About ED OFFICES
Office of Financial Management

The Office of Financial (OFM) is responsible for processing, reconciling, evaluating, and reporting all agency financial transactions; certifying financial transactions, producing internal financial management reports and analyses; preparing the Department’s monthly, quarterly, and annual financial statements and related notes and schedules; and coordinating the external audit of the agency’s financial statements.  OFM directs cash management activities within the agency and manages the Department’s accounts payable and administrative accounts receivable portfolios.  The organization is the Department’s principal liaison to the U.S. Government Accountability Office (GAO), the U.S. Department of Treasury (Treasury), the Office of Management and Budget (OMB), and other regulatory and legislative entities in matters related to the agency’s financial accountability and required financial reporting; in this regard, OFM reviews and coordinates directives, other requirements, and initiatives from these organizations.

In carrying out its responsibilities, OFM:

  • Ensures the accuracy and timeliness of all agency financial data.
  • Processes core financial systems transactions.
  • Maintains all fund control systems.
  • Processes the Department’s payments and ensuring the integrity of those payments.
  • Makes timely and appropriate adjustments to the financial reports and statements.
  • Establishes and maintains financial management policies and procedures.
  • Manages non-FSA improper payment risk assessments and reporting
  • Assesses risks and identifying and evaluating financial management and payment system controls
  • Monitors financial management systems
  • Ensures the Department’s compliance with applicable laws and regulations
The Principal Deputy Assistant for OFM provides overall leadership, and coordination to the following ten components:
  • Cash & Business Financial Management Services Group
  • Accounts Receivable & Bank Management Group
  • General Ledger Group
  • Data Integrity & Financial Controls Group
  • Accountability & Financial Reporting Group
  • Financial Systems Transactions & Payments Group

The OFM Immediate Office:

  • Supports OFM senior staff by providing executive level support, technical advice, and expert guidance on Government-wide and Department-wide initiatives.
  • Reviews Government-wide regulations and develops policy and procedural recommendations.
  • Coordinates the Department’s response to external requests and initiatives from OMB, GAO, Congress, Treasury, and other entities.
  • Assists with business process analysis and reengineering.
  • Provides office management and administrative support.
  • Manages human capital and contract management support for OFM.
  • Coordinates OFM special projects by providing project management support.

Cash & Business Financial Management Services Group

The Cash & Business Financial Management Services Group is responsible for Departmental cash reporting and reconciliation of loan, grant, and administrative program activities. The group is also responsible for the reconciliation of the Department’s various payment subsystems.

In carrying out its responsibilities, the Group:

  • Reconciles the G5 payment system to the general ledger and documents and resolves discrepancies and submits them to OFM management.
  • Prepares the FMS 224 Reports to the Treasury that report disbursement, receipt, and collection transactions according to appropriation, fund, and receipt account.
  • Reconciles the travel system, contracting system, and payroll system to the general ledger and documents and resolves discrepancies and submits them to OFM management.
  • Produces internal management reports and promotes improvements in financial management operational performance by all Principal Offices and Executive Officers. Produces vendor and recipient payment history reports and develops metrics to highlight unusual activity for further analysis.
  • Coordinates the Cash Management Improvement Act of 1990 within the Department and with Treasury to ensure efficiency, and equity in the exchange of funds and more timely use of funds and return of interest between the Federal Government and states.
  • Maintains the Fund Balance with Treasury (FBWT) reconciliation and produces monitoring reports.

Accounts Receivable & Bank Management Group

The Accounts Receivable & Bank Management Group is responsible for managing administrative accounts receivables and processing recipient bank change requests consistent with sound internal controls. The group is also responsible for ensuring that supporting documentation is filed in a timely manner and that records management requirements and archiving protocols are observed. In addition, the group shall adhere to reporting, reconciliation, and discrepancy resolution due dates based on OFM management approved deadlines.

In carrying out its responsibilities, the Group:

  • Manages the Department’s administrative receivable and promissory note portfolios.
  • Establishes accounts receivables and coordinates with Program Offices on proof-of-debt requirements in support thereof.
  • Applies receipts on administrative receivables and promissory notes. Processes monthly allowance and other accounts receivable-related accruals.
  • Reconciles accounts receivable trial balances (FMSS sub-ledger) and Nortridge Loan System promissory notes to the general ledger; researches, documents, and resolves discrepancies. Researches and resolves miscellaneous receipt revenue/contra-revenue activity.
  • Coordinates with financial representatives from educational institutions to negotiate debt repayment terms, refers delinquent debts to private debt collection contractors/Treasury, and writes off uncollectible debts.
  • Coordinates with Program Offices and OGC on reimbursement funding and offsetting of delinquent debts.
  • Maintains the G5 Banking Financial Information System (BFIS) for financial institution recipient depositor account information, ensuring that all recipient payments can be processed electronically through ACH or FEDWIRE.
  • Ensures that each request for an update in banking information is fully documented, controlled, properly stored, and accessible upon request.

General Ledger Group

The General Ledger Group is responsible for all loan, grant, and administrative program accounting activities – including ensuring the accuracy of accounting adjustments and estimates included in the Department’s financial statements. In addition, the Group assists in the preparation/coordination of all official loan program financial reports with Federal Student Aid (FSA) and Budget Service to be submitted to Treasury, OMB, and other government agencies; ensures that all needed high level loan account reconciliations are being performed; assists in the production of related financial reports to Treasury, OMB, and other government agencies; and prepares budgetary/proprietary reports for all appropriations. The Group also performs Departmental account reconciliations and ensures that proper accounting policies and procedures are established and implemented throughout the Department.

In carrying out its responsibilities, the Group:

  • Maintains official accounting records of all funds; prepares trial balances and fluctuation analyses for these funds, and researches and resolves variances; and supports preparation of all official financial reports for the Department’s appropriations – including required adjustments and estimates included therein.
  • Interfaces with FSA and Budget Service staff on all loan accounting matters.
  • Collaborates on high level loan fluctuation analyses of the loan trial balances, and in conjunction with FSA and Budget Service, researches and resolves variances.
  • Assists in the preparation and analysis of FMS 224 Reports to Treasury that report disbursement, receipt, and collection transactions according to appropriation, fund, and receipt account.
  • Advises operating grant and administrative program managers and their system staffs in maintaining accounting subsystem records.

Data Integrity and Financial Controls Group

The Data Integrity & Financial Controls Group is responsible for advancing the Department’s financial reporting, reconciliation, and analysis capability through use of automation and analytical tools and methods. This includes developing robust tools and techniques which demonstrate payment integrity; supporting the prevention, detection, and recovery of improper payments; and supporting data-driven decision-making. In addition, the Group is responsible for managing the Department’s OMB Circular A-123 processes, developing and maintaining policies and procedures related to financial management operations, and developing and maintaining documentation of financial management business processes. Further, the Group is responsible for managing the Department’s administrative payment and accounts payable processes – including IPAC payments, as well as payments associated with the purchase card program – and coordinating the Department’s compliance with Prompt Payment Act requirements.

In carrying out its responsibilities, the Group:

  • Manages the Department’s administrative payment process.
  • Manages the IPAC process – ensuring accurate and timely application of interagency funds to proper funds, ensures that all unmatched transactions are classified according to trading partner code, and acts as liaison between the Department and other agency trading partners for IPAC payments.
  • Coordinates the Prompt Payment Act requirements to ensure timely payments to vendors. Manages the non-FSA improper payment risk assessments and reporting. Manages the Department’s Continuous Controls Monitoring System (CCMS) and/or other analytic tools to help prevent, detect, and recover improper payments.
  • Reconciles Accounts Payable Trial Balances (APTB sub-ledger) to the general ledger and performs analysis of payable proprietary/budgetary relationships by fund/sector; discrepancies are researched, documented, and resolved.
  • Manages the purchase card reconciliation and payment function, ensuring accurate and timely payments to the Department’s purchase card vendor and excellent customer service to the Department’s cardholders.
  • Generates Open Purchase Order reports in AP_PO system and reviews reports for missing trading partner codes, misclassified government vendors, and anomalies. Manages the Department’s A-123 processes.
  • Performs quantitative analysis of financial statements and qualitative risk assessment of business processes and reports findings to relevant stakeholders. Identifies and develops key financial performance metrics.
  • Develops and maintains documentation of business processes.
  • Develops and maintains policies and procedures related to financial management operations.
  • Develops and implements organizational data analytics processes to promote the use of best practices in collecting, organizing, and analyzing large sets of data.
  • Applies information-technology based data management and analytics to solve complex business problems. Oversees OFM data management activities.

Accountability & Financial Reporting Group

The Accountability & Financial Reporting Group is responsible for preparing the Department’s financial statements and Agency Financial Report and producing other statutory and ad-hoc financial reports. The Group is also responsible for managing the intragovernmental accounting function. In addition, the Group coordinates the annual financial statement audit, including oversight of the annual Prepared-by-Client (PBC) process.

In carrying out its responsibilities, the Group:

  • Produces the Department’s and FSA’s monthly, quarterly, and annual financial statements, and footnotes – when applicable. Prepares and publishes the Department’s Agency Financial Report in compliance with applicable OMB requirements.
  • Maintains the Government wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) reporting process.
  • Prepares the annual special-purpose financial statements and accompanying notes contained in the special-purpose closing package, which is used by Treasury in the preparation of the Financial Report of the U.S. Government.
  • Prepares ad-hoc financial reports to inform stakeholder decision-making.
  • Manages intragovernmental accounting function, including submission of corresponding reports to Treasury, and coordinates with trading partners to resolve differences in amounts reported.
  • Coordinates the external audit of the Department’s annual financial statements and provides related guidance, counsel, and support to the Department’s senior management; manages the submission of PBC items; and serves as liaison between the Office of the Inspector General (OIG), the Department’s external auditor, Budget Service, FSA, and other stakeholders regarding audit and assurance related issues.
  • Coordinates tracking of financial statement audit Notices of Findings and Recommendations (NFRs) issued by Department’s external auditor.
  • Manages contract supporting financial statement preparation.

Financial Systems Transactions and Payments Group

The Financial Systems Transactions and Payments Group is responsible for the daily operation and maintenance of the core financial systems and payment processing. The core financial systems maintain the official books of original entry for all funds authorized by the Congress and ensure the integrity of fund usage for programs managed by ED.

In carrying out its responsibilities, the Group:

  • Ensures that existing financial systems comply with the Standard General Ledger requirements and OMB/Treasury guidance as it relates to such systems.
  • Manages all funds control systems within the current financial systems and the internal/external accounting reporting systems.
  • Processes core financial system transaction controls and configuration of system modification requests.
  • Receives administrative and program appropriation apportionments, warrants, allotments, and limitations from Fed Admin subsystem.
  • Verifies fund availability for commitment and obligation documents received from program and staff offices and records related fund transactions in the automated accounting system.
  • Processes payment requests, award updates, adjustments, and recipient expenditure data.
  • Oversees the FEDWIRE, ACH, International, and other payment processes. Manages all aspects of FMSS system security – including the configuration of the financial statement year-end closing mass-allocation formulas for completing the Department’s year-end closing of the accounting systems – and provides new EDCAPS FMSS users with access and responsibilities.
  • Performs the Department’s quarterly and yearly disaster recovery validation testing.

Top



   
Last Modified: 12/21/2018