Procedural
Requirements / NPR 9220.1
Effective Date: February 9, 2017
Expiration Date: February9, 2021
Subject – Journal Voucher Preparation and Approval and Intragovernmental Transactions
Responsible Office: Office of the Chief Financial Officer
Table of Contents
Preface
P.1 Purpose
P.2 Applicability
P.3 Authority
P.4 Applicable Documents and Forms
P.5 Measurement/Verification
P.6 Cancellation
Chapter 1. Journal Voucher Preparation and Approval
1.1 Introduction
1.2 Agency Requirements
1.3 Roles and Responsibilities
1.4 Types of Journal Vouchers
1.5 Supporting Documentation
1.6 Approval Thresholds
1.7 Management Oversight and Review
Chapter 2. Intragovernmental Transactions
2.1 Overview
2.2 Agency Requirements
2.3 Roles and Responsibilities
Appendix A. Definitions
Appendix B. Acronyms
Preface
P.1Purpose
This NASA Procedural Requirements (NPR) provides the financial management requirements for journal voucher (JV) preparation and approval and intragovernmental transactions.
P.2Applicability
a.The requirements in this NPR are applicable to all NASA organizational elements that prepare and approve JVs. This NPR is applicable to NASA Headquarters and NASA Centers, including Component Facilities and Technical and Service Support Centers.
b.In this directive, all mandatory actions (i.e., requirements) are denoted by statements containing the term “shall.” The terms: “may” or “can” denote discretionary privilege or permission, “should” denotes a good practice and is recommended, but not required, “will” denotes expected outcome, and “are/is” denotes descriptive material.
c.In this directive, all document citations are assumed to be the latest version, unless otherwise noted.
P.3Authority
a.Chief Financial Officers Act of 1990, Pub. L. 101-576, 104 Stat. 2838 (1990).
b.Government Management Reform Act of 1994, Pub. L. 103-356, 108 Stat. 3410 (1994).
c.Office of Management and Budget (OMB)Circular No. A-136, Financial Reporting Requirements.
d.OMB Bulletin, B-07-04, Audit Requirements for Federal Financial Statements.
e.OMB Memorandum, M-07-03, Business Rules for Intragovernmental Transactions.
f.Statement of Federal Financial Accounting Standards (SFFAS) No. 1, Accounting for Selected Assets and Liabilities.
g.Department of Treasury - Financial Management Service, Federal Intragovernmental Transactions Accounting Policy Guide.
h.NASA Policy Directive (NPD) 9010.2, Financial Management.
P.4Applicable Documents and Forms
a.Treasury Financial Manual (TFM), Volume I: Pt 2, Ch. 4700, Agency Reporting Requirements for the Financial Report of the United States Government.
b.TFM, Volume 1, Supplement United States Standard General Ledger(USSGL).
c.Standard Form 1080, Voucher for Transfer between Appropriations and/or Funds.
P.5Measurement/Verification
Quality assurance reviews conducted periodically at the Agency and Center level willbe used to measure compliance with this NPR.
P.6Cancellation
NPR 9220.1A,Journal Voucher Preparation and Approval and Intragovernmental Transactions Effective August 16, 2011.
Chapter 1.Journal Voucher Preparation and Approval
1.1Introduction
1.1.1Proper preparation of and adequate support for journal vouchers (JV) are important to ensure that JVs accurately record financial events and that detailed audit trail documentation exists. These actions are the joint responsibility of the Agency Office of the Chief Financial Officer (OCFO), and Centers’ OCFO personnel. The accurate and timely preparation of financial statements and other financial reports is often dependent upon accurate, timely, and fully supported JVs. NASA’s Agency OCFO and each of the Centers shall fully comply with each of the following requirements:
a.Internal controls.
b.Typesof JVs.
c.Supporting documentation.
d.Approval thresholds.
e.Management oversight and review.
1.1.2Scope.
1.1.2.1For the purposes of this NPR, a transaction is considered to be a JV when:
a.The general ledger accounts to be debited and credited are selected and entered by the user, i.e., embedded system logic is not used to determine the general ledger accounts to be posted.
b.A transaction is corrected with a regular core financial system transaction where the general ledger accounts to be debited or credited are selected and entered by the user.
c.Transactions meeting the criteria in 1.1.2.1.a and/or 1.1.2.1.b above are reversed or when a reversing document is a correction.
1.1.2.2Automated distributions of summary amounts, such as the distribution of payroll charges provided by the Department of Interior based on the automated labor distribution information, are not within the scope of this chapter.
1.2Agency Requirements
1.2.1Operational Controls. Operational internal controls will be in place to ensure the proper recording of JVs. JVs may be prepared at the NASA Center level or at the Agency level. The Center Chief Financial Officer (CFO) and the Director of the NASA Shared Services Center (NSSC) are responsible for developing Center-level operating procedures that ensure full compliance with the requirements of this chapter.
1.2.1.1General Requirements. All JVs willbe:
a.Sequentially numbered and maintained in a summary log of all JVs that identifies the JV numbers and dollar amounts. The log willreference the core financial system document number that was recorded for the JV, the core financial system document that was corrected (where applicable), and the source document information supporting the entry.
b.Adequatelydocumented to support the validity and amount of the JV transaction as described in Section 1.5 of this chapter.
c.Reviewed and approved before posting at the appropriate level of management by the Agency or Center CFO or designee, as specified in Section 1.6, to ensure proper recording of entries at the posting account, appropriation, and fund levels.
d.Annotated with the name, title, date, office symbol, and signature of both the preparer and the approver. In an electronic environment, the name, title, and office symbol may be represented by a user identification (ID). A separate table willbe maintained to correlate user ID to identifying information.
1.2.1.2Segregation of Duties. In order to maintain the proper segregation of duties, the functions of JVpreparer and JV approver are required tobe performed by different individuals.
1.3Roles and Responsibilities
1.3.1Agency Associate Deputy CFO (ADCFO) shall:
a.Review and approve or disapprove all JVs over $100 million that are either generated at the Center or at the Agency level after concurrences by the Center and/or Agency officials, as established in Table 1-1, Approval Thresholds for Center Generated JVs, and Table 1-2.
b.Review and discuss with the Agency Deputy Chief Financial Officer for Finance (Agency DCFO(F)), and approveor disapprove all prior period adjustment JVs.
1.3.2Agency OCFO, Director for Financial Management Division (FMD), or in the absence of the Director for FMD, the Deputy Director for FMD shall:
a.Review and approve or disapprove all JVs over $10 million and up to $100 million that are generated at the Agency level after applicable concurrences, as established in Table 1-2, Approval Thresholds for Agency Generated and Posted JVs.
b.Review and approve or disapprove all JVs over $50 million and up to $100 million that are prepared at the Center level, after the applicable concurrences, as established in Table 1-1.
1.3.3Agency OCFO, FMD Branch Chiefs shall:
a.Review and approve or disapprove all JVs up to $10 million that relates to their branch only and are prepared and posted at the Agency level.
b.As needed, request Agency-level JVs and supporting documentation from the Center CFOs.
c.Review the Agency-level JVs and supporting documentation submitted by the Center CFOs that relate to their branch for completeness and accuracy.
1.3.4Center CFO or Center DCFO(F) when acting in the Center CFO’s absence shall:
a.Together with the Center Branch Chief responsible for reporting, review and concur or nonconcur on any Center JV exceeding $100 million and submit it to the Agency OCFO for approval by the ADCFO.
b.Together with the Center Branch Chief responsible for reporting, review and concur or nonconcuron any JV exceeding $50 million and up to $100 million and submit it to the Agency OCFO for approval by the Agency OCFO, Director for FMD, or Deputy Director for FMD.
c.Review and approve or disapprove all Center JVs exceeding $10 million and up to $50 million that have been concurred on by the Center Branch Chief responsible for reporting, in accordance with Table 1-1, Approval Thresholds for Center Generated JVs.
d.Together with the Center Branch Chief responsible for reporting, review and concur or nonconcuron all Prior Period Adjustment JVs in any amounts and submit them to the Agency OCFO for ADCFO's approval.
e.Prepare Agency-level JVs and supporting documentation as requested by the Agency OCFO, FMD Branch Chief.
1.3.5Center Branch Chief responsible for reporting shall:
a.Review and approve or disapprove all Center JVs equal to or less than $10 million.
1.4Types of Journal Vouchers
1.4.1NASA has two primary types of JVs: (1) correcting entries and (2) source entries. All JV entries should be processed and recorded in the core financial system either through interfaces or using system user IDs.
1.4.2Correcting Entries. Correcting entry JVs adjust for errors detected subsequent to posting, including errors identified during the financial statement reporting and review process. Correcting entry JVs should both reverse the incorrect entries and record the correct amount, and, where feasible, the JV entry should be linked to the original transactions that were corrected.
1.4.3Source Entries. Source entry JVs record those accounting entries and accruals that, due to system limitations or timing differences, have not been otherwise recorded, generally at month-end closing and year-end processing, and may subsequently be reversed in the next period. Sourceentry JVs also may derive from information provided through data calls or from external agency sources.
1.4.4Sub-groupings. Both correcting and source entry JVs are further subdivided into audit-recommended JVs and customer-requested JVs.
1.4.4.1Audit-Recommended JVs.
a.Management Review.
(1)If, as a result of their audit, auditors recommend a JV adjustment be made, the auditors shall provide work papersand other relevant information to support the recommended JV adjustment.
(2)The JV approving official shall perform an analysis of the recommendation using the auditors’ work papers and other relevant information to determine if the recommended adjustments should be made.
(3)If the JV approving official identified in Section 1.6 determines that the auditors’ recommended adjustments are required, a JV willbe prepared. If the JV approving official determines that the audit recommended adjustments are not required, no adjustment will be made. All auditors recommended adjustments willbe approved by the Center CFO or Center DCFO(F) and the Agency OCFO,Director for FMD.
b.Any determination regarding audit-recommended JVs discussed in 1.4.4.1a. will:
(1)Identify the audit recommendation serving as the basis for the actions taken.
(2)Document management’s rational for accepting or rejecting the auditor’s recommendation and include all supporting documentation.
1.4.4.2Customer-Requested JVs. When NASA personnel prepare proposed JVs to enter adjustments or corrections, the approving officials at NASA Centers or Agency OCFOwill determine that they comply with this JV preparation guidance.
1.4.5JV Reversal Transactions. When JVs are reversed, the transactions willbe prepared, approved, recorded, and documented in accordance with all of the requirements applicable to the original JV except when the JVs are reversed automatically as part of the routine (monthly or quarterly) JV reversal process. In those instances, documentation and approval for the original JVs shall be considered as the documentation and approval for the reversing entry.
1.5Supporting Documentation
1.5.1Documentation. Proper documentation, in either hard copy, electronic form, or both is necessary to support all JV entries. This documentation will include all information needed for the approving official and auditors to clearly understand the reason for the JV, any applicable authoritative guidance, and relevant information and data supporting the JV entry. The supporting documentation for each JV will include the calculation of dollar amount(s) on the JV, validation of JV entries and ending balances, reference to other applicable supporting documentation, and the basis for any subsequent reversals.
1.5.2Types of JV Supporting Documentation. The specific types of JV supporting documentation are listed as follows:
a. Correcting JVs. Evidence to support Correcting JVs discussed in 1.4.2willinclude specific documentation of the original incorrect entry, an explanation for the discrepancy or error in the original entry,and documentation supporting the correct amount.
b. Source JVs. Evidence to support Source JVs discussed in 1.4.3willinclude specificdocumentation obtained through data calls, internal-NASA data, or external sources, and a narrative explaining the basis for the JV entry.
c. Audit JVs. Evidence to support either an “authorized official” or “auditor identified”audit JV shall include a detailed listing of identified errors, a narrative explanation of the errors and why the correcting entry is necessary, as well as related source data and analysis to support the JV entry.
d. Reversing Entries for Prior Reporting Period. When monthly or yearly accruals or correcting entries have been made for reporting purposes, they may need to be reversed in the following reporting period. Reversing JVs will be fully documented as required in Section 1.5.1 except for automated reversal JVs described in Section 1.4.5.
1.5.3Approver Review.
1.5.3.1The JV approving official shall review and perform any related analysis of supporting documentation for JVs to ensure the adjustment is fully supported and in accordance with this JV preparation and approval guidance.
1.5.3.2When the JV approving official has identified errors through analysis, reasonableness checks, quality control procedures, subsequent activity occurring after a period closes, or other means, the JV should be returned to the preparer for correction.
1.6Approval Thresholds
1.6.1Journal Vouchers Prepared and Posted at the Center Level.
1.6.1.1Approval of aJV also constitutes acceptance of itssupporting documentation. The organizational level within the Center or NSSC, at which JVs will be approved, varies by the dollar amount of the voucher as shown by the following table.
Table 1-1, Approval Thresholds for Center Generated JVs
JV Dollar Amount / JV Approving Official0 to $10 million / Center Branch Chief (Reporting) approves.
Over $10 million to $50 million / Center Branch Chief (Reporting) concurs and Center CFO1 approves.
Over $50 million to $100 million / Center Branch Chief (Reporting) and Center CFO1 concurs. Agency OCFO Director for FMD2 approves.
Over $100 million / Center Branch Chief (Reporting) and Center CFO1 concurs. Agency OCFO Director for FMD2 concurs. Agency OCFO Associate Deputy CFO approves.
Prior period adjustments -- JVs that are adjusting beginning balances (should be rare) -- Any amounts. / Center Branch Chief (Reporting) and Center CFO1 concurs. Agency OCFO Director for FMD2 concurs. Agency Associate Deputy CFO approves.
1 Or Center DCFO(F) when acting in the Center CFO’s absence.
2 Or OCFO Deputy Director for FMD in the Director’s absence.
1.6.1.2Within each of the foregoing thresholds, other approval thresholds with lower dollar values than those specified may be established to accommodate the organizational level of those preparing the JV. The Center CFO shall designate in writing the approval threshold structure--dollar thresholds and position of approving officials within the Center. In the event that the approval authorities listed above are delegated to an individual other than the one identified, that delegation willalso be documented in writing and signed by the Center CFO.
1.6.2Journal Vouchers Posted at the Agency Level.
1.6.2.1The Agency OCFO, FMD, Data Analysis Branch Chief in coordination with the External Reporting Branch Chief shall, as needed, request Centers CFOs submit JVs that will be posted at the Agency level. These JVs willbe submitted with all applicable supporting documentation and approvals as described in Section 1.5 above.
1.6.2.2Upon receipt of the requested JV, the FMD, Data Analysis Branch Chief in coordination with the External Reporting Branch Chief shallreview the supporting documentation for completeness and the JV for accuracy. When the JV is determined to be accurate and all required documentation is present, the Branch Chiefs willforward the JV to the FMD Director or his/her designee for concurrence and/or approval in accordance with Table 1-1, Approval Thresholds for Center Generated JVs.
1.6.3Journal Vouchers Prepared and Posted at the Agency Level.
1.6.3.1When JVs are prepared that will be posted at the Agency level, they shallbe approved in accordance with the thresholds established in the Table 1-2 and supported by supporting documentation as described in Section 1.5. Examples of JVs prepared and posted at the Agency level include JVs to record imputed financing costs, intragovernmental eliminations, fund balance with Treasury, and net outlays.
Table 1-2, Approval Thresholds for Agency Generated and Posted JVs
JV Dollar Amount / JV Approving Official0 to $10 million / Agency OCFO, FMD Branch Chief approves.
$10 million to $100 million / Agency OCFO, FMD Branch Chief concurs. Agency OCFO, Director for FMD1 approves.
Over $100 million / Agency OCFO, FMD Branch Chief, and Agency OCFO Director for FMD1 concurs. Agency Associate Deputy CFO approves.
Prior Period Adjustments -- Any amounts / Agency OCFO, FMD Branch Chief, and Agency OCFO Director for FMD1 concurs. Agency Associate Deputy CFO approves.
1 Or OCFO Deputy Director for FMD in the Director’s absence.
1.7Management Oversight and Review
1.7.1Managerial Controls. Adequate managerial internal controls willbe maintained at each level of management to ensure proper oversight of JV preparation.
1.7.1.1The Center CFOs and the Director of the NSSC shallensure the validity and accuracy of the JVs processed as part of their normal monthly financial management monitoring process by ensuring that adequate documentation exists to support the JV entry before it is recorded.
1.7.1.2All corrections made by the Agency Applications Office (AAO) or by the Agency OCFO on behalf of the Centers or Agency OCFO are subject to this process. The AAOand/or the Agency OCFO shall only make corrections/adjustments once this documentation is received. Copies of the documentation of the corrections will be attached to the service request and originals maintained in the Centers’ logs and records. Service requests willbe established for activities performed either by the AAOor the Agency OCFO.
Chapter 2.Intragovernmental Transactions
2.1Overview
2.1.1This chapter provides the financial management requirements necessary to record, reconcile, and report intragovernmental transactions
2.1.2In the preparation of the Federal Government-wide financial statements, the U.S. Department of Treasury eliminates intragovernmental transactions. The use of trading partner codes on intragovernmental transactions enables analysis and elimination of Federal activity in the Government-wide financial statements.