I_5 - RFI - IRS Professional Financial Management and Audit Support Services _ 4-15-24.pdf

Request for Information (RFI) No. 2032H8-24-Q-000XX: Internal Revenue Service (IRS) – Professional Financial Management and Audit Support Services

Need

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.

Background and Scope

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.

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.

Attachment 1: Questionnaire

***GSA OASIS SB – Pool 2 Vendors who are interested in this requirement shall provide detailed responses by 6:00 PM EDT on Monday, April 22, 2024, to the following 22 questions***

1. Provide two examples of federal or state entities similar in size to the IRS that your company has provided financial accounting, reporting, and business process support services during the last five years that are using SAP software to include: ERP Central Component, Budget Control System, Procurement for Public Sector, asset accounting, purchase card transactions processing, business warehouse reporting, and business planning and simulation.

2. Describe in detail how integrated transaction postings are established in SAP to update the general ledger, funds management, cost accounting, asset accounting, and materials management in accordance with the U.S. Standard General Ledger.

3. Describe in detail the process to generate the Treasury Information Executive Repository (TIER) monthly report accurately and consistently.

4. Describe in detail how the Digital Accountability and Transparency Act reporting is accomplished as part of the TIER process including reconciliation procedures, data issue identification, and correction. Explain how SAP can be used to ensure procurement and financial data are consistent in the Federal Procurement Data System.

5. Explain in detail the ERP Central Component (SAP Financial system) and Procurement for Public Sector (SAP Procurement system) year-end close system processing activities.

6. Provide two examples of federal or state entities similar in size to the IRS that your company has aided with the business process and accounting for purchase card transactions processed in SAP.

7. Provide two examples of federal or state entities similar in size to the IRS that your company has aided with SAP asset accounting and procurement modules. Provide a detailed explanation how the SAP asset accounting module is updated for assets purchased through the SAP procurement module. Explain how the SAP asset accounting module is used to;

calculate and record monthly depreciation, reconcile detailed asset records and transactions to the financial statement balances, and describe the procedures performed to ensure assets were properly recorded.

8. Provide two examples how your company has assisted with the review, analysis and implementation of Statement of Federal Financial Accounting Standard 54, Leases. Explain how to recognize and record leases and apply payments and reconcile to the general ledger in

SAP.

9. Explain in detail how your company has or would, in SAP, develop an integrated report that includes requisition, purchase orders, goods receipt and acceptance, invoices and payments data, and drilldowns from ERP Central Component and Procurement for Public Sector.

10. Explain in detail your company’s federal government budgetary experience and speak to how anticipated recoveries are used to manage upward and downward adjustments to prior year obligations transactions in the and how upward and downward adjustments to prior year obligations are recorded accurately in SAP.

11. Provide two examples how your company has assisted with month-end accruals for federal financial reporting and provide examples of how automated processes can be used to record and reverse these transactions in SAP.

12. Explain how your company would troubleshoot situations by providing some detail on your approach for identifying and resolving the following in SAP for a federal government entity:

a. Procurement transaction missing budgetary ledger update.

b. Multiple account assignment line did not reverse with the same amounts.

c. Collections that do not post correctly to principal, interest, and late fees.

d. Advances to vendors that do not liquidate when invoices are recorded.

13. Provide two examples how your company has assisted with reconciling general ledger accounts to the trial balances and financial statements in SAP. In addition, explain how your company would use SAP reconciliation tools to identify and correct transactions.

14. Explain how you would compile financial statements and notes and describe the accounting policies, guidance, and other documentations used during the compilation process utilizing

SAP.

15. Explain how you would update financial reports for revenue and administrative accounting to comply with changes in federal accounting and reporting requirements.

16. Explain how your company supports innovation and automation efforts and provide two examples of such efforts.

17. Explain how your company analyzes and provides recommendations to improve business practices through identification of work process and systemic efficiency opportunities.

18. Describe your experience coordinating with auditors on similar federal financial statement audits.

19. Describe your experience conducting analysis and implementation of new or amended federal legislation and accounting regulations impacting financial processes and reporting.

20. Describe your experience in developing financial system requirements.

21. Describe your experience and knowledge of revenue (custodial) accounting and IRS tax processing and procedures.

22. Describe your experience developing business level documentation of the financial systems processes.