Improving Accountability for Intra-governmental Transactions (IGT)
The Office of Financial Innovation & Transformation (FIT) worked with federal agencies to improve accountability for money transferred between agencies – intra-governmental transactions (IGT). These solutions included changes to people, processes, and technology.
The problem FIT was solving
The federal government could not adequately explain IGT and fund balances between agencies. This caused a problem for the consolidated Financial Report of the United States Government.
The solutions FIT helped to develop
Several groups worked together to solve this problem. FIT and the Government-wide Accounting group (GWA) represented Treasury. We collaborated with:
- Government Accountability Office (GAO)
- Office of Management and Budget (OMB)
- Office of Personnel Management (OPM)
This team addressed the problem by:
- organizing a new unit (people)
- enhancing guidance, rules, and standards (processes)
- providing an automated tool (technology)
People: Organizing a new unit
The new unit is part of the Bureau of the Fiscal Service: The IGT Organizational Unit.
They lead new processes and technology. They also help resolve IGT issues, develop training, and collaborate with subject matter experts on relevant matters.
Processes: Enhancing guidance, rules, and standards
Once the people were in place, they took these steps to improve IGT processes:
- Reviewed and improved the IGT Policy Guide, (found in Appendices 5-11 of TFM Volume 1, Part 2, Chapter 4700) which they continue to update as needed.
- Specified business rules for the General Fund for proper use of the GF trading partner code, which they continue to update as needed.
- Developed new audit standards to evaluate how accurate, timely, and complete each department or agency is for how they report and record IGT, reconcile IGT, and communicate with partners about differences in reconciling IGT.
They also issue a quarterly scorecard that identifies the most problematic IGT differences and errors. Sharing the scorecards with the agencies, OMB, and auditors helps improve accountability for IGT.
Technology: Providing an automated tool
The IGT Organizational Unit also has an automated tool that helps agencies properly identify and explain IGT.
The benefits of this solution
With this new suite of people, processes, and technology, the government can:
- save money that agencies were spending reconciling IGT
- more adequately explain and reconcile intra-governmental transactions and balances
Who handles IGT now
FIT turned this project over to Fiscal Service's Government-wide Accounting group (GWA). The IGT Organizational Unit is part of GWA.
For more information
- The relevant chapter of the Treasury Financial Manual:
- The system agencies use for intra-governmental transfers of money:
- The system agencies use to manage agreements and orders for IGT: