Reimbursable Agreement from the Buyer's Perspective

070.FFM.L1.02 Reimbursable Agreement from the Buyer’s Perspective
End-to-End Business Process: 070 Agree-to-Reimburse
Business Scenario(s) Covered
  • Reimbursable Agreement from the Buyer’s Perspective
  • IPAC Chargeback
Business Actor(s)
Finance Office; Program Office; Federal Agency Seller; Federal Agency Buyer; Service Provider
Synopsis
A reimbursable agreement was previously established between two federal agencies for a one-time service. The Federal Agency Seller is to provide the Federal Agency Buyer with services in support of an upcoming event; the Federal Agency Seller is required to be paid in advance for the services and pulls the collection. An IPAC is initiated to transfer the agreed funds before the event. Services are provided and the Federal Agency Buyer is not satisfied that they are as agreed. A dispute is initiated by the Federal Agency Buyer. The dispute is resolved and an IPAC chargeback is initiated to transfer the agreed refund from the Federal Agency Seller to the Federal Agency Buyer.
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. The Federal Agency Seller has approved reimbursable authority and sufficient funding ceiling to provide the services to the Federal Agency Buyer.
  9. The Federal Agency Buyer has obligated funds and validated funds availability to cover the advance.
  10. The amount transferred from the Federal Agency Buyer to the Federal Agency Seller does not exceed the agreed upon amount.
  11. Both agencies are properly registered in the IPAC system.
  12. Both agencies have all pertinent information to make an IPAC transfer.
  13. Both agencies follow IPAC business rules.
  14. The Federal Agency Buyer’s request for the IPAC adjustment is within 90 days of the original IPAC transfer to the Federal Agency Buyer.
FFMSR ID Reference(s) 1.1.2; 1.1.5; 2.2.1; 2.2.2
Initiating Event

A federal agency agrees to prepay for one-time reimbursable services.


USE CASE 070.FFM.L1.02 REIMBURSABLE AGREEMENT FROM THE BUYER’S PERSPECTIVE
Typical Flow of Events
FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)
1

Federal Agency Seller requests an IPAC collection in advance for services to be provided (Service Provider Activity)

  • Reimbursable agreement
  • Request for initiation of IPAC collection
2
  1. Receive and process request for initiation of IPAC collection from Federal Agency Buyer (FFM.030.030 Payment Processing - Intragovernmental Payments)
  2. Create undelivered order with advance collection (FFM.050.010 Reimbursable Agreement Set-up and Maintenance)
  3. Receive notice of IPAC transfer (FFM.030.120 Payment Confirmation)
  • Request for initiation of IPAC collection
  • Reimbursable agreement
  • IPAC disbursement from Federal Agency Buyer Treasury Account Symbol (TAS)/Agency Location Code (ALC) to Federal Agency Seller TAS/ALC
  • Appropriate Federal Agency Buyer advance entry created with reference to source information
  • Appropriate Federal Agency Buyer undelivered order entry created with reference to source information
  • Notice of IPAC transfer
  • IPAC disbursement information
3

Receive notice of IPAC transfer (Service Provider Activity)

  • Notice of IPAC transfer
  • IPAC disbursement information
  • Request capture of advance information
4

Receive and process request to capture advance information (FFM.030.030 Payment Processing - Intragovernmental Payments)

  • Request capture of advance payment information
  • Appropriate Federal Agency Buyer expenditure entry created with reference to source information
5

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
6

Federal Agency Buyer receives services and requests processing of receipt (Program Mission Activity)

  • Services received
  • Request for processing of receipt of services
7

Receive and process receipt of services (FFM.050.040 Reimbursable Receipt Processing)

  • Request for processing of receipt of services
  • Appropriate obligation liquidation entry created with reference to source information
  • Appropriate undelivered order liquidation entry created with reference to source information
8
  1. Federal Agency Buyer reviews IPAC disbursement information, reviews services received, finds that some services paid for were not performed, and disputes the IPAC disbursement amount
  2. Federal Agency Seller and Federal Agency Buyer resolve the dispute and agree on the amount to be refunded
  3. Federal Agency Buyer requests an IPAC adjustment (chargeback) (ACQ.040.020 Documentation of Delivery/Acceptance)
  • IPAC disbursement information
  • Reimbursable agreement
  • Disputed IPAC collection
  • Dispute resolution
  • Request for initiation of IPAC collection (chargeback)
9
  1. Receive and process initiation of IPAC collection (chargeback) (FFM.030.030 Payment Processing - Intragovernmental Payments)
  2. Receive notice of IPAC transfer (FFM.030.120 Payment Confirmation)
  3. Reverse obligation liquidation for disputed advance amount (FFM.030.020 Obligation Management)
  4. Adjust expenditure for amount actually paid (FFM.030.030 Payment Processing - Intragovernmental Payments)
  5. Deobligate Federal Agency Buyer disputed disbursement (FFM.030.020 Obligation Management)
  • Request for initiation of IPAC collection (chargeback)
  • IPAC collection (chargeback) to Federal Agency Buyer TAS/ALC from Federal Agency Seller TAS/ALC
  • IPAC collection confirmation information
  • Appropriate Federal Agency Buyer obligation liquidation reversal entry created with reference to source information
  • Appropriate Federal Agency Buyer expenditure entry adjusted with reference to source information
  • Appropriate Federal Agency Buyer deobligation entry created with reference to source information
  • Notice of IPAC transfer
  • IPAC disbursement 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

This page was last updated on September 01, 2021.