The Office of Management and Budget has suspended two
rules covering intra-governmental transactions while
the Chief Financial Officers Council works to expand
government-wide policy established in 2002.
“Business Rules for Intra-governmental Transactions,”
M-03-01, set standards for processing and recording
intra-governmental activities, and the CFO Council
is adapting them to cover other types of intra-
governmental activities, something OMB hopes will
help the federal government achieve a clean audit
opinion.
In the meantime, it has suspended rules number 20, and
21, of the original memo, covering advanced payments
for goods and services.
Rule 20 prohibits advance payments for service orders
unless required by law, but authorizes advance payments
and periodic payments.
Rule 21 says advances for goods may not exceed 50
percent of an order amount and are allowable for orders
greater than $1 million.
OMB said the rules are confusing, particularly regarding
reimbursable activity based on the Economy Act, the
Clinger-Cohen Act, and interagency funding of joint
projects and initiatives.
The memo, M-06-09, instructs agencies to continue
following guidance in OMB Circular A-11, and is
available here:http://www.whitehouse.gov/omb/circulars/a11/current_year/a11_toc.html
