Fin Mgmt Audit Svcs PWS- RXD Draft 01-05-2026 (1).pdf

Financial Management & Audit Services Performance Work Statement (PWS)

1.0 Overview

The Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) is organized into three primary functional areas: Internal Controls, Budgeting, and Financial Management (FM). This Performance Work Statement (PWS) defines the requirements for professional financial management, financial systems, and audit support services that enable the CFO to plan, execute, account for, and report on IRS resources in compliance with Federal financial management laws, regulations, and standards.

Under this PWS, the contractor shall primarily support the CFO Financial Management organization. The following Financial Management offices and their component units are within the scope of this effort:

• Financial Reporting and Analysis Office – includes Administrative Reporting, Revenue Reporting, General Ledger Review, Review and Reconciliation, and Headquarters Accounting.

• Revenue Accounting Operations Office – includes two Campus Accounting departments and the Unpaid Assessments and Analysis function, which comprises Unpaid Assessment Accounting Analysis, Unpaid Assessment Account Resolution, and Custodial Analysis and Reporting.

• Accounts Payable Office – includes two Accounts Payable units, the Accounts Payable Reporting section, and the Accounts Payable Processing section.

• Government Payables and Funds Management Office – includes Intragovernmental Funds Management and Intragovernmental Funds Processing, which consists of three units: Debt Collection, Intra-Governmental Payment and Collection (IPAC), and Obligations.

• Policy and Data Analytics Office – includes Audit Coordination and Quality Control and Policy and Data Analytical Support.

• Financial Management Systems Office – includes System Security and Compliance, Systems Operations Support, and Revenue Systems.

Work required under this PWS is organized into six integrated task areas as detailed in Section 5.

Through these task areas, the contractor shall deliver outcome-focused, performance-based support that:

• Enables the preparation of timely, accurate, and auditable financial statements and related reporting.

• Maintains compliant, secure, and reliable financial management systems that support both administrative and custodial activities.

• Strengthens internal controls and supports effective responses to audits, reviews, and oversight inquiries.

• Provides disciplined task order management and seamless transition-in and transition-out, preserving institutional knowledge and ensuring continuous, high-quality service to IRS stakeholders.

2.0 Background

The Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) is responsible for enterprise-wide financial planning, budget formulation and execution, financial reporting, internal control, and strategic financial management. The CFO serves as the principal financial advisor to the IRS Commissioner and leads financial operations that support an effective and equitable taxpayer experience. Within the CFO organization, the Financial Management (FM) group—comprising Financial Reporting and Analysis, Revenue Accounting Operations, Accounts Payable, Government Payables and Funds Management, Policy and Data Analytics, and Financial Management Systems—carries primary responsibility for day-to-day financial accounting, reporting, and related systems operations supported under this Performance Work Statement (PWS).

The CFO operates within a robust statutory and regulatory framework that includes, but is not limited to, the Chief Financial Officers Act of 1990 (CFO Act), the Government Performance and Results Act, the Government Management Reform Act, and the Federal Financial Management Improvement Act. These authorities were enacted to strengthen federal financial management, modernize financial systems, and improve the quality and transparency of financial reporting across government. (U.S. Code) The CFO Act and related guidance require the production of auditable agency-wide financial statements prepared in accordance with U.S.

Generally Accepted Accounting Principles (GAAP) as promulgated by the Federal Accounting Standards Advisory Board and reported under Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements. (The White House)

Pursuant to the CFO Act and OMB audit requirements, the Government Accountability Office (GAO) conducts annual financial statement audits of the IRS to opine on the fair presentation of the financial statements, evaluate internal control over financial reporting (including information systems), and test compliance with selected laws and regulations. (IRS) These audits are performed in accordance with Government Auditing Standards (the “Yellow Book”) and rely heavily on the integrity of the IRS’s core financial systems, accounting processes, and internal controls. (gao.gov) Maintaining unqualified audit opinions and addressing control deficiencies in a timely manner are key drivers for the services required under this PWS.

https://uscode.house.gov/statutes/pl/101/576.pdf?utm_source=chatgpt.com https://whitehouse.gov/wp-content/uploads/2024/05/A-136-for-FY-2024.pdf?utm_source=chatgpt.com https://www.irs.gov/irm/part1/irm_01-035-014?utm_source=chatgpt.com https://www.gao.gov/yellowbook?utm_source=chatgpt.com

The CFO relies on an integrated systems environment to support both administrative and custodial accounting. The Integrated Financial System (IFS) is the IRS’s core financial management system, implemented using an SAP Enterprise Resource Planning (ERP) Central Component platform and hosted in a secure cloud environment. IFS supports core financial accounting, budget formulation and execution, purchase card and procurement transactions, asset accounting, and business warehouse reporting, and interfaces with multiple Treasury and external systems such as the Invoice Processing Platform, travel and relocation systems, and the National Finance Center payroll system. The Redesigned Revenue Accounting Control System (RRACS) supports custodial revenue accounting and interfaces with Treasury systems such as the Central Accounting Reporting System (CARS), Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS), Intra-Governmental Payment and Collection (IPAC), and the Treasury Information Executive Repository (TIER), which is used to consolidate and validate bureau-level financial data for government-wide reporting.

This systems and reporting environment is complex and continually evolving in response to new tax legislation, revised accounting standards, Treasury and OMB guidance, and modernization initiatives. The CFO Financial Management and Financial Management Systems offices must regularly update accounting policies, posting models, interfaces, and reporting crosswalks;

support month-end and year-end close; address GAO, Financial Assurance Controls Testing (FACT), and Treasury Inspector General for Tax Administration (TIGTA) audit requests; and implement corrective actions to resolve identified weaknesses. To sustain high-quality, timely, and compliant financial reporting for the multi-trillion-dollar revenue administered by the IRS, the CFO requires contractor support that combines deep federal accounting expertise, advanced data and systems skills, and proven experience with Treasury and IRS financial systems.

Under this PWS, the contractor will provide performance-based support across six integrated task areas: (1) financial accounting, reporting, revenue and administrative accounting, cost accounting, and internal control support; (2) financial management systems support for IFS and related modernization activities; (3) Chief Financial Officer financial management surge and ad hoc support; (4) task order management; (5) contractor transition-in; and (6) contractor transition-out. These services will help the CFO sustain accurate and reliable financial information, maintain effective internal controls, support clean audit opinions, and ensure that IRS financial management capabilities keep pace with statutory, policy, and technology changes.

3.0 Scope

The purpose of this Performance Work Statement (PWS) is to obtain professional federal financial management, accounting, audit, and financial systems support services that enable the Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) to produce timely, accurate, complete, and auditable financial information; maintain compliant and reliable financial management systems; and ensure continuity of operations across the period of performance.

The Contractor shall provide outcome-focused services that support the IRS CFO Financial Management organization in meeting statutory, regulatory, and policy requirements, including but not limited to the Chief Financial Officers Act of 1990 (CFO Act), the Federal Financial Management Improvement Act of 1996, Office of Management and Budget (OMB) circulars and bulletins, Treasury guidance, and the Internal Revenue Manual. Support shall directly contribute to clean audit opinions, effective internal control over financial reporting and operations, and high-quality financial information for internal and external stakeholders.

Within the IRS CFO Financial Management organization, the Contractor shall support the Financial Reporting and Analysis, Revenue Accounting Operations, Accounts Payable, Government Payables and Funds Management, Policy and Data Analytics, and related offices by providing technical accounting, financial reporting and analysis, reconciliation, cost accounting, and internal control support services. These services shall assist the Government in preparing and supporting annual and interim financial statements and related disclosures; executing and overseeing operational accounting processes; supporting the financial statement audit and internal control reviews; and addressing issues and priorities identified by senior IRS CFO management.

The Contractor shall also support the IRS CFO Financial Management Systems office in operating, maintaining, and modernizing the Integrated Financial System (IFS) and related financial management systems and tools. This includes supporting system processes that maintain the integrity, security, availability, and usability of financial data; ensuring that financial systems comply with applicable federal financial management system requirements; and implementing changes needed to respond to new regulations, standards, and business requirements. The Contractor’s efforts shall enable accurate and efficient financial transaction processing, reporting, and data analytics across custodial and administrative accounting activities.

Services under this PWS are organized into the following major task areas, which together define the scope of work:

1. Financial Accounting, Reporting and Analysis; Administrative and Revenue Accounting Operations; Cost Accounting; and Internal Control Support (Labor Hour) – Technical accounting, financial reporting, reconciliations, cost accounting, internal control, and audit readiness support for CFO Financial Management programs.

2. Financial Management Systems Support (Labor Hour) – Functional and technical support for IFS and related financial systems, including configuration, testing, reporting, data integrity, and support for system enhancements and modernizations.

3. Chief Financial Officer Financial Management Support (Labor Hour) (Optional)– As directed by the Government, ad hoc financial management support closely aligned to the work performed under Tasks 1 and 2, including emerging requirements driven by new legislation, standards, and system changes.

4. Task Order Management – Day-to-day management, planning, coordination, performance monitoring, staffing, reporting, and communication necessary to ensure effective execution of this task order.

5. Contractor Transition-In Phase (Labor Hour) – Structured transition-in activities that enable the Contractor to acquire necessary knowledge, access, and documentation while maintaining continuity of operations and service quality.

6. Contractor Transition-Out Phase (Labor Hour) – Structured transition-out activities that ensure orderly transfer of knowledge, documentation, and responsibilities to the Government and/or a successor contractor without degradation of financial management operations.

Performance under this PWS shall be monitored and evaluated using task-level performance standards, measures, and Acceptable Quality Levels (AQLs) that will be defined in the contract’s Quality Assurance Surveillance Plan (QASP) and associated deliverables.

4.0 Definitions & Acronyms

ABC- Activity-Based Costing – A cost accounting methodology that assigns costs to activities and then to products or services based on their use of those activities.

ABB- Activity-Based Budgeting – A budgeting method that uses Activity-Based Costing drivers and activities to build resource requirements and budgets.

AQL- Acceptable Quality Level – The minimum performance threshold or quality level at which a service or deliverable is considered acceptable under the Quality Assurance Surveillance Plan

(QASP).

CAP- Corrective Action Plan – A documented set of actions, milestones, and responsibilities to remediate audit findings, deficiencies, or control weaknesses.

CARS- Central Accounting Reporting System – A U.S. Department of the Treasury system used by federal agencies to report financial data and reconcile to the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS).

CFO- Chief Financial Officer – The senior IRS official responsible for enterprise-wide financial planning, budgeting, financial reporting, internal control, and strategic financial management.

CFO Act- Chief Financial Officers Act of 1990 – Federal statute that established agency Chief Financial Officers and requires the preparation of auditable agency-wide financial statements.

CLIN- Contract Line Item Number – A discrete, individually priced item or service on the contract or task order used for funding, invoicing, and tracking purposes.

CO- Contracting Officer – A Government official with the authority to enter into, administer, and terminate contracts and make related determinations and findings.

COR- Contracting Officer’s Representative – A Government official designated in writing by the Contracting Officer to perform specific technical and administrative functions in the monitoring and administration of the contract or task order.

CSV- Comma-Separated Value – A file format in which tabular data are stored as plain text with values separated by commas (commonly used for data extracts and uploads).

DATA Act- Digital Accountability and Transparency Act of 2014 – Federal law that requires standardized, transparent reporting of Federal spending data.

DTAR- Department of the Treasury Acquisition Regulation – Treasury-specific acquisition regulations that supplement the Federal Acquisition Regulation (FAR).

ERP- Enterprise Resource Planning – An integrated suite of software applications that support core administrative and financial functions such as accounting, budgeting, procurement, and asset management.

EVM- Earned Value Management – A project and performance management technique that integrates scope, schedule, and cost to assess progress and forecast outcomes.

FACT- Financial Assurance Controls Testing – A Treasury oversight and testing program focused on internal controls over financial reporting and related processes.

FAR- Federal Acquisition Regulation – The primary Government-wide regulation governing the acquisition of supplies and services by executive agencies.

FASAB- Federal Accounting Standards Advisory Board – The body that promulgates federal accounting standards used in preparing U.S. federal financial statements.

FBWT - Funds Balance with Treasury – The aggregate amount of an agency’s unexpended and unobligated funds held by the U.S. Department of the Treasury.

FFMIA- Federal Financial Management Improvement Act of 1996 – Federal law that requires agencies to implement and maintain financial management systems that comply with federal system requirements, federal accounting standards, and the U.S. Standard General Ledger.

FM- Financial Management – Within this PWS, the group of IRS CFO offices responsible for day-to-day financial accounting, reporting, and related systems operations (Financial Reporting and Analysis, Revenue Accounting Operations, Accounts Payable, Government Payables and Funds Management, Policy and Data Analytics, and Financial Management Systems).

FTR- Federal Travel Regulation – Government-wide regulation issued by the General Services Administration (GSA) that implements statutory requirements and policies for travel by federal civilian employees and contractors.

GAAP- Generally Accepted Accounting Principles – In this PWS, refers to U.S. Generally Accepted Accounting Principles applicable to federal financial reporting.

GAO- Government Accountability Office – The independent, nonpartisan audit and evaluation arm of Congress that conducts the IRS annual financial statement audit and related reviews.

GFI- Government-Furnished Information – Information, data, or documentation provided by the Government for use in performing the contract, which remains Government property and must be safeguarded accordingly.

GFP- Government-Furnished Property – Property (such as equipment, identification badges, and access devices) provided by the Government for use in contract performance and subject to Government property management requirements.

G-Invoicing- Governmentwide Intragovernmental Invoicing – The U.S. Treasury system and process for managing intragovernmental buy/sell transactions and orders.

GTAS- Governmentwide Treasury Account Symbol Adjusted Trial Balance System – Treasury system for collecting and consolidating agency trial balance data for Government-wide financial reporting.

IFS- Integrated Financial System – The IRS’s core financial management system, implemented on an SAP Enterprise Resource Planning platform and used for accounting, budgeting, procurement, asset management, and related reporting.

IPAC- Intra-Governmental Payment and Collection – A Treasury system that facilitates the transfer of funds and settlement of intragovernmental transactions between federal agencies.

IRM- Internal Revenue Manual – The primary official source of “how-to” instructions, procedures, and guidelines for IRS personnel.

IRS- Internal Revenue Service – The U.S. Government agency responsible for administering and enforcing the internal revenue laws and related statutes.

IT- Information Technology – Hardware, software, networks, and related services used to support automated processing, storage, and transmission of data.

KPI- Key Performance Indicator – A quantifiable metric used to gauge performance against defined goals, such as timeliness, accuracy, or completeness of financial management activities.

LOE- Level of Effort – An estimate or measure of the labor hours and resources required to perform a defined set of tasks or activities.

MBI- Minimum Background Investigation – A personnel security investigation level required by the IRS and the U.S. Department of the Treasury for contractor staff supporting this task order.

MD&A- Management’s Discussion and Analysis – Narrative section of the annual financial report that discusses financial results, trends, and key management analyses.

MSR- Monthly Status Report – The recurring contractor report that provides an integrated view of progress, quality, issues, risks, and Earned Value Management (EVM) or other performance metrics across the task order.

OMB- Office of Management and Budget – A component of the Executive Office of the President that issues circulars, bulletins, and guidance related to budgeting, financial reporting, and financial management (e.g., OMB Circular A-136).

OUO- Official Use Only – A designation for sensitive, nonpublic information that is not classified but must be protected from unauthorized disclosure.

PDF- Portable Document Format – An electronic document format used to preserve document layout, commonly used for final reports and supporting artifacts.

PM- Program Manager – The contractor’s primary management representative responsible for overall task order execution, coordination, and communication with the Government.

PoP- Period of Performance – The time period during which the contractor is authorized and expected to perform work under the task order (including base and option periods).

PWS- Performance Work Statement – The document that describes the required outcomes, performance standards, and tasks for contractor support under this task order.

QASP- Quality Assurance Surveillance Plan – The Government’s plan for monitoring, evaluating, and documenting contractor performance against defined performance standards and Acceptable Quality Levels.

RRACS- Redesigned Revenue Accounting Control System – The IRS system that supports custodial revenue accounting and interfaces with key Treasury financial reporting systems.

SAP- SAP (originally “Systems, Applications, and Products in Data Processing”) – The commercial Enterprise Resource Planning software suite used to implement the IRS Integrated Financial System (IFS).

SBU- Sensitive But Unclassified – Information that is not classified for national security purposes but is subject to controls to protect it from unauthorized access or disclosure.

Section 508- Section 508 of the Rehabilitation Act – Federal law requiring that electronic and information technology developed, procured, maintained, or used by the Government be accessible to people with disabilities.

TFM- Treasury Financial Manual – The U.S. Department of the Treasury’s official publication of policies, procedures, and instructions for federal financial management and reporting.

TIER- Treasury Information Executive Repository – A Treasury system used to consolidate, validate, and store bureau-level financial data for Government-wide financial reporting.

TIGTA- Treasury Inspector General for Tax Administration – The oversight organization that provides independent audits, investigations, and inspections related to IRS programs and operations.

USSGL- United States Standard General Ledger – A uniform chart of accounts and technical guidance used by federal agencies to standardize federal accounting and reporting.

VPN- Virtual Private Network – A secure, encrypted network connection that allows remote users to access IRS systems and applications using Government-issued equipment.

5.0 Tasks

The tasks in this Performance Work Statement (PWS) establish the performance-based requirements for contractor support to the Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) Financial Management organization. The tasks are designed to help the IRS produce timely, accurate, and reliable financial information; maintain compliant and secure financial management systems; and effectively support financial reporting, audit readiness, and internal control activities that are critical to the administration of the federal tax system.

Together, these requirements enable the CFO to meet statutory and regulatory obligations, support informed decision-making, and advance the IRS mission to provide exceptional taxpayer and customer experience.

Under this PWS, the contractor shall perform a set of integrated tasks that collectively address core financial accounting and reporting operations, financial management systems support, financial management advisory services, task order management, and continuity of operations during contractor transition-in and transition-out. Each task is written to specify a clear objective, required outcomes, and “shall” statements that define the contractor’s responsibilities and the expected quality, timeliness, and completeness of performance. These tasks, in turn, will be supported by measurable performance standards, to be incorporated into the Quality Assurance Surveillance Plan (QASP), to ensure that contractor performance can be monitored objectively and that delivered services consistently meet IRS CFO requirements.

5.1- Task 1 – Financial Accounting, Reporting, Administrative and Revenue Accounting, Cost Accounting, and Internal Control Support (Labor Hour)

5.1.1. Objective / Desired Outcome

The objective of this task is to provide professional financial management support that enables the Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) Financial Management (FM) organization to:

• Produce timely, accurate, and compliant financial statements, notes, and related disclosures for both administrative and custodial activities in accordance with United States Generally Accepted Accounting Principles (GAAP), Federal Accounting Standards Advisory Board (FASAB) standards, and Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements.

• Maintain effective internal controls over financial reporting, account reconciliations, and business processes that support a sustained, unmodified audit opinion and remediation of identified deficiencies.

• Provide reliable, well-documented financial information and cost analyses that support decision-making by CFO leadership and other stakeholders.

• Respond accurately and timely to audit requests and inquiries from the Government Accountability Office (GAO), Financial Assurance Controls Testing (FACT), and the Treasury Inspector General for Tax Administration (TIGTA).

Desired Outcome: IRS financial accounting, reporting, and cost information is accurate, complete, reliable, and compliant with all applicable federal requirements, with effective internal controls and timely, high-quality support to internal and external stakeholders.

5.1.2. Scope

Under this task, the contractor shall provide labor-hour support for:

• Technical accounting and financial reporting research, policy, and training;

• Monthly and year-end closing, analysis, reporting, and Treasury Information Executive Repository (TIER) activities;

• Ledger posting model design, validation, and maintenance for the Redesigned Revenue Accounting Control System (RRACS) and other IRS ledgers;

• Property and equipment accounting, Funds Balance with Treasury (FBWT) research and analysis, and related reconciliations;

• Financial statements, notes, required supplementary information, and Management’s Discussion and Analysis (MD&A) support for the audited annual financial report;

• GAO, FACT, and TIGTA audit requests, inquiries, and corrective action planning; and

• Cost accounting and managerial analysis, including Activity-Based Costing (ABC) and Activity-Based Budgeting (ABB).

The Government retains responsibility for all inherently governmental functions, including approval and issuance of financial statements, approval of journal entries, and final acceptance of audit responses and corrective action plans.

5.1.3. Performance Requirements

5.1.3.1 Technical Accounting, Financial Reporting, and Policy Support

The contractor shall:

a. Technical research and impact analysis o Review, interpret, and document the effect of amended and new accounting standards, regulations, and legislative financial guidance on IRS administrative and custodial activities.

o Prepare written impact analyses for CFO management that summarize the change, its implications for IRS processes and systems, and recommended implementation approaches within agreed timeframes following issuance of new guidance.

b. Policies, procedures, and process documentation o Review, update, and draft policies and guidance for inclusion in the Internal Revenue Manual (IRM), standard operating procedures, desk guides, and other CFO FM process documentation.

o Document changes to accounting, reconciliation, and reporting processes to reflect new requirements and approved process improvements.

c. Performance metrics and analytics o Develop, analyze, and monitor key performance indicators (KPIs) and metrics to assess the completeness, quality, accuracy, and timeliness of financial accounting and reporting work products.

o Recommend process and control improvements based on KPI trends and industry best practices.

d. Quality reviews and data integrity o Perform documented quality reviews of work products (e.g., reconciliations, analyses, statements) and identify and resolve data errors in applicable accounting systems.

e. Training and knowledge transfer o Develop and deliver group and one-on-one training, with supporting written materials, on accounting and financial reporting topics such as account reconciliations, variance analysis, and performance measurement.

f. RRACS and United States Standard General Ledger (USSGL) alignment o Research, document, and implement efficient and effective account reconciliation, variance analysis, and review processes for RRACS general ledger accounts to USSGL accounts.

5.1.3.2 Monthly and Year-End Closing, Analysis, Reporting, and TIER Activities

The contractor shall:

a. Close process support o Support month-end and year-end closing activities for all relevant accounting modules, including compliance with tie-points and research and resolution of discrepancies and abnormal balances in IRS accounting ledgers.

b. Financial statements, analyses, and workpapers o Prepare and document quarterly and year-end financial information for IRS accounting ledgers, including financial statements, notes, financial analyses, and other required reports, with supporting workpapers sufficient for audit.

o Prepare and explain actual-to-budget and year-over-year financial statement comparisons and variance analyses.

c. Crosswalks and reconciliations o Prepare and review crosswalks and reconciliations that support financial statements, notes, and other information, including reconciliations between IRS accounting ledgers and TIER.

d. TIER data quality and remediation o Research and resolve TIER fatal errors identified in preliminary and final TIER files, and propose journal entries and other corrections to resolve data quality discrepancies, subject to Government approval.

o Maintain and support automated Business Warehouse or equivalent tools used to facilitate TIER submissions, including Treasury file layouts, attributes, and TIER ledger structures.

e. Process improvement o Provide recommendations to enhance financial operations and review processes used for financial statements, notes, analyses, and TIER preparation.

5.1.3.3 Ledger Posting Models

The contractor shall:

a. Design and maintenance o Update and maintain transactional posting models for IRS general ledgers, including RRACS and other ledgers, to reflect amended and new regulations, guidance, and IRS process changes.

b. Compliance validation o Validate system transactional postings to ensure compliance with the United States Standard General Ledger, Treasury Financial Manual, and applicable OMB requirements.

c. Process flows and documentation o Document key process flows and data elements from RRACS and other systems to support journal voucher posting model logic and execution for all applicable ledger accounts.

5.1.3.4 Property and Equipment and Funds Balance with Treasury (FBWT) Support

The contractor shall:

a. Reconciliations and analysis o Prepare and review monthly account reconciliations, analyses, and supporting workpapers for property, equipment, leasehold improvements, internal use software, and related accounts.

b. Accruals and adjustments o Review general ledger balances and recommend updates to accruals and other adjustments as appropriate, subject to Government approval.

c. Property and equipment process improvements o Review property and equipment process flows and procedures and provide recommendations to implement best practices to ensure timely and accurate recording of asset acquisitions, expenses, depreciation, and disposals.

d. Capitalization assessment o Review and analyze leasehold improvements and internal use software projects and identify capital projects ready for capitalization, with documented support for recommendations.

e. G-Invoicing and Digital Accountability and Transparency Act of 2014 (DATA Act) compliance o Provide guidance to implement Governmentwide Intragovernmental Invoicing (G-Invoicing) requirements and support compliance with DATA Act reporting requirements.

f. Funds Balance with Treasury research and analysis o Provide FBWT research and analysis support to the Revenue Reporting Section, including recommendations for adjusting entries and process improvements.

g. Systems reconciliations and requirements o Research, analyze, and reconcile transactions among RRACS, the Central Accounting Reporting System (CARS), and the Integrated Financial System (IFS), and research and recommend corrections for variances (e.g., refunds and revenue tax classes).

o Develop requirements and documentation for queries and reports from RRACS and IFS to support reconciliations and analyses, and review open RRACS-related unified work requests and provide recommendations.

5.1.3.5 Financial Statements, Annual Financial Report, and Related Information

The contractor shall:

a. Annual financial report support o Prepare and review the IRS annual pro forma and audited financial statements, including notes, required supplementary information, MD&A financial analyses, and other information in the annual financial report.

b. Compliance with standards and guidance o Ensure that financial statements, notes, analyses, and required supplementary reports supported by the contractor comply with applicable U.S. GAAP, FASAB standards, and OMB Circular A-136.

c. Workpaper documentation o Work with CFO personnel to prepare and update the workpapers and documentation supporting the annual pro forma and audited financial report, in a format suitable for GAO audit review.

5.1.3.6 GAO, FACT, and TIGTA Audit Requests, Inquiries, and Corrective Actions

The contractor shall:

a. Audit request and deliverable support o Prepare and review GAO audit deliverables identified in the GAO Provided-by-Client listing to ensure documentation is within scope, technically accurate, complete, and responsive.

o Prepare and review responses to audit requests, process walkthroughs, control testing requests, and audit inquiries from GAO, FACT, and TIGTA.

b. Internal control evaluation and improvement o Review and evaluate internal controls over accounting operations, financial reporting and analysis, reconciliations, and related business processes, and recommend enhancements to strengthen control design and operating effectiveness.

c. Testing and sample support o Support GAO, FACT, and TIGTA sample testing in applicable audit cycles, including retrieval of documentation, explanation of processes, and clarification of control activities.

d. Corrective action plans and monitoring o Develop practical, actionable, and specific corrective action plans (CAPs) addressing the root causes of identified audit issues, for Government review and approval.

o Monitor and periodically report the status of CAP implementation and the resolution of associated audit findings.

e. Audit metrics and training o Develop, analyze, and monitor performance metrics and KPIs for audit requests, findings, and response timeliness.

o Provide group and one-on-one training, with written training materials, on audit processes and internal control responsibilities for CFO personnel involved in GAO, FACT, and TIGTA audits.

5.1.3.7 Cost Accounting and Managerial Analysis

The contractor shall:

a. Current state assessment o Review, evaluate, and document current cost accounting and managerial analysis processes, including cost allocation methods, data sources, and reporting outputs.

b. Cost accounting operations and reporting o Prepare, review, analyze, and monitor cost accounting results and related reports that support managerial decision-making and budgeting.

c. Activity-Based Costing and Activity-Based Budgeting o Develop and document an effective and practical process for implementing ABC and ABB, including methodologies, data requirements, and reporting formats, and support Government-directed implementation activities.

d. Monitoring and communication tools o Develop and implement processes and communication tools (e.g., dashboards, standard reports) that enable CFO management to monitor cost results and trends on a recurring basis.

e. Process improvement and training o Identify and recommend improvements in productivity and analytic capability using leading-edge business intelligence and analytic tools and methodologies.

o Provide group and one-on-one training, with written training materials, on cost and project accounting and managerial analysis techniques, tools, and processes.

5.1.3.8 Workpaper and Documentation Standards (Cross-Cutting)

For all activities performed under this task, the contractor shall:

a. Workpapers and management review o Maintain electronic workpapers and supporting documentation that are sufficiently detailed to allow an independent third party to understand the work performed, data sources used, assumptions made, conclusions reached, and evidence of contractor management review.

o Provide workpapers and supporting documentation to the Government at agreed milestones, in connection with audit requests, or upon request by the Contracting Officer’s Representative (COR) or designee.

5.2- Task 2 – Financial Management Systems Support (Labor Hour)

5.2.1 Objective / Desired Outcome

The objective of this task is to provide professional financial and accounting system support that enables the Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) Financial Management (FM) organization and the Financial Management Systems office to:

• Maintain the integrity, availability, and security of financial data in the Integrated Financial System (IFS) and related financial systems and tools.

• Ensure that IFS and related systems consistently comply with applicable federal financial management laws, regulations, and standards, including the Federal Financial Management Improvement Act of 1996 (FFMIA), the Digital Accountability and Transparency Act of 2014 (DATA Act), Office of Management and Budget (OMB) circulars and directives, and the United States Standard General Ledger (USSGL).

• Support accurate, timely, and reliable financial processing and reporting for both administrative and custodial activities.

• Implement system changes, enhancements, and upgrades in a manner that minimizes disruption, preserves data integrity, and supports audit readiness.

Desired Outcome: IRS financial management systems, including the Integrated Financial System and related tools, operate reliably and securely, process financial transactions accurately and in compliance with federal requirements, and are enhanced or upgraded without introducing material defects or reporting issues.

5.2.2 Scope

Under this task, the contractor shall provide labor-hour support for:

• Day-to-day operations, maintenance, and configuration of the Integrated Financial System (IFS);

• Design, documentation, and maintenance of IFS posting models, reports, and extraction tools;

• Support for year-end and other critical financial processing in IFS and related systems;

• Implementation of new system requirements mandated or requested by IRS business stakeholders and external regulators;

• Testing, validation, and data conversion activities for IFS upgrades, enhancements, and new modules; and

• Support to governance bodies, auditors, and users of IFS and related systems.

The Government retains responsibility for all inherently governmental functions, including final approval of system requirements, prioritization of changes, acceptance of major releases, and final decisions regarding financial reporting and accounting policies.

5.2.3 Performance Requirements

5.2.3.1 Integrated Financial System (IFS) Operational Support

The contractor shall provide professional financial and accounting system support services to sustain ongoing IFS functionality, maintenance, and system changes. At a minimum, the contractor shall:

a. Defect, service request, and change management a.1 Identify, document, track, analyze, and support resolution of IFS and current production environment defects, service requests, and change requests.

a.2 Develop, execute, and document test cases, including regression test scripts, to validate defect fixes and system changes.

a.3 Post adjustments into IFS and update master data when authorized by the Government.

b. System compliance and requirements alignment b.1 Monitor and help ensure that IFS continues to meet approved baseline and new system requirements, design documents, and specifications.

b.2 Support IFS compliance with regulatory and legislative requirements, including, but not limited to, the Joint Financial Management Improvement Program (JFMIP) standards, the Federal Financial Management Improvement Act of 1996 (FFMIA), the Digital Accountability and Transparency Act of 2014 (DATA Act), applicable Office of Management and Budget (OMB) circulars and directives, and United States Department of the Treasury Bureau of the Fiscal Service United States Standard General Ledger (USSGL) requirements.

c. System documentation and configuration c.1 Develop and maintain accurate, current IFS system documentation, including functional and technical requirements, system specifications, posting models, process flowcharts, user role definitions, and business/system process descriptions.

c.2 Maintain and update IFS configuration elements under contractor responsibility as directed by the Government, including derivation rules and reporting logic (e.g., the FMUSFG1 SAP reporting screen and associated derivation rules).

d. Reporting, extraction tools, and topside adjustments d.1 Develop and update reports and ad hoc queries to meet business and financial reporting needs, including crosswalks supporting financial statements and Treasury Information Executive Repository (TIER) reporting.

d.2 Develop and maintain IFS business processes and tools to extract data files, including routine evaluation and documentation of the topside adjustment program.

d.3 Work with IRS personnel to verify the integrity and completeness of data files and reports created by IFS extraction tools and make necessary updates to these tools, subject to Government approval.

e. Transactional support and specialized processes e.1 Support the processing of payroll, including evaluating changes to interfaces with the United States Department of Agriculture National Finance Center (NFC) and the Administrative Billings and Collections system, and provide recommendations to ensure accurate accounting results.

e.2 Support the processing of Governmentwide Intragovernmental Invoicing (G-Invoicing) transactions and related enhancements.

e.3 Upload accrual postings and reversals to IFS, as needed, and provide practical training to IRS personnel on the timing and execution of tools for open obligations and quarterly accrual processes.

f. Accounting and posting model support f.1 Develop new IFS posting models and recommend new United States Standard General Ledger (USSGL) accounts, as needed, to support evolving business and reporting requirements.

f.2 Provide accounting-related guidance on system changes, including financial statement updates and workpaper reports, and advise on correct budgetary transactions to ensure accurate financial reporting.

g. Data quality, reconciliations, and error resolution g.1 Analyze account relationships, identify anomalies, and propose corrective actions, including system changes or posting model updates.

g.2 Propose TIER adjustments as needed to resolve system errors, subject to Government review and approval.

g.3 Review master data requests to confirm correct Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) attributes and other required data elements.

h. Governance, meetings, and user support h.1 Participate in advisory and governance meetings, such as Engineering Review Board, Systems Review Board, risk management, and prioritization meetings, as requested.

h.2 Provide IFS support services to the Financial Management division through planning sessions, on-the-job training, user guides, outage notifications, and timely responses to ad hoc user questions and incident tickets.

h.3 Assist users with document corrections and resolve IFS-related issues in coordination with IRS and other contractors.

i. Year-end close and regression testing i.1 Assist with year-end close activities in IFS, including production and mock testing, ensuring all contractor-supported tasks are executed according to the IRS year-end close schedule.

i.2 Support quarterly regression testing of IFS, documenting test plans, test execution results, and any defects or issues identified.

j. Regulatory and audit support j.1 Provide support for audits by the Government Accountability Office (GAO), the Treasury Inspector General for Tax Administration (TIGTA), and other oversight entities related to IFS and associated financial systems, including retrieval of documentation, explanations of system design and configuration, and clarification of financial system processes.

j.2 Provide recommendations for system changes and configuration updates required due to United States Department of the Treasury, OMB, GAO, or other authoritative guidance.

5.2.3.2 Systems Modernization Financial and Accounting System Support

The contractor shall provide professional financial and accounting system support for implementation of new software enhancements and upgrades or changes to current and future financial systems that support administrative and custodial activities. At a minimum, the contractor shall:

a. Requirements development and solution design a.1 Support the development, documentation, and refinement of business, functional, and technical requirements for future system upgrades, enhancements, and changes.

a.2 Support the design and implementation of new or revised business processes, interfaces, posting models, roles, and access profiles to meet approved requirements.

b. Data migration and conversion b.1 Support the design, development, and implementation of migration and conversion tools needed for upgrades or system changes.

b.2 Define and support execution of data cleansing strategies and procedures to prepare data for migration or conversion.

b.3 Support migration and conversion data validation activities, including reconciliation of converted data to source systems and documentation of conversion results.

c. Testing and validation c.1 Support the planning, design, and execution of testing for new software, enhancements, and upgrades, including unit testing, system integration testing, regression testing, and user acceptance testing.

c.2 Develop, maintain, and execute test scripts and test data, document test results, and identify and track defects through resolution.

c.3 Validate that new or changed modules, including any additional financial system modules such as Project System, Asset Accounting, and Sales and Distribution, function as designed and support accurate, compliant financial reporting.

d. Upgrade and implementation support d.1 Support upgrade and migration project initiatives by collaborating with Information Technology (IT) developers and other stakeholders to define migration strategies, conversion reconciliation processes, and verification approaches.

d.2 Provide recommendations to minimize operational disruption and mitigate risks associated with system upgrades and major releases.

d.3 Provide post-implementation support to validate system performance, address defects, and refine configuration and processes as needed.

5.2.3.3 Cross-Cutting Data Integrity and Documentation Standards

For all work performed under Task 2, the contractor shall:

a. Data integrity and traceability o Ensure that changes to IFS and related systems supported by the contractor are properly documented, traceable to approved requirements or service requests, and tested prior to implementation in the production environment.

o Maintain logs of configuration changes, posting model updates, reports, and extraction tool modifications, including dates, purpose, and authorizing officials.

b. Workpapers and technical documentation o Maintain electronic workpapers, technical documentation, and supporting analyses that are sufficiently detailed to allow an independent third party to understand the work performed, controls considered, testing conducted, issues identified, and conclusions reached.

o Provide documentation to the Government at agreed milestones, in support of audits, or upon request by the Contracting Officer’s Representative (COR) or designee.

c. Training and knowledge transfer o Develop and deliver user training and reference materials (e.g., job aids, standard operating procedures, quick-reference guides) to support new or updated IFS functionality, processes, reports, and tools.

o Capture and share lessons learned and recommended best practices with IRS stakeholders to support continuous improvement.

5.3- Task 3 (Optional) – Chief Financial Officer (CFO) Financial Management Support (Labor Hour)

5.3.1 Objective / Desired Outcome

The objective of this task is to provide flexible, on-demand financial management support that enables the Internal Revenue Service (IRS) Office of the Chief Financial Officer (CFO) Financial Management (FM) organization to:

• Respond effectively to new or revised tax regulations and legislation, accounting standards, and federal financial management guidance;

• Address emergent operational, analytical, or system-related needs that are closely associated with work performed under Tasks 1 and 2; and

• Obtain short-term surge or specialized support without disrupting ongoing operations or exceeding the scope and nature of this Performance Work Statement (PWS).

Desired Outcome: The IRS CFO Financial Management organization can rapidly assign and receive high-quality, clearly scoped, and…