Chief Financial Officers Act of 1990, Pub. L. No. 101-576

40 USC 524, Duties of Executive Agencies

Federal Managers' Financial Integrity Act of 1982 (FMFIA) Pub. L. No. 97-255

E-Government Act of 2002, Pub. L. No. 107-347

31 USC 3512, Executive Agency Accounting and Other Financial Management Reports and Plans

41 CFR, Public Contracts and Property Management, Chapters 101 and 102

41 CFR Part 102-36, Disposition of Excess Personal Property

CFO and Deputy CFO

Senior Associate CFO for Financial Management and Associate CFO for Corporate Accounting

Director, Financial Reporting and Analysis Office

Chief, Facilities Management and Security Services (FMSS)

Deputy Chief, FMSS

Office of Chief Procurement Officer (OCPO)

Chief Information Officer (CIO)

Program manager, IT Service Asset and Configuration Management (SACM)

Chief, CI

CI director, Field Operations

CI field offices

CI Management Information System (CIMIS) equipment coordinator

Business units

Analyzing all property and equipment and certain expense transactions $50,000 and greater to verify they are classified correctly.

Reconciling property and equipment databases between AAM, KISAM and CIMIS.

Reconciling AAM to the general ledger.

Reviewing disposals.

Segregating duties and IFS access control.

Acquisition cost - The original cost of an asset to the government, which is the amount recorded in the financial and accounting records. This includes all costs incurred to bring the asset to a form and location suitable for its intended use.

Asset - Tangible or intangible items owned by the federal government that have probable economic benefits that can be obtained or controlled by a federal government entity.

Assisted acquisitions - The original cost of an asset to the government, which is the amount recorded in the financial and accounting records. This includes all costs incurred to bring the asset to a form and location suitable for its intended use.

Book value - The net amount at which an asset or a liability is carried on the books (also referred to as carrying value or amount). It equals the gross or nominal amount of an asset or liability minus any allowance or valuation amount.

Capital asset - Structures, equipment, vehicles and intellectual property, that are used by the federal government and that have an estimated useful life of two years or more.

Capitalize - To record a cost as an asset rather than an expense.

Commercial Off-The-Shelf (COTS) software - Software that is bought from a vendor and is ready to use with little or no changes.

Criminal Investigation Management Information System (CIMIS) - A database system used by Criminal Investigation (CI) to track asset management activities for the full life cycle of non-IT and sensitive law enforcement equipment from acquisition to disposal.

Depreciation - The systematic and rational allocation of the acquisition cost of an asset, less its estimated salvage or residual value, over its estimated useful life.

Direct costs - Costs assigned to activities by direct tracing of units of resources consumed by individual activities. A cost that is specifically identified with a single cost object.

Indirect costs - Costs that cannot be identified specifically or traced to a given cost object economically.

Impairment - A significant and permanent decline in the service utility of general property and equipment or expected service utility for construction work in process.

Internal use software (IUS) - Software that is bought from commercial vendors “off-the-shelf,” internally developed, or contractor-developed, solely to meet the entity's internal or operational needs.

Internally developed software - Software that employees are actively developing, including new software and existing or purchased software that is being modified with or without contractor’s assistance.

Intragovernmental lease - An intragovernmental lease is a contract or agreement occurring within a consolidation entity or between two or more consolidation entities whereby one entity (lessor) conveys the right to control the use of Property and Equipment (PE) (the underlying asset) to another entity (lessee) for a period of time as specified in the contract or agreement in exchange for consideration.

Knowledge, Incident/Problem, Service and Asset Management (KISAM) - An inventory system for all accountable IRS property and equipment, except for leasehold improvement, software, investigative equipment, and vehicles. Investigative equipment and vehicles are recorded in CIMIS. The KISAM Asset Manager module is used to track asset management activities for full life cycle of IT and non-IT hardware from acquisition to disposal.

Lease - A lease is defined as a contract or agreement whereby one entity (lessor) conveys the right to control the use of PE (the underlying asset) to another entity (lessee) for a period of time as specified in the contract or agreement in exchange for consideration.

Net book value - The net amount an asset or group of assets is carried on the books. It is based on the historical cost (gross amount) of the asset less any depreciation, amortization, or impairment costs against the asset.

Probable - The IRS follows the FASAB consideration of probable, to equate to more likely than not (>50% probability).

Product category code (PCC) or material group code (MGC) - A data element used to group materials and services according to their characteristics. The PCC/MGC can be associated with one commitment item and more than one Federal Supply Codes (FSC).

Rehabilitation - The restoration or renovation of serviceable or operable articles to near-new condition or the repair of unserviceable or inoperable articles when the overall aim is to restore or renovate articles to a near-new condition.

Right-to-use (RTU) Lease - A lease that is a non-intragovernmental that does not transfer ownership and the term is longer than 24 months.

Shopping cart - The official Procurement Public Sector (PPS) requisition document submitted by an end user, a program office or a contracting officer's representative (COR), for acquiring property and equipment, supplies or services through an appointed procurement office via a warranted Contracting Officer.

Short-term lease - A lease with a term of 24 months or less.

Service utility - The expected usable capacity at acquisition.

Useful life - The expected operating life of an asset.

Procurement staff use the PPS module to generate shopping cart documents for executing new orders, modifying existing orders and obligating funds.

See Procurement Policy Framework andIFS-PPS Resource Center for more information.

Automated file storage equipment

Equipment for producing, storing and viewing microforms

Document processing equipment for photocopies, mail and check handling, and shredders

Television studio, cameras and other photographic equipment

Printing and binding equipment

Office equipment, devices and machines other than IT equipment

Uninterruptible power supplies (UPS)

Management authorizes and commits to the computer software project and believes that the IRS will more likely complete the project and use the software to perform the intended function with an estimated service life of 2 years or more, and

Conceptual formulation, design, and testing of possible software project alternatives (the preliminary design stage) are completed.

The project/program that the software is intended to support must have a total annual budget of $10 million or greater during any one year.

The project/program must be identified as a “Major Project” according to the IT dashboard submitted by the Department of the Treasury for all bureaus.

The project/program must be for new systems or major enhancements to existing systems.

Building alterations.

Additions permanently attached to or part of a building, including plumbing, power-plant boilers, fire alarm systems, refrigerating systems, security systems, flooring, and carpeting.

Improvements to land, including landscaping, fences, sewers and parking lots.

The provider-lessor would not be expected to derive significant residual economic benefits or services from such reimbursable work under these types of agreements.

The provider-lessor should expense the costs incurred for the reimbursable work and recognize reimbursement as intragovernmental revenue.

Leases include contracts or agreements not explicitly identified as leases but that meet the definition of a lease.

To determine whether a contract or agreement conveys the right to control the use of the underlying asset, assess whether the contract or agreement gives the lessee both of the following:

Complex contracts or agreements may contain (1) both lease (for example, right to use a building) and non-lease (for example, maintenance services) components and/or (2) leases of multiple underlying assets. Such lease components are often referred to as “embedded leases” but this term was not used in SFFAS 54. SFFAS 54 paragraphs 72-77 provide guidance for identifying such leases and assigning costs to individual lease components for accounting purposes. The IRS elected not to recognize embedded leases until October 1, 2026.

The period identified in the lease contract or agreement that precedes any option to extend the lease, or

The period identified in the lease contract or agreement that precedes the first option to terminate the lease.

Those periods specified in the lease contract or agreement that relate to a lessee’s option to extend the lease if it is probable (see terms and definitions), based on all relevant factors, that the lessee will exercise that option.

Those periods specified in the lease contract or agreement that follow a lessee’s option to terminate the lease (up until the point in time when there is another option or, if none, the end of the lease) if it is probable (see terms and definitions), based on all relevant factors, that the lessee will not exercise that option.

Those periods specified in the lease contract or agreement that relate to a lessor’s option to extend the lease if there is significant evidence, based on all relevant factors, that the lessor will exercise that option.

Those periods specified in the lease contract or agreement that follow a lessor’s option to terminate the lease (up until the point in time when there is another option or, if none, the end of the lease) if there is significant evidence, based on all relevant factors, that the lessor will not exercise that option.