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TFM Volume I Table of Contents
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TFM Volume I Table of Contents
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This chapter prescribes procedures agencies use to process intragovernmental expenditure transactions through the IPAC System, an electronic Internet-based collection and payment system. It also presents a general overview of IPAC System requirements and certain technical specifications established by the Department of the Treasury’s (Treasury’s) Financial Management Service (FMS).
In accordance with 31 U.S.C. 3513, the Secretary of the Treasury (the Secretary) must prepare reports that will inform the President, the Congress, and the public on the financial operations of the U.S. Government. These reports must include the financial information that the President requires. In addition, the head of each executive agency must furnish Treasury with reports and information about the agency’s financial conditions and operations as the Secretary may require.
Primarily, the IPAC System provides an automated, standardized, interagency funds expenditure transfer mechanism for Federal Program Agencies (FPAs). It facilitates intragovernmental Federal e-commerce by transferring funds, with related descriptive data, from one FPA to another on a real-time basis.
The IPAC System is comprised of the following interrelated subsystems:
For more detailed information regarding the RITS and TRACS components, contact the Treasury Support Center (see the Contacts page).
The IPAC System enables FPAs to exchange accounting information and to transfer funds between FPAs for various interagency transaction types (buy/sell, fiduciary, and other miscellaneous payment and collection transactions). It establishes standardized interagency payment, collection, and adjustment procedures through an Internet-based application.
The IPAC System allows agencies to transmit multiple detail transactions with each summary transaction to aid in the reconciliation process.
FPAs may execute IPAC transactions on-line or via bulk data file connections. Each FPA determines the connection type in accordance with standards FMS specifically developed for the IPAC electronic network.
To process interagency expenditure transactions, agencies should use the IPAC System per TFM Volume I, Part 2, Chapter 4700 (see the TFM Web site at http://www.fms.treas.gov/tfm/vol1/v1p2c470.html).
Accomplished Date—The date that an IPAC transaction was successfully processed by the IPAC System.
Adjustment—A transaction that an agency initiates to adjust an erroneous or incorrect payment or collection. Agencies can use adjustments only to reduce (adjust down) the original transaction amount and may process an adjustment only against a payment or collection that is 90 days old or less.
The following are two types of adjustment transactions processed through IPAC:
Receiver Initiated Adjustment—A transaction that the receiver agency initiates to adjust an erroneous or incorrect payment or collection.
Sender Initiated Adjustment—A transaction that the sender agency initiates to adjust an erroneous or incorrect payment or collection.
Agency Administrator (AA)—The AA signs the IPAC User Request Forms. AAs also perform the annual recertification of their agency users, and they must make sure that users turn in a revocation form when they no longer require access to the IPAC System.
Agency Location Code (ALC)—A three-digit (Regional Finance Centers), four-digit (non-Treasury disbursing offices), or eight-digit (Treasury disbursing offices) identifier assigned by FMS for Treasury’s reporting purposes. Currently, the first two digits of the eight-digit ALC identify the department or agency, the third and fourth digits identify the particular bureau within the department, and the remaining four digits identify the particular agency account section within that bureau.
Agency Transaction Module (ATM)—An FMS Web-based enterprise system that allows users to input transactions and view vital accounting information using a standard Web browser.
Business Event Type Code (BETC)—An eight-character code that indicates the type of activity being reported (borrowing, repayment, offsetting, collection, receipt, disbursement, etc.) It is used in combination with the Treasury Account Symbol (TAS) to determine the transaction effect on the Fund Balance With Treasury.
Chief Financial Officer (CFO)—The CFO/Deputy CFO signs the Master Administrator Designation Forms. FMS verifies that the CFO is valid before processing the forms.
Classification, Transactions, and Accountability (CTA) Application—An FMS Central Accounting Reporting System (CARS) ATM component that FPAs use to report their monthly accounting activity to FMS. The monthly FMS 224s transmitted to Treasury serve as a basis for Treasury’s publications to Congress and the public regarding Federal revenues and expenditures.
Collection—A transaction that an agency initiates to pull money, in the form of an online transfer, from FPAs within the IPAC System.
Detail Amount—The amount entered by the user on the detail section of the IPAC transaction screens. The IPAC System does not automatically calculate this amount from the Quantity and Unit Price fields; however, the Quantity multiplied by the Unit Price must equal the Detail Amount.
Disbursing Office Symbol (DO Symbol)—An identifier that is automatically assigned when an agency becomes an IPAC System user. Each ALC has a unique DO symbol for each IPAC application (IPAC and RITS).
Federal Account Symbols and Titles (FAST) Book—The official Treasury listing of account symbols and titles. FAST Book I displays the two-digit department regular code. FAST Book II displays the three-digit agency identifier code that will eventually replace the two-digit department regular code. To access FAST Book I and FAST Book II and for information regarding their effective dates, see the FAST Book Web site at http://www.fms.treas.gov/fastbook.
Note: For conciseness, this chapter refers only to the two-digit department regular code.
Governmentwide Accounting Non-Reporter (GWA Non-Reporter)—Organizations that are not authorized by Memorandum of Understanding (MOU) to provide TAS/BETCs on incoming daily transmissions to GWA. These organizations are identified by ALC and source system (for example, IPAC System, Secure Payment System, CA$HLINK II).
Governmentwide Accounting Parallel Reporter (GWA Parallel Reporter)—Organizations that are not yet GWA Reporters but that can analyze and identify potential issues with their trading partners initiating transactions to their ALC before becoming GWA Reporters. These agencies use the Agency Special Requirements function in IPAC.
Governmentwide Accounting Reporter (GWA Reporter)—Organizations authorized by MOU to provide TAS/BETCs on incoming daily transactions to GWA. These organizations are identified by ALC and source system (for example, IPAC System, Secure Payment System, CA$HLINK II).
Intragovernmental Business Rules—(See TFM Volume I, Part 2, Chapter 4700, on the TFM Web site at http://www.fms.treas.gov/tfm/vol1/v1p2c470.pdf.)These rules apply to all intragovernmental business, specifically, transactions that entail the exchange of goods and services (reimbursable agreements); investments and borrowings; and transfers between Federal entities.
IPAC Adjustment Voucher Number—A unique identification number that is automatically assigned to each adjustment a customer agency enters into the IPAC System. Bulk file users have the capability to assign their own IPAC adjustment voucher numbers.
IPAC Customer Agency—Recipient of an IPAC transaction. Also referred to as the “receiver” agency.
IPAC Document Reference Number—A unique identification number that is automatically assigned to each interagency transaction entered into the IPAC System. It is a sequential number assigned by DO symbol. This number, when combined with a DO symbol, is unique. Bulk file users have the capability to assign their own IPAC document reference number.
IPAC Originating Agency—The initiator of an IPAC transaction. Also referred to as the “sender” agency.
IPAC Trace Number—A unique identification number that is automatically assigned to each zero dollar interagency transaction entered into the IPAC System. Bulk file users have the capability to assign their own IPAC trace number.
Logon ID—The alphanumeric characters that are assigned to uniquely identify a user.
Master Administrator (MA)—The MA signs the Agency Administrator Designation Forms and certifies the agency’s AAs during recertification. MAs can recertify lower level users when the AA is not available. They also should assure that AAs turn in a revocation form when required. The MA should not be an AA or an IPAC System user.
Miscellaneous Information Field—An optional IPAC System field for storing additional information about a transaction.
Payment—A transaction that an agency initiates to transfer money, in the form of an online transfer, to FPAs within the IPAC System.
Post-USSGL Transactions—An IPAC transaction type used to update the originating agency’s U.S. Government Standard General Ledger (USSGL) information or to add or change the receiver (customer) agency’s USSGL information.
Shared Accounting Module (SAM)—An application that facilitates the process of validating or deriving TAS and BETC combinations to assist GWA in classifying financial transactions as they occur. SAM is becoming the single source for Enterprise Reference Data to Government agencies and Treasury applications. For more information, see the FMS Web site at http://www.fms.treas.gov/sam/index.html.
Treasury Account Symbol (TAS)—The receipt, expenditure, appropriation, and other fund account symbols and titles assigned by Treasury. It is used in combination with the BETC to determine the transaction effect on the Fund Balance With Treasury. There are two TAS fields: Sender Treasury Account Symbol and Receiver Treasury Account Symbol.
Zero Dollar Transaction—Used to provide USSGL account information to trading partners, correct information sent in an earlier transaction, or convey additional information. Agencies do not use zero dollar transactions to transfer funds.
FMS recommends that FPAs establish TPAs as appropriate. When establishing TPAs, agencies should obtain the TAS and all other pertinent information needed to process an IPAC transaction. All TPAs should provide business rules sanctioned by the appropriate authority within each prospective agency. Neither Treasury nor FMS executes TPAs. The parties to the agreement must execute arbitration regarding TPA disputes/disagreements in a timely manner. FMS reserves the right to intercede if the Federal Government’s fiscal responsibilities are at risk.
As part of the TPA, the IPAC originating agency provides the IPAC customer agency with clear and appropriate instructions for transmitting requisition/order information. Conversely, the IPAC customer agency must include its ALC on all requisitions or order forms forwarded to the IPAC originating agency. The ALC identifies the customer agency that is to be billed for services or supplies. In addition, the customer agency must provide data for all IPAC required fields as well as the customer agency’s special requirements. Customer agencies must include adequate and sufficient descriptive information on the requisition or order form that the originating agency includes in the description section of the IPAC transaction. This enables the customer agency to match the IPAC transaction bill, when received, with the originating requisition.
FMS recommends that trading partner requirements for a reimbursable agreement be negotiated through the IAA. The IAA facilitates communication between the buyer and seller and enables them to agree on the data elements and terms of the reimbursable transaction before business begins. There are two IAA sections, the General Terms and Conditions (GT&C) Section and the Order Requirements and Funding Information (Order) Section.
Buyers and sellers follow the IAA instructions to capture the necessary data elements to ensure a complete reimbursable agreement before beginning any performance of the order.
For more information, see the FMS Financial Management and Budget Standardization Web site at http://www.fms.treas.gov/finstandard/index.html.
Before accessing the IPAC System, each FPA must assign an IPAC AA, MA, and CFO for each of its ALCs. The CFO/Deputy CFO, who must be valid and verified by FMS, signs the Master Administrator Designation Forms.
The MA signs the Agency Administrator Designation Forms and certifies the agency’s AAs during recertification. The MA also recertifies lower level users when the AA is not available.
The AA processes the IPAC User Request Forms and registers agency personnel as IPAC users. If FMS has not assigned an AA to the agency, the agency should contact FMS (see the Contacts page).
To access the IPAC System, users must have the following:
FMS establishes user IDs based on the information submitted on the IPAC User Request Form and the roles related to the user’s functions. Each agency’s AA processes IPAC User Request Forms, and FMS processes IPAC AA Designation Forms.
Users can Access the IPAC User Request Form and the IPAC AA Designation Form on the IPAC Web site at http://www.fms.treas.gov/ipac/gettingstarted.html.
Contact the Treasury Support Center (see the Contacts page) for the name and contact information of the AA for a specific ALC.
The IPAC System allows each FPA to control which data fields in an IPAC transaction it deems required, beyond those that FMS has made mandatory. At this time, the FMS mandatory fields include the following:
Payment and Collection Transactions
ALC Contact
Contact Telephone Number
Contact E-mail Address
Originating ALC
Customer ALC
Invoice Number
Pay Flag
Quantity
Unit Price
Unit of Issue*
Detail Amount
Obligating Document Number
Purchase Order Number
Receiver Department Code
Sender Treasury Account Symbol
Sender USSGL Account Information
Adjustment Transactions
ALC Contact
Contact Telephone Number
Contact E-mail Address
Originating ALC
Customer ALC
Amount
Original IPAC Document Reference Number
Original DO Symbol
Sender Treasury Account Symbol
Sender USSGL Account Information
Original Accomplished Date
Zero Dollar Transactions
ALC Contact
Contact Telephone Number
Contact E-mail Address
Originating ALC
*See the Unit of Issue list on the IPAC Web site at http://www.fms.treas.gov/ipac/questions.html.
FMS requires the sender TAS and the sender USSGL account information. Agencies may supply additional information in the description areas provided for such information.
GWA reporting agencies and parallel reporting agencies originating an IPAC transaction must report a valid and appropriate TAS/BETC for the sender side of each IPAC transaction. IPAC rejects any reporting agency ALC transactions that do not contain a valid TAS/BETC combination. Also, trading partners that process IPAC transactions with GWA reporting agency ALCs must report a valid IPAC TAS/BETC for the reporting ALCs on the receiver side of the transaction. A list of valid TAS and BETCs is available for download on the SAM Web site at http://www.fms.treas.gov/sam.
Agencies requesting to become GWA reporting agencies must first become parallel reporting agencies. When an agency becomes a GWA parallel reporter, the agency must submit a special requirements request for payments, collections, and adjustments for the receiver TAS, sender BETC, and receiver BETC fields for each ALC designated as a reporter. During the parallel reporting phase, transactions are not posted to the agencies TAS directly. Parallel reporters must still submit an FMS 224 for these transactions. When the parallel reporting phase is completed, the agency becomes a GWA reporting agency and will no longer be required to submit a monthly FMS 224 for these transactions. For more information on becoming a GWA reporter, see the Web site at http://www.fms.treas.gov/gwa.
Eventually, all IPAC transactions must report the TAS/BETC on both the sender and receiver sides of the IPAC transaction. However, agencies are encouraged to submit the TAS/BETC for both the sender and receiver sides as soon as possible.
The IPAC System accepts only a valid and appropriate TAS. Most “F” accounts are not valid for use through IPAC. However, while Treasury continues to work with agencies to identify alternatives to using “F” accounts, agencies will be allowed to use valid “F” accounts in IPAC. See TFM Volume I, Bulletin No. 2011-06 on the TFM Web site at http://www.fms.treas.gov/tfm/vol1/bull.html.
FMS issued a CFO letter that instructed FPAs to begin using the component TAS format on all financial transactions. Agencies may access a list of available and valid component TAS on the SAM Web site at http://www.fms.treas.gov/sam/index.html.
CARS accepts only TAS that are valid and appropriate for use through IPAC. The component TAS structure is the only structure that is accepted online in IPAC. However, the bulk file application allows for multiple formats to represent the same TAS. Once the component format is mandated, the capability to accept multiple TAS formats via IPAC bulk file will be discontinued.
The IPAC System is the first feeder system to require the new standard component format. In the future, the component TAS will be required in all FMS payment and collection systems. For more information, refer to the FMS Web site at http://www.fms.treas.gov/finstandard/index.html.
In support of standardizing data elements, FMS is implementing an eight-digit component TAS as published in the CGAC V1.0 July 2007 document.
Currently, FMS is updating its transaction and reporting systems to collect and display the component TAS. IPAC provides the flexibility to accept and display either the current TAS or the component TAS, allowing for multiple formats to represent the same TAS.
In addition, the BETC is an up to eight-character code used in CARS to indicate the type of activity being reported, such as payments, collections, borrowings, etc. This code must accompany the TAS and the dollar amount(s) in order to classify the transaction against the Fund Balance With Treasury. The BETC, in effect, replaces transaction codes and standard subclasses that are currently used on the central accounting reports, such as the FMS 224 and the Account Statement.
Eventually, FPAs will be required to report the standard component TAS and BETC on both the sender and receiver sides of all IPAC transactions. However, agencies are encouraged to submit the current format TAS/BETCs for both the sender and receiver sides as soon as possible. Until agencies are required to use the new standard GWA TAS/BETCs, GWA will provide a crosswalk from the current TAS formats to the new standard GWA format. Further information and a list of valid TAS and BETCs can be found on the GWA Web site at http://www.fms.treas.gov/gwa/index.html. The spreadsheet on the GWA Web site displays the component pieces of the TAS, along with the concatenated format for reporting in IPAC currently, and the new standard GWA TAS format.
The originating (sender) agency must input the appropriate data in all the IPAC required data fields. Also, it must input the customer agency’s special requirements and any descriptive information, supplied with the requisition/order, in the appropriate fields of the IPAC transaction.
When the transaction is processed through the IPAC System, immediate collection or payment is accomplished. For payment transactions, the IPAC System credits the originating agency’s ALC and charges the customer agency’s ALC. For collection transactions, the IPAC System charges the originating agency’s ALC and credits the customer agency’s ALC. The transaction includes all IPAC required fields, as well as all agency-specific required data, as stipulated by the customer agency or the TPA.
If the originating agency does not comply with this procedure, reconciliation problems for the customer agency may result. Noncompliance with or abuse of these established billing procedures may result in FMS revoking use of the IPAC System. The User Provisioning Service provides specific instructions for using the IPAC System.
The IPAC database is updated immediately after processing online transactions and as close to real time as possible for bulk data file transmissions. The system automatically issues a unique IPAC document reference number for each completely processed transaction (bulk file users have the capability to assign their own IPAC document reference numbers). The IPAC System ensures that no two transactions are assigned the same number for the same ALC/DO symbol combination. Agencies billed via IPAC receive transactions regardless of whether or not the ALC has access to the IPAC System.
FPAs using the IPAC System may print their transactions immediately after the originating agency enters the transactions into the IPAC System. In addition, agencies may retrieve their transactions by downloading data directly into their computer systems to aid in the reconciliation process.
Originating agencies have through the last day of each month to enter transactions for that month. Agencies have 90 days after the billing date to enter adjustments to payments or collections.
Each Federal agency’s accounting office must verify the accuracy of the transactions retrieved from the IPAC System. Agencies follow standard procedures to record the transactions applicable to their TAS as of the accomplished/transaction date reflected in the IPAC System.
Both the originating and customer agencies must report their total monthly receipt and disbursement activity, executed through the IPAC System, by using one of the following:
At the end of each month, both the originating agency and the customer agency must include all IPAC activity in the net total amount of all disbursement, collection, and adjustment transactions for their ALCs. They report their data using the FMS 224; or the FMS 1219, line 280; and the FMS 1220 for the current accounting payment month. Agencies should print reports of all IPAC transactions at the end of each month to prepare for submission of the FMS 224 or FMS 1219/1220.
Agencies must archive their IPAC activity since FMS no longer provides microfiche. However, the IPAC System provides online data retention for 18 months after a transaction is accepted.
Transactions not reported result in an out-of-balance condition. FMS will compare the amount reported by the agencies on their FMS 224s or FMS 1219/1220 with the combined total of the amount from the IPAC System data and any disbursing activity from Treasury disbursing offices. If there is a difference, FMS generates an FMS 6652: Statement of Differences, Disbursing Office Transaction. FMS prepares this report on a monthly basis for each ALC. Also a “Monthly Register of Transactions,” which provides a detailed listing of all transactions charged or credited to a particular ALC, is included. Agencies must investigate the differences and make the necessary corrections on their next FMS 224 or FMS 1219/1220.
For the yearend closing process, agencies report all disbursement activity, including IPAC transactions charged to an agency’s ALC, to the applicable TAS for the fiscal year to which it relates.
If, at the end of a fiscal year, a customer agency does not have sufficient time to determine the amount of an adjustment for its regular monthly reporting using either the FMS 224 or FMS 1219/1220, the agency should report the erroneous charge to its regular appropriation or fund symbol. If the agency chooses to correct the erroneous charge, it must coordinate the correction with the charging entity. Once the agency determines the correct amount of the erroneous transaction, it adjusts the transaction through the IPAC System.
For yearend Federal Agencies’ Centralized Trial-Balance System II (FACTS II) reporting, the agency should contact FMS’s Budget Reports Division (BRD) to request adjustments. The agency should prepare and fax BRD its proposed adjustments (see the Contacts page), including supplemental documents such as a signed copy of the FMS 224 or FMS 1219/1220. Treasury reserves the right to review and determine if it will accept the adjustments based on established criteria.
These erroneous charges do not constitute over-obligations or over-expenditures with respect to 31 U.S.C. 665, Anti-Deficiency Act. Agencies should footnote FACTS II submissions to indicate those cases that would appear to overextend the symbol charged.
FMS does not allow submission of unrestrained payments, collections, or adjustments to the IPAC System. IPAC agencies should be diligent in their transaction procedures, and agencies must only use the adjustment procedure when the transactions have been charged under the IPAC System. Agencies must not use the IPAC adjustment procedure to adjust charges that originated under other billing systems.
IPAC transactions are rendered for services purchased or supplies shipped. An agency should not consider a charge erroneous simply because it receives the billing statement before the supplies. If the agency subsequently finds that the charge is erroneous, it should make the adjustment at that time. However, the agency is limited to 90 days, upon receipt or sending of its IPAC transaction, to process the adjustment.
To adjust the erroneous charge, the agency should contact its trading partner agency to discuss the error and the considerations underlying each adjustment. The agency contact person’s name, telephone number, and email address appear on the top of each IPAC transaction.
Then, the agency accesses the IPAC System and selects “IPAC Adjustments” from the menu. It enters the original document reference number and the originator’s DO symbol to locate the original transaction to be adjusted.
An agency must input an adjustment into the IPAC System on or before the end of each month for that adjustment to be included in that month’s net total. Otherwise, the adjustment will be reflected in the subsequent month’s net total.
If the agency concludes that the adjustment (or a portion thereof) was improper, it must communicate this to the trading partner agency, preferably by telephone or email. When an agreement is reached, the sender or receiver agency prepares a second IPAC transaction charging the appropriate amount. Agencies cannot make an adjustment to an adjustment.
Since IPAC is an online, interactive system, the edit program does not allow entry of invalid ALCs. However, it is possible for an IPAC agency to prepare a transaction to a valid but incorrect ALC. Therefore, erroneous charges only involve differences concerning the dollar amount charged or the transaction itself. Erroneous charges are corrected by initiating an adjustment transaction. Adjustment transactions can be initiated by a sender or receiver agency. Agencies can use adjustments only to reduce (adjust down) the original transaction amount and may only process an adjustment against a payment or collection that is 90 days old or less.
FMS reserves the right to make any adjustments centrally in Treasury’s Central Accounting System and the IPAC database, and to remove any agency from the IPAC System if the agency fails to comply with the rules and regulations set forth in this TFM chapter.
Direct inquiries regarding the IPAC application to:
Treasury Support Center
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 202A
Hyattsville, MD 20782
Telephone: 1-866-809-5218
Email: IPAC@stls.frb.org
IPAC Web site: http://www.fms.treas.gov/ipac/index.html
Direct inquiries regarding Monthly Treasury Reporting of Differences to:
Cash Accounting Division
Cash Accounting and Reporting Directorate
Governmentwide Accounting
Department of the Treasury
Financial Management Service
3700 East-West Highway, Room 500E
Hyattsville, MD 20782
Telephone: 202-874-8270
Direct inquiries regarding FACTS II yearend reporting to:
Budget Reports Division
Financial and Budget Reports Directorate
Governmentwide Accounting
Department of the Treasury
3700 East-West Highway, Room 518D
Hyattsville, MD 20782
Telephone: 202-874-9880
Fax: 202-874-9966
Direct inquiries regarding the IAA to:
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 221A
Hyattsville, MD 20782
Telephone: Robin Gilliam, 202-874-9133
Email: Robin.Gilliam@fms.treas.gov
IAA@fms.treas.gov
1. Purpose
This transmittal letter releases revised I TFM 6-4000, Intra-Governmental Payment and Collection (IPAC) System. This chapter prescribes procedures agencies use to process intragovernmental expenditure transactions through the IPAC System, an electronic Internet-based collection and payment system. It also presents a general overview of IPAC System requirements and certain technical specifications established by the Department of the Treasury’s Financial Management Service.
2. Page Changes
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3. Effective Date
This transmittal letter is effective immediately.
4. Inquiries
Direct questions concerning this transmittal letter to:
Treasury Support Center
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 202A
Hyattsville, MD 20782
Telephone: 1-866-809-5218
Email: IPAC@stls.frb.org
IPAC Web site: http://www.fms.treas.gov/ipac/index.html
David A. Lebryk
Commissioner
Date: October 27, 2011