No. APS 2003-14
Issuance Date: May 1, 2003
Expiration Date: April 30, 2004
Archive Date: October 23, 2008
Subject: Cost Center Manager Quarterly Certification Requirement
Reference: IM replaced by Financial Operating Procedures Handbook Chapter 18 Required Review and Certification.
1. Purpose. This Instructional Memorandum (IM) establishes the requirement for cost center managers to certify quarterly that the cost center is in compliance with the procedures and monthly review processes established by USGS IMs APS 2003-11, Monthly Review of Billed Accounts Receivable; APS 2003-12, Monthly Review of Unbilled Balances and Outstanding Advances; and APS 2003-13, Monthly Review of Undelivered Orders and Accruals. The Cost Center Manager Quarterly Certification is described below:
2. Background. A key component of effective financial management is strong internal controls. Bureau operating policies authorize decentralized financial and accounting management at cost center level. Routine reviews and certification of accounting and financial data are essential to ensuring the accuracy and validity of this information in a decentralized operation. The audit of the bureau’s FY 2002 financial records identified several deficiencies related to internal controls specifically as they relate to the quality and accuracy of our financial data. This quarterly certification procedure is being established to strengthen internal controls and to address certain specific findings identified in the FY 2002 audit. These findings include timely and accurate billing to reimbursable customers, reconciliation of advances and billed amounts against agreement amounts and expenditures, and lack of timely review of current and prior year obligations and accruals for accuracy and reconciliation with paid expenditures.
3. Policy: On a quarterly basis, cost center managers must e-mail a certification to their servicing Fiscal Services office that the cost center is in compliance with the requirements established by:
A. USGS IM APS 2003-11 Monthly Review of Billed Accounts Receivable (FFS reports CRARA2 and CRARA4);
B. USGS IM APS 2003-12 Monthly Review of Unbilled Balances and Outstanding Advances (FFS Report 289A); and
C. USGS IM APS 2003-13 Monthly Review of Unliquidated Obligations and Accruals (FFS reports 285, 268, and 268P).
Figure 1, “Comparison of Requirements listed in Instructional Memoranda
for Billed, Unbilled, and Unliquidated Obligations and Accruals,” provides
a brief summary of the cost center’s responsibilities.
4. Cost Center Manager’s Certification.
A. Certification Content. The cost center manager’s certification will consist of the following statement:
“(Name of cost center) has completed the reviews and initiated the required actions in accordance with the procedures outlined in USGS IM APS 2003-11, IM APS 2003-12, and IM APS 2003-13 for the months of (specify months/year).”
B. Responsibility for Completion of the Quarterly Certification. Field cost centers will complete and e-mail the certification statement to the chief of their servicing fiscal services office. The Deputy Chief Financial Officer will complete the certification for Headquarters cost centers and e-mail the certification to the Headquarters Office of Fiscal Services. The Chief, Office of Regional Services will complete the certification for regional cost centers and e-mail to the Chief, Regional Branch of Fiscal Services.
C. Certification Due Dates. Quarterly Certification Statements are due by the 20th day of the month following the end of a quarter:
(1) July 20, 2003 – For the months of April, May, and
(2) September 20, 2003 – For the months of July and August. No certification is required for the month of September because the required actions and review will occur as a part of the closeout procedures.
(3) January 20, 2004 – For the months of October, November, and December.
(4) April 20, 2004 – For the months of January, February, and March.
5. Consolidated Certification Statements. By the 25th of the month following the end of the quarter, each Fiscal Service Chief will submit the consolidated certifications for the cost centers within their servicing areas of responsibility to the Chief, Office of Financial Management, with a “cc” to the Chief, Accounts Payable Branch, and to the Chief, Accounts Receivable Branch.
Carol F. Aten
Chief, Office of Administrative Policy and Services
Comparison of Requirements listed in Instructional Memoranda for Billed, Unbilled, and Unliquidated Obligations and Accruals