STRUCTURE AND RESPONSIBILITIES
Sections
8.01.07 Release of Information
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8.01.01
PURPOSE
This subchapter describes general policies and responsibilities concerning
the NIST financial management structure.
8.01.02
SCOPE
This subchapter applies to NIST-Gaithersburg and NIST-Boulder.
8.01.03
POLICY
It is NIST policy to practice sound financial management and establish
and maintain procedures in compliance with Office of Management and Budget
(OMB), Department of Treasury, General Accounting Office (GAO), Federal
Accounting Standards Advisory Board (FASAB), Department of Commerce (DoC)
directives and standards, and other federal legislation.
8.01.04
BACKGROUND
The Budget and Accounting Procedures Act of 1950 directed the Comptroller
General to prescribe accounting principles, standards, and related requirements
for executive agencies. Subsequent to passage of that Act, the General
Accounting Office (GAO) issued accounting standards. However, due to a
constitutional question of whether the legislative branch can issue and
audit against such standards for the executive branch, agreement was never
reached on accounting standards. As a consequence, accounting procedures
and systems evolved inconsistently across agencies. In addition, financial
audits have been subject to varying and conflicting interpretations of
the accounting standards.
Since 1980, Congress has placed considerable re-emphasis on the need for federal agencies to establish and support improved accounting standards and principles in an effort to provide uniform financial reporting within the federal government. Legislation has been enacted requiring agencies to have systems that integrate budget and financial information based on consistent accounting and systems standards. In addition, long-range financial planning, audited financial statements, and development of cost information are required. The position of Chief Financial Officer is mandated at the levels of Office of Management and Budget (OMB) and executive agencies such as the Department of Commerce; these positions establish a financial management leadership structure within the executive branch. Legislation has also mandated more efficient collection of debts owed to the United States and calls for prompt payment of bills owed by the federal agencies. The Federal Accounting Standards Advisory Board (FASAB), which works under the general oversight of the Comptroller General, the Secretary of the Treasury, and the Director of OMB, was established in 1990; the Board has issued eight financial accounting standards. As a result of these still evolving laws and standards, federal financial management is in a state of change. Efforts are underway to implement transaction-based, integrated financial systems. Reporting requirements are changing and increasingly require linking of financial data to program performance measurements.
New roles and responsibilities are being defined within agencies. It
has become increasingly important that employees have the skills and training
required to keep pace with changes in technology and the developments in
federal financial management. The Joint Financial Management Improvement
Program (JFMIP) and the Chief Financial Officers Council have worked together
to produce core competency documents for several types of employees involved
in financial management. These documents describe necessary skills and
abilities for entry- and mid-level personnel as well as senior managers
and supervisors and specialized knowledge required for areas such as management
analysts, financial specialists, financial system analysts, and information
technology personnel.
8.01.05
OVERVIEW
Funding for activities at NIST comes from appropriations, reimbursments
form other federal agencies, state and local agencies, the public, and
a Working Capital Fund corpus.
The majority of work at NIST is funded by three direct Congressional
appropriations: Scientific and Technical Research and Services (STRS),
Industrial Technology Services (ITS), and Construction of Research Facilities
(CRF). The STRS appropriated funds are focused on infrastructural technologies
such as measurements, standards, evaluated data, and test methods for use
by industry in commerce. ITS funds support cost-shared research by individual
companies or industry-led joint ventures as well as providing a nationwide
network of manufacturing extension centers integrated with federal, state,
local, and private-sector programs in support of U.S. competitiveness.
CRF funding is appropriated for safety and scientific functionality in
existing laboratory space and construction and renovation of space. (See
Subchapter 8.03, Budget Formulation, and Subchapter 8.04, Appropriated
Funds.)
The reimbursable funds at NIST come from a variety of sponsors and support research in areas related to those funded by the appropriations (see Subchapter 8.05, Federal Government/Non-Federal Government/ CRADA-Sponsored Work for more information.) In addition, NIST performs calibrations and tests on a reimbursable basis, sells Standard Reference Materials (SRMs), and provides services between divisions within NIST through interdivision services arrangements (see Subchapter 8.06, Expense and Income Activities).
The NIST Working Capital Fund provides for initial funding for expense and income-supported activities, distribution of indirect costs as overhead, investments in equipment and inventories, and production of SRMs. NIST does not receive a separate appropriation for salaries and expenses of administrative personnel. Instead each source of funding contributes a share via surcharges to support these costs. As a result, each funding source pays a proprotionate share of administrative costs. (See Subchapter 8.07, Working Capital Fund Programs.)
NIST uses project cost accounting to track the costs of activities funded
by the various sources (see Sub-chapter 8.08, Cost Accounting). Cost centers
are established to accumulate the costs. Each cost center is associated
with only one source of funding and one program code. The last three digits
of the seven-digit cost center number indicate the source of funding according
to the cost center funding structure which has been established (see Subchapter
8.02, Fund Structure). Information about the cost centers is maintained
in the NIST accounting system and is available for management use.
Financial management activities for a least three different year's budgets
are going on simultaneously. While the current fiscal year (CY) budgetary
resources are being used (executed), the formulation and review process
for the next fiscal year or budget year (BY) is also occurring. Early in
the CY, financial reviews and reports of prior-year (PY) activities occur,
and by the middle of the CY, the formulation process has begun for the
next budgetary year (BY+1). Additional details can be found in the Strategic
Planning and Budget Calendar or in the Handbook on Budget Preparation and
Resource Allocation (the "Color Book"). Both are issued annually by the
Budget Division.
8.01.06
RESPONSIBILITIES
Specific financial management responsibilities to ensure appropriate
administrative control of funds are found in Subchapter 8.04, Appropriated
Funds.
a. NIST Director - The NIST Director determines the financial
policies of NIST and directs the development and execution of its financial
management programs.
b. Deputy Chief Financial Officer - The NIST Deputy Chief Financial Officer and Deputy Director for Financial Services serves as the senior financial management advisor to NIST management and is responsible for planning and oversight of all financial management activities and operations at NIST.
c. Budget Division - Facilitates the acquisition of appropriated
funding and ensures that resources are utilized in accordance with Congressional
intent and all pertinent regulations and policies. This includes the preparation,
presentation, justification, and execution of the NIST budget as well as
resource allocation and periodic analysis and reports to management on
solvency and other financial issues.
d. Financial Management Systems Division - Provides oversight
and management of centrally developed financial management systems and
the implementation of such systems across NIST. This includes analysis
and recommendations for new systems and modifications to existing systems
to meet internal and external requirements.
e. Financial Operations Division - Administers the NIST and FARS
system of accounting and provides accounting and other financial management
services for other Departmental bureaus. The division provides advice on
financial matters to the NIST Deputy Chief Financial Officer and to management
at all levels of the serviced bureaus.
f. Financial Policy Division - Responsible for preparing financial
reports and analyzing and developing improved financial policy.
The Financial Operations Division and the Financial Policy Division
share responsibility for: managing a comprehensive accounting and financial
program to provide for accountability of assets and accurate financial
reporting; implementing effective internal controls; ensuring accurate
data for financial reporting and certifying the official accounting records
and reports; providing adequate financial data for managment purposes;
and providing advise on financial matters to the NIST Deputy Chief Financial
Officer and providing input to the Department on financial procedures and
reporting requirements.
e. Senior Management Advisors - The Senior Management Advisor directs the financial management activities within their OU. In particular, the Senior Management Advisor recommends resource allocations based on the OU management priorities; establishes operational plans based on OU management's resource allocations; monitors resource utilization by organizational units to ensure that resource allocations are not exceeded and that research program/service opportunities are not lost due to under-utilization of allocated resources. The Senior Management Advisor identifies funding problems; develops viable corrective actions; and implements OU management decisions. In addition, the Senior Management Advisor is a principal contributor to the formulation of NIST-wide financial management policy and responds to inquiries and answers questions of external organizations such as Congress, OMB, GAO, and the Inspector General regarding financial management activities and policies of the OU/NIST.
8.01.07
RELEASE OF INFORMATION
a. To ensure consistency and accuracy, all budgetary estimates or actual
resource numbers, both dollars and personnel, which are to be reported
outside of NIST, must be cleared through the Deputy Chief Financial Officer
before release.
b. The nature and amounts of the President's budget decisions are confidential
and will not be released until the budget is transmitted formally to Congress.
The executive branch communications that have led to the budget will not
be disclosed either by the agencies or by those who have prepared the budget.
8.01.08
REFERENCES
a. NIST Administrative Manual Subchapter 9.02 - Functional Statements.
b. NIST "Color Book" - The annual Handbook on Budget Preparation
and Resource Allocation, prepared by the Budget Division.
c. Chief Financial Officers Act of 1990 (P.L. 101-576) - The
CFO Act requires long-range financial planning, audited financial statements,
integration of budget and accounting data, and development of cost information.
It also establishes the financial management leadership structure within
OMB and federal agencies.
d. Debt Collection Improvement Act of 1996 (P.L.104-134)
- The Debt Collection Improvement Act significantly changed the way the
federal government collects debt. The Act requires agencies to refer delinquent
debt to the Department of Treasury after 6 months; Treasury is required
to use more computer matching so that those who owe money to the government
are not simultaneously being sent checks by the government; and it permits
Treasury to deduct delinquent debt from government payments such as tax
refunds, wages, and retirement and benefit payments.
e. Federal Financial Management Improvement Act of 1996 (P.L. 104-208) - The Federal Financial Management Improvement Act requires that each agency implement and maintain financial management systems that comply with federal requirements, applicable federal accounting standards, and the Standard General Ledger at the transaction level.
f. Federal Managers Financial Integrity Act of
1982 - (P.L. 97-255) - The Federal Managers Financial Integrity
Act amends the Accounting and Auditing Act of 1950 to require federal agencies
to establish internal accounting and administrative controls to prevent
waste or misuse of agency fund or property and to ensure the accountability
of assets.
g. Government Performance and Results Act of1993 - (P.L. 103-62)
- The Government Performance and Results Act is intended to bring about
fundamental changes in the way government programs and operations are managed
and administered. It requires agencies to prepare strategic plans and annual
performance plans, as well as annual program performance reports to the
President and Congress beginning with FY 1999. It mandates a link between
program performance and budgeting.
h. Prompt Payment Act (P.L. 97-177) - The Prompt Payment Act calls for payment of bills not later than due dates based on the receipt of proper invoices and satisfactory performance, as well as payment of any interest and penalties. The Act also stresses the importance of taking cash discounts.
i. Taxpayers Relief Act of 1997 - The Taxpayer's Relief Act requires
federal accounting systems to produce IRS Form-1099 for payments for services
over $600 to corporations, in addition to earlier requirements that they
be produced for payments to individuals.