DRAFT PWS - IRS Financial Management and Audit Support Services 6-5-24.pdf

DRAFT PERFORMANCE WORK STATEMENT (PWS)

IRS FINANCIAL MANAGEMENT AND AUDIT SUPPORT SERVICES

A. Overview

The Financial Reporting and Analysis office is comprised of the Administrative Reporting, Revenue Reporting, General Ledger Review, Review and Reconciliation, and Headquarters Accounting sections. The Financial Management Systems office is comprised of the System Security and Compliance, Systems Operations Support, and Revenue Systems sections. The Policy and Data Analytics office includes Audit Coordination and Quality Control, and Policy and Data Analytical Support. The Unpaid Assessments and Analysis office is comprised of Unpaid Assessment Accounting Analysis, Unpaid Assessment Account Resolution, and Custodial Analysis and Reporting sections. The Revenue Accounting Operations office incudes two Campus Accounting departments. The contractor shall provide support as described below in the summary of requirements.

B. Background

The IRS Office of the CFO serves as the principal advisor to the IRS Commissioner and Chief Operating Officer on all financial management programs and reporting.

The Chief Financial Officers Act of 1990 (CFO Act) requires federal agencies to produce auditable financial statements and present these statements in an annual financial report like that in the private sector. The Government Accountability Office (GAO) audits the IRS’s financial statements each fiscal year. The financial statements report the assets, liabilities, net position, net costs, changes in net position, budgetary resources, and revenue activity related to the IRS's administration of its responsibilities for implementing federal tax legislation.

The IRS CFO Integrated Financial System (IFS) is operated by Enterprise Resource Planning (ERP) Central Component (ECC) application of SAP that includes ERP ECC for financial management and reporting, budget development and execution, purchase card transactions, asset accounting, and Supplier Relationship Management for procurement. The IFS resides on the SAP National Security Services ERP Private Cloud Edition in a Secure HANA Cloud on Amazon Web Services GovCloud. The Enterprise Portal is on the HANA Enterprise Cloud.

C. Scope

The Internal Revenue Service (IRS) Chief Financial Officer (CFO) Financial Management office requires professional financial management assistance with requirements assessments to support financial systems and system architecture development; policy and procedures; data analytics; and accounting support services to assist in developing its annual financial statements, reporting to external entities, supporting the financial statement audit, and addressing issues identified by senior financial management staff.

The contractor shall exercise due diligence and professional judgment in ensuring financial statement balances are free from material errors. This includes gaining an understanding of the IRS business operations and financial activities and performing analytical reviews and other procedures deemed necessary to ensure the quality and reliability of the statements. The contractor shall advise the IRS on applicable standards and guidance, particularly newly promulgated standards for implementation, and incorporation into the financial statements and provide annually a review of Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements, by documenting changes from year-to-year to management, within seven business days of new standard being published.

D. Acronyms and Terms

The following terms and their associated acronyms are used throughout this Performance Work Statement.

Central Accounting Reporting System (CARS) – the electronic system of record for the government’s financial data which provides streamlined agency reporting and supports government-wide standardization. Along with Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) and Intra-Governmental Payment and Collection (IPAC), CARS is a system under Governmentwide Accounting.

Custodial Detail Database (CDDB) – the subsidiary ledger to Redesigned Revenue Accounting Control System (RRACS). It provides the functionality needed for custodial financial management reporting. CDDB will extract data from all Master File systems to record revenue, refunds, unpaid assessments, and frozen credits, and will feed the information into the CDDB tables to summarize data traceable to specific revenue operations. This is an OMB approved financial management system.

DB2 Database – is a relational database management system that is designed to store, analyze, and retrieve data effectively.

Financial Assurance Controls Testing (FACT) – is responsible for implementing OMB Circular A-123, Appendix A, Management of Reporting and Data Integrity Risk. FACT sections (administrative and custodial) report to the Director, Assurance Review and Testing within the CFO – Internal Controls division.

Financial Management Information System (FMIS) – a set of production applications/activities that provides the data necessary to support and prepare the revenue and refund part of the IRS custodial financial statement and the GAO financial audit. It provides transaction detail reports and audit trails for all fiscal year cash receipts from Individual Master File, Business Master File, and Automated Non-Master File files.

Imputed Costs – the calculation and recording of monthly cost estimates for selected costs attributable to the entity activities but that are being financed by another entity, (e.g., pension and other post-retirement health and life insurance benefits paid by the Office of Personnel Management and the income tax collections and income tax refund payments made by the U.S. Treasury Bureau of Fiscal Service on behalf of the IRS).

Innovation/Automation – includes all potential changes to current or future procedures.

The change could include but is not limited to, advance, or improve business processes and procedures utilizing artificial intelligence or other new product or industry standard process to assist the CFO’s Financial Management office to be more responsive to its customer’s needs.

Integrated Financial System (IFS) – the IRS financial management system of record.

IFS uses SAP’s Suite on HANA with ERP and SRM.

Internal Use Software – software that is purchased from commercial vendors, internally developed, or contractor-developed solely to meet the entity’s internal or operational needs.

Modernized Individual Custodial Accounting (MICA) – a Revenue and Refund data repository system. Data is loaded into a business objects environment where, among other things, the data can be aggregated, exported, analyzed, and generated as a report.

Redesigned Revenue Accounting Control System (RRACS) – an independent automated system used to provide accounting control for revenue accounting transactions (e.g., tax receipts and refunds). The database consists of general ledger accounts, plus a variety of internal records used for balancing and reporting. Formatted reports can be generated for all regular accounting financial reports.

Treasury Information Executive Repository (TIER) – is a financial data repository used by Treasury to consolidate and validate bureau financial data and to support external financial reporting requirements. Each month, Treasury bureaus extract financial data from their respective core financial management systems and transmit that data to

TIER.

Treasury Inspector General Tax Administration (TIGTA) – is an independent organization within the Department of the Treasury that serves as the oversight body for the IRS. TIGTA provides quality, professional audit, investigative, and inspection and evaluation services that promote integrity, economy, and efficiency in the administration of the Nation’s tax system.

D. TASKS

1. TASK 1: Summary of Requirements for Financial Reporting and Analysis

Office Support

The contactor will assist with review and research of new/amended accounting standards and guidance (e.g., Statement of Federal Financial Accounting Standards (SFFAS), Treasury Financial Manual, OMB circulars) and document the changes to the appropriate IRS CFO Financial Management team. The contractor will assist with preparing external financial reports and related supporting documentation and responding to audit or internal control review questions.

a. GAO/Treasury/FACT/TIGTA Inquiries Support –The contractor shall assist, as needed with the following tasks, but not limited to:

1) Assist with the compilation of audit and review deliverables (including work papers) and requests (e.g., annual financial statement audit and FACT testing of internal controls in accordance with OMB Circular A-123).

2) Provide recommendations to inquiries and findings resulting from the audit(s) and review(s).

3) Assist with meeting GAO, Treasury, and FACT deliverable timelines, audit walkthroughs, and responses to questions/inquiries (e.g., GAO Matters for Further Consideration, Audit Inquiry Forms)

4) Assist with validating system transactional postings to ensure compliance with the United States Standard General Ledger (USSGL), Treasury, and OMB requirements.

5) Assist with the financial audit and development support FMIS applications and RRACS, Private Debt, Passport. and Tax Check.

6) Review, evaluate, and recommend stronger internal controls over financial reporting, reconciliations, work papers, and business processes.

b. Innovation/Automation Support – The contractor will provide recommendations for automation and process improvements to the IRS CFO Financial Management team to assist the Financial Reporting and Analysis Office become more efficient and more effectively utilize emerging technology. The contractor shall assist as follows, but not limited to:

1) Suggest dashboards and other visualization displays for presenting real-time financial data and reports and implement utilization of automation for researching and analyzing data and reports.

2) Recommend improvements in productivity to streamline business procedures through the usage and implementation of innovative methodologies, robotics, and automation.

3) Assist the IRS CFO Financial Management teams with exploring the capabilities, use, and implementation of artificial intelligence.

c. Financial Reporting (Administrative and Revenue Accounting) Annual Financial Statements (audited) and periodic financial statements (unaudited) for the IRS – The statements are prepared manually using the Treasury Financial Statements, the IFS trial balance, the RRACS trial balances, the FMIS, and other financial reports. The contractor’s primary responsibility shall be to prepare and/or review the IRS annual financial statements and accompanying notes in accordance with applicable Federal Accounting Standards Advisory Board (FASAB) standards and guidance and OMB Circular A-136, Financial Reporting Requirements. This includes identifying and making recommendations to resolve anomalies that may have an immaterial or material impact to financial data integrity, to the disclosures to the statements or subsequent notes used to present the financial condition of the IRS. The contractor will help identify and provide recommendations to ensure the financial statements and notes comply with U.S. generally accepted accounting principles and will assist with the financial analysis section in the Management Discussion and Analysis. The contractor will review the most recent version of OMB Circular A-136 to ensure any updates to existing requirements, any new statements or other information is incorporated into the current year financial statements and notes. The contractor will also assist with quality reviews of work products and identification and resolution of data errors in the accounting systems of record and master files. In addition, the contractor shall work with the IRS personnel to update key work papers supporting periodic and annual financial statements.

The contractor will assist with preparing the following audited and pro forma statements:

1) Balance Sheet

2) Statement of Changes in Net Position

3) Statement of Budgetary Resources

4) Notes to the Financial Statements

5) Required Supplementary Information

6) Other Information

7) Any additional statements or information required by OMB Circular A-136

Additionally, while the Statement of Custodial Activity is prepared by Revenue Reporting, it is forwarded to the contractor and the contractor assists in including it in the financial statements and notes.

d. Treasury Reporting – Monthly, quarterly, and annual financial reporting at the

Treasury level is accomplished through the TIER system, which consolidates the Treasury Bureaus’ (e.g., IRS, Fiscal Service, Bureau of Engraving and Printing) financial data. Treasury uses the trial balance data received from the bureaus to produce monthly consolidated financial statements, quarterly comparative financial statements, monthly Governmentwide Treasury GTAS submissions, and Treasury’s annual Agency Financial Report.

The contractor shall:

1) Assist with the implementation and documentation of changes made to the CFO FM’s accounting processes. This includes validating data collected and summarized for financial reporting, validating posting models, and other functionality designed for financial statement/TIER preparation.

2) Assist with the interpretation and implementation of accounting/reporting requirements from new/amended legislation and/or regulations applicable thereto. This includes working with other agencies, reviewing/updating internal control documentation, and analyzing/validating the results for the processes effected.

3) Assist with utilization of business analytics automation tools.

4) Assist with drafting policies and guidance included in standard operating procedures and/or Internal Revenue Manual.

5) Provide the IRS with copies of all working papers and data files prepared and compiled. All copies should be submitted with proof of appropriate contractor supervisory reviews.

e. Administrative Reporting Work on the financial statements is ongoing throughout the year, with a concentration of effort at quarter-end and in the two months surrounding the end of the fiscal year. The contractor is responsible for preparing work papers in support of the financial statements. At fiscal year-end, the financial statements are prepared from the Treasury Financial Statements and the final working trial balance, which is generated based on the general ledger (GL) from IFS. Crosswalks and reconciliations are prepared to support the statements.

The contractor shall assist with preparing and reviewing TIER financial data, including all required submissions in accordance with Treasury data quality standards; GTAS requirements, Treasury, OMB guidance, and other federal accounting principles. Data entry and file submission to the repository is performed by IRS personnel. The contractor shall advise IRS personnel on journal entries, ensure accuracy of balances, ensure data passes all edit checks and data quality measures, prepare reconciliations of the GL to TIER, and prepare other analyses, as defined. Additionally, the contractor shall maintain supporting documentation and recommend IFS journal entries to reduce fatal errors. The contactor will assist with the quarter-end statements analyses of key accounts, including tie points, abnormal balances, and variance analysis. The contractor shall also assist with monthly reconciliation and analytical work papers.

The contractor shall provide:

1) Recommendations for changes to current accounting processes used for financial statement and TIER preparation. This includes, but is not limited to, support with the development of requirements (in accordance with the IRS Information Technology (IT) standards), posting models, and financial IRS statement preparation related to business processes.

2) Assistance with implementing any approved changes to current accounting processes used for financial statement and trial balance preparation.

3) Assistance with preparation and/or review of audit deliverables, and presentation of walkthroughs and providing guidance to IRS personnel.

The contractor shall:

1) Assist with researching TIER fatal errors and preparing and posting, once approved, journal vouchers to IFS to clear the fatal errors.

2) Maintain the automated SAP business warehouse system being used to facilitate the TIER submissions, the systemic Treasury file layout, attributes, and the TIER Ledger in IFS. Also update the reporting period as requested monthly.

3) Recommend updates to IFS reports as necessary and make other changes when IRS requests.

4) Assist with clearing out canceling funds and preparing and posting, once approved, journal vouchers to IFS to clear canceling fund balance.

5) Generate litigation reports at year-end for the GAO deliverable.

6) Generate contract reports to assist with the Public-Private Partnerships Data

Call for the GAO deliverables.

f. Other Financial Reporting – The contractor shall provide advice, assistance, research, and analysis support in areas that extend beyond the scope of the routine financial statement requirements included in the above sections.

These areas include, but are not limited to, support and guidance for:

1) TIGTA, GAO, internal control testing, and other government audits and inquiries when directed.

2) Compliance with new, revised, or existing directives, regulatory, processing and reporting financial requirements (including those involving financial systems), and revisions to GL posting methodologies driven by USSGL or other changes (including validating system transactional postings).

3) Changes to budgetary appropriations and administration.

4) New or revised Treasury, GAO, OMB, and other regulatory financial requirements.

5) System functionality and upgrade impacts.

6) Accelerated reporting timeframes.

7) Significant changes in work methodologies, processes, and procedural requirements.

8) Compliance with the implementation of government-wide reporting initiatives.

The contractor shall perform other financial reporting tasks throughout the year including, but not limited to, preparing work papers:

1) needed to establish accrual and other GL balances on a monthly, quarterly, and annual basis.

2) required for GAO audit deliverables, as outlined in the GAO Provided by Client list,

3) required for Department of Treasury, as outlined in the Annual Treasury Financial Reporting Timeline, and

4) supporting the financial reporting processes, as needed.

The contractor shall assist the IRS in updating and maintaining the agency GL transactional posting models. This includes, but is not limited to:

1) Identifying and proposing changes to existing or new transactional posting models resulting from new regulations or guidance or new IRS processes.

2) Compiling internal correspondence related to the development of same.

3) Summarizing the correspondence into a transactional step process, which explains why each transaction occurs.

4) Drafting a memorandum summarizing the reason for the posting model, any process changes, and a conclusion to the overall process.

While assisting with monthly and quarterly reporting, adjustments that should be made to the GL will be noted. The contractor shall advise IRS on the IFS journal vouchers needed to correct GL balances and shall prepare or complete first level reviews of the entries for IRS approval.

The contractor shall prepare and deliver training and presentations and shall attend meetings related to this task as needed, including participating in lessons learned meetings. Trainings and presentations will include but not be limited to: OMB Circular A- 136, TIER/GTAS attributes, deliverables the contactor prepares, SFFAS and other reporting guidance.

The contractor shall provide IRS with copies of all working papers and data files prepared and compiled. All copies should be submitted with proof of appropriate contractor supervisory reviews.

g. Revenue Reporting and Headquarters Accounting Revenue Reporting ensures accurate and timely reporting of all custodial activity including the reporting of revenue and refunds in seven Tax Classes and prepares Financial Statements, Data Book tables, TIER/GTAS monthly reporting, quarterly refundable income tax credit reporting to OMB, and GAO audit supporting schedules.

Revenue Reporting also provides oversight and ensures proper accounting treatment for critical programs such as Sequestration, Foreign Account Tax Compliance Act, Identity Theft, Affordable Care Act (e.g., Premium Tax Credit including advance, Basic Health Plan, State Innovation Payments), Inflation Reduction Act, and Creating Helpful Incentives to Produce Semiconductors and Science Act.

Headquarters Accounting performs CFO custodial accounting functions (e.g., Warrants, Sequestration, and journal vouchers), delivers Treasury Scorecard reporting, provides policy oversight and guidance to campus RACS units, researches and compiles the annual GAO Revenue and Refund Samples, performs agency oversight and reconciliation on the Trace ID Receipts, and generates deposit reconciliations on the Treasury Monthly/Daily Transaction Statements. Additionally Headquarters Accounting is responsible for policies and procedures focusing on CFO custodial accounting transactions, managing, and processing IPAC transactions for the five US Territories (Guam, U.S. Virgin Islands, Puerto Rico, Northern Mariana Islands, and American Samoa) and headquarters month-end and year-end closing activities.

The contractor shall provide the following assistance as needed but not limited to:

1) Assist with reviewing the documentation of the key process flows and data elements from RRACS to support journal voucher posting model’s logic and execution.

2) Assist with developing, documenting, and implementing an efficient and effective reconciliation process and support for RRACS IRS Accounts to USSGL accounts.

3) Help support the sequestration reporting resulting from the Inflation Reduction Act 2022 legislation.

4) Assist with reviewing and drafting policies and guidance to be included in standard operating procedures and/or Internal Revenue Manual.

5) Help with developing requirements and documentation for queries and reports from RRACS and IFS.

6) Assist with the review and evaluation of open RRACS related unified work requests.

7) Researching, analyzing, and reconciling transactions between RRACS, CARS, and IFS; and researching and correcting variances (e.g., within refunds and revenues tax classes).

h. Revenue/Refund Sample Testing Support – The contractor shall provide support to the GAO Revenue and Refund Samples Testing by receiving the initial sample file from GAO and providing Headquarters Accounting samples in a spreadsheet format.

i. General Ledger Review and Review and Reconciliation The General Ledger Review and the Review and Reconciliation sections perform expense, revenue, Property and Equipment (P&E) analysis, and record recurring accruals, imputed costs, P&E and other manual adjustments for various business processes. The General Ledger Review section is responsible for monitoring and ensuring the integrity of data recorded in the general ledger. The Review and Reconciliation section is responsible for monitoring, reconciling, and reporting all aspects of administrative Fund Balance with Treasury (FBWT), Treasury Report on Receivables, Intragovernmental Eliminations, and a variety of expense and liability accounts. Both General Ledger Review and the Review and Reconciliation sections perform recurring analysis of GL accounts, perform variance analysis, research, and resolve elimination differences. Additionally, they prepare and submit internal and external audit deliverables and perform research and analysis of transactional data for the financial statements and TIER submissions.

On a monthly and annual (year-end) basis, the contractor shall provide support necessary to:

1) Assist with reviewing and posting monthly, quarterly, and annual adjustments by preparing and/or reviewing work paper analysis and recommending adjustments to be recorded in the financial system.

2) Assist with preparing and reviewing of accruals and imputed costs and ensure P&E analysis are maintained and in compliance with generally accepted accounting principles.

3) Assist with preparing responses to all federal financial guidance data calls, exposure drafts including, but not limited to, FASAB, OMB circulars, and Treasury guidelines, and provide support and recommendations regarding responses to exposure drafts or new guidance published by the FASAB, Accounting and Auditing Policy Committee or other federal agencies.

4) Assist with the implementation of new/amended accounting standards and regulations, and new/updated business processes.

5) Assist with documenting policies and guidance included in standard operating procedures and/or Internal Revenue Manual.

6) Prepare or assist with the preparation of the analyses of P&E accounts and certain expense accounts. The analysis will consist of, but not be limited to, preparing, and reviewing P&E transactions including recognition and recording of acquisitions, leases, leasehold improvements, internal use software, disposals, and provide analyses to identify, future Internal Use Software and Leasehold Improvements projects for capitalization. All analyses of P&E must follow SFFAS established by FASAB and any other authoritative standards for federal accounting.

7) Provide recommendations, industry best practices, and propose adjustments in accordance with the IRS policies and procedures, as needed.

8) Work with IT to validate the status of Internal Use Software projects (e.g., verify scope of work, milestone status (if applicable), and period of performance).

9) Assist with the preparation and/or review of recurring work paper analysis and posting models and perform variance analysis of GL accounts and financial statement line items.

10) Review prior year to current year GL account variances for reasonableness, provide explanations for variances, and assist in the development of ad hoc processes to address unanticipated issues to ensure the accuracy of GL account balances.

11) Assist with tasks associated with implementing G-Invoicing requirements and ensuring compliance with Data Accountability and Transparency Act of 2014 (DATA Act) requirements (e.g., reporting accounting string attributes for grants and other contracts, perform research of policies).

12) Assist with the research and resolution of elimination differences between federal agencies and perform root analysis and propose solutions to resolve any differences.

13) Assist with FBWT reconciliation and adjustments, and provide research and analysis related to the overall FBWT process.

14) Prepare a monthly analysis detailing the status of the aged unliquidated obligations population from the date of identification as ‘At-Risk’.

15) Review, analyze, and advice on aged unliquidated obligations as requested.

16) Perform other work relating to General Ledger Review and the Review and

Reconciliation task areas including, but not limited to, preparing, and delivering training and presentations, attending meetings as needed, drafting whitepapers, and preparing executive summaries.

The contractor shall provide personnel who have knowledge and a high level of demonstrated user expertise in SAP and/or RRACS systems, and experience researching legislature and guidance for federal accounting and federal financial reporting such as Generally Accepted Accounting Principles, FASAB, SFFAS, OMB Circulars, Treasury Financial Manual, USSGL, the CFO Act, and best practices. The contractor shall have demonstrated proficiency with software and tools (e.g., Microsoft Office applications, Power Query, Tableau, Business Objects). The contractor shall have proven experience reviewing and developing posting models, providing audit deliverables and process walkthroughs, providing training, writing procedures, and developing process maps. The contractor shall have experience with financial reporting and using Treasury systems including CARS, GTAS, and TIER.

2. TASK 2: Summary of Requirements for Financial Management Systems: IFS

Support

The Financial Management Systems office maintains the integrity and security of financial data and ensuring compliance of custodial and administrative accounting systems with relevant regulations. The office oversees user access, provides essential resources such as user guides, training materials, outage notifications, and transactional assistance. It manages crucial activities like fiscal year-end/annual close system processes and the annual budget load. Additionally, Financial Management Systems supports the financial management reporting and system requirements, ensuring smooth and accurate financial operations within the IRS. Furthermore, the office implements, updates, and manages new system requirements mandated or requested by various business stakeholders, ensuring alignment with regulatory standards while meeting evolving business needs.

a. IFS Financial and Accounting System Support

The IRS requires professional financial and accounting system support for ongoing IFS functionality, maintenance, and system changes. The contractor shall provide the following types of assistance as needed but not limited to:

1) Assistance with implementing any changes to current accounting process used for IFS including identification, resolution, tracking, and testing of IFS and Current Production Environment system defects, service and change requests, including, but not limited to, posting adjustments into IFS when approved;

creating and approving test cases; and updating master data when approved.

2) Participating in the Engineering Review Board, Systems Review Board, Risk Management, Priority and Management meetings.

3) Ensuring IFS continues to meet baseline and new system requirements, design documents, and specifications.

4) Ensuring IFS is compliant with all regulatory and legislative requirements including, but not limited to, the Joint Financial Management Improvement Program, the Federal Financial Management Improvement Act of 1996, The DATA Act; OMB circulars and directives, and the Treasury Bureau of Fiscal Service Standard General Ledger (SGL).

5) Creating or updating IFS system documentation, requirements, and specifications, including posting models, flowcharts, role changes, and business/system process descriptions.

6) Providing support for TIGTA, GAO, and other government audits when directed.

7) Providing IFS support services to the Financial Management division through planning, on the job training, and responding to ad hoc questions.

8) Evaluating service and other requests to determine the accounting implications and requirements, including working with the other contractors.

9) Providing recommendations for service and change requests and configuration changes.

10) Providing requirements development and documentation of reports and ad hoc queries.

11) Development of required IFS business processes; creating and writing reports;

and extraction of data files from IFS, and routine evaluation of the topside adjustment program.

12) Work with the IRS personnel to ensure the integrity of the data files and reports created by the IFS extraction tools; make necessary updates to the extraction tools; upload the accrual postings and reversals to IFS, as needed; and provide hands on training related to the timing of the tool execution for Open Obligations, and Quarterly Accrual processes.

13) Providing recommendations to improve existing reports.

14) Providing maintenance and systemic changes needed due to Treasury, OMB, and GAO requirements.

15) Supporting the processing of payroll including evaluating changes to Automated

Interface with the National Finance Center and Administrative Billing and Collections system.

16) Supporting the processing of G-Invoicing transactions and enhancements.

17) Develop new posting models and request new SGL accounts as needed and provide posting model support to other business units.

18) Provide accounting related guidance on various system changes including financial statement updates and workpaper reports; and provide guidance on correct budgetary transactions to ensure correct financial reporting results.

19) Maintain and update FMUSFG1 (SAP reporting screen) derivation rules.

20) Propose TIER adjustments as needed to resolve system errors.

21) Analyze account relationships and propose corrective actions.

22) Assist with numerous year-end close tasks including Production and Mock testing.

23) Support quarterly regression testing.

24) Review master data requests to confirm correct USSGL GTAS attributes.

25) Assist users with document corrections and resolve various IFS related issues and questions.

b. Systems Modernization Financial and Accounting System Support

The IRS requires professional financial and accounting system support with enhancements and/or upgrades/changes. The contractor shall provide as needed but not limited to:

1) Support development of requirements for future system upgrades, enhancements, or changes.

2) Implementation of activity-based costing functionality in IFS.

3) Compliance with SFFAS 4, Managerial Cost Accounting Standards and

Concepts; OMB requirement for performance-based budgeting; the President’s Management Agenda scorecard recommendations; GAO recommendations regarding costing of products, services, and performance measures; and internal management needs related to process and project costing.

4) Development and implementation of additional modules to the ERP Financial System (e.g., Project System, Asset Module, Sales and Distribution).

5) Support S/4 migration project initiatives by collaborating with S/4HANA Project Team and IT developers to provide the following types of assistance as defined, including migration/conversion strategy, data cleansing strategies/procedures, conversion reconciliation process, and verification of conversion results.

expertise in data base systems in large scale accounting environments, advanced system programming skills, specific knowledge in financial management systems, utilizing report writing tools, and a comprehensive understanding of federal accounting requirements, including federal custodial accounting. The contractor staff shall have proven experience with federal accounting practices and using Business Object and Tableau to develop and generate reports, research transactions, and identify issues.

The contractor’s federal accounting experience must include developing posting models in accordance with the SGL guidance published by the Treasury, developing reports and crosswalks in support of financial statements, and TIER reporting for business/operational needs. The contractor’s experience must include the ability to develop, configure, and generate many of the reports, process transactions, and review system output for accuracy. The contractor shall not expend labor hours unless proper notification is provided by the Contracting Officer’s Representative (COR). The contractor is required to track the expended hours and dollars at each task level, as well as the task order level. This information shall be provided to the COR as supporting documentation to submitted vouchers.

3. TASK 3: Summary of Requirements for Financial Management Systems:

RRACS Support

The Financial Management Systems office maintains the integrity and security of financial data and ensuring compliance of custodial and administrative accounting systems with relevant regulations. It manages crucial activities like fiscal year-end/annual close system processes and the annual budget load. Additionally, Financial Management Systems supports the financial management reporting and system requirements, ensuring smooth and accurate financial operations within the IRS.

Furthermore, the office implements, updates, and manages new system requirements mandated or requested by various business stakeholders, ensuring alignment with regulatory standards while meeting evolving business needs.

a. RRACS and Tax Processing Modernization Financial and Accounting System Support

The IRS requires professional financial and accounting system support to plan and convert custom revenue transactions to SAP that provide highest ROI to IRS. The contractor shall support and collaborate with the S/4HANA Project Team and IT developers as defined, to provide the following types of assistance as needed but not limited to:

1) Support development of requirements for the implementation of revenue transactions in SAP.

2) Support development of requirements for RRACS migration to S/4.

3) Support integration and testing in SAP S/4.

4) Develop reports and queries using IRS’s data warehouses (e.g., MICA) and analytical tools (e.g., Business Objects, Tableau, and Power Query).

5) Support migration efforts for RRACS to SAP and S/4, as applicable.

6) Support evaluation of accounting processes in RRACS and make recommendations for SAP and S/4.

a. Assist with writing test scripts,

b. Assist with running test scripts and researching any failed test scripts,

c. Assist with documenting the SAP accounting posting modeling,

d. Running parallel reports between current and new system,

e. Assist with reconciliation of RRACS system to SAP system and researching any differences, and

f. Assist with preparing support for the adjusting journal entries related to transition from RRACS to SAP.

The IRS requires professional financial and accounting system support of Tax processing modernization efforts. The contractor shall provide the following types of assistance:

1) Assist with parallel validation and regression, Systems Acceptance Testing, and user acceptance testing.

2) Support the development of requirements to integrate with the revenue financial systems (e.g., CDDB, Unpaid Assessment, RRACS, Collection Activity Report and Statutory Reports, and SAP).

3) Support the development of requirements for updates to tax processing systems to ensure financial data is interfacing with the financial systems.

4) Support the development of requirements to ensure financial internal controls are integrated with the tax processing system.

5) Support the development of requirements to improve financial categorization within the taxpayer’s account (e.g., Debit to Credit allocation).

expertise in data base systems in large scale accounting environments, advanced system programming skills, specific knowledge in financial management systems, utilizing report writing tools, and a comprehensive understanding of federal accounting requirements, including federal custodial accounting. The contractor staff shall have proven experience with federal accounting practices and using Business Object and Tableau to develop and generate reports, research transactions, and identify issues.

The contractor’s federal accounting experience must include developing posting models in accordance with the SGL guidance published by the Treasury, developing reports and crosswalks in support of financial statements, and TIER reporting for business/operational needs. The contractor’s experience must include the ability to develop, configure, and generate many of the reports, process transactions, and review system output for accuracy.

4. OPTIONAL TASK 4: Optional CFO Financial Management Support

The IRS continuously faces new and modified tax regulations and legislation, accounting standards revisions, and financial system updates throughout the normal course of business. The CFO Financial Management team may request additional support for ad hoc tasks closely associated to work performed. Ad hoc tasks are optional tasks providing additional support and will be added to the contract as needed by the IRS. The contractor shall work with the IRS to determine the level of effort needed to support ad hoc tasks.

E. STATUS REPORTS

The contractor shall provide a monthly status memorandum of all the tasks. This shall be a high-level report that the COR and the IRS project manager will use to monitor the progress of the contract.

F. KEY PERSONNEL

This contract shall be contingent upon acceptance of key personnel by the IRS and such personnel shall be expected to remain in place for the duration of the contract.

The key personnel positions are considered essential to the work performed under this contract, and the offeror shall identify the contract employees and submit resumes in their quotation for the key personnel positions listed below.

• Senior Project Financial Accounting Director (level 2) – Should possess at a minimum an accounting degree and have 10 plus years of experience with at least eight years working with federal generally accepted accounting principles, techniques, and practices. Should be a Certified Public Accountant and have proven expertise in SAP Federal Financial Management and

Procurement software. Knowledge of the current IRS accounting systems and environment and tax processing is beneficial.

• Senior Accounting Subject Matter Expert – Should possess at a minimum an accounting degree and have eight plus years of experience with at least six years working with federal generally accepted accounting principles, techniques, and practices. Should be a Certified Public Accountant and have proven experience in SAP Federal Financial Management and Procurement software. Knowledge of the current IRS accounting systems and environment and tax processing is beneficial.

• Financial Systems Auditor – Should possess at a minimum a bachelor’s degree, have six plus years of experience with at least three years working on federal government audits and prefer a Certified Information Systems Auditor (CISA). Should have proven experience implementing an audit strategy for information systems based on risk management, conducting audits of business financial systems, and evaluating compliance to applicable laws, policies and standards related to IT. Experience in SAP Federal Financial Management and Procurement software is preferred and knowledge of the current IRS accounting systems and environment and tax processing is beneficial.

• Supervisory Senior Accountant – Should possess at a minimum accounting degree and have seven plus years of experience with at least five years working with federal generally accepted accounting principles, techniques, and practices. Should have proven experience in SAP Federal Financial Management and Procurement software. A CPA is preferred, and knowledge of the current IRS accounting systems and environment and tax processing is beneficial.

• Senior Accountant – Should possess at a minimum accounting degree and have five plus years of experience with at least three years working with federal generally accepted accounting principles, techniques, and practices.

Should have proven experience in SAP Federal Financial Management and Procurement software. Knowledge of the current IRS accounting systems and environment and tax processing is beneficial.

• Staff Accountant – Should possess an accounting degree and at least three years of experience working with generally accepted accounting principles, techniques, and practices. Should have experience in SAP Federal Financial Management and Procurement software. Also, have experience preparing financial reports and notes and conducting financial research and analysis.

• Technical Writer – Should possess a bachelor’s degree and have a minimum of three years of experience performing technical writing services for financial accounting environments. Should have proficient writing and communication skills, and knowledge of proper grammar and sentence structure. Responsible for drafting, reviewing, revising, and editing policies, procedures, memos, flowcharts, and project plans.

• Data Visualization Specialist – Should possess a bachelor’s degree and have a minimum of three years of data visualization experience. Should have experience using software (e.g., Tableau, Vizio, and similar programs) to create dashboards, flowcharts, graphs, and other visual representations of financial data. Should have good communication skills.

• Senior Project Financial System Director (level 2) – Should possess a bachelor’s degree and a minimum of 10 years professional experience in working in with federal generally accepted accounting principles, techniques, and practices. Should also have proven expertise in SAP Federal Financial Management and Procurement software. Knowledge of the current IRS financial and custodial systems and environment and tax processing is beneficial.

• Senior Financial System Analyst – Should possess a bachelor’s degree, a minimum of eight years systems accounting experience, and experience working with federal generally accepted accounting principles, techniques, and practices. Should also have proven expertise in SAP Federal Financial Management and Procurement software. Knowledge of the current IRS financial and custodial systems and environment and tax processing is beneficial.

• Financial System Analyst – Should possess a bachelor’s degree and minimum of six years of in working with federal generally accepted accounting principles, techniques and practices, federal financial systems. Knowledge of the SAP Federal Financial Management and Procurement software and the current IRS financial and custodial systems is beneficial.

• Senior Financial System Consultant Subject Matter Expert – Should possess a bachelor’s degree, a minimum of six years systems accounting experience, and experience working with federal generally accepted accounting principles, techniques, and practices. Knowledge of the SAP Federal Financial Management and Procurement software and the current IRS financial and custodial systems and tax processing is beneficial.

G. LOCATION/WORK HOURS

The contractor will be located on-site during standard IRS core business hours with government personnel at the following facilities unless approved to work offsite by the IRS. Contractors are required to work on-site based on the assigned tasks and CFO Management’s requirements.

If working offsite, the contractor must be available during standard IRS core business hours when required, to meet with government personnel and, as needed, to facilitate the work product.

Main IRS Building 1111 Constitution Avenue, NW Washington, DC 20224

New Carrollton Federal Building 5000 Ellin Road Lanham, MD 20706

H. BACKGROUND INVESTIGATIONS

All contractor personnel considered for use on the contract must undergo an appropriate background investigation and be approved for staff-like access in accordance with the provisions of Internal Revenue Manual 1.23.2, Contract Investigations and Treasury Directive Publication (TDP) 71-10, Treasury Security Manual, Chapter II, Section 2. The cost of the background investigation shall be borne by the Government. The Government will provide necessary forms for the conduct of the investigations; it will be the awardees' responsibility to ensure that all required forms are returned to the Government no less than two weeks before work is to be performed on the contract. Contractor employees who undergo Minimum Background Investigation checks that reveal, but are not limited to, the following may be unacceptable under this contract: conviction of a felony, a crime of violence, or a serious misdemeanor, or a record of arrests for continuing offenses. The IRS reserves the right to approve contractor employees based on the results of their background investigations.

I. DISCLOSURE Of INFORMATION

Contractor staff assigned to this contract will have access to data that comes from the IRS’s CFO financial management systems of record. CFO financial systems contains Privacy Act and Sensitive but Unclassified (SBU) information including financial information, payroll data, personnel data, tax related data, and relocation and travel data. All SBU information will be maintained in hardcopy at the 1111 Constitution Avenue Building under lock and key and in softcopy format on the IRS network. In performance of this contract, the contractor agrees to comply and assume responsibility for compliance by his/her employees and to assume responsibility for compliance by all subcontractors and their employees, with the requirements in 14.2 and 14.3.

All work shall be performed under the supervision of the contractor or employees responsible to the contractor. Any tax return or tax return information, financial data, or procurement-sensitive data made available shall be used for the purposes of carrying out the terms of this contract, and information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Once the contract expires, all SBU data will be turned over to the IRS.

J. TRAVEL

Travel costs for on-site personnel, including travel within the local metropolitan area to attend various meetings, will not be paid by the IRS. Other travel costs incurred in direct support of the contract with prior approval of the COR shall be reimbursed as incurred in accordance with the Federal Travel Regulations. COR approval must be obtained prior to the travel occurring.

K. APPLICABLE DOCUMENTS

• Public Law 101-576, Chief Financial Officers Act of 1990

• Public Law 103-62, Government Performance and Results Act of 1993

• Public Law 103-356, Government Management Reform Act of 1994

• Public Law 104-208, Federal Financial Management Improvement Act of 1996

• Investigative Requirement for Contract Employees, Treasury Security Manual, TDP 71-10

• Federal Accounting Standards Advisory Board Statements of Federal Financial

Accounting Standards and Concepts, available online at http://www.fasab.gov/accounting-standards/authoritative-source-of-gaap/accounting-standards/

• OMB Bulletins (e.g., 07-04, Audit Requirements for Federal Financial Statements) available online at https://www.whitehouse.gov/omb/information-for-agencies/bulletins/

• OMB Circulars (e.g., A-136,…