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Treasury Financial Manual Interagency Agreements

The Treasury Financial Manual (TFM) is a comprehensive resource for all federal agencies to manage their financial operations effectively. Among the many features of the TFM are provisions for interagency agreements, which are essential for ensuring cooperation and collaboration between agencies. This article provides an overview of interagency agreements in the context of the TFM and explains their importance.

What is an Interagency Agreement?

An interagency agreement (IAA) is a document that establishes a formal relationship between two or more federal agencies for the purpose of sharing resources or accomplishing a specific objective. IAAs can take many forms, such as memorandums of agreement (MOAs), memorandums of understanding (MOUs), and agreements for reimbursable services. IAAs are typically used to coordinate activities that involve the participation of more than one agency.

IAAs are especially important in today`s complex federal environment, where agencies must work together to achieve common goals. For example, agencies involved in disaster relief efforts may need to coordinate resources and share information to respond effectively to a crisis. IAAs can help facilitate this coordination by providing a framework for collaboration and by defining roles and responsibilities.

IAAs and the TFM

The TFM provides guidance on the use of IAAs for federal agencies. Chapter 4700 of the TFM outlines the standards and procedures that agencies should follow when entering into IAAs. The chapter also provides templates for IAAs and other related documents.

The TFM requires that all IAAs be written and that they include specific information, such as the purpose of the agreement, the roles and responsibilities of each agency, and the sources of funding. The TFM also requires that IAAs be reviewed and approved by agency legal counsel before they are signed.

The TFM emphasizes that IAAs should be used only when necessary to achieve a common objective and that they should not be used to circumvent other legal or regulatory requirements. The TFM also stresses the importance of monitoring and evaluating IAAs to ensure that they remain relevant and effective.

The Benefits of IAAs

IAAs provide numerous benefits for federal agencies. Perhaps most importantly, IAAs allow agencies to pool their resources and expertise to achieve common goals. IAAs can also help agencies avoid duplication of effort and ensure that tasks are completed efficiently.

In addition, IAAs can help build relationships between agencies and promote a culture of collaboration. By working together on specific projects, agencies can develop a better understanding of each other`s strengths and weaknesses and learn to communicate effectively.


Interagency agreements are an essential tool for federal agencies to work together and achieve common goals. The TFM provides guidance on the use of IAAs and emphasizes the importance of careful planning and evaluation. By following the standards and procedures outlined in the TFM, federal agencies can use IAAs to build strong partnerships and collaborate effectively.