The Associate CFO for Corporate Budget formally bears the legal responsibility to ensure that the IRS does not violate the Antideficiency Act at the agency level. To meet the IRS’s collective funds management responsibilities, the Associate CFO for Corporate Budget relies on the DFOs for compliance with the law and these guidelines.

The Associate CFO for Corporate Budget delegates funds control responsibilities to the division commissioners and chiefs for the funds in their financial plans.

The DFOs bear the ultimate responsibility for the funds control of their financial plans, as well as managing their plans through all phases of the budget cycle. See Exhibit 1.33.4-1, Division Finance Officers and Financial Plan Managers.

The FPMs are responsible for day-to-day operations of monitoring and controlling their financial plans' funds in the execution phase of the budget cycle. See Exhibit 1.33.4-1, Division Finance Officers and Financial Plan Managers.

Funds control and document approval authority may be delegated to individuals within the organization, as needed; for example, the Procurement for Public Sector (PPS) module in the Integrated Financial System (IFS) identifies FPMs as those with delegated authority to approve documents that commit and obligate funds.

FPMs must know appropriations law concepts and be able to research specific details. Appropriations law (including the Antideficiency Act), OMB Circular A-11, the GAO Red Book, and other applicable guidance, provide information on funds control concepts. General Legal Services (GLS) is also available to assist with appropriations law questions. A short overview of the most important concepts follows. The bulk of this section is copied directly from the GAO Red Book, which has a wealth of information about specific purchases and circumstances. GAO's Comptroller General (Comp. Gen.) decisions are referenced in several places to provide fuller explanations of concepts.

The ADA prohibits federal employees from making expenditures or incurring obligations in advance of an appropriation, or in excess of amounts available in appropriation or fund accounts unless specifically authorized by law. It provides for administrative sanctions and both civil and criminal penalties for deficiencies. In addition, under the purpose statute, appropriated funds may be used only for the purposes for which they were appropriated.

Three things are required for appropriated funds to be legally available for obligation:

In addition, no amount can be obligated before OMB apportions the appropriated funds. It is an ADA violation to incur an obligation against anticipated budget authority including offsetting collections.

By law, no agency may transfer resources between appropriations except as authorized by law. Laws authorizing transfers may also contain provisions requiring congressional notification or approval. It is unlawful to obligate or expend more than the appropriated amount (or the apportioned amount if lower). The administrative provisions of IRS’s appropriations language allow the IRS very limited authority to transfer funds between appropriations with prior approval of the Department of the Treasury (Treasury), OMB and the Congress. This authority must be carefully controlled by Corporate Budget. All requests for interappropriation transfers must be justified to and approved in advance by Corporate Budget. See IRM 1.33.4.3.1.5, Appropriation Transfer Procedures.

When possible, Corporate Budget will broker realignments between accounts through corporate reserves, fund 0290.

The Congress and the administration restrict reprogramming, or shifting funds within an appropriation, to exert control over the budget.

FPMs need to work within their resource availability to achieve program plans. The Business Performance Review (BPR) process focuses on IRS efforts to deliver programs and manage resources. After activity levels are set, funding changes should be an exception in program management. Any needs above the plan should first be resolved within the financial plan or through efforts to secure available funds from other organizations (with the caveat that realignments must not exceed appropriation or BAC limitations). If no resolution can be found, the FPM should submit a request to Corporate Budget with a full justification. If FPMs identify surplus funding within their financial plans, they should immediately notify Corporate Budget and return those surplus funds.

Corporate Budget monitors financial plans monthly and through a more comprehensive midyear review. FPMs are required to identify any surpluses or out-of-cycle requests to Corporate Budget at midyear. Corporate Budget will pull identified surpluses into corporate reserves to support approved corporate unfunded priorities through year-end.

Business unit hiring actions are permitted, provided they comply with the current operating guidance available on the CFO website.

Ensuring optimal and efficient use of IRS resources is a high priority. This IRM reinforces the need to minimize the amount of year-end obligations (that is, after August 31), while maximizing obligations in support of business priorities. Business units participate in several financial reviews throughout the year, as needed, including, but not limited to, the following formal reviews to ensure the optimal use of IRS resources.

FPMs have the authority to implement reprogramming only in their assigned financial plans and are accountable for strict adherence to the limitations set forth above in IRM 1.33.4.2.2, Legislative Policies.

FPMs may limit or delegate their reprogramming authority for offices within their financial plans. In doing so, the FPMs retain responsibility for ensuring that limitations contained in these operating guidelines are not violated and must be able to explain all reprogramming changes made in their financial plans. The individuals designated as FPMs are identified by position title in Exhibit 1.33.4-1, Division Finance Officers and Financial Plan Managers.

FPMs may delegate to others outside their business unit the authority to make entries to their financial plan, as necessary, to accomplish realignments between financial plans in IFS. All realignments between financial plans must be initiated by the sending FPM. See procedures in IRM 1.33.4.3.1.7, Realignments between financial plans.

At times, Corporate Budget makes entries to other financial plans. These occasions will be limited and Corporate Budget will notify FPMs when their involvement is necessary.

Separation of duties isolates roles and responsibilities to ensure that an individual cannot process a transaction from initiation through reporting without the involvement of others, thereby reducing the risk of fraud or error. Examples of situations requiring separation of duties:

FPMs should establish, develop and monitor controls via segregation of duties to ensure that conflicting activities are not assigned to the same individual and are appropriately separated.

FPMs are required to routinely monitor their IFS budget data and ensure the data is correct.

The validity and accuracy of IRS financial reports depends on the correct use of financial codes. FPMs, all staff in budget organizations and all parties responsible for assigning financial codes to documents must be familiar with the codes and definitions in the current Financial Management Codes Handbook found on the CFO website.

Funded programs, also known as internal order codes (IOCs), are set up to track project-specific information. See IRM 1.33.4.3.2.1, Funded Programs. When necessary, the CFO will issue guidance or procedures for using specific IOCs for Servicewide activities or projects that need to be tracked and will post it on the CFO website.

Procedures for establishing new financial codes are provided in Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.

FPMs must notify Corporate Budget of any reorganizations as soon as senior management approves an initial reorganization proposal. The Congress directs IRS to include in its annual operating plan the details on any planned reorganizations, job reductions or increases to offices or activities within the agency, and modifications to any service or enforcement activity. Reorganizations include significant planned staffing increases or decreases, establishment of new offices or functions, or elimination of any offices or programs. When notifying Corporate Budget, please include:

Corporate Budget staff will maintain the appropriate level of confidentiality regarding possible reorganizations if requested by the FPM.

To request new or revised financial codes, see Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.

For more guidance on reorganizations, see IRM 1.1.4, Organizational Planning.

There are no legal restrictions on realigning funds between labor and non-labor; however, to better manage funds, additional internal guidance often requires Corporate Budget approval before realigning labor funds to non-labor. Business units must ensure compliance with current operating guidance available on the CFO website.

FPMs must balance labor and support so that FTEs are fully costed and strategic plans are realized. For more information on managing FTEs see IRM 1.33.4.3.1.9, FTE Utilization Policies, and on hiring see IRM 1.33.4.3.1.10, Personnel Issues.

All IT resources reside in the IT financial plan. IT is no longer a separate appropriation; it is a BAC and must follow BAC reprogramming guidance. In addition, all requests for reprogramming affecting BAC 98 must follow the IT reprogramming policy. Contact the IT Office of Financial Management Services for more information.

For IT budget execution information, see IRM 2.21.1, Introduction to Shopping Cart Processing for IT.

Although many budget execution activities are decentralized, Corporate Budget continues to have Servicewide fiduciary responsibility.

Corporate Budget monitors business units’ budget execution activities to identify potential issues before they become corporate ones.

Corporate Budget reports to the CFO and IRS deputy commissioners monthly on the IRS’s financial status, including compliance with appropriation language restrictions.

Corporate Budget periodically reviews reprogramming out of labor to verify the effect on current- or out-year resource levels. Corporate Budget will work with the FPMs to ensure reallocations make sound business sense.

Corporate Budget is responsible for the Centralized Payments plan 1111, the Undistributed Funds plan 0290, prior-year funds and IRS appropriation levels.

On a regular basis, Corporate Budget estimates labor needs, analyzes hiring/attrition trends and estimates/realigns corporate costs.

Corporate Budget has primary responsibility for overseeing budget execution policy.

Within Corporate Budget, an assigned execution analyst is the primary point of contact for each business unit for any questions or requests regarding budget execution or this IRM. FPMs should communicate with Corporate Budget through their assigned execution analyst.

For financial code change requests, FPMs should send their requests directly to Corporate Budget’s Master Data Team (CFO.Master.Data.Request@irs.gov), with a copy to their assigned execution analyst. Procedures for Master Data changes are provided in Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.

For any budget formulation questions or requests, FPMs should go directly to their assigned Corporate Budget formulation analyst.

The House Appropriations Committee directs the IRS to submit an operating plan within a specified number of days after enactment of the new fiscal year appropriation.

Corporate Budget prepares a table that crosswalks the budget request to the enacted level of funding and the current operating plan. The format is like the Congressional Budget Justification’s Explanation of Proposed Fiscal Year Budget Operating Level chart.

FPMs must distribute their plan’s funds by OMB object class, functional area and commitment item as they will be executed.

FPMs develop narrative to provide program, project and activity information for each appropriation. The narrative must:

Corporate Budget compiles and submits the crosswalk table and narrative referenced above.

An apportionment is an action by which OMB distributes amounts available for obligation in an appropriation or fund account. It typically limits the obligations that may be incurred for specified time periods, programs, activities, projects, objects or any combination thereof. It may also place limitations on the use of other resources, such as FTEs or property. An apportionment is legally binding, and obligations and expenditures (disbursements) that exceed an apportionment are a violation of and are subject to reporting under, the Antideficiency Act. See OMB Circular A-11, Section 120, Apportionment process.

Initial apportionment requests usually are due to OMB for a new fiscal year by the third week of August. The initial apportionments include estimates of expected reimbursables, carryover amounts for multiyear authority, prior-year recoveries for multi- and no-year accounts, and anticipated user fee transfers to the no-year accounts.

For newly enacted, full-year appropriations, the IRS receives an automatic apportionment, so it can operate for 30 days or until apportionment requests are approved. If a request is not approved by the 30th day after enactment, the IRS receives another 30-day automatic apportionment, in effect until the apportionment request is approved. The rate is the higher of the:

For the yearly appropriations, an amount not to exceed 1% of the total is apportioned to pay legitimate obligations related to canceled appropriations. See 31 U.S. Code Section 1553(2).

OMB Circular A-11 provides automatic apportionments of prior-year recoveries of $400,000 or 2% of the annual appropriation, whichever is lower; however, OMB requires the IRS to have an apportionment in place before using these funds. The IFS does not have a control on prior-year recoveries to stop the usage of these funds; therefore, business units should ensure that no obligations are charged to these funds until the apportionments are received.

All proposed interappropriation transfers must be justified to and approved by Corporate Budget. If approved, Corporate Budget will submit the transfer request for approval to Treasury, OMB and the congressional subcommittees. After receiving all approvals, Corporate Budget will submit Treasury Standard Form (SF) 1151, Nonexpenditure Transfer Authorization, to Treasury and will notify the appropriate FPM to enter it in IFS. (See also IRM 1.33.4.2.2.1, Appropriation Transfers.)

When possible, Corporate Budget will broker realignments between accounts through Corporate Reserves, fund 0290.

Corporate Budget controls funds transfers from the IRS to other agencies, documented by a SF 1151, Nonexpenditure Transfer Authorization, transfer request. The SF 1151, Nonexpenditure Transfer Authorization, must cite the public law or other authority that authorizes the transfer. When a FPM needs to send or receive funds from another agency, he/she must provide the following information via email to Corporate Budget:

Some interagency transfers will require an apportionment or reapportionment request, which must be approved by Treasury and OMB before the SF 1151, Nonexpenditure Transfer Authorization, may be forwarded. All approvals must be granted before the funds can be put in IFS.

Realignments between financial plans require coordination between the FPMs in both the receiving and the sending financial plans.

Labor costs account for approximately 75% of IRS’s regular annual appropriations. FPMs must use labor projections to monitor and plan current fiscal year requirements.

The IRS maintains FTE allocations in IFS Budget version 999. See IRM 1.33.4.2.3.5.1, Integrated Financial System Version Descriptions.

FPMs should ensure FTEs are fully funded with labor and non-labor resources. Each financial plan’s labor funding (specifically, commitment items 11SP, 11ST and 12LA in IFS version 0) must support the number of FTEs in the financial plan (version 999) at all times. When funding transfers are made, FTE adjustments must be made to retain the FTE and labor funding balance.

FPMs are responsible for their FTE resources. To keep FTE in balance with labor funding, FPMs are permitted to "drown" surplus FTEs (that is, reduce FTE allocations) from the financial plan, to create additional FTEs, and to convert between other than full-time permanent FTEs and full-time permanent FTEs, as necessary. These actions are permitted if sufficient labor and non-labor funds are available to support the FTEs, and they do not adversely affect accomplishment of the Strategy and Program Plan. See the hiring guidance in the next section.

Budgetary guidance is warranted for certain personnel issues that are discussed below.

FPMs are responsible for developing staffing plans to achieve the IRS’s goals. FPMs update the 3YRF with full-time permanent hiring plans and attrition projections by pay period and employment category. Corporate Budget uses this information and historical trends to develop staffing status reports for senior leadership.

The IRS manages awards based on OMB and OPM guidelines. Award pool estimates at the financial plan level are established according to these guidelines.

The responsibility for buyout costs may depend on who initiates the buyout, as outlined below.

Each business unit receives travel funds to complete its mission and should restrict charging official travel against a financial plan or functional area other than its own. All travelers should charge travel to their own business unit, whether supporting their own direct program or a customer function.

Travel directly related to the Federal Highway Administration’s Excise File Information Retrieval System (ExFIRS) may be charged against available multiyear funds as directed.

Employees participating in leadership training programs must charge their time and travel costs to their home functional area.

IT should pay for the travel of all IT analysts, whether attending functions within their own financial plan or assisting with the implementation of an approved project/program.

In general, support functions such as IT, FMSS and HCO have been funded to support their customers’ day-to-day operational needs and should not expect the customer to pay for their usual travel. Some examples and exceptions follow:

Under the Government Employee’s Incentive Awards Act, IRS employees can earn gainsharing travel savings awards for saving the IRS money while on temporary duty travel. These savings come from the use of less expensive lodging and/or from the use of frequent flyer benefits to purchase airline tickets for official travel. Employee participation is optional. Gainsharing awards are charged as travel expenses. See IRM 1.32.14, Gainsharing Travel Savings Program.

All temporary duty travel with lodging expenses, foreign or domestic, are covered under this program. Relocation travel is not covered under this program. See IRM 1.32.1, IRS Local Travel Guide and IRM 1.32.11, IRS City-to-City Travel Guide.

An employee accumulates travel savings throughout the fiscal year and documents the savings on Form 13631-A, IRS Travel Savings, to request a gainsharing award. See IRM 1.32.14, Gainsharing Travel Savings Program.

Surplus funding in Statistics of Income (SOI) functional area 4Q may be reprogrammed within a financial plan as needed to cover functional area 4Q deficits. Surplus SOI funds in any financial plan will first be used to offset SOI deficits in other financial plans or fund centers before being reprogrammed into other functional areas, at the direction of the director, Statistics of Income. The written concurrence of the director, Statistics of Income, is required before reprogramming FTEs or funds out of functional area 4Q.

The Treasury Franchise Fund is a revolving fund comprised of three services providers: Treasury Shared Services Programs (TSSP), Centralized Treasury Administrative Services (CTAS) and Administrative Resource Center (ARC). These providers offer a host of IT and non-IT services to IRS and other bureaus across the federal government. Services are acquired through an annual interagency agreement (IAA) facilitated by Office of Treasury Franchise Fund Management and Oversight (OTFFMO). The providers administer these centralized services more advantageously and more economically than they could be provided otherwise.

The effective management and use of the Treasury Franchise Fund (TFF) is a shared responsibility of the IRS and the Treasury service providers.

More information about the TFF is available on the CFO website, Treasury Franchise Fund page.

Funds received from sources outside of the IRS are deposited into Treasury’s general fund as miscellaneous receipts, unless the IRS has statutory authority to retain funds for credit (that is, an increase) to its own appropriation.

An exception is authorized for receipts that qualify as refunds. Refunds are defined as "repayments for excess payments and are to be credited to the appropriation or fund accounts from which the excess payments were made." Refunds must be directly related to previously recorded expenditures and are reductions of such expenditures. Refunds also have been defined as representing "amounts collected from outside sources for payments made in error, overpayments or adjustments for previous amounts disbursed." GAO Opinion B-217913 (1986). So travel credit card rebates are adjustments of previous disbursements and qualify as ‘refunds.’ Refunds and/or rebates received are applied to the appropriation and fiscal year initially charged.

Timing of the original obligations determines the dispensation of the rebate.

Funded programs, formerly known as internal order codes, are IFS data elements that collect expenditure data for specific projects. They are used to track costs of training, events and projects. In IFS, funded programs use the term IOC. IOCs are generally five-character alpha-numeric codes. For IT projects, the IOC may contain eight positions to track sub-project activities. Reimbursable projects use ten-character IOCs. A listing of IOCs can be found in the current Financial Management Codes Handbook on the CFO website, along with a crosswalk of which codes are valid in which appropriations. See IRM 1.33.4.3.2.2, Tracking Event-Related Spending.

For more information about funded programs and IOCs, see section 3.1 of the Financial Management Codes Handbook found on the CFO website.

For guidance on the IOC structure, see the Internal Order Code Guidance on the CFO website.

For instructions on how to request an IOC, see this IRM’s Exhibit 1.33.4-2, Master Data (Code) Change Request Procedure.

An event includes a conference, meeting, training, awards ceremony, or other similar gathering that involves expenses of the attendees, such as for travel, meals or refreshments.

For all events that cost $20,000 or more, see IRM 1.32.10, Reporting on Event-Related Spending, for direction on funded programs (IOCs) to track costs, reporting requirements and exclusions.

The Centralized Payments plan (plan 1111) pays all costs to manage the Servicewide leadership program. Employees participating in Servicewide leadership training programs charge their time and travel costs to their home functional area. The Centralized Payments plan pays contract, material and instructor costs for the Servicewide leadership programs.

HCO is responsible for developing curriculum for the education and e-learning programs.

HCO manages the Skillsoft program and with IT, funds the Skillsoft contract, including Skillport Learn and Lead 24x7. HCO maintains contract administration responsibilities for the Accounting and Tax Law Training (Thomson Reuters Checkpoint Learning) contract. The business units prepare and fund requisitions based on the number of online training modules or customized tasks being ordered off the Thomson Reuters Checkpoint Learning contract.

Expenditures for training commitment items must include an IOC. Training IOCs have been established for mission-critical occupations, management levels, Servicewide programs and training support. This includes training travel, services and supplies.

For training events that cost over $20,000, see IRM 1.32.10, Reporting on Event-Related Spending, for direction on funded programs to monitor costs, reporting requirements and exclusions.

For training included as part of a contract, the training must be a separate line item on the requisition and coded as training in IFS. Training listed as a separate task in a contract statement of work for the acquisition of goods and services should be submitted for review according to HCO’s policy. See IRM 6.410.1, Learning & Education (L&E) Policy.

Chief Counsel is responsible for administering funding for object class 42, Insurance Claims and Indemnities. Counsel processes and approves insurance claims and other litigation expenses under general ledger account 6100.4202 for parties that prevail in tax litigation cases against the IRS. Counsel also processes and approves indemnity payments, which include federal tort claims and employee personal property claims. Federal tort claims filed under the Federal Tort Claims Act are paid using general ledger account 6100.4201 for personal injury claims or general ledger account 6100.4209 for property damage claims. Employee personal property claims filed under the Military Personnel and Civilian Employee Compensation Act are also indemnity claims that are paid using general ledger account 6100.4209.

These claims are centrally funded through one of two methods:

All non-tax litigation attorney fees or settlement claims are the responsibility of the business unit in which the claim arose. Settlement claims include payments to taxpayers for the expenses incurred due to an erroneous levy (general ledger account 6100.4203) and payments to current and former employees for the final settlement of a complaint (general ledger account 6100.4204). Claims also may include payments of claims and judgments that are taxable and arise from court decisions or abrogation of contracts (general ledger account 6100.4205) and those that are non-taxable and arise from court decisions or abrogation of contracts (general ledger account 6100.4206).

Amounts awarded, including settlements to current or former IRS employees or applicants for employment in equal employment opportunity (EEO) cases litigated in District Court, are the responsibility of the business unit in which the EEO complaint arose (general ledger account 6100.4211).

Rent resources are centralized in FMSS.

The IRS occupies several GSA-delegated buildings and is responsible for all operations and maintenance (O&M). Building Delegation funds in functional area 3D are to be used solely for the GSA Building Delegation Program, as documented in delegation agreements.

Each year, GSA estimates the amount of O&M they would have charged if they had operated those buildings under their standard usage policies. In accordance with P.L. 107-217 (codified at 40 U.S. Code Section 121(d)(3)), the IRS is authorized to retain as no-year money the unexpended portion of its appropriated funds up to GSA’s estimated cost of O&M. Therefore, if IRS’s actual O&M costs for GSA-delegated buildings are less than GSA’s estimate for the given year, the difference is eligible for transfer (rollover) at year-end into no-year authority. Corporate Budget controls the transfer process and must obtain approval based on input from FMSS. FMSS is responsible for re-allocating funding to delegated site allotment offices once Corporate Budget has completed the appropriation transfer process.

Under no circumstances may rollover no-year funds be used for current-year labor costs. No-year rollover funds may be obligated at the discretion of the delegated site’s financial management officer to meet current-year needs and must be used in accordance with GSA-defined standards.

The Office of Servicewide Policy Directives and Electronic Resources (SPDER) provides comprehensive electronic tax law and legal research services, including training on these resources, through the ReferenceNet Legal and Tax Research Services, available on the RAAS Tools and Services site.

For additional information, contact SPDER at spder@irs.gov.

Direct support that can be reasonably identified and charged to a specific functional area must be charged there.

Indirect support should be reviewed and charged to the multiple functional areas it supports if a reasonable distribution can be made. If no reasonable distribution is possible, indirect support will be charged to the predominantly benefiting functional area. The IRS policy is to maximize direct support and minimize indirect support to the extent practicable.

Support costs funded centrally by certain support organizations include, but are not limited to, the following:

IT User and Network Services manages the networked printers. The program includes networked end-user non-production printers (minimum 1-to-10 employee ratio). The networked printer program results in shared devices that cross organizational boundaries. To ensure printer consumable ordering/purchasing is transparent to the business units, User and Network Services administers the program through the Office of Acquisition Strategy. The program covers printer toner, waste toner bottles, oil bottles, photoconductors and, depending on the printer type, printer drums. The program does not cover paper products or consumables for stand-alone, non-qualifying printers. All IRS business units are eligible to participate in the program.

IT is responsible for funding all costs of portable electronic devices (PEDs), cell phones, smartphones and hotspots in its inventory. This includes replacement costs. The determination of who has authorized use of PEDs will be based on standard employee profiles and senior executive team direction.

Jury fees are treated as a standard collection, not as a reimbursable. The actual collection transaction will be processed against the accounting string supplied by the business unit on the employee’s Form 3210, Document Transmittal. All business units will use general ledger account 6100.1111 as the expense code on Form 3210. If a business unit fails to supply a valid accounting string to the employee serving on the jury, its financial plan cannot recoup those fees; instead, the funds will default to a standard accounting string controlled by Corporate Budget. Please note that all debit vouchers will be posted to the same accounting string as the original check.

If the check is for time only, the employee should endorse the check by writing the words "Payable to Internal Revenue Service" on the back of the check beneath the employee's signature. The accounting string also should be identified on the jury fee check. In cases where the check for jury duty covers both time and travel, employees should cash the court's check and keep only the travel portion. Employees should complete a Form 3210 to forward their personal check (payable to the Internal Revenue Service) and a copy of the court statement to the Government Payables & Funds Management Office. Form 3210 should contain the employee’s full name as shown in personnel records, social security number, organizational unit, accounting string, office phone number and the dates of court attendance. The employee should mail the check and Form 3210, Document Transmittal, to: Internal Revenue Service; Government Payables & Funds Management Office, PO Box 9002, Beckley, WV 25802-9002 .

The IRS may not use appropriated funds to provide food for federal employees except as authorized by statute (for example, travel regulations allow reimbursement for food through per diem).

See IRM 1.32.20, Using Appropriated Funds to Purchase Meals and Light Refreshments.

See IRM 1.32.10, Reporting on Event Related Spending.

Funds in BAC 98 and the BSM appropriation (fund 0921) are designated for procuring IT goods and services exclusively. BAC 98 provides funding for Servicewide IT operations, maintenance and investments to enhance or develop business applications for the business units. BAC 98 funds telecommunications, hardware and software (including commercial-off-the-shelf), contractual services, and staffing costs to manage, maintain and operate IT. Funds in BAC 98 also provide for critical or limited (except when funded by initiatives) improvements or enhancements to existing business applications. Purchases of IT-related goods and services may only be funded from BAC 98 or BSM funds. All IT-related needs should be routed through the IT organization.

Appropriated funds are only available for the purposes for which they are appropriated, 31 U.S. Code Section 1301(a). If an object is specifically provided for in an appropriation, that appropriation must be used to the exclusion of a more general appropriation that might otherwise have been available for the item. Deliberately charging the wrong appropriation for expediency or administrative convenience, even with the intent to later transfer to the correct appropriation, unless otherwise permitted by law, is a legal violation.

The Commissioner delegated authority to the CIO to govern all areas related to IT resources and technology management (Delegation Order IT 2-1-1), including the responsibility to budget and deliver IT products. CIO policies and procedures are included in Delegation Order IT 2-1-1 and IRM 2.21.1, Introduction to Shopping Cart Processing for IT. The Master Service Level Agreement provides additional guidance for obtaining internal IT products and services. The Delegation Order, IRM and Master Service Level Agreement are all available on the IT Procedures/Guidelines website.

Project managers for GSA reimbursable work authorizations (RWA) must work with GSA to obtain documentation supporting charges for work completed on individual RWAs (GSA Form 2957), including unbilled amounts. At year-end, project managers should send supportable estimates for all work completed on an RWA, but unbilled by GSA, to the Government Payables & Funds Management office’s IPAC unit. This will allow the IPAC unit to record an accounts payable for work completed but not yet billed.

Project managers for security work authorizations (SWA) must work with the Department of Homeland Security (DHS) to obtain documentation supporting charges for work completed on individual SWAs (FPS Form FPS 57), including unbilled amounts. At year-end, project managers should send supportable estimates for all work completed on an SWA, but unbilled by DHS, to the Government Payables & Funds Management office’s IPAC unit. This will allow the IPAC unit to record an accounts payable for work completed but not billed.

FPMs, with input from project managers as appropriate, are responsible for certifying payment for all amounts billed from other federal agencies through the Intra-governmental Payment and Collection (IPAC) process. Certification indicates that the IRS has received all the goods and services being billed, and that those goods and services were acceptable. Certification of receipt and acceptance should be provided to the Government Payables & Funds Management office, specifically to the *CFO BFC Electronic IPAC Certification mailbox, within 10 calendar days of receiving the bill. In cases where amounts billed are in dispute, a reconciliation should be provided to the IPAC unit, identifying the amounts and plans for resolving discrepancies. For more information, see IRM 1.35.3 , Receipt and Acceptance Guidelines.

Obligations for reimbursable work may not be incurred until there is a binding agreement between the IRS and the requesting agency. Since FPMs cannot exceed their budgets, they must assist their reimbursables coordinators to comply with the long-standing policy: no agreement, no work. See IRM 1.33.3 , Reimbursable Operating Guidelines, for guidance. on the reimbursables program and the CFO website, under Products, Guidance & Services > Reimbursables and Receivables, for additional resources.