TREASURY DIRECTIVE: 32-01

Date: December 23, 1992

Sunset Review: TBD

Expiration Date: TBD

SUBJECT: Accounting Principles and Standards

1. PURPOSE. This directive sets forth the principles and standards for Department of the Treasury accounting systems and forms the basis for the development, revision, and maintenance of accounting principles and standards. Also, this directive authorizes the issuance of Treasury Department Publication (TD P) 32-01, "Accounting Principles and Standards Manual," by the Director, Financial Services Directorate/Deputy Chief Financial Officer (CFO).

2. SCOPE. This directive applies to all bureaus, the Departmental Offices (DO), and the Office of Inspector General (OIG).

3. APPLICABILITY. As defined in Treasury Directive 32-02, "Approval of Financial Management Systems," accounting principles and standards apply to routine financial management functions. This includes travel, procurement, budget, cost accounting and payroll/personnel. This directive does not apply to:

a. the Government wide central accounting systems maintained by the Financial Management Service and the Bureau of Public Debt, which are the responsibility of the Fiscal Assistant Secretary; and



b. approval of financial management systems, which is the responsibility of the Office of Financial Systems and Reports, Financial Services Directorate.

4. POLICY. It is the policy of the Department of the Treasury (hereafter referred to as "the Department") that all bureaus, DO and the OIG establish and maintain accounting systems which:

a. comply with accounting principles, standards, and requirements of the Comptroller General, the Office of Management and Budget (OMB), and the Department;



b. comply with the internal control standards of the Comptroller General, OMB and Department (See Treasury Directive (TD) 40-04);



c. comply with the policies prescribed by the Department's CFO as contained in this and other related Treasury directives;



d. provide complete, reliable, consistent, and timely information which is prepared on a uniform basis and which is responsive to the financial information needs of bureau and Departmental financial management and program management personnel; and



e. provide for the development and reporting of cost information.

5. RESPONSIBILITIES.

a. The Secretary of the Treasury is responsible for establishing and maintaining adequate systems of accounting and internal control.



b. The Assistant Secretary (Management/CFO) is responsible for the establishment and oversight of financial management, accounting, internal control policies, standards, and compliance guidelines for both financial management and program areas throughout the Department and its bureaus.

c. The Director. Financial Services Directorate/Deputy CFO, through the Office of Accounting and Internal Control, shall:



(1) monitor all accounting systems for conformance with accounting principles and standards;

(2) direct other accounting activities as requested by the Assistant Secretary (Management)/CFO; and



(3) issue supplementary procedures and revisions consistent with this directive to amend the Department's accounting principles and standards, after review and concurrence by the Assistant Secretary (Management)/CFO.

d. The Deputy Assistant Secretary (Administration), Heads of Bureaus. and Inspector General, as it relates to their respective bureaus and offices, shall ensure timely implementation of the Department's accounting principles and standards.

6. PROCEDURES. Detailed guidelines, principles and standards for all Department of Treasury accounting systems and the basis for developing, revising and maintaining accounting principles and standards are set forth in TD P 32-01.

7. CANCELLATION. TD 32-01, "Administrative Accounting Principles and Standards," dated July 1, 1983, is superseded.

8. AUTHORITIES.

a. U.S. General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies.

b. Title 31, United States Code, Chapters 13, 15, 33, and 35.

c. Pub. L. 101-510, "National Defense Authorization Act of 1991,. "M" account legislation.

d. Pub. L. 101-576, "The Chief Financial Officers Act of 1990..

e. Office of Management and Budget (OMB) Circular A-11 (Revised), "Preparation and Submission of Budget Estimates."

f. OMB Circular A-34 (Revised), "Instructions on Budget Execution.

g. OMB Circular A-123 (Revised), "Internal Control Systems."

h. OMB Circular A-127, "Financial Management Systems."

9. REFERENCES.

a. TD 32-02, "Approval of Financial Management Systems."

b. TD 40-04, "Treasury Internal (Management) Control Program."

10. OFFICE OF PRIMARY INTEREST. Office of Accounting and Internal Control, Office of the Director, Financial Services Directorate/Deputy CFO, Office of the Assistant Secretary (Management)/ CFO.

David N. Nummy

Assistant Secretary Management)/Chief Financial Officer