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TREASURY INSPECTOR GENERAL

FOR TAX ADMINISTRATION

January 1, 2009

(00!"#0 FINANCIAL MANAGEMENT

50.1 The Budget ProcessThe TIGTA budget process begins with budget formulation. TIGTA estimates theresources needed to operate its programs for a designated fiscal year !"#$generally two years out$ and presents these estimates to the %epartment of theTreasury$ the &ffice of 'anagement and Budget &'B#$ and the (ongress. Thene)t step in the budget process is financial plan de*elopment$ which is the stagewhere funds and !ull Time +,ui*alents !T+s# are allocated among the TIGTAfunctions Audit$ In*estigations$ (ounsel$ 'ission -upport$ and Inspections and+*aluations#. The budget cycle concludes with the e)ecution of the authoriedbudget during the fiscal year for which the budget applies. The e)ecution phase

of the budget process consists of trac/ing and reporting budgeted resources*ersus actual le*els of obligations. This process continues for a period of fi*eyears after the a*ailability of the appropriation ends.

&perations 'anual (hapter 001

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50. Budget !ormulationThe purpose of the budget formulation process is the passage of a public lawthat pro*ides the budget authority necessary for an organiation to perform itsmission. The public law$ or appropriations bill$ pro*ides specific amounts ofmoney for the operational costs necessary to support TIGTA2s accomplishmentof its goals and ob3ecti*es for the fiscal year.

In the e)ecuti*e branch of the Go*ernment$ the President is responsible forsubmitting an annual budget to (ongress. &'B assists the President in thepreparation of the budget and formulation of the Go*ernment4s fiscal program bysuper*ising and controlling the administration of the budget. The %epartment of theTreasury prepares its own budget and that of its bureaus$ including TIGTA$ andforwards its budget to &'B for re*iew and appro*al. Budget e)aminers in the%epartment of the Treasury2s &ffice of !inance under the Assistant -ecretary for'anagement(hief !inancial &fficer# re*iew the TIGTA budget submission.

6ithin the legislati*e branch of the Go*ernment$ the budget and appropriationscommittees of (ongress play a primary role in the budget process. These 7ouseand -enate committees ser*e to balance the needs of TIGTA with all the otherprograms presented by the President. The committees recommend specificfunding amounts based on re*iew of budget proposals of the President$ thebudget committees$ and the (ongressional Budget &ffice. -pecifically$ the7ouse -ubcommittee on !inancial -er*ices and General Go*ernment re*iewsTIGTA2s budget re,uest. In addition$ the 7ouse 6ays and 'eans (ommitteeand the -enate !inance (ommittee determine national ta) administration policy.

Generally$ on or before the first 'onday in !ebruary$ the President submits to(ongress a detailed budget re,uest for the coming !ederal fiscal year$ whichbegins on &ctober 1. In years when there is a change in administration$ thebudget is submitted later. This budget re,uest$ de*eloped by the President4s&ffice of 'anagement and Budget &'B#$ plays a *ery important role8 it tells the(ongress what the President recommends for o*erall !ederal fiscal policy.

TIGTA4s budget formulation is managed in !inance within the &ffice of 'ission-upport. Budget formulation is the process of determining the resourcesnecessary for TIGTA to carry out its programs$ perform its mission$ and to

achie*e strategic ob3ecti*es and goals. !inance coordinates with the TIGTAfunctional units$ Treasury and &'B. In coordination with TIGTA4s functions$!inance is responsible for the following9

Prepares three annual budget submissions for TIGTA$

o The %epartment of the Treasury8

o &'B8 and


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o The (ongressional :ustification or The President4s Budget.

+nters all table data into the &'B 'A; system annually for the prior year$current year$ and budget years.

+nters all narrati*e and appropriation language into the &'B 'A;system.

Prepares the annual Budget in Brief BIB#.

(oordinates the

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u)*+ T%-+&%n+

Da+ A.%/nE+n

'arch 01 The %epartment issues Initiati*e Guidance whichinstructs bureaus to de*elop budget initiati*es thatsupport its strategic plans and goals.

'arch 01 TIGTA begins preparation for the Treasury Budget-ubmission.

'arch thru'ay 01

&'- !inance coordinates the -enior -taff meetings todiscuss possible budget re,uests and the budgettimelines. Ideas are refined and te)t is updated into%epartmental submission.

'ay:une 01

&'B issues guidance &'B (ircular A@11#$ andpro*ides specific instructions for the de*elopment and

presentation of the budget for the submission to &'B.:une 01 TIGTA submits its budget to Treasury for re*iew.:uly 01 Treasury issues Treasury Passbac/-eptember&ctober 01

Treasury submits the %epartment budget to &'B. Thisbudget includes TIGTA.

Co*ember 01 &'B issues &'B Passbac/. The &'B guidance isaugmented as necessary by the Treasury budget staffand passed on to the bureaus. -ettlement is reached.

%ecember 01:anuary 01

Treasury submits the final budget to &'B.

!ebruary 01 The President and &'B submit the President4s budget

proposal to (ongress. It first goes to the 7ouse whereit is di*ided among the appropriations subcommittees.April 01 The (ongress prepares first concurrent resolution on

the budget.:une 01 Appropriations are passed by the 7ouse$ and then

forwarded to the -enate.-eptember 01 %ifferences are resol*ed between 7ouse and -enate

appropriations$ then final bill passed by (ongress.-eptember 0$ 01 President signs budget bill into law.

%uring the formulation process$ the (ongressional committees may hold budget

hearings with the bureaus. The committees also prepare mar/@upsrecommending specific dollar allocations for each account within the bill. Theappropriations bill is debated and sometimes modified in both the 7ouse and-enate. This is often referred to as Dfloor action.E Any differences between the7ouse and -enate *ersions of the bill are ironed out in conference with bothchambers represented.

http://www.whitehouse.gov/omb/circulars_a11_current_year_a11_toc/http://www.whitehouse.gov/omb/circulars_a11_current_year_a11_toc/

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The President has ten days in which to either sign or *eto the bill. If *etoed$ thebill is returned to (ongress for further consideration. If the appropriations bill isnot enacted by the start of the new fiscal year$ a (ontinuing =esolution must bepassed to pro*ide spending authority to maintain operations and a*oid aGo*ernment shutdown.

50. !inancial Plan %e*elopment6ithin the broad controls established by &'B (ircular A@11$ Preparation$-ubmission$ and +)ecution of the Budget$and Treasury budgetary guidance$TIGTA has authority and responsibility to allocate appropriated resources to itsorganiational functions and e)pense categories. The TIGTA !inancial Plan$ also/nown as the operating budget$ ser*es as the primary financial tool to pro*ideTIGTA management with the means to manage and monitor the allocatedresources during the fiscal year. All a*ailable financial resources for theupcoming fiscal year are allocated to responsible officials within the TIGTAorganiation. The sum of these allocations must not e)ceed the amountauthoried by (ongress.

To begin financial plan de*elopment$ discussions are held with the InspectorGeneral to assess priorities and issues for the upcoming fiscal year. After thisconsultation$ the (hief !inancial &fficer issues a call memorandum in the earlysummer to all TIGTA functions re,uesting the de*elopment and submission ofre,uirements and financial plan estimates with a response due in appro)imatelysi) wee/s. +ach TIGTA function is re,uired to de*elop estimates and pro*idenarrati*e 3ustifications for their estimates. -pecific guidance is pro*ided for eachcategory of e)pense.

%uring the appropriations process$ (ongress may place restrictions on howresources should be allocated or e)pended. (urrently$ there are no limitationsgo*erning resource allocation between TIGTA functions. (ongress has placedlimitations on mo*ing resources between budget acti*ities in e)cess ofF5$000$000 or 10 percent$ whiche*er is greater. !or further information$ contactTIGTA4s !inance group.

50..1 %e*elopment of

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amount of money is reser*ed within the total e)pected a*ailability$ and theremainder is a*ailable to pay for non@labor re,uirements.

50.. !inancial Plan =e*iew$ Analysis$ and =ecommendation!inance analyes and summaries the financial plan estimates recei*ed fromTIGTA functions. The analysis includes re*iewing the current year2s spendinghistory for each component and e)amining trends in spending patterns. There*ised spending plans for the fourth ,uarter of the current fiscal year oftenimpact the estimates for the upcoming year. !inance may meet with thefunctions indi*idually to refine their estimates. 6hen necessary$ the staff alsocalls 3oint meetings with multiple functions to discuss organiational needs ando*erall TIGTA re,uirements. The ob3ecti*e is to de*elop an organiationallybalanced financial plan proposal to present to the Inspector General. AnIn*estment =e*iew Board meeting is held to ma/e final decisions regarding theproposedallocations to balance them with the a*ailable funds and to appro*ecapital e)penditures for the coming year.

50.. !inancial Plan Appro*al and %istributionAfter the financial plan is appro*ed by the Inspector General$ the underlyingdetail of dollar allocations by Internal &rganiational (ode is pro*ided to TIGTA4sfinancial ser*ice pro*ider$ the Bureau of Public %ebt BP%#. BP% uploads thedata to its %isco*erer !inancial -ystem. %isco*erer pro*ides the means to ad3ustallocations during the fiscal year and to trac/ TIGTA2s appropriated andreimbursable funds and e)penses incurred.

50. Budget +)ecution @ &perating GuidelinesThe following guidelines will assist management in using a*ailable resources toaccomplish the strategic ob3ecti*es of the organiation and to sol*e dailyoperational issues. The guidelines will also assist in managing a budget withinob3ect class and e)pense category limitations. These guidelines ta/eprecedence o*er any pre*ious instructions.

50..1 =eprogramming Guidelines(ongress limits reprogramming between budget acti*ities to F5$000$000 or10 percent$ whiche*er is greater. !inance trac/s changes between budgetacti*ities to ensure they stay within (ongressional limitations.

=e,uests to reprogram funds should be submitted through your !unctionalBudget (oordinator to BP%4s budget mailbo) BudgetA=(bpd.treas.go*#.=eprogramming re,uests that e)ceed F100$000 in or out of a single ob3ect classshould be routed through your !unctional Budget (oordinator to !inance forappro*al prior to being forwarded to BP% for processing.

50.. !inancial (oding -tructure


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The TIGTA financial coding structure is made up of *arious alpha@numericreferences used to define TIGTA as an entity within the federal go*ernment andtrac/ its spending patterns. The financial codes will be used on all accountingand budget documents and records. Prior to the start of each new fiscal year$!inance pro*ides a new cost accounting structure to each function. The codingstructure pro*ides the appropriate codes to use within the *arious personnel$tra*el$ time and attendance$ and financial systems. (hanges in the codes fromone fiscal year to the ne)t are highlighted.

TIGTA pro*ides a list of its specific accounting codes to BP% each fiscal year$and BP% uses it to *alidate codes within the %isco*erer !inancial -ystem. Inaddition to codes specific to TIGTA$ there are general accounting codes commonto most bureaus within Treasury. Please refer to the BP% tab on the TIGTAintranet site for general accounting codes and definitions. +ach TIGTA functionis responsible for *erifying the accuracy of the codes they use on accounting andbudget documents.

50.. !inancial %efinitionsAppropriation H The statutory authority to incur obligations and ma/e paymentsout of the Treasury for specified purposes.

Budget H A plan for using financial and staff resources to accomplish goals andob3ecti*es within a definite time period.

Budget Acti*ity H A subdi*ision of an appropriation identified in the formal re,uestto (ongress. Budget acti*ities are negotiated with &'B and (ongress and maynot be changed without &'B and (ongressional appro*al.

Budget +)ecution H The process by which the financial resources a*ailable to anagency are directed and controlled toward achie*ing the purposes and ob3ecti*esfor which the budget was appro*ed.

Budget

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commitment is established in %isco*erer$ the a*ailable budget is reduced by theamount of the commitment.

(ontinuing =esolution (=# H

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immediately or in the future. Budgetary resources must be a*ailable beforeobligations can be incurred legally.

&utlay H A payment to li,uidate an obligation when chec/s are issued or cashdisbursed#. &utlays during a fiscal year may be for payment of obligationsincurred in prior years or in the same year. &utlays are the measure ofgo*ernment spending.

Prior "ear H The fiscal year immediately preceding the current year.

=eimbursements H Amounts earned by an agency for commodities$ wor/$ orser*ices furnished to other !ederal agencies for which payments are re,uiredand which may be credited to an appropriation or fund. These amounts arededucted from the total obligations incurred and outlays made in determining netobligations and outlays for such accounts.

=eprogramming H 'o*ement of funds by a function between B&(s within theirown financial plan or to another function.

=escission H (ongressional action to withdraw budget authority.

-upplemental Appropriation H An act appropriating additional funds for thecurrent year after enactment of the regular appropriation. -upplementalappropriations pro*ide additional budget authority beyond the original estimateswhen the need for funds is too urgent to be postponed until the ne)t regularappropriation bill.

6arrants H The official documents issued pursuant to law by the -ecretary of theTreasury that establish the amount of money authoried to be withdrawn from theTreasury.50.. +)pense (ategory -pecificsGuidelines for indi*idual e)pense categories change from fiscal year to fiscalyear depending upon budgetary dynamics. Please refer to the current year!inancial &perating Guidelines for budget information relating to indi*iduale)pense categories. The guidelines are a*ailable on the TIGTA home page inthe Internal 'anagement %ocument -ystem I'%-# under Interim Guidance.

50..5 'id@"ear =e*iewTIGTA conducts a mid@year re*iew unless budget circumstances$ such as ane)tended (ontinuing =esolution$ ma/e it unproducti*e to do so. The re*iewincorporates both labor and non@labor e)pense categories. !inance conducts thelabor portion of the re*iew$ e)cept for cash awards and o*ertime. The non@laborportion of the re*iew re,uires the assistance of the functions. A callmemorandum is issued$ usually in mid@!ebruary$ to each function with a

&perations 'anual (hapter 00J

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response due in appro)imately si) wee/s. !inance pro*ides a spreadsheet toeach function with plan and obligation data through a specified date. +achfunction is re,uired to respond with estimated obligations for the remainder of thefiscal year for all the applicable categories.

In addition to the spreadsheets$ each function must include narrati*e informationfor all deficits in e)cess of F5$000. The narrati*es should describe in detail thesource of any deficits$ proposed reprogramming$ and the operationalconse,uences if the deficits are not funded. 6hen possible$ deficits should beco*ered through internal reprogramming.

The responses are sent *ia electronic mail to the Assistant %irector$ !inance.After completing an analysis of the functions4 submissions and the laborpro3ection$ !inance summaries the results of the mid@year re*iew for the TIGTAI=B. The I=B then ma/es its decisions on what deficits should be funded andhow any surpluses should be spent. !inance informs the functions of the mid@year re*iew results and ma/es the appropriate financial plan ad3ustments in%isco*erer.


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50.5 In*estment =e*iew Board I=B#The purpose of the TIGTA I=B is to re*iew and appro*e funding for TIGTA2scapital in*estments and ma3or ac,uisitions. The I=B also ensures the regularmonitoring and proper management of these in*estments. Principal I=Bmembers may designate others to attend in their absence.

50.5.1 I=B 'embers

Inspector General

Principal %eputy Inspector General

%eputy Inspector General for Audit

%eputy Inspector General for In*estigations

%eputy Inspector General for Inspections and +*aluations

(hief (ounsel Associate Inspector General for 'ission -upport

%irector$ !inance and Accountability

%irector$ Information Technology

50.5. %efinitions

%irect (osts H Kuantifiable costs that can be easily measured in dollars such ashardware ac,uisition e)penses.

Implementation (osts H -tart@up e)penses for hardware$ software$ pro3ect designand de*elopment$ and transition.

Indirect (osts H(osts which benefit more than one cost ob3ecti*e and cannot beeasily traced to each cost ob3ecti*e

Intangible Benefits H Identifiable benefits that cannot be easily measured indollars or units such as enhanced data accuracy$ data security$ organiational/nowledge$ or employee morale.

&ngoing (osts H +)penses for salaries$ supplies$ and training.

&perating (osts H +)penses for maintenance$ enhancements$ and upgrades.

Tangible Benefits H Kuantifiable benefits that can be easily measured in dollarsor units such as reduced cost$ decreased cycle time$ enhanced producti*ity$ orimpro*ed ser*ice.


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Total Ac,uisition (osts H All non@recurring ac,uisition costs o*er the economiclife of the asset such as hardware procurement.

Total

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50.5.. =e*iewing Proposed (apital In*estmentsThe I=B is responsible for re*iewing ma3or new capital in*estments of F50$000 ormore$ as well as all information technology initiati*es$ upon recommendation ofthe %eputy Inspectors General$ the Associate Inspector General for 'ission-upport$ and the (hief (ounsel. The I=B will determine if the business casesupporting the proposed in*estment is sound$ well 3ustified$ and appropriate forfunding consideration in the budget process. All pro3ects must be appro*ed bythe I=B$ and when re,uired$ be forwarded to the TI=B for re*iew. %ecisions andrecommendations of the I=B will be de*eloped using consensus. If consensuscannot be reached on the merits of a particular pro3ect$ the Inspector General willdetermine that pro3ect2s disposition.

6hen dealing with multiple re,uests$ the I=B re*iew process will result in aprioritied list of capital in*estment proposals. 6hen re,uired$ these proposalswill be forwarded to the TI=B for re*iew and$ at a minimum$ the prioritied list willbe updated and made a*ailable to the TI=B during formulation of the &'Bbudget re,uest. Additionally$ the I=B will re*iew Information Technology2s entirespending plan for the upcoming fiscal year prior to the start of the fiscal year.The I=B will also appro*e an amount to be used for budget formulation.

50.5.. 'onitoring (apital In*estmentsThe I=B will regularly monitor all capital in*estments under de*elopment toensure that cost$ scheduling$ and performance targets are being met. In thee*ent that a pro3ect is facing cost o*erruns$ ma3or delays$ or performanceshortfalls$ the I=B will determine the need to cancel the pro3ect and redirect thefreed resources to other priorities. The I=B must coordinate the cancellation andfunds redistribution for pro3ects appro*ed by the TI=B.

50.5. Business (asesThe appropriate %eputy Inspector General or Associate Inspector General willprepare a business case for all capital in*estment proposals. The business caseshould include9

%escription9 Pro*ide the name of the pro3ect. %efine the pro3ect bydescribing what it is and what it will accomplish.

:ustificationBenefits of Pro3ect9 %escribe the business need by defining thereasons for pursuing the pro3ect.

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!inancial Basis for -electing the Pro3ect(ost Benefit Analysis 7ighlights9This selection will be based on a cost benefit analysis conducted prior tosubmitting a business case. The analysis may *ary$ depending on the type

of pro3ect being studied. At a minimum$ the function should9o Identify assumptions and constraints.

o Identify and ,uantify benefits and costs on a full life cycle basis#.

Program 'anagement9 %escribe who will manage the pro3ect and how it willbe managed$ particularly in regard to pro3ect cost control$ if applicable. Thepro3ect milestones indicated below should be used to determine the acti*itiesassociated with long@term pro3ects i.e.$ ('I-# and the timeframes foraccomplishing those tas/s.

1. Pro3ect Initiation %ocument @ mmddyyyy. =e,uirements Analysis Pac/age @ mmddyyyy

. Pro3ect 'aster Plan @ mmddyyyy. 'aster Plan >pdate @ mmddyyyy5. -olicitation %ocument=!P @ mmddyyyy. (ontract Award @ mmddyyyy. %ecision to Implement @ mmddyyyy?. %ate PrototypePilot Implemented @ mmddyyyyJ. %ate !ully Implemented @ mmddyyyy

50.5.5 TI=B Appro*al6hen TI=B appro*al is re,uired$ the functions will coordinate with !inance toprepare a business case using Treasury2s standard business case template$ as

re,uired in &'B A@11$ +)hibit 00$ on Planning$ Budgeting$ Ac,uisition$ and'anagement of (apital Assets$ and -upplement to Part $ +)hibit 00$ in the(apital Programming Guide. 6hen TI=B appro*al is re,uired$ additionalsupporting documentation for the business case must be prepared.

50. Procedures for Appro*al of &ff@-ite 'eetingsTIGTA has defined DmeetingsE to include meetings$ conferences$ (ontinuingProfessional +ducation (P+s#$ tas/ forces or other special wor/ groups$ andde*elopmental and training acti*ities. !

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comparison indicates it is less costly to hold the meeting outside thehead,uarters city either in go*ernment or non@go*ernment space#$ $r%/ra$$r/a& % n/ r+3u%r+). All documentation$ including cost comparisons$must be /ept on file by the sponsoring office.

7owe*er$ if a meeting is scheduled outside the head,uarters city but suitablego*ernment space is a*ailable in the head,uarters city$ $r%/r a$$r/a& %r+3u%r+)$ e*en if cost calculations show that the off@site location is lesscostly.

If a meeting is scheduled outside the head,uarters city$ either in go*ernmentor non@go*ernment space$ and cost calculations show that holding themeeting outside the head,uarters city is more costly$ $r%/r a$$r/a& %r+3u%r+).

All meeting re,uests re,uiring prior appro*al must be submitted to the Principal

%eputy Inspector General through the %irector$ !inance and Accountability$under the signature of a %eputy Inspector General$ Associate Inspector General$or the (hief (ounsel. The re,uest should include all re,uired cost comparisons$detailed information on how the costing was arri*ed at$ what assumptions wereused and the name and phone number of the person to contact for additionalinformation. 6hen conducting cost analysis for off@site meetings$ you mustinclude the cost of transportation$ per diem$ contract fees$ room and e,uipmentrental$ and all other costs incident to the meeting.

The re,uest$ with the e)ception of tas/ forces$ should be recei*ed at least si)wee/s in ad*ance of the date of the meeting to allow both for ade,uate re*iew

time and for a change of location or facility$ if the initial re,uest is not appro*ed.Arrangements with the proposed facility where the meeting is re,uested to beheld and hotel reser*ations should not be finalied until appro*al has beenrecei*ed. Tas/ force re,uests should be submitted as soon as the tas/ force hasset meeting dates. Before deciding on any off@site location$ all of the followingsteps should be ta/en9

%etermine the a*ailability of go*ernment facilities before considering non@go*ernment facilities military bases often a good option#.

'inimie o*ernight tra*el by selecting a site that re,uires a minimum numberof employees to tra*elstay o*ernight.

Include the head,uarters city in all cost comparisons. -elect the head,uarters city when cost differences are negligible.

A*oid the use of resort or resort@type facilities.

-elect a site where the primary ob3ecti*es of the meeting can be attained.

50. Business (ardsTIGTA must maintain the integrity of all identification media to pre*ent misuse orabuse that could bring discredit or ad*erse publicity to our organiation. TIGTA


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considers business cards to be a form of identification$ and business cards musttherefore conform to designated specifications. The design and specifications ofthe business cards ensure uniformity and consistency$ thereby allowing TIGTA toe)peditiously handle in,uiries from ta)payers about the li/elihood of a businesscard being genuine. !or that reason$ only business cards authoried by TIGTAmay be used as official identification. Any employee using business cards froman unauthoried source in the performance of hisher official duties must ceaseimmediately. TIGTA business cards are for use only in the conduct of officialbusiness$ and any other use is unauthoried.

(urrently$ there are only two authoried methods of obtaining business cards.&ne is to purchase the cards from an authoried *endor$ and the other is toproduce the cards using the template in 'icrosoft 6ord. TIGTA employees maynot use any other type of business card in the performance of their official duties.

The *endor authoried to produce business cards using the TIGTA seal andbadge is (hu Graphic Arts of +l (a3on$ (alifornia phone 1J@5J@5#. Toobtain an order form$ call the *endor and re,uest that a form be fa)ed to you.The completed order form must bear the name$ signature$ and title of anauthoriing TIGTA official. The re,uesting employee must pay for this ser*ice$as preprinted business cards cannot be purchased with appropriated funds.

To create a customied page of business cards using the 6ord template$ select!ile@Cew$ clic/ on D&n 'y (omputerE under the templates menu on the right sideof your screen$ clic/ on the DGeneralE tab$ and select the D(alling (ardE template.The template incorporates the official TIGTA seal$ similar to the commerciallypreprinted cards. The cards should be printed on A*ery 51 6hite Business(ards or e,ui*alent card stoc/. The card stoc/ can be purchased withappropriated funds through your office supply sources. 6e recommend that youprint only a few pages at a time due to the fre,uency that information changes.


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50.? Interagency Agreements IAs#

An IA is written to obtain a legally binding contract between two federal agenciesthat specifies the tas/s to be accomplished by one agency in support of theother. This includes labor and non@labor costs for detailed personnel andadministrati*e support pro*ided to TIGTA.

50.?.1 Authority

The authority to e)ecute IAs obligating TIGTA funds is contained in statutes suchas the Go*ernment =eform Act of 1JJ and the +conomy Act$ 1 >.-.(. L 155.

50.?. To initiate a TIGTA IA

=efer to TIGTA 'anual (hapter 00#@0. for &ffice of Procurement-er*ices4 instructions for preparing and routing IAs.

50.?. Billing for Interagency Agreements

+lectronic payments are re,uired between federal agencies$ and thestandard payment method is through the Intra@go*ernmental Payment and(ollection IPA(# -ystem. TIGTA4s accounting ser*ices pro*ider$ Bureau ofthe Public %ebt$ Administrati*e =esource (enter BP%@A=(#$ is responsiblefor retrie*ing IPA( bills from$ or initiating IPA( bills in$ the IPA( system.

50.?..1 TIGTA as Billed Agency

BP%@A=( will re,uest certification appro*al# of an IPA( by sending theIPA( bill and a certification form *ia email to the designated (ontracting&fficer4s Technical =epresentati*e (&T=# or IPA( appro*er.

-ince IPA( immediately reduces TIGTA4s funds$ the appro*er must ensurethat the IPA( charge is correct and consistent with the goodsser*icesrecei*ed as well as the IA terms.

If needed to ensure billing consistency$ the appro*er may re,uest additionaldocumentation from the billing agency. If the billing agency does not pro*ide

sufficient documentation for the bill$ the appro*er may Dchargebac/E re3ect#the transaction$ or the part of the transaction lac/ing sufficientdocumentation.

If the IPA( is certified as *alid$ the bill must either be applied to an e)istingobligation or charged directly to an accounting string supplied by theappro*er. The accounting string must include the appropriate cost centerand B&(. Please chec/ with TIGTA4s budget analyst or accountant if notsure of the accounting string information.


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If the appro*er fails to send the completed certification form bac/ to BP% bythe end of the month$ the IPA( will be charged against that function4s defaultcost center and B&( 500. The e)pense will remain charged to the

default codes until the completed certification form is recei*ed by BP%.

50.?.. TIGTA as Billing Agency

To ensure funds are collected for the wor/ performed by TIGTA$ the Assistant%irector$ !inance$ must recei*e a copy of the IA signed by both parties. Inaddition$ on a monthly or ,uarterly basis$ the function performing the ser*iceshould notify the Assistant %irector$ !inance$ regarding the amount of wor/performed and re,uest that TIGTA bill the other !ederal agency. -ee TIGTA'anual 00#@0. for more information. The Assistant %irector$ !inance$ willpro*ide necessary billing information to BP%@A=(.

&perations 'anual (hapter 001?

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50.J Accounting for the In*estigati*e Imprest !undIn accordance with the implementation of the %ebt (ollection Impro*ement Act of1JJ %(IA#$ imprest funds may only be used when the +lectronic !undsTransfer +!T# re,uirement is wai*ed. TIGTA is permitted to ha*e imprest fundsunder this wai*er for payments made in furtherance of law enforcement action.Therefore$ only the &ffice of In*estigations &I# may establish and maintain animprest fund$ and any disbursements shall be related to the enforcement of lawsand regulations.

50.J.1 =eferences

%ebt (ollection Impro*ement Act of 1JJ$ Pub.

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(onfidential -ource H Any person or entity pro*iding information or ser*ices on aconfidential basis$ whether compensated or not

(onfidential -ource +)penditure HPayment made directly to or on behalf of aconfidential source.

(ode of !ederal =egulations (!=# H The codification of the general andpermanent rules and regulations published in the !ederal =egister by thee)ecuti*e departments and agencies of the !ederal go*ernment.

(learance H The process whereby a financial institution processes chec/s drawnupon or deposited into accounts maintained by the institution.

+lectronic !unds Transfer +!T# H 'ethod of disbursing funds without use of apaper chec/.

!lash 'oney H

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-ignature (ard H %ocument identifying indi*idual authoried to ma/e withdrawalsfrom an account at a financial institution.

-! H -tandard !orm

-tandard General

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The primary cashier shall open the in*estigati*e imprest fund at a !ederallyinsured financial institution. The chec/ing account shall be in the name of theTreasury Inspector General for Ta) Administration under TIGTA4s +IC 0@05101 as an account for a non@ta)able entity not sub3ect to bac/@upwithholding. (hec/ing accounts that pay interest or incur a monthly ser*ice feeshall be a*oided$ if possible. The signature card for the chec/ing account shallbe signed by the primary and alternate cashiers. In order to maintain goodinternal control and appropriate segregation of duties$ the -A( shall C&T be onthe signature card.

The AIGI forwards the appro*ed memo to the Assistant %irector$ !inance who 1#re*iews the re,uest to ensure all re,uired data is contained in the memo andappro*es re,uest by notifying$ BP%@A=( to process re,uest$ # updates thein*estigati*e imprest fund spreadsheet$ and # sends a copy of the spreadsheetto BP%@A=( and the -taff Accountant.

BP%@A=( will send an electronic funds transfer +!T# in the amount re,uested tothe designated ban/ for the designated chec/ing account. If the chec/ingaccount number is not pro*ided$ a chec/ payable to the Treasury InspectorGeneral for Ta) Administration in the amount re,uested will be sent to theprimary cashier at the mailing address indicated in the re,uest memo. BP%@A=(will ma/e the appropriate accounting entry to record the establishment of animprest fund.

In accordance with cash management and internal controls$ the primary cashier

will deposit the chec/ no later than the ne)t business day and properly securethe chec/ in a loc/ed container with access limited to the primary and alternatecashiers# until deposited. If the completed signature card was not attached to there,uest memo$ the primary cashier will email a copy of the completed signaturecard showing the chec/ing account number to the Assistant %irector$ !inance.The -taff Accountant will ensure that the new imprest fund is properly recordedin the accounting records as an increase to the Imprest !unds account -G.-.(.A. L app. 6est 00# @ Inspector General Act of 1J?$ as

amended.

1 >.-.(. L 51d# @ !ederal 'anagers4 !inancial Impro*ement Act of 1J?. 1 >.-.(. LL J01@J0 @ (hief !inancial &fficers Act of 1JJ0.

1 >.-.(. LL 1101$ Cote and 1115$ Cote @ Go*ernment Performance =esultsAct of 1JJ.

1 >.-.(. L 1$ Cote @ Improper Payment Information Act of 00.

1 >.-.(. LL 51@5 @ =eco*ery Auditing Act.

1 >.-.(. LL 1511@151.

1 >.-.(. L 5.

1 >.-.(. LL 11@1 and LL 1511@151J H Anti@%eficiency Act.

1 >.-.(. LL 101a#$ 0b# H Augmentation Prohibition.

1 >.-.(. LL 0$ 01$ 11$ 1@1J H %ebt (ollection Act of 1J?. 1 >.-.(. L 0 H %ebt (ollection Impro*ement Act of 1JJ.

&'B (ircular A@1 H 'anagement4s =esponsibility for Internal (ontrol.

&'B (ircular A@11 H Preparation$ -ubmission$ and +)ecution of Budget.

&'B (ircular A@1 @ !inancial 'anagement -ystems.

&'B (ircular A@1 @ !inancial Accounting Principles and -tandards.

&'B (ircular A@1 @ !inancial =eporting =e,uirements.

-tatement of !ederal !inancial Accounting -tandards -!!A-# issued by the!ederal Accounting -tandards Ad*isory Board !A-AB#.

Treasury Accounting Policy.

Treasury !inancial 'anual T!'# issued by !inancial 'anagement -er*ices!'-#.

50.10. A@1 H Appendi) A H Internal (ontrols o*er !inancial =eportingA@1 as implemented by Treasury re,uires TIGTA to establish a -eniorAssessment Team -AT# headed by the (hief !inancial &fficer (!$ to includeindi*iduals /nowledgeable of TIGTA4s mission from an operational andprogrammatic perspecti*e. +*ery year$ the -AT is responsible for ensuring theaccurate and timely e)ecution of the mandated assessment methodologyestablished by Treasury. The methodology is summaried below8

Assess adherence to the fi*e standards of internal control by completing theGo*ernment Accountability &ffice GA Abbre*iated Internal (ontrolKuestionnaire.

Incorporate the results of internal control andor management re*iews andaudits into their assessment of internal control.

Test the transaction types e.g.payroll$ intergo*ernmental# identified by

Treasury.


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Identify the /ey financial reports and re*iew their format$ content$ accuracy$method of assembly and usefulness.

Test financial statement compilation$ consolidation$ and assembly process

Cotify Treasury of the results of the A@1 assessment. Include the results in the preparation of the annual !ederal 'anagers

!inancial Integrity Act !'!IA#!ederal !inancial 'anagement Impro*ementAct !!'IA# assurance statement.

TIGTA4s -AT comprises the following indi*iduals8

Principal %eputy Inspector General

%eputy Inspector General for In*estigations

%eputy Inspector General for Audit

%eputy Inspector General for Inspections and +*aluations

(hief (ounsel

Associate Inspector General $ &ffice of 'ission -upport (hief !inancial&fficer 7ead of -AT#

In order to comply with these re,uirements$ the (!& will issue an annual datacall to the functions usually around !ebruary# re,uiring the completion of theGA& abbre*iated ,uestionnaire and submission of completed re*iews that arerelated to financial reporting such as imprest funds$ small purchases$procurements$ 6ebTA submissions$ accuracy of PP' data$ certification andaccreditation of information systems$ internale)ternal peer re*iews$ *oucherstra*el$ non@confidential e)penditures#. The GA& abbre*iated ,uestionnaire

must be completed and returned to the (!& mailbo) or -taff Accountant. A copyof the function4s prior year response will be a*ailable *ia a hyperlin/$ or pro*idedby the staff accountant upon re,uest. The re*iews must be submitted to the(!& mailbo) or the staff accountant. The actual due dates will be indicated inthe annual data call and may *ary slightly based on Treasuryguidancedeadlines.

In addition to the data call$ *arious indi*iduals may be re,uested to pro*ideinformation copies of in*oices$ receiptacceptance forms$ interagencyagreements$ and re,uisitions# related to testing transactions. Treasury4sguidance states that indi*iduals testing the transactions must not be those

routinely e)ecuting the controls. Therefore$ the (!& may re,uest assistancefrom the &ffice of Audit$ if needed$ to comply with this restriction.

Treasury re,uires the submission of91. The name and title of the -AT members.. The test team members and their area of e)pertise.. The GA& abbre*iated internal control ,uestionnaire.. The test plan for all re,uired transaction types.


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5. The test results.. (orrecti*e action plans for ineffecti*e controls.

Prior to submission$ the -AT is re,uired to re*iew the results of the assessmentbased on Treasury4s methodology.

The results of the A@1 testing are incorporated in the annual assurancestatement. The -AT will be copied on all submissions to Treasury.

50.10. Annual !'!IA!!'IA Assurance -tatementThis document re,uires the IG to pro*ide written assurance to the Treasury-ecretary that TIGTA has made a conscientious effort to comply with the internalcontrol re,uirements of *arious legislation and is operating in accordance withprocedures and standards prescribed by the (omptroller General and &'B. Theassurance statement specifies nine control ob3ecti*es$ indicates the appropriatele*el of assurance regarding compliance with !!'IA and A@1 Appendi) A anddescribes the analytical basis for the assurance$ highlights significantaccomplishments$ and identifies material wea/ness and reportable conditions. Inorder to complete the audit of Treasury4s consolidated financial statements$ eachTreasury bureau is re,uired to submit an interim annual assurance statement inearly -eptember and a final annual assurance statement in early &ctober.

The (!& assists the IG by issuing a data call to gather the information needed toprepare the annual assurance statement. The data call which is usuallytransmitted in :uly includes an interim and final response date and a briefsummary of the annual guidance issued by Treasury. Also TIGTA4s prior year

response and each function4s prior year response is pro*ided *ia a hyperlin/ orupon re,uest to the staff accountant. The responses must be submitted to the(!& mailbo)$ the %(!& or the staff accountant by the due dates.

The annual assurance statement is needed to complete the audit of Treasury4sfinancial statements which are included in the Performance and Accountability=eport PA=#. &'B (ircular A@1 re,uires issuance of the PA= to &'B and(ongress no later than 5 days after the fiscal year end Co*ember 15 th#.

Accordingly Treasury does not pro*ide fle)ibility in the due dates. Therefore$ the(!& stri*es to issue the data call as soon as possible to pro*ide the functionswith sufficient time to respond by the due dates.

50.10.5 Annual 'anagement =epresentation

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assurance to the Treasury -ecretary by signing the memo. Co items in thememo should be deleted as the same memo is pro*ided to other Treasurybureau heads. Treasury normally issues their management representationtemplates in early Co*ember$ with a submission date also in early Co*ember.

The (!& assists the IG by gathering data needed to *erify the accuracy of theitems applicable to TIGTA in the letter prepared by Treasury. Therepresentations in the letter do not affect each function within TIGTA8 therefore$the data call is limited to the applicable functions.

50.10. Annual >nasserted (laims 'emorandumThis document re,uires the IG to pro*ide the Treasury -ecretary with informationregarding any e*ent that has occurred which could result in a possible claimwhere a reasonable possibility e)ists that the outcome would be unfa*orable andthe resulting liability would be material. This information$ along with data from(ounsel related to pending litigation$ is used to ensure that all contingentliabilities are properly reported in the financial statements.

The (!& assists the IG by ,uerying (ounsel about unasserted claims.Therefore$ it is critical that all functions coordinate with (ounsel when an e*entoccurs that could lead to litigation which would result in a significant liability forTIGTA e.g.'accidents in*ol*ing go*ernment owned *ehicles$ ad*erse personnelactions$ allegations of discrimination or se)ual harassment$ termination of acontract$ inappropriate disclosure of information$ etc.#.

-ince the unasserted claims information is used in the preparation of the financial

statements$ Treasury re,uires submission of an initial statement$ an interimstatement$ and a final statement. Treasury normally issues the annual guidancein mid@:uly$ re,uires the initial statement in early August$ the interim statement inmid@&ctober$ and the final statement in early Co*ember. The final statementmay be transmitted *ia email8 a formal memo is not re,uired. 7owe*er$ the initialand interim responses must be in a formal memo.

50.10. -emi@Annual =eport to (ongressThis report to (ongress$ which is due no later than &ctober 1 and April 0 ofeach year$ summaries the acti*ities of the agency during the immediatepreceding si) month periods ending 'arch 1 and -eptember 0 see 00 .0.

for further information#.

50.10.? -ubmission of Budget =e,uestThe budget process is lengthy$ running from 1? to months. Although(ongress is re,uired to pass all of the appropriation bills before the fiscal yearstarts on &ctober 1$ this does not usually occur$ in which case (ongress issues a(ontinuing =esolution to pro*ide agencies funding until the appropriations bill ispassed.

http://web.tigta.treas.gov/IMDS/opmanual-toc_600.htmhttp://web.tigta.treas.gov/IMDS/opmanual-toc_600.htm

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Treasury$ li/e all other agencies$ prepares a budget re,uest and submits it to&'B for inclusion into the President4s budget. As a Treasury bureau$ TIGTAsubmits its budget re,uest to Treasury. Preparation$ submission$ and re*iew ofthe budget is a lengthy process that re,uires information from the &ffice of Audit&A#$ &ffice of In*estigations &I#$ and &ffice of Inspections and +*aluationsIO+#. The budget includes a mission statement$ fiscal year priorities$ initiati*es$charts$ e)hibits$ and budget and performance data. The budget is submittedusing *arious systems 'A; and B+!'#. +)hibits include$ but are not limited to$the +)hibit 5 H -pace Budget :ustification8 +)hibit 5 H =eport on =esources for!inancial 'anagement Acti*ities8 +)hibit 009 (apital Asset Plan and Business(ase8 and +)hibit 5 H Agency IT In*estment Portfolio.

50.10.J &ther !inancial =eporting not =e,uiring %ata (allsA *ariety of financial reporting occurs on a monthly$ ,uarterly$ semi@annual$annual$ or ad hoc basis that does not re,uire a data call. In these instances$ thedata is obtained from TIGTA4s core financial &racle%isco*erer# or feedersystems. The feeder systems are P=I-' procurement#$ (itidirect smallpurchase and !leet cards#$ Go*Trip *ouchers#$ PA=I- PP' assets#$ 6ebTApayroll#$ and 7= (onnect personnel#. As stated earlier in this section$ the datain these systems affects the accuracy of TIGTA4s core financial system$ financialstatements$ and financial reporting. Therefore$ it is important that e*eryemployee ensure that the correct accounting information is used on alldocuments. Kuestions regarding the accounting information should be directedto the !unctional Budget (oordinator or the -taff Accountant.

'onthly reporting includes9 Treasury Information +)ecuti*e =epository TI+=# file$ usually submitted

around the third business day of the month per Treasury4s PA= timeline. Thefile pro*ides all account balances and related account attributes. Thisinformation is used by Treasury to prepare monthly financial statements.

-!@1 =eport on Budget +)ecution and Budgetary =esources !A(T- II#e)cept &ctober$ April and 'ay.

%epreciation report maintained by the -taff Accountant based on data fromP=I-'$ &racle%isco*erer$ and PP'.

=eport of -eied Assets open items# from PP'.

!inancial indicators re,uired by &'B9Treasury posts all bureaus4 scores on their website#.

Prompt Pay identifies late payments and penalties.

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Treasury =eport on =ecei*ables T=&=#.

!ederal +mployees (ompensation Act !+(A#.

!inancial -tatement Mariance Analysis.

'eaningful (ategories !A(T- II#. !inancial -tatement footnotes

-emi@annual reporting includes9

Imputed (osts H re,uires identification of any good or ser*ice recei*ed fromanother Treasury bureau without reimbursement to the Treasury bureaupro*iding the good or ser*ice. If the amount is material$ an accounting entryis re,uired. !or e)ample$ the I=- used to pro*ide TIGTA space$ softwarelicenses$ telephone ser*ice$ public transportation subsidies$ etc. Thisreporting re,uires that all Treasury bureaus re*iew data submitted by otherbureaus and identify missing items Appendi) A due %ecember 1 and

-eptember 18 Appendi) B due :anuary 15 and -eptember 15#. +liminations H re,uires the identification and resolution of differences reported

between federal agencies related to interagency agreements$ !+(A$ andbenefits paid by &ffice of Personnel 'anagement related to former federalemployees due in late :uly and late &ctober#.

Annual reporting includes9 -!@1$pportionment and Reapportionment Schedule.

=eco*ery auditing.

Improper Payment Information Act as amended by Improper Payments

+limination and =eco*ery Act IP+=A# of 010 =eport %ebt (ollectionImpro*ement Act. !inancial -ystems Plan.

!inancial -ystems In*entory.

T=&= certification and *erification.

+limination H confirmation of -G< balances.

Cotes to !inancial -tatements and (losing Pac/age documents

Ad 7oc reporting includes9

=eporting to the President through &'B$ if budgetary authority is e)ceededAnti@%eficiency Act *iolation#.

=esubmission of -!@1$pportionment and Reapportionment Schedule$ ifmoneys from interagency agreement substantially e)ceed initial estimatedamount.


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50.11 Accounting for -eied Assets$ Bribes$ and =estitutions%uring an in*estigation$ the &ffice of In*estigation &I# may seie personalproperty under the 'oney .-.(. L 1J5and L 1J5$ where the underlying conduct is sub3ect to in*estigation under the IG

Act. (hapter 00 -ection 1J0 pro*ides detailed information on the processing$handling$ storage$ and disposal of e*idence. This section pro*ides informationon the proper accounting for seied assets$ bribes$ and restitutions.

50.11.1 =eferences

General Accountability &ffice GA report 01@JJG H -eied Property and!orfeited Asset -ystems =e,uirements @ (hec/list for =e*iewing -ystems>nder the !ederal !inancial 'anagement Impro*ement Act.

-!!A- R H Accounting for In*entory and =elated Property. Treasury !inancial 'anual T!'# section on !ederal Account -ymbols and

Titles !A-T#. 1 (!= Part 10@1 %isposition of -eied$ !orfeited$ Moluntarily Abandoned$

and >nclaimed Personal Property

50.11. %efinitions

AIGI H Assistant Inspector General for In*estigations.

Bailment H A legal relationship established when TIGTA ta/es custody of

personal property owned by a third party.

Bribe H Anything of *alue recei*ed as an incenti*e for the !ederal employeerelated to performance of their official duties.

%IGI H %eputy Inspector General for In*estigations.

%i*isional -eied Asset (oordinator H Indi*idual within the &ffice ofIn*estigations &I# assigned administrati*e duties related to the seied assetmodule within the PA=I- Property 'anagement PP'# system.

+IC H +mployer Identification Cumber

+*idence H Information and items gathered by &I during an in*estigation.

!air 'ar/et Malue H The amount that a seller can recei*e for the item in thenormal mar/etplace from an unrelated third party.


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!orfeited H TIGTA has ac,uired ownership of personal property through asummary process or court order pursuant to any law of the >nited -tates.

!unds H (ash$ chec/s$ or money orders.

'onetary Item H (ash or any negotiable item such as an un@cashed money orderor chec/. 'onetary item and moneys are interchangeable in this section.

Also chec/$ cashier4s chec/ and money order are similar and interchangeable inthis section.

Cational -eied Asset (oordinator H Indi*idual within the &ffice of 'ission-upport &'-# assigned administrati*e duties related to the seied asset modulewithin PP'.

PP' H PA=I- Property 'anagement system.

=estitution H (ourt order re,uiring defendant to remit specified amount of money.

=eturn H &wnership of the seied asset remains with the original owner and theseied asset is returned to the original owner or the owner4s designee.

Ta) =emittance H !unds submitted to an Internal =e*enue -er*ice I=-#specified location by an indi*idual to pay their !ederal ta)es.-A H -pecial Agent

-A( H -pecial Agent In@(harge

-eied Asset H Personal property that has been confiscated by TIGTA$ whosecare and handling will be the responsibility of TIGTA until final ownership isdetermined by the 3udicial process. TIGTA does not ha*e ownership of theasset and thus may not con*ert the asset to its official use pending a finalforfeiture determination.

50.11. Accounting for -eied Assets and Bribes-eiure of assets establishes a bailment relationship between TIGTA and theowner of the property$ re,uiring TIGTA to properly safeguard and account for

these assets. &I !orm 11$ Statement of Special #oneys and (ropertyTransactionis used to gather information needed for proper accounting. &I !orm11 is submitted twice9 1# when assets are seied or bribe money is recei*ed$and # upon disposal of seied assets and bribe money.

Accounting for seied assets and bribes re,uires coordination between *ariousindi*iduals9 -pecial Agent In@(harge -A(#$ -pecial Agents -A#$ %i*isional-eied Asset (oordinator$ Cational -eied Asset (oordinator$ Assistant %irector$


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!inance$ -taff Accountant$ and I=- and Bureau of the Public %ebt BP%#@Administrati*e =esource (enter A=(# personnel.

+ach -A( is responsible for the proper handling$ prompt reporting and timelydisposition of all seied funds and property handled by the -As under hisher

3urisdiction. The -A( should conduct annual re*iews of the seied funds andproperty.

50.11. -eiure of money$ including ta) remittances$ monetary items$ propertyand bribes.

NOTE7The -A$ %i*isional -eied Asset (oordinator and Cational -eied Asset(oordinator in this order will do the following8

1. The -A will9

(omplete &I !orm 11$

o Prepare a separate &I !orm 11 for each case8 seiures for multiplecases may n/be reported on a single &I !orm 11.

o Prepare a separate &I !orm 11 for seiures on different datesfor the

samecase.o +ach item shall be listed separately in the appropriate section9

=eco*ered moneys held as e*idence$ moneys held for safe/eeping$bribe moneys$ seied property.

o

=eport all seied monetary items at their face *alue.o =eport seied property at the fair mar/et *alue as of the seiure date$

e)cept illegal firearms$ drugs$ alcohol which are reported with a F0 fairmar/et *alue.

o Information should only be entered into bloc/ ? a through d# at time of

disposal.o Additional instructions are attached to &I !orm 11.

6ithin fi*e business days$ email the completed &I form 11 to the appropriate%i*isional -eied Asset PP' (oordinator

(orrect errors and omissions when re,uested by the %i*isional -eied Asset

(oordinator. =etain a copy of the completed &I form 11 in the case file.

D/n/use &I !orm 11 to report release of seied assets or bribe money tocourt for use as e*idence. !ully document the transfer of custody of e*idencein the e*idence log and on the +*idence (ustody %ocument. -ee (hapter00#@1J0 for additional detailed instructions.


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. The %i*isional -eied Asset (oordinator will9

=e*iew &I !orm 11 to ensure it has been correctly completed and all

necessary data supplied. If there are errors or omissions$ wor/ with -A toobtain corrected &I !orm 11.

=etain a copy of &I !orm 11 for their records

+mail$ within two business days$ the completed &I !orm 11 to the Cational-eied Asset (oordinator.

Pro*ide additional information or e)planation when re,uested by the Cational-eied Asset (oordinator.

. The Cational -eied Asset (oordinator will9

+nter the information for the &I !orm 11 into the PP' -eied Assetdatabase within two business days of recei*ing the form.o =e,uired data9 Type$ in*entory status$ ac,uisition$ ac,uisition date$

product type$ di*ision$ a*ailability$ cost$ case number$ case name$employee I%.

o If applicable9 -erial number$ brand$ model number$ comments.

=ecord the se,uentially assigned PP' record number for each seied asseton the &I !orm 11.

'aintain a copy of the &I !orm 11.

(ontact the %i*isional -eied Asset (oordinator to resol*e any ,uestions orissues regarding the &I !orm 11.

50.11.5 %isposal of seied assets$ bribes$ ta) remittances$ and property.%isposal may not occur until final disposition of the 3udicial process. Thedisposal procedures *ary depending upon the item9 seied funds$ seiedproperty$ bribe$ or ta) remittance. =egardless of the item$ an &I !orm 11 isre,uired for each disposal.

50.11.5.1 %isposal of seied money and monetary items C&T misappropriatedta) remittances or Bribe 'oney.

-ee 50.11.5. for disposal of Bribe 'oney. -ee 50.11.5. for disposalprocedures for misappropriated ta) remittances.

NOTE7All -As and seied asset coordinators should follow the guidelines belowfor mailing money orders or cashier4s chec/s8

!or chec/ *alues F1000 and o*er$ use o*ernight ser*ice


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!or chec/ *alues of at least F100 but less than F1000$ use ndday ser*ice

!or chec/s less than F100 use certified mail

NOTE7The -A$ %i*isional -eied Asset (oordinator and Cational -eied Asset(oordinator in this order will do the following8

1. The -A will9

(omplete &I !orm 11$ email it to the %i*isional -eied Asset (oordinator$and retain a copy for the case file. All bloc/s of the 11 must be completed.

o Bloc/ ?a# should be the date the -A returned the funds to the originalowner or forwarded the funds to the %i*isional -eied Asset(oordinator.

o Bloc/ ?b# closing status must be either returned/rforfeited.o Amounts in bloc/ ?c# must e,ual amount reported in bloc/ c# at time

of seiure. -eied money and monetary items do not appreciate nordepreciate in *alue.

o Bloc/ ?d# must indicate who recei*ed the money.

&btain a signed receipt witnessed by at least two -As for cash or monetaryitems returned to the original owner andretain a copy of the signed receipt inthe case file.

(on*ert forfeitedcash to a money order or cashier4s chec/. (ash 4a&& n/be forwarded for processing.

The money order or cashier4s chec/ must be made payable to TIGTA. !oramounts o*er F10$000$ the -A should pro*ide TIGTA4s +IC 0@05101# to thefinancial institution generating a (urrency Transaction =eport (T=#. The -Ashould not pro*ide his or her indi*idual --C to the financial institutionE.

(omplete !orm 10$ Document Transmittaland email it to the %i*isional-eied Asset (oordinator.

o The DT&E bloc/ shall contain the address for the Cational -eied Asset

(oordinator$ e*en though the !orm 10 is being initially sent to the

%i*isional PP' (oordinator.o The release date shall match the disposal date in bloc/ ?a# of the &I

!orm 11.o The (ase number$ amount to be deposited$ and o*ernight trac/ing

number shall be completed.o The D!romE bo) shall contain the mailing address for the %i*isional

-eied Asset (oordinator.


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o %i*isional -eied Asset (oordinator or the -A( will sign as the

releasing official.o The %i*isional -eied Asset (oordinator4s phone number must be

entered in the D&riginator Telephone CumberE bo).

Attach the cashier4s chec/ or money order to the completed !orm 10 andfor security$ place these items in an en*elope mar/ed (onfidential H%i*isional -eied Asset (oordinator. Place this en*elope in the appropriatemail en*elope addressed to the %i*isional -eied Asset (oordinator. Themailing guidelines at the beginning of this subsection should be followed.=egular mail shall not be used. !orm 10 should indicate the mail trac/ingnumber.

=etain a copy of the cashier4s chec/ or money order and !orm 10 in thecase file.

. The %i*isional -eied Asset (oordinator will9

=e*iew the &I !orm 11$ contact the -A to resol*e any errors or omissions$and email the &I !orm 11 to the Cational -eied Asset (oordinator.

=e*iew the !orm 10 and contact the appropriate -A to correct any errorsor omissions. +mail an ac/nowledgement to the -A indicating that the fundswere recei*ed.

=e*ise the !orm 10 to reflect the new trac/ing number. Attach thecashier4s chec/ or money order to the re*ised !orm 10. +mail anelectronic copy of the re*ised !orm 10 to the Cational -eied Asset

(oordinator. Place the re*ised !orm 10 and cashier4s chec/ or money order in an

en*elope mar/ed D(onfidential H Cational -eied Asset (oordinator.E Placethis en*elope in a mail en*elope addressed to the )ational Seized ssetCoordinator. The mailing guidelines at the beginning of this subsectionshould be followed.

=etain a copy of the original and re*ised !orm 10 and the cashier4s chec/or money order for their files.

=etain a copy of !orm 10 signed by the Cational -eied Asset (oordinatorin their files.

. The Cational -eied Asset (oordinator will9

>pdate the -eied Asset module of PP' based on the !orm 11.

o (hange the disposed indicator to DyesE$ change the status to DforfeitureE or

DremissionE$ and the a*ailability to DfinalE.o +nter the final disposition date$ final disposition location$ status date$ and

comments$ if any.


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-ign and date !orm 10 in the appropriate bloc/s and email the completed!orm 10 to the %i*isional -eied Asset (oordinator as confirmation offunds receipt.

Prepare a new !orm 10 for transmission to BP%@A=(.o >se template !orm 10.

o (opy the information case number$ amount to be deposited# from the!orm 10 recei*ed from the %i*isional -eied Asset PP' (oordinator.

o +nter the new trac/ing number.

Attach the cashier4s chec/ or money order to the !orm 10$ place in anen*elope mar/ed DTIGTA @@ -eied (ash for %eposit.E Place this en*elope ina mail en*elope addressed to theccounting Services &ranchat BP%@A=(.The mailing guidelines at the beginning of this subsection should be followed.The current address can be obtained by accessing the BP%@A=( webpageand clic/ing on 'ailParcel!a) or by confirming with the staff accountant.

=etain a copy of the !orm 10 sent to the %i*isional -eied Asset(oordinator$ the !orm 10 sent to BP%@A=($ and the signed !orm 10recei*ed from BP%@A=( along with a copy of the cashier4s chec/ or moneyorder.

BP%@A=( will9

-ign and return the !orm 10 to the Cational -eied Asset (oordinatorac/nowledging receipt of the funds.

%eposit the funds into the 'iscellaneous =eceipts !und of the %epartment ofthe Treasury4s General !und at a !ederal =eser*e Ban/.

=ecord this transaction in sufficient detail in the accounting records to allowTIGTA to trace each cashier4s chec/ or money order to the detailed trialbalance report for the 'iscellaneous =eceipts !und TGT10JJG=;;;;;;#.

50.11.5. %isposal of Bribe 'oney1? >.-.(. L pro*ides that bribe money recei*ed or tendered in e*idence inany >nited -tates (ourt shall be deposited in the registry of the court$ after finaldisposition of the case$ to be disposed of in accordance with the order of thecourt.

The -A will9

After final disposition of the case$ as/ the >.-. Attorney4s &ffice to petition thecourt for an order 1# specifying that the bribe money be forfeited$ and #commanding the cler/ of the court to deposit the funds in the %epartment ofthe Treasury4s 'iscellaneous =eceipts !und.

&btain a copy of the court order related to the disposition of the bribe money.


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o +nter the I=- -ubmission Processing (enter address where the results

memorandum is being sent in the DT&E bloc/.o +nter the seied ta) remittance money$ case number$ cashier4s chec/ or

money order number and amount in the D%ocument IdentificationE bloc/.Also$ indicate that the cashier4s chec/ or money order is made payable tothe I=-.

o +nter the trac/ing number in the D=emar/sE bloc/.

o +nter the -A4s mailing address in the D!romE bloc/.

o 7a*e the -A( sign in the D=eleasing &fficialE bloc/.

!or security$ place the results memo$ !orm 10$ and the cashier4s chec/ ormoney order in an en*elope mar/ed D(onfidentialE. Place the D(onfidentialEen*elope in an en*elope addressed to the appropriate I=- -ubmissionProcessing (enter. The mailing guidelines in subsection 50.11.5.1 should befollowed. N/+7 The I=- will sign and return !orm 10 to the -A indicating

receipt of the ta) remittance and results memorandum. (omplete &I !orm 11 and retain a copy for the case file. All bloc/s of the

11 must be completed.o Bloc/ ?a# should be the date the -A forwarded the funds to the I=-.

o Bloc/ ?b# closing status is forfeited.

o Amounts in bloc/ ?c# must e,ual amount reported in bloc/ c# at time ofseiure. -eied assets do not appreciate nor depreciation in *alue.

o Bloc/ ?d# indicate funds were transferred to the I=- for a ta) liability.

+mail the completed &I !orm 11 and !orm 10 signed by the I=- to the%i*isional -eied Asset (oordinator.

The %i*isional -eied Asset (oordinator will9

=e*iew the &I !orm 11 and !orm 10$ contact the -A to resol*e any errorsor omissions$ and email the &I !orm 11 and !orm 10 to the Cational-eied Asset (oordinator.

The Cational -eied Asset (oordinator will9

>pdate the -eied Asset module of PP' based on the !orm 11.

o (hange the disposed indicator to DyesE$ the status to DforfeitureE$ and the

a*ailability to DfinalE.o +nter the final disposition date$ final disposition location$ status date$ and

comments$ if any.

50.11.5. %isposal of -eied Property

The -A will9


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(omplete &I !orm 11$ email it to the %i*isional -eied Asset (oordinatorwithin fi*e business days of the disposal$ and retain a copy from the case file.o All bloc/s of the 11 must be completed.

o

Bloc/ ?b# closing status must be either returned/rforfeited.o Amounts in bloc/ ?c# must e,ual amount reported in bloc/ c# at time of

seiure. -eied assets do not appreciate nor depreciate in *alue.o Bloc/ ?d# must indicate who recei*ed the money.

&btain a signed receipt for property returned to the original owner$ andretaina copy of the signed receipt in the case file.

If TIGTA retains the forfeited property for its official use$ it loses its identity asforfeited property. The -A will pro*ide the appropriate In*entory Program(oordinator with all information need to create a record in the applicable PP'module. -ee (hapters 00#@100 (ersonnel (roperty #anagement (rogramand 00#.1ccounting for ssetsfor additional information.


=e*iew the &I !orm 11$ contact the -A to resol*e any errors or omissions$and email within two business days the &I !orm 11 to the Cational -eied

Asset PP' (oordinator.

The Cational -eied Asset (oordinator will9

>pdate within two business days the -eied Asset module of PP' based onthe !orm 11.o (hange the disposed indicator to DyesE$ change the status to DforfeitureE or

DremissionE$ and the a*ailability to DfinalE.o +nter the final disposition date$ final disposition location$ status date$ and

comments$ if any.

50.11. -eied Asset =eportingThe Cational -eied Asset (oordinator will9

-ubmit the D-eied Asset BP% =eports H 'onetaryE and D-eied Asset BP%=eports H PropertyE to TIGTA4s reporting accountant at BP%@A=(. Thesereports shall be sent electronically. The reports are due to BP%@A=( noearlier than the third business day before month end and no later than thesecond business day of the subse,uent month.

&n a monthly basis$ pull the D-eied Asset %isposition H (losedE report andtrace all forfeited monetary items to the accounting records %etailed TrialBalance for TGT10JJG=;;;;;;#.


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>pon re,uest$ pro*ide &I with the dates and amounts of forfeited fundsdeposited to the 'iscellaneous =eceipts !und in the %epartment of theTreasury4s General !und receipt account.

&n an annual basis$ pull the D-eied Asset %isposition H (loseE report andtrace all forfeited property items retained by TIGTA to the appropriate PP'module.

50.11..1 Kuarterly Merification+ach ,uarter$ the Cational -eied Asset (oordinator will run the PP' reportentitled DIn*entory of -eied Items H Property$ Cegotiable$ or (ash.E TheCational -eied Asset (oordinator will issue a data call to all -pecial Agents in(harge -A(s# in &I$ re,uesting that their respecti*e staff re*iew the informationfor accuracy. &I staff will9

-ubmit an &I !orm 11 to the %i*isional -eied Asset (oordinator when anopen case does not appear on the listing$ or a closed case does appear onthe listing.

Pro*ide the information needed to the %i*isional -eied Asset (oordinator tocorrect all errors.

Inform the %i*isional -eied Asset (oordinator of any changes to the statusof open cases.

Sau C/)+

1# Prosecution Pending# %isposition in Progress

# (ase Being Appealed# (ase >nder In*estigation5# Trial in Progress# >- Attorney4s &ffice (oncerns# Pros. Ad3ourned$ (ontemplate %ismissal?# !ugiti*eJ# Being 7eld Pursuant to (ourt &rder10# &ther


>pdate the status and status date$ as appropriate$ based on information from&I and enter the *alidation date.

Cotify the -A( that the re*iew has been completed and list any errors foundand correcti*e action ta/en.

The -A( will send an email to the Cational -eied Asset (oordinator indicatingthe results of the re*iew and any correcti*e action re,uired of the Cational -eied


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Asset (oordinator. The Cational -eied Asset (oordinator will correct the errorsand notify the %i*isional -eied Asset (oordinator when the corrections ha*ebeen made.

50.11. =estitution PaymentsIf the court notifies the -A that a defendant has been ordered to ma/e restitutionpayments to TIGTA8 the -A will prepare a memo to BP%@A=( notifying them thatthe payment will be sent directly from the court4s probation office. This memo isto include9

%efendant4s name.

-tatement9 D(ayment is the result of court$ordered restitution.E

(ourt casedoc/et number assigned by the court not the TIGTA assignedcase number#.

>nited -tates %istrict (ourt from which the chec/ will be sent. -tatement9 Any chec/s recei*ed from the court4s probation office in

con3unction with the abo*e named defendant or court casedoc/et numbershall be deposited to the 'iscellaneous =eceipts !und(TGT10JJG=;;;;;;# of the %epartment of the Treasury4s General !und=eceipt Account on behalf of TIGTA.

Any other pertinent information that might assist BP%@A=( in identifyingthese chec/s.

The memo shall be sent to BP%@A=( at the following address please re@*erifyaddress by accessing the BP%@A=( webpage and clic/ing on 'ailParcel!a) or

by re@confirming with the staff accountant#9

Bureau of the Public %ebtAccounting -er*ices BranchA*ery -treet A@G00 Third -treetPar/ersburg 6M 10

Attention9 TIGTA Processing

The -A must notify the court of the following9

A restitution chec/$ in con3unction with this defendant$ should be madepayable to Treasury Inspector for Ta) Administration and forwarded to theabo*e address for processing.

The chec/ should contain the court casedoc/et number.

The chec/ is for court@ordered restitution.


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50.1 Accounting for AssetsIn the normal course of business$ TIGTA purchases many items$ e.g.'paper$pens$ binder clips$ etc.# that ha*e a short useful life. These items are e)pensedin the financial records. &ther items used by employees e.g.'*ehicles$ ser*ers$forensic lab e,uipment#$ ha*e a useful life e)tending o*er se*eral years and mustbe capitalied pursuant to accounting standards and Treasury policy.

50.1.1 =eferences

&'B (ircular A@11$ Preparing$ -ubmitting$ and +)ecuting the Budget.

-!!A- Co. $ Accounting for In*entory and =elated Property.

-!!A- Co. 5$ Accounting for se -oftware.

Treasury !inancial 'anual$ >.-. -tandard General

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Bundled or Pac/age Pricing H The practice of selling related items as a grouprather than separately pricing each item e.g.'recei*ing a printer for F0 whenpurchasing a laptop and monitor#.

(apitalied Asset H An asset land$ buildings$ e,uipment$ software$ lease$ etc.#whose ac,uisition cost is allocated o*er the useful life of the asset rather thanbeing e)pensed at the time of purchase.

%epreciation H The process of allocating the ac,uisition cost of a capital asset byrecording a monthly e)pense based on use$ wear$ age or obsolescence.

%epreciation =ate @ The rate at which the capitalied asset is depreciated ore)pensed. The depreciation rate is based on the useful life of the asset which isshown as life e)pectancy in months on the fi)ed asset profile in TIGTA4s PA=I-Property 'odule PP'#.

+conomic or >seful se -oftware H -oftware that is 1# purchased from a commercial *endor/nown as commercial off@the@shelf or (&T- software#$ # internally de*eloped$or # contractor@de*eloped solely to meet the entity4s internal or operationalneeds.

In*entory Program (oordinator @ A person designated by the function to beresponsible for administering a specific in*entory e.g.'firearms$ *ehicles$in*estigati*e e,uipment$ seied assets#$ including the capture and maintenanceof accurate data related to the in*entory and completion of the capitaliationinformation on the fi)ed asset profile.


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%epreciation shall be calculated only for capitalied assets. Although land is acapitalied asset$ land is not depreciated. %epreciation is calculated monthly bydi*iding the ac,uisition cost by the useful life in months.

Any cost which e)tends the useful life of an e)isting capitalied asset /rsignificantly increases the functionality of an e)isting capitalied asset shall becapitalied and depreciated o*er the remaining useful life of the capitalied asset.'odifications to internal use software that e)tend the useful life but do notsignificantly increase the capabilities of the software will n/be capitalied.

%epreciation begins in the month of ac,uisition and continues until disposal ofthe asset or the asset is fully depreciated$ whiche*er occurs first. %epreciationbegins in the month ac,uired if the capitalied asset is ac,uired /n /r 6+5/r+the15thof the month8 otherwise$ depreciation begins in the subse,uent month.%epreciation ends in the month of disposal if disposal occurs /n /r a5+rthe 15th8

otherwise$ depreciation ends in the prior month. Amortiation of internallyde*eloped software begins when the software$ or a software module$ isdeployed.

50.1. Bundled or Pac/aged PricingAssets shall not be recorded at a bundled or pac/aged price. 6hen TIGTApurchases a group of related assets as a bundle or pac/age$ the re,uisition shallshow the relati*e price and the appropriate B&( for each item or group of items.The relati*e price is the percentage of the bundled or pac/aged price based onthe unbundled or indi*idual price of the items andor ser*ices.

!or e)ample$ suppose TIGTA needs ten laptops$ ten licenses for 6indows Mista$three printers$ one training class for 1ten employees$ and one year maintenance.

A *endor agrees to pro*ide these items for a total cost of F5$000 as a bundle orpac/age deal. The bundledpac/age price represents a F$000 discount from theindi*idual price9 ten laptops F5$0008 ten licenses F$0008 three printers F1$5008training F1$5008 and maintenance F1$000. Although these items would not becapitalied$ the relati*e cost method should be used to determine the ac,uisitioncost for each item entered into PP'. Thus$ each laptop would ha*e anac,uisition cost of F$01$ each license would ha*e an ac,uisition cost of F11$each printer would ha*e an ac,uisition cost of F0$ the training would bee)pensed at F1$10$ and the maintenance e)pense would be F?0. Therefore$

the re,uisition should show fi*e line items with the appropriate relati*e cost andB&( to properly record the transaction in the financial records.


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R

>nits>nbundled

Price=elati*eQ Price

=elati*e(ost by

ItemAc,uisition

>nit (ost B&( (omputation

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The present *alue of rental and other minimum lease payments$ e)cludingthat portion of the payments representing e)ecutory cost$ e,uals ore)ceeds J0 percent of the fair *alue of the leased property.

The last two criteria are not applicable when the beginning of the lease term fallswithin the last 5 percent of the total estimated economic life of the leasedproperty.

50.1.5.. &perating +r 5/r 3u+%/n '

+nter seful

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TIGTA may use a single@year lease$ single@year lease with option years$ or amulti@year lease. -ingle@year leases may contain a baseyear and up to fouroptionyears$ but the total term of the lease may not e)ceed fi*e years. 'ulti@year leases may not e)ceed fi*e years.

All leases shall contain a termination clause allowing TIGTA to end the lease ifan appropriation is not recei*ed for the subse,uent years of the multi@year leaseor option years of the single@year lease. This termination clause is needed toallow TIGTA to incrementally fund the lease payments with the single@yearappropriations recei*ed by TIGTA. +ach fiscal year$ a re,uisition must besubmitted to add the incremental funding to co*er the lease payments to bemade during the fiscal year and the termination fee related to that specific fiscalyear.

50.1.5.. 5

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An email from the transferring entity with the accounting data is sufficientdocumentation.

%etermine and document the fair mar/et *alue of the asset$ when the other

!ederal agency or Treasury bureau is unable to pro*ide the accounting data. Pro*ide within three business days of the transfer all data$ including

accounting data$ needed to record the asset in PP' to the appropriateIn*entory Program (oordinator.

Inform the -taff Accountant of the asset transfer.

The appropriate In*entory Program (oordinator will enter the data into PP' torecord the asset$ including completion of the fi)ed asset profile$ no later than si)business days after the asset transfer occurs.

50.1.5. Assets Ac,uired by !orfeiture

%uring the course of an in*estigation$ assets may be seied by &ffice ofIn*estigations &I# -pecial Agents -A#. The legal process determines theproper disposition of the seied asset@@return to the original ownerowner4sdesignee or forfeiture by the original owner.

In some instances$ seied assets are forfeited to TIGTA. -eied money andnegotiable items may not be retained by TIGTA. -eied money and negotiableitems$ e)cept for reco*ered stolen ta) remittance$ must be deposited to themiscellaneous receipts fund of the go*ernment. =eco*ered stolen ta) remittancemust be returned to the I=-. -ee (hapter 00 -ection 50.11 for detailedprocedures.

In accordance with the applicable laws when seied property is forfeited$ TIGTAmay be able to retain the seied property. 6hen this occurs$ in addition tosubmitting the &I !orm 11 to the %i*isional -eied Asset PP' (oordinator$ the-A will pro*ide the appropriate In*entory Program (oordinator with all thepertinent information$ including the accounting data$ needed to properly recordthe property in the applicable PP' module9 Mehicles$ !irearms$ In*estigati*e+,uipment$ (omputers$ or =adio O (ommunication +,uipment =(&'#.

!or these assets9 The ac,uisition date should be the disposal date shown in ?a# on the &I

!orm 11. The cost should be the fair mar/et *alue at the time of forfeiture which should

be shown on the &I !orm 11 in ?c#. The ac,uisition should be forfeited.

50.1. Internal >se -oftware-tatement of !ederal !inancial Accounting -tandard Co. 10$ Internal >se-oftware$ re,uires capitaliation of internal use software when the ac,uisition


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cost meets TIGTA4s capitaliation threshold. The ac,uisition cost of internal usesoftware *aries depending upon the ac,uisition method9 1# commercial off@the@shelf$ # contractor de*eloped$ or # internally de*eloped with or without acontractor4s assistance#.

50.1..1 (ommercial &ff@The@-helf -oftwareThe ac,uisition cost of (&T- is the price paid to the *endor for the software$including shipping and handling.

50.1.. (ontractor %e*eloped -oftwareThe ac,uisition cost includes the amount paid to the contractor to design$program$ install$ and implement the software.

50.1.. Internally %e*eloped -oftwareThe ac,uisition cost of internally de*eloped software includes direct and indirectcosts. %irect costs include outside consultant fees and salaries of programmers$systems analysts$ pro3ect managers$ and administrati*e personnel. Indirect costsinclude employee benefits$ rent$ supplies$ and documentation manuals. Theaccumulation of the ac,uisition costs begins1# after management authories andcommits to a pro3ect where the software is e)pected to ha*e a useful life of twoor more years$ and # the conceptual formulation$ design$ and testing of possiblesoftware pro3ect alternati*es is completed. The accumulation of ac,uisition costsends at the successful completion of final acceptance testing. %epreciation doesnot begin until the software is deployed.

The life cycle for internally de*eloped software generally is di*ided into three

phases9 1# Preliminary %esign$ # %e*elopment$ and # Implementation. ThePreliminary %esign phase generally consists of conceptual formulation$e*aluation$ design$ testing of alternati*es$ and selection of a specific alternati*e.(osts incurred during the Preliminary %esign phase are to be e)pensed asgeneral operating e)penses. The %e*elopment phase generally includesconfiguration$ coding$ hardware installation$ and testing$ including parallelprocessing. (osts incurred during the %e*elopment phase are capitalied. TheImplementation phase includes data con*ersion and application maintenance.(osts incurred during the Implementation phase are to be e)pensed as generaloperating e)penses.

The (hief Information &fficer (I shall wor/ closely with the Assistant %irector$!inance$ to ensure that the information needed for proper financial reporting isobtained. This includes the appropriate period to accumulate the ac,uisitioncost$ the e)pected useful life$ and the deployment date of the software$ or ifappropriate the deployment date of each software module. If the internalsoftware de*elopment pro3ect is terminated$ the (I& shall inform the Assistant%irector$ !inance$ to allow the proper financial reporting.


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TREASURY INSPECTOR GENE

Documents

chapter600-50