, Part 2, Chapter 2000, for the agency requirements for requesting a continuing resolution warrant.
If enacted legislation other than an appropriation act provides spending authority (or an appropriation), agencies must submit a letter to Treasury requesting the amount of the appropriation and citing the legal authority. The citation should include the U.S.C., if possible, or the Statutes at Large. This requirement includes submitting letters to request appropriations from unavailable receipts, indefinite accounts, rescissions, and surplus warrants. In some cases, Treasury may request additional information from the agency.
After the Budget Reports Division (BRD) receives the agency's letter of request, it determines whether subclass codes are necessary to capture data below the appropriation or fund level for tracking purposes. If so, BRD establishes the subclass codes.
Subclass codes include 88 (Investments in U.S. Public Debt Securities) and 98 (Redemption of U.S. Public Debt Securities). Assigning these distinctive subclass codes allows BRD to isolate investment and redemption activity for detailed analysis, if necessary.
BRD prepares and sends agencies a copy of form BA 7103: The Department of the Treasury Sub-Classification Authorization, authorizing use of the subclass code. The agencies must use the subclass code when reporting monthly outlay activity on the FMS 224: Statement of Transactions. Agencies report subclass codes in parentheses immediately before the main account. For example, (88)0960700 is the appropriate format for reporting a subclass code.
For detailed information on subclass authorizations, refer to TFM Volume I, Part 2, Chapter 3300, subsection 3330.20. For additional assistance on subclass authorizations, contact BRD (see the Contacts page).
An ALC is a 3-, 4- or 8-digit symbol uniquely identifying each agency that reports payments and collections. It is similar to a bank account number and must appear on all documentation sent to FMS to ensure proper reporting.
Agencies that do their own disbursing [and submit an SF 1218: Statement of Accountability (Foreign Service Account) or FMS 1219: Statement of Accountability] are assigned a 3- or 4-digit ALC. See TFM Volume I, Part 4, Chapter 6000, for detailed instructions.
Agencies not performing their own disbursing must submit a written request to the Cash Accounting Division (CAD). See the Contacts page. Upon approval, CAD assigns an 8-digit ALC and notifies the agency in writing of the ALC assignment. The assignment process takes approximately 30 days.
See TFM Volume I, Part 2, Chapter 3300, Section 3320, for a detailed explanation of ALCs and TFM Volume I, Part 4, Chapter 2000, for detailed information on disbursing procedures.
FMS has automated many of its accounting and reporting tasks via the GWA System. The following applications are available through the GWA System:
Agencies should refer to the GWA Web site at http:/www.fms.treas.gov/gwa for instructions on how to gain access to the GWA System.
Agencies must create a NET transaction to reflect increases and decreases between appropriations, funds, and other accounts. Agencies must include a valid statutory authority as well as a withdrawal and credit within a specified appropriation group. Additionally, as of October 1, 2006, the initiating agencies must provide the appropriate USSGL account indicating the source of funds to the receiving agencies. They must create the NET transaction in the GWA System by no later than the last workday of the current month. See TFM Volume I, Part 2, Chapter 2000, Section 2030. Agencies may access the TFM Web site at http://www.fms.treas.gov/tfm for further instructions.
FMS has automated many of its accounting and reporting tasks via the GOALS II applications. Agencies can access several of the FMS-required reports as well as information through GOALS II. It is imperative that agencies establish GOALS II service as quickly as possible. Agencies can transmit an FMS 224, FMS 1221, and FMS 1220: Statement of Transactions (According to Appropriations, Funds and Receipt Accounts), via GOALS II. The GOALS II applications also allow Treasury regional offices to report disbursements and give agencies their undisbursed balances. Agencies can access their undisbursed FBWT data in the GWA System Account Statement Application. Agencies should access their Receipt Account Ledger data via GOALS II. The FMS 6655: Receipt Account Ledger/Trial Balance, will remain available for a short period until changes can be made to the Account Statement to support FMS's customers.
Agencies use an Internet browser to access GOALS II via modem or via their Internet service provider. They should make arrangements with the GWA Customer Assistance Group for a contract to use this system (see the Contacts page). The GWA Customer Assistance Group advises agencies on training, troubleshooting, and general system use.
For additional information on GOALS II and the systems requirements, see the GOALS II Web site at http://www.fms.treas.gov/goals.
The FMS 224 provides Treasury with a monthly statement of payments and collections at the appropriation level for departments and agencies for which Treasury disburses. Agencies submit it electronically using GOALS II.
FMS publishes this information in the Monthly Treasury Statement of Receipts and Outlays of the United States Government (MTS).
Refer to TFM Volume I, Part 2, Chapter 3300, for instructions on the preparation of the FMS 224.
Contact the GWA Customer Assistance Group for information concerning GOALS II transmissions (see the Contacts page).
Annually, all verifying agencies must submit the following:
Nonverifying agencies must submit the following:
Agencies must submit ATBs at the Treasury appropriation/fund group level using proprietary USSGL accounts. This data provides FMS with information used to compile the Financial Report of the United States Government, which is required by the Government Management Reform Act.
See TFM Volume I, Part 2, Chapter 4700, and contact the Financial Reports Division (FRD) for more information on verifying and nonverifying agencies, the Closing Package, and the ATB submissions (see the Contacts page).
Quarterly, OMB requires reporting agencies to confirm/reconcile intragovernmental activity and balances for the following fiduciary transactions, using the Intragovernmental Fiduciary Confirmation System (IFCS) Internet role-based application on GOALS II:
See TFM Volume I, Part 2, Chapter 4700, and contact FRD for more information on IFCS reconciliation requirements (see the Contacts page).
Treasury administers the FMS- and OMB-designed FACTS II. Agencies submit preclosing ATBs every quarter via FACTS II. This automated reporting system allows agencies to do one financial data submission for the following:
Contact BRD for questions regarding the FACTS II application (see the Contacts page).
Refer to the FACTS II Web site at http://www.fms.treas.gov/factsii for instructions and preparations on setting up the FACTS II application and the systems requirements.
At the end of each fiscal year, agencies submit the following financial results via the FACTS II application:
Refer to TFM Volume I, Part 2, Chapter 4200, for reporting instructions for the yearend closing data. FMS publishes this data in the Combined Statement of Receipts, Outlays, and Balances of the United States Government. For additional information, contact BRD (see the Contacts page). Also, agency personnel, as required, should attend the Yearend Closing Seminar. This annual seminar held in August provides the most current reporting and legislation-specific guidance. To register, contact Treasury Agency Services (telephone number: 202-874-9560).
Additionally, FMS releases the annual TFM Yearend Closing Bulletin (usually in July). This document advises agencies on reporting procedures and requirements for fiscal yearend.
Agencies submit budget execution and budgetary resources data quarterly via FACTS II. The SF 133 allows OMB to review Federal expenditures and obligations against approved apportionments.
For information on the SF 133, refer to OMB Circular No. A-11 or contact OMB (see the Contacts page).
Disbursing officers and agencies report monthly accountability and transactions on one of the following forms:
U.S. Disbursing Officers report on the SF 1218, SF 1221, and FS 488. Domestic Disbursing Officers and agencies use the FMS 1219 and FMS 1220.
See TFM Volume I, Part 2, Chapter 3100, for a detailed explanation of disbursing officers' reports. See TFM Volume I, Part 4, Chapter 2000, for detailed information on bill-paying mechanisms.
Agencies with an ALC that want to deposit funds locally with a federally insured financial institution must contact the Federal Reserve Bank of St. Louis (FRB St. Louis) to request that deposit banking services be established. FRB St. Louis will review the request. If it is beneficial to the Government and accepted by the proposed financial institution, FRB St. Louis will formalize the arrangement with the financial institution.
See TFM Volume I, Part 5, Chapter 4000, for a detailed explanation of general depositary bank arrangements. See TFM Volume I, Part 5, Chapter 4500, for information regarding making deposits by wire transfer. Also see TFM Volume I, Part 5, Chapter 6000, for information regarding depositing foreign currency and checks drawn on foreign banks.
Part 6 of TFM Volume I provides important procedural guidance concerning specific Government financial operations. Agencies should review Part 6 for agency-specific requirements. In particular, the following chapters may apply to most Federal agencies:
For information regarding FAST Book appropriation account symbols and titles, appropriation warrants, SF 1151s, subclass authorization, FMS 2108, FACTS II, or the TFM Yearend Closing Bulletin, contact:
Budget Reports Division
Financial and Budget Reports Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 518D
Hyattsville, MD 20782
Telephone: 202-874-9870
Fax: 202-874-9944 (for FAST Book appropriation account symbols and titles,
warrants, or SF 1151s)
Fax: 202-874-9966 (for subclass authorization, FMS 2108, or FACTS II)
For information regarding the FMS 224, FMS 1219, SF 1220, and 8-digit ALCs, contact:
Cash Accounting Division
Cash Accounting and Reporting Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 500E
Hyattsville, MD 20782
Telephone: 202-874-8270
Fax: 202-874-8887
For information regarding GFRS and FACTS I submissions, contact:
Financial Reports Division
Financial and Budget Reports Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 500B
Hyattsville, MD 20782
Telephone: 202-874-9910
Fax: 202-874-9907
For information regarding 4-digit ALCs and non-FMS or State Department disbursing, contact:
Check Reconciliation Branch
Financial Processing Division
Financial Operations
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 700A
Hyattsville, MD 20782
Telephone: 202-874-8150
Fax: 202-874-8536
For information regarding GOALS, contact:
GWA Customer Assistance Group
Governmentwide Accounting Modernization Project
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 500E
Hyattsville, MD 20782
Telephone: 202-874-8270
Fax: 202-874-6170
For information regarding the SF 133, contact the OMB budget representative.
Appendix 1, Procedures Checklist Table, is available in the PDF version only.
1. Purpose
This transmittal letter releases revisions to I TFM 1-2000: Financial Operations Startup Procedures for New Federal Entities. This chapter provides new Federal entities with the instructions necessary to establish basic fiscal operations, as prescribed by the Department of the Treasury's Financial Management Service and the Office of Management and Budget.
2. Page Changes
| Remove | Insert | |
| Table of Contents for Part 1 (T/L 617) | Table of Contents for Part 1 | |
| I TFM 1-2000 (T/L 601) | I TFM 1-2000 |
3. Effective Date
This transmittal letter is effective immediately.
4. Inquiries
Direct questions concerning this transmittal letter to:
Budget Reports Division
Financial and Budget Reports Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 5D25
Hyattsville, MD 20782
Telephone: 202-874-9870
Fax: 202-874-9966
Date: March 7, 2007
Kenneth R. Papaj
Commissioner
