MAR 1, 2010

The purpose of this memorandum is to establish the Unified Financial Management System (UFMS), Statement of Transaction, Financial Management Services (FMS)-224 Report as the official source of financial data for the monthly disbursements and collections report to the United States Department of the Treasury (Treasury).

Government agencies are required to perform timely reconciliations and implement effective and efficient reconciliation processes. Reconciling UFMS accounts with Treasury data is a key internal control process and ensures the reliability of the Government's receipt and disbursement data.  The lack of timely reconciliations and clearance of identified differences has been a repeated finding during audits of Indian Health Service (IHS) financial statements. In addition, a review of IHS Area monthly FMS-224 reports indicates that methodologies for reporting disbursements and collections data vary and include the use of non-UFMS data.

This memorandum institutes a change in the methodology used to report disbursements and collections data to the Treasury and to address current audit findings. Effective immediately, all Area Offices must use the UFMS FMS-224 report to record their monthly disbursements and collections data in the Government On-line Accounting Link System.  No other source or substitute data can be accepted.

If you have questions concerning this memorandum, please contact Ms. Elizabeth Fowler, Chief Financial Officer and Director, Office of Finance and Accounting, at (301) 443-1270.