Functional Statements > Office of the Chief Financial Officer

D. Financial Management Operations

Financial Management Operations (FMO) is responsible for certifying, processing, and reconciling all agency financial transactions; preparing the Department’s annual financial statements and related notes and schedules; and coordinating the external audit of the agency’s financial statements. The office is charged with ensuring the accuracy and timeliness of all agency financial data, establishing financial management policies and procedures, monitoring financial management systems, and ensuring the Department’s compliance with applicable laws and regulations. FMO directs cash management activities within the agency and manages the Department’s accounts payable and accounts receivable portfolios. The organization is the Department’s principal liaison to the General Accounting Office (GAO), the U.S. Department of Treasury, the Office of Management and Budget (OMB), and other regulatory and legislative entities in matters related to the agency’s financial accountability and required financial reporting. The office also maintains a Department-wide system of performance measures and produces and presents financial and grant performance data to agency officials, other Federal agencies, the public, and Congress.

The Director, FMO, reports to the CFO. The Director provides overall leadership and coordination to the immediate office staff of FMO and to the following components:

General Accounting Group
Accounts Payable Group
Accounts Receivable Group
Reporting and Analysis Group

General Accounting Group

In carrying out its responsibilities, the Group:

• Advises operating grant and loan program managers and their system staffs in maintaining accounting subsystem records.
• Maintains official accounting records of all funds authorized to support assigned program and administrative efforts.
• Prepares fluctuation analyses of the grant, loan and administrative programs trial balances and researches and resolves variances.
• Maintains financial institution and depositor account information ensuring that all recipient payments can be processed electronically through ACH or FEDWIRE.
• Prepares all official financial reports for the Department's grant and loan program appropriations, transfer appropriations, Program Administration account and contribution accounts including the annual certification of funds.

Accounts Payable Group

The Accounts Payable Group develops and implements accounts payable related policies for the Department including those related to: financial management systems, internal controls, payments processing, reconciliations, and reporting. The group is also responsible for administering payments for costs associated with the agency’s purchase card program and the Interagency Payment and Collection (IPAC) processes and ensuring the accuracy of cash data contained in the Department’s financial accounting system.

In carrying out its responsibilities, the Accounts Payable Group:

• Reviews and coordinates requirements, directives, and initiatives established by Federal statutes; implements directives from a central authority, e.g. GAO, Treasury, Justice, GSA and OMB.
• Coordinates the Cash Management Improvement Act of 1990 within the Department and with Treasury to ensure efficiency, and equity in the exchange of funds and more timely use of funds and return of interest between the Federal government and states.
• Coordinates the Prompt Payment Act requirements to ensure timely payments to vendors.
• Maintains the account database by reviewing changes to the Recipient System (RS) characteristics data and accounts data and enters changes into the RS file and/or other databases to maintain and provide recipients with correct authorization, payment, and expenditure information.
• Reconciles Accounts Payable Trial Balance (APTB sub-ledger) to the general ledger accounts payable, document and resolve discrepancies and submit them to FMO management.
• Manages the Purchase Card reconciliation and payment function ensuring accurate and timely payments to the Bank of America and excellent customer service to the Department’s cardholders.
• Researches inter-fund payable account errors and perform analysis to determine proper correction in the FMSS purchasing and payable system or preparation of adjusting entry.
• Performs analysis of payable proprietary/budgetary relationship by fund/sector in ART desktop tool.
• Performs reconciliations by fund value and ACCS in general ledger to ensure proper financial reporting of federal and non-federal payables.
• Generates Open Purchase Order reports in AP_PO system, reviews reports for missing trading partner codes, misclassified government vendors and anomalies.
• Manages the IPAC process ensuring accurate and timely application of interagency funds to proper funds, ensures that all unmatched transactions are classified according to Trading Partner code and acts as liaison between the Department and Trading Partners (Government Agencies) for IPAC payments.

Accounts Receivable Group

The Accounts Receivable Group directs the Department's debt management and receivables activities including the development and implementation of receivables policy related to the agency’s financial management systems, internal controls, receipts processing, reconciliations, and reporting. The Group ensures the agency’s compliance with applicable laws and regulations .

In carrying out its responsibilities, the Group:

• Meets with financial representatives from educational institutions to negotiate debt repayment terms, refers delinquent debts to private debt collection contractors/Treasury, and writes off uncollectible debts.
• Coordinates with Program Offices and OGC on reimbursement funding and offsetting of delinquent debts.
• Reviews and coordinates requirements, directives, and initiatives established by Federal statutes; implements directives from a central authority, e.g. GAO, Treasury, Justice, GSA and OMB.
• Reconciles Accounts Receivable Trial Balance (FMSS sub-ledger) to the general ledger accounts receivable, and documents and resolves discrepancies.
• Establishes Accounts Receivables, posts cash collections and develops monthly Accounts Receivable accruals.
• Researches and resolves miscellaneous receipt revenue/contra-revenue activity.

Reporting and Analysis Group

The Reporting and Analysis Group is responsible for preparing the Department’s financial statements; coordinating the annual financial statement audit; and producing the agency’s Performance and Accountability Report, Fast Facts Reports, and other official financial reports. The Group maintains a Department-wide system of performance measures; produces performance data and reports to inform the agency’s budget and legislative development processes; and presents the Department's performance plans and reports to agency officials, other Federal agencies, the public, and Congress. The unit collects, analyzes and distributes grant award and performance data to support policy development and inform management decisions affecting the Department’s discretionary and formula grant program. Additionally, the Group is responsible for c oordinating and overseeing the implementation of ED Regulations for the Protection of Human Subjects in extramural and intramural research projects.

In carrying out its responsibilities, the Group:

• Develops standards and procedures for producing and issuing annual financial statements for Departmental programs, trust funds, revolving funds, and commercial activities.
• Produces the agency’s annual financial statements and footnotes, the Federal Student Assistance (FSA) financial statements and footnotes, Prepared-by-Client (PBC) analyses, and the Department’s Performance and Accountability Report (PAR).
• Coordinates the external audit of the Department’s annual financial statements, providing guidance, counsel and support to the Department’s senior management; developing the agency’s annual Audit Plan and schedule; and serving as liaison between the Office of the Inspector General (OIG), the agency’s Auditor, the Budget Service and other stakeholders regarding audit and assurance related issues. Additionally, the Group coordinates the submission of Prepared-by-Client (PBC) items and facilitates the Audit Steering Committee and Principles meetings. Prepares monthly reports for the agency’s management that integrate key financial and programmatic data.
• Maintains the Federal Balance with Treasury (FBWT) reconciliation process, the SF224 preparation and reporting process, and FACTII and TROR reporting
• Prepares financial management reports to highlight potential grant and loan program problem areas and makes recommendations for corrective action.
• Coordinates with other the agency offices to manage the Department’s annual performance planning cycle, ensuring compliance with the Government Performance and Results Act, Part 6 of Circular A-11, OMB Circular A-136, and related guidance from the Office of Management and Budget, the Government Accountability Office and the Office of Inspector General.
• Maintains a planning and performance management database of Departmental and program goals, objectives, strategies, performance measures, and targets. Ensures that the agency’s planning and reporting policies, procedures and systems conform to legislative requirements, established Department goals, and Executive Branch regulations and procedures. Provides technical assistance to program offices to develop and maintain action plans and performance measures for implementing Department, Office, and program strategic goals.
• Collects data related to program office grant monitoring plans and activities to produce consolidated grant monitoring reports;
• Develops and manages a streamlined system for financial management performance measurement and results required by the CFO's Act and the Government Performance and Results Act (GPRA).
• Analyzes monitoring reports and other grant related data to i dentify best practices and develop strategies for implementation Department-wide;
• Develops and disseminates a wide range of internal grant monitoring, award and performance reports to inform management oversight of the agency’s grant programs.
• Consolidates and submits all other official agency financial reports to Treasury, OMB, and other Government agencies.