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NASA
Procedural
Requirements

NPR 9310.1A
Effective Date: March 15, 2013
Expiration Date: September 15, 2024

COMPLIANCE IS MANDATORY FOR NASA EMPLOYEES

Printable Format (PDF)

Subject: Financial Management Reports - Accounting, (Updated w/Change 2 February 21, 2018)

Responsible Office: Office of the Chief Financial Officer

Chapter 2. Report Requirements

2.1 The Office of Management and Budget (OMB) Reports.

Note: OMB receives many of the reports in this NPR and is the primary recipient of the reports provided below.

2.1.1 The Agency Financial Report (AFR) and Quarterly Financial Statements. The purpose of this section is to provide requirements for the quarterly financial statements and annual AFR which are submitted to the Director of OMB and to the Congress. The AFR and financial statements are prepared in addition to other reports submitted to OMB for purposes of monitoring budget execution (See NPR 9330.1).

2.1.1.1 NASA's AFR and financial statements are prepared in accordance with policies prescribed by OMB. NASA follows OMB formats and instructions that provide a framework within which individual agencies submit information useful to the Congress, agency managers, and the public.

2.1.1.2 General-purpose financial statements will be prepared in accordance with OMB requirements. They should present summary or detailed information necessary to make the statements useful and comprehensive. Diligence should be taken to avoid placing too much detail in the body of the statements which cannot be easily understood. Where substantial detail is necessary to properly convey the information, the detail should be reported in notes to the statements. The body of the statement should contain summary information. The instructions provided in OMB Circular A-136, Financial Reporting Requirements, describe the level of information that should be presented for each of the basic statements.

2.1.1.3 NASA shall submit reports as follows unless OMB directs otherwise:

a. Unaudited interim financial statements to OMB, 21 calendar days after the end of each of the first three quarters of the fiscal year.

b. Unaudited notes and supplemental information, including the interim financial statements, to OMB 45 calendar days after the end of the third quarter to receive preliminary comments allowing for improvement prior to the year-end submission.

c. A draft of the AFR and financial statements to OMB ten working days before issuing the final AFR (November 1).

d. The final AFR and financial statements to OMB and Congress no later than 45 days after the end of the fiscal year (November 15).

e. A draft Summary of Performance and Financial Information to OMB by February 1, and a final Summary of Performance and Financial Information to OMB by February 15.

2.1.2 Management Representation Letters. The Management Representation Letter is prepared as part of the financial statement audit to confirm representations given to the auditor, indicate and document that the representations are still appropriate, and reduce the possibility of misunderstanding concerning the matters that are the subject of the representations. It allows NASA to address matters that are considered either individually or collectively material to the financial statements. Management Representation Letters are prepared separately for both the general-purpose financial statements and the special-purpose financial statements. Each letter is signed by those members of management with overall responsibility for financial and operating matters covered by the representations. OMB and Treasury rely on the written representations to generate the Financial Report of the United States Government (FR). NASA's Management Representation Letters shall include representations that address the following:

a. The consistency of budgetary data reported on the Statement of Budgetary Resources (SBR) and the budgetary data submitted to prepare the year-end Standard Form (SF) 133s, Reports on Budget Execution and Budgetary Resources.

b. The materiality of uncorrected financial statement misstatements identified by the auditor, adjustments to correct identified misstatements, or a statement that no misstatements exist.

2.1.2.1 NASA shall prepare and submit the Management Representation Letters in accordance with the following:

a. OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements.

b. OMB Memo M-09-033, Technical Amendments to OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements.

c. The GAO Financial Audit Manual, Volume 2, Section 1001, Management Representations.

2.1.2.2 Management Representation Letters are submitted for the general-purpose and special-purpose Financial Statements no later than November 15.

2.1.3 Debt Collection Improvement Act (DCIA) Annual Report. The purpose of this section is to provide requirements for the DCIA annual report which is submitted to the Director of OMB. This report supports the OMB effort to monitor the effectiveness of Federal agencies in implementing the requirements of the DCIA of 1996, Public Law 104-134. NASA is required to review and report annually on our internal standards and policies regarding compromising, writing-down, forgiving, or discharging debt. The DCIA Annual Report shall be prepared in accordance with OMB Memo M-04-10 or other OMB direction that may be issued modifying the instruction in that memorandum. The annual reports will be due to OMB no later than

December 31 each year, unless OMB directs otherwise.

2.2 The United States (U.S.) Department of the Treasury Reports (Treasury).

Note: Treasury is the primary recipient of the reports provided below. Treasury also receives information from the financial statements and Management Representation Letter.

2.2.1 Adjusted Trial Balances (ATB). ATBs are submitted to Treasury for consolidation into the Combined Statement of Receipts, Outlays, and Balances of the U.S. Government. Although the ATBs are submitted to Treasury, they are also used by OMB to compile agency budget execution reports and to support preparation of the President's Budget.

2.2.1.1 NASA's ATB is submitted to fulfill the requirement to prepare the Yearend Closing Statement (SF 2108) and Report on Budget Execution and Budgetary Resources (SF 133). This ATB is prepared in accordance with TFM Volume I, Part 2, Chapter 4200, Subsection 4250, as well as the OMB Circular A-11. NASA also submits an ATB of proprietary accounts to aid Treasury research and analysis in the compilation of the FR and to support the reconciliation of intragovernmental transactions. The ATBs are prepared in accordance with TFM Volume I, Part 2, Chapter 4700, Subsections 4706 and 4707.

2.2.1.2 Part 2, Chapter 4700, Subsections 4706 and 4707.

2.2.1.3 ATBs are submitted throughout the year as directed by Treasury and OMB Circular

A-136. Yearend closing ATBs are submitted annually according to the schedule provided in Treasury's annual Yearend Closing Bulletin.

2.2.2 Special-Purpose Financial Statements and Notes. NASA's audited financial statements are provided to Treasury using the Closing Package methodology. The Closing Package methodology requires NASA to reclassify the financial statements for the purpose of linking to and supporting the preparation of the FR.

2.2.2.1 The financial statements submitted in the Closing Package shall be consistent with the comparative audited consolidated agency financial statements. The statements are not a complete representation of NASA's general-purpose financial statements.

2.2.2.2 NASA's special-purpose financial statements are prepared and submitted in accordance with TFM Volume I, Part 2, Chapter 4700, Subsection 4705. Special-purpose financial statements are submitted annually according to the schedule provided in Treasury's annual Yearend Closing Bulletin.

2.2.3 Management Summary Schedule for the Legal Representation Letter. The Management Summary Schedule is used to document the support for the recognition of loss contingencies for matters of pending or threatened litigation, unasserted claims, and assessments. A loss contingency is an existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity. NASA reviews loss contingencies in order to determine how they may be recognized in the financial statements. The criteria for determining if loss contingencies are recognized as contingent liabilities or disclosed in notes to financial statements is found in NPR 9260.1, and SFFAS 5, Accounting for Liabilities of the Federal Government, as amended by SFFAS 12, Recognition of Contingent Liabilities Arising from Litigation.

2.2.3.1 NASA shall prepare and submit the Management Summary Schedule for incorporation into the Legal Representation Letter in accordance with the following:

a. OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements.

b. OMB Memo M-09-033, Technical Amendments to OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements.

c. TFM Volume I, Part 2, Chapter 4700, Subsection 4705.55.

d. The GAO Financial Audit Manual, Volume 2, Section 1002, Inquiries of Legal Counsel.

2.2.3.2 The Management Summary Schedule is submitted with the Interim and Final Legal Representation Letters to Treasury, the Department of Justice, and GAO on August 29 and November 15 respectively or as directed in OMB Circular A-136.

2.2.4 Treasury Report on Receivables and Debt Collection Activities. The Treasury Report on Receivables (TROR) and Debt Collection Activities (formerly known as the Report on Receivables Due from the Public) is a comprehensive means for periodically collecting data on the status and condition of the Federal Government's non-tax debt portfolio, in accordance with the requirements of the Debt Collection Act of 1982, as amended by the Debt Collection Improvement Act of 1996 (DCIA). The TROR is prepared as directed in the instructional workbook provided in the supplement to TFM Volume I, Part 2, Chapter 4100, Debt Management Reports.

2.2.4.1 The TROR collects data on outstanding receivable balances, current fiscal year activities, aging and classification of delinquent debts, and classification of rescheduled debts. It also contains management information on the status of delinquent debt (including Currently Not Collectible (CNC) debt) by collection management tools and techniques, age, eligibility for referrals, collections, and debt disposition.

2.2.4.2 In a separate submission, Treasury requires that the TROR is verified and certified. NASA verifies that the TROR has been reconciled to the audited financial statements or, in its absence, to NASA's ATB and certifies that the delinquent debt amounts reported on the Receivables Report for cross-servicing and Treasury offset are correct and legally enforceable.

2.2.4.3 Reports are due to Treasury's Financial Management Service/Bureau of Fiscal Services (FMS/BFS) by the end of the 30th day of the month following the close of each quarter (for example, first quarter FY 2007 reports are due by January 30, 2007). All fourth quarter reports, verifications, and certifications are due by November 15, unless different direction is received by Treasury.

2.2.5 Report of Estimated Foreign Currency Collections and Expenditures. Treasury requires that each agency with overseas expenditures and foreign currency transactions submit annually the Report of Estimated Foreign Currency Collections and Expenditures covering the current fiscal year and the succeeding fiscal year. The purpose of the report is to show the estimated amounts (stated in U.S. dollar equivalents) of foreign currencies to be acquired without purchase with dollars, under agreements with foreign governments and from other sources, providing all or part of such currencies are to be available for making expenditures chargeable to appropriations or other dollar fund accounts and show estimated U.S. expenditures to be made in foreign currencies for the succeeding fiscal years.

2.2.5.1 The report is prepared in accordance with TFM Volume I, Part 2, Chapter 3200, Subsection 3220.70 and will be submitted to Treasury's Credit Accounting Branch (CAB) as soon as possible after the close of the fiscal year, but no later than November 15, unless different direction is received by Treasury.

2.2.6 Statement of Transactions (FMS 224). The FMS 224 is one of the reporting mechanisms used by Treasury to receive information about the financial conditions and operations of Federal agencies. The FMS 224 provides Treasury with monthly reports of agency payments and collections. Treasury depends on all agencies for accurate and timely submission of this data. In alignment with Treasury guidance stated in TFM Volume I, Part 2, Chapter 3300, NASA offices that have been assigned an agency location code (ALC) shall prepare an FMS 224 directly from the accounts in the accounting system of record promptly at the close of each accounting month.

2.2.6.1 NASA shall submit the FMS 224 to BFS/FMS no later than the third business day following the close of the accounting month, unless different direction is received by Treasury.

2.3 The U.S. Department of Commerce (DOC) Reports.

2.3.1 Report on International Transactions of the Federal Government. NASA reports international transactions, assets, and liabilities to the DOC, Bureau of Economic Analysis (BEA). This report is used by the BEA to compile reports on the international balance of payments, international investments, and the foreign grants and credits.

2.3.1.1 The report includes transactions between NASA and a foreign entity, such as foreign governments or foreign corporations excluding U.S. business offices of such corporations, foreign incorporated subsidiaries, foreign business offices of U.S. corporations, foreign individuals residing in foreign countries, NASA personnel stationed abroad or traveling abroad, and U.S. business organizations for services to be performed abroad. International transactions to be reported relate to the following:

a. Expenditures from or reimbursements to U.S. appropriation and fund accounts.

b. Receipts deposited to miscellaneous receipts or trust funds.

c. Expenditures or receipts of foreign currencies charged or credited to other than U.S. appropriation and fund accounts (such as Treasury Foreign Currency Account Symbols).

d. Non-appropriated fund activities.

e. U.S. dollars held in foreign banks.

f. Foreign currency held under dollar or other accountability (such as Treasury Foreign Currency Account Symbols).

g. Receipt or donation of commodities or services.

2.3.1.2 Reports are submitted for international transactions occurring within each calendar quarter. An original and one copy of the Agency's consolidated report are to be submitted to the Balance of Payments Division within BEA not later than 45 days after the close of the reporting period.

2.3.2 Report on Contractual Research and Development (R&D) Services. NASA submits a report reflecting the costs and disbursements for the purchase of contractual R&D services from the private sector. Contractual R&D services are contracts negotiated which result in the purchase of actual research and/or development efforts. This data in conjunction with information provided by contractors and other Federal agencies support the BEA in preparing the estimates of Federal Government transactions in the national income and product accounts. Quarterly, a report is submitted to BEA providing NASA's directly appropriated and reimbursable program activities for R&D services from the private sector contracts.

2.3.3 Report on Construction of Facilities. The Census Bureau (Census) requests a report reflecting NASA's cost and disbursements for the construction of facilities. This information is requested by Census and consolidated with data compiled from other sources to provide estimates of the total dollar value of construction work done in the U.S. This data is provided by Census to BEA for use in producing Gross Domestic Product (GDP) statistics. Information is submitted to Census monthly providing NASA's expenditures on the construction of facilities.

2.4 The Office of Government Ethics (OGE) Reports

2.4.1 Semiannual Report of Payments Accepted from a non-Federal Source. NASA is required by OGE to provide, on a semiannual basis, evidence that NASA has properly accepted payments, or authorized an employee to accept payments on NASA's behalf, from non-Federal sources. These payments may be for travel, subsistence, and related expenses associated with employees' attendance at any meeting or similar function relating to both the official duties and personal interest of the employee.

2.4.1.1 The report is prepared by the Center Financial Management Office with review and comments from the Center Office of Chief Counsel and in accordance with 41 C.F.R. Ch. 304 for payments that are more than $250 per event. Submission is made to OGE using SF 326 or OGE form 1353, Semiannual Report of Payments Accepted from a Non-Federal Source.

2.4.1.2 Reporting periods include payments received between October 1 and March 31 and April 1 and September 30. Agency consolidated reports are due to OGE no later than May 31 and November 30 respectively. NASA Center reports are due to the Agency OCFO by April 30 and October 31 respectively.