BUSINESS RULES FOR INTRAGOVERNMENTAL
- Effective October 1, 2002, for intragovernmental investments with
the Bureau of the Public Debt (BPD), BPD and trading partner agencies
will use the interest method for amortization on market-based notes,
bonds, and zero-coupon bond securities. BPD and the trading partner
agencies will continue to use the straight line method for market-based
bills. Additionally, the following three provisions also apply:
- Amortization of market-based premiums to call date. Market-based
notes and bonds purchased at premium will be amortized to call date.
- Held-to-maturity vs. Available-for-sale. BPD will carry notes and
bonds at amortized cost and will not reflect a market adjustment.
BPD will carry zero coupon bond securities at amortized cost and will
report market adjustments. However, agencies may recognize market
adjustments on bills, notes, bonds, and zero coupon bond securities
classified as available-for-sale.
- Inventory relief method for redemptions prior to maturity. All
agencies, including central fiduciary agencies must use the specific
identification method (i.e. purchase dates / tax lots) to be relieved
upon early redemption of securities. If securities are not specifically
identified the FIFO method will be used to identify the security to
be sold. NOTE: Agencies must reconcile securities inventories with
BPD at the tax lot level by December 31, 2002.
- Effective October 1, 2002, for borrowings and investments with the
BPD and borrowings from the Federal Financing Bank (FFB), agencies will
report amounts consistent with those reported by these central fiduciary
agencies, except as noted above.
- Effective October 1, 2002, the Office of Personnel Management (OPM)
will provide a factor (OPM factor) to federal agencies for calculating
future employment related benefits. This factor will be provided no
later than 15 days after the end of each reporting period.
- Effective September 30, 2002, actual basic pay data will be used
to calculate the future liability for employment related benefits. Estimated
basic pay data may be used for the month of September if actual figures
are not available timely.
- Effective September 30, 2002, the agencies will enter payroll benefit
data to the Internet Fiduciary Confirmation System (IFCS) within 15
days after the end of each reporting period. Agencies and OPM will report
identical amounts on their financial statements.
- Effective October 1, 2002, the Department of Labor will enter liabilities
for each agency in the IFCS within 15 days after the end of each reporting
period. Agencies must report the DOL provided amount on their financial
- Effective immediately, the system of record for reconciling and confirming
fiduciary balances between trading partner and central fiduciary agencies
will be the IFCS.
- Effective October 1, 2002, trading partner and central fiduciary
agencies are responsible for working together to resolve any differences
within 25 business days after the close of the reporting period. If
the dispute cannot be resolved using these mechanisms, then the matter
will be referred on the next business day to a disputes resolution task
force for a binding decision. Agreed to adjustments will be recorded
in the IFCS and in the financial records of both parties.
Transactions executed prior to the effective date(s) need not be retroactively
augmented to meet these requirements.