Intragovernmental Eliminations Brief to the EB-SPS Users’ Conference E-Business/SPS Joint Users’ Conference November 15 -19, 2004 Houston, TX
Overview • • Introduction Intragovernmental Transactions Defined Eliminations Defined Do. D’s Material Weakness Do. D’s Proposed Solution IGT – The Future Resources Transforming the Acquisition Domain
Introduction • Intragovernmental Transactions (IGT) and Eliminations is a Government-wide Material Weakness • IGT is one of Do. D’s 11 Material Weaknesses • Prevents Unqualified Audit Opinion on Do. D and Government-wide Financial Statements Transforming the Acquisition Domain
Intragovernmental Transactions - Defined • Any transactions involving sales, services or transfers between two entities of the federal government • There are 3 recognized levels of intragovernmental transactions – Level 1 = Between Do. D and Non-Do. D Entities – Level 2 = Between Do. D Components – Level 3 = Within Do. D Components Transforming the Acquisition Domain
Eliminations – Defined • Generally Accepted Accounting Principles (GAAP) require the elimination of intragovernmental transactions from consolidated financial statements to prevent overstating accounts for intra-entity activity – Revenues must match Expenses (and Capitalized Assets) – Accounts Receivable must match Accounts Payable – Transfers In must match Transfers Out • When the seller’s revenue matches the buyer’s expenses, both are eliminated - removed from the consolidated total • Goal is to eliminate all intragovernmental balances with no adjustments needed Transforming the Acquisition Domain
Do. D’s Material Weakness • Eliminations must be fully supported with transaction level details, including identification of buyers and sellers – they must be auditable • Do. D cannot support eliminations with the details required to pass an audit – – Most Do. D systems do not capture the required data fields Lack of standardization Timing differences Inability to reconcile between trading entities Transforming the Acquisition Domain
Do. D’s Solution • Develop a clearing house for Do. D intragovernmental transactions that will: – Allow for identification of parties to transactions – Capture and summarize transactions for reporting purposes – Facilitate reconciliation of reported intragovernmental transactions to the source accounting systems and between trading partners – Provide detail support necessary to pass audit – Interface with OMB’s Intragovernmental Transactions Exchange for level 1 transactions to which Do. D is a party Transforming the Acquisition Domain
IGT – The Future • Use SPS to create and route intragovernmental transactions • Incorporate mandatory data elements into ERP solutions • IGTE/OMB future Transforming the Acquisition Domain
Resources • OSD (C) – Kathy. sherrill@osd. mil • OSD (AT&L) – Lisa. romney@osd. mil • IGTE Program Help Desk – igthelp@targetsystems. us • IGTS Program Office: – igtsinfo@dfas. mil Transforming the Acquisition Domain
Intragovernmental Transactions in Consolidated Financial Reports Federal Government financial statement Federal level Government Do. D financial statement level Do. D Agencies Army Fed Agencies Navy AF Federal to Federal agency eliminations Fed Agencies Department financial statement level Do. D to Do. D agency eliminations Do. D Agencies Army Navy AF Fed Agencies Agency financial statement level Within agency eliminations Transforming the Acquisition Domain Transactions between buyers and sellers of same agency and sellers of Do. D agencies Transactions between Do. D and other Fed agencies Transactions between agencies and private secto
Скачать презентацию Intragovernmental Eliminations Brief to the EB-SPS Users Conference
609fd6738e67e9c71cb177a2c05e3fea.ppt