Federal to Federal Reimbursable Agreement

070.FFM.L1.01 Federal to Federal Reimbursable Agreement
End-to-End Business Process: 070 Agree-to-Reimburse
Business Scenario(s) Covered
  • Federal to Federal Reimbursable Agreement Modification
  • Commercial Third-Party Service Provider
  • Adjustment to Agreement Balance
Business Actor(s)
Finance Office, Federal Agency Seller; Federal Agency Buyer; Commercial Service Vendor
Synopsis
A reimbursable agreement to perform a service with another federal agency (Federal Agency Buyer) is established. The work under the agreement is partially performed by a Commercial Service Vendor. Costs are accumulated from the Federal Agency Seller's resources and invoices from the Commercial Service Vendor and are included in bills to the Federal Agency Buyer. After the initial agreement has been signed, modifications to the agreement are negotiated between the Federal Agency Seller and Buyer resulting in a lower price.
Assumptions and Dependencies
  1. There may or may not be automated (near/real-time or batch) interfaces between service areas/functions/activities or between provider solutions/systems.
  2. There is no presumption as to which activities are executed by which actor, or which activities are automated, semi-automated, or manual.
  3. Supporting information for general ledger transactions includes sub-ledger entries when sub-ledgers are used.
  4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string.
  5. Relationships between use cases are described in the Framework for Federal Financial Management Use Cases found in the related overview document.
  6. All predecessor activities required to trigger the Initiating Event have been completed.
  7. Funds availability checks are performed against appropriations/fund accounts for obligating funds, and against obligations for disbursing funds in accordance with OMB A-11, Section 150.2.
  8. There is no payment in advance for this reimbursable agreement.
  9. The Federal Agency Seller is operating under the Economy Act.
  10. A contract with the Commercial Service Vendor has already been established and the Commercial Service Vendor has already invoiced the Federal Agency Seller.
  11. The procurement payment processing for contractor resources includes posting costs to cost pools (e.g., projects).
  12. The payroll processing for government resources includes posting costs to cost pools (e.g., projects).
  13. The Federal Agency Seller bills and collects from the Federal Agency Buyer through the Intra-Governmental Payment and Collection (IPAC) System.
  14. The initial receivable is completely paid by the first collection.
FFMSR ID Reference(s) 1.1.2; 1.1.5; 1.2.1; 2.2.4; 2.2.5; 2.2.6
Initiating Event

Federal Agency Seller and Federal Agency Buyer negotiate terms for a reimbursable agreement.


USE CASE 070.FFM.L1.01 FEDERAL TO FEDERAL REIMBURSABLE AGREEMENT
Typical Flow of Events
FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)
1

Establish federal payer information (FFM.060.010 Payer Set-up and Maintenance)

  • Payer information
  • Established FM system payer
2

Establish a reimbursable agreement (FFM.050.010 Reimbursable Agreement Set-up and Maintenance)

  • Reimbursable agreement terms
  • Reimbursable agreement
3

Establish cost pools/objects (e.g., projects) to accumulate costs (FFM.080.010 Cost Management Set-up and Maintenance)

  • Reimbursable agreement
  • Established FM system cost pools/objects (e.g., projects)
4
  1. Incur service costs by performing services (Program Mission Activity)
  2. Calculate and provide service usage metrics needed to allocate accumulated costs to Federal Agency Buyer (Program Mission Activity)
  • Reimbursable agreement terms
  • Internal and vendor service costs
  • Service usage information
  • Accumulated service costs
  • Service usage metrics
5

Determine allocation of accumulated costs to Federal Agency Buyer (FFM.080.020 Cost Accumulation and Allocation)

  • Service usage metrics
  • Service costs allocated to Federal Agency Buyer
6
  1. Generate service invoice, generate IPAC bill, and set up receivable (FFM.050.030 Reimbursable Invoicing)
  2. Recognize earned revenue for services provided (FFM.040.010 Revenue Processing)
  • Service costs allocated to Federal Agency Buyer
  • Service invoice
  • Appropriate receivable entry created with reference to source information
  • Appropriate revenue recognition entries created with reference to source information
7

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
8

Request interagency collection (Program Mission Activity)

  • Collection instructions
  • Funds transferred to seller
9
  1. Establish IPAC collection (FFM.030.030 Payment Processing - Intragovernmental Payments)
  2. Receive and process interagency collection information (FFM.050.040 Reimbursable Receipt Processing)
  • Notification of interagency collection
  • IPAC collection entry
  • Appropriate collection entries created with reference to source information
  • Appropriate receivable adjustment entries created with reference to source information
10

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
11

Complete negotiations to modify existing reimbursable agreement (Program Mission Activity)

  • Existing reimbursable agreement terms
  • Service invoice
  • Service usage metrics
  • Modified reimbursable agreement terms
12

Update reimbursable agreement (FFM.050.010 Reimbursable Agreement Set-up and Maintenance)

  • Modified reimbursable agreement terms
  • Modified reimbursable agreement
13
  1. Incur additional service costs by continuing to perform services (Program Mission Activity)
  2. Calculate and provide service usage metrics needed to allocate accumulated costs to Federal Agency Buyer (Program Mission Activity)
  • Reimbursable agreement terms
  • Internal and vendor service costs
  • Service usage information
  • Accumulated service costs
  • Service usage metrics
14

Determine allocation of accumulated costs to Federal Agency Buyer (FFM.080.020 Cost Accumulation and Allocation)

  • Service usage metrics
  • Service costs allocated to Federal Agency Buyer
15
  1. Generate service invoice reflecting additional costs and agreement adjustments, generate IPAC bill, and establish receivable (FFM.050.030 Reimbursable Invoicing)
  2. Recognize earned revenue for services provided (FFM.040.010 Revenue Processing)
  • Modified reimbursable agreement
  • Service costs allocated to buyer
  • Service invoice
  • IPAC bill entry
  • Appropriate receivable entries created with reference to source information
  • Appropriate revenue recognition entries created with reference to source information
16

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
17

Request interagency collection (Program Mission Activity)

  • Collection instructions
  • Funds transferred to seller
18
  1. Establish IPAC collection (FFM.030.030 Payment Processing - Intragovernmental Payments)
  2. Receive and process interagency collection information (FFM.050.040 Reimbursable Receipt Processing)
  • Notification of interagency collection
  • IPAC collection entry
  • Appropriate collection entries created with reference to source information
  • Appropriate receivable adjustment entries created with reference to source information
19

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
20

Analyze and report on reimbursable costs, receivables and collections (FFM.050.070 Reimbursable Reporting)

  • GL account balances
  • Earned unbilled information for trading partners
  • Reimbursable cost, receivable, and collection reports

This page was last updated on September 01, 2021.