What is an "Interfund Transaction" in the context of GFEBS?

An "Interfund Transaction" refers to a financial transaction that occurs between funds within the federal government. This means that the transaction is not between external sources or private entities but rather between different accounts or funds that are part of the federal financial structure.

In the context of GFEBS (General Fund Enterprise Business System), such transactions are important for maintaining accurate tracking and reporting of funds. Interfund transactions can affect budget execution, funding availability, and financial reporting, as they involve the transfer of resources or services among various government entities or programs.

Understanding interfund transactions is crucial for effective financial management within the federal government, as it ensures that the flow of funds is properly accounted for and that all entities adhere to financial regulations and standards. Recognizing this helps personnel manage public resources more effectively and maintain a clear financial picture across different government funds.