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U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes

December 10, 2009

GENERAL ITEMS:

The meeting was held at 9 a.m., at the White House Conference Center (Lincoln Room), 726 Jackson Place, NW., Washington, DC.

Karen Metler (FMS) opened the meeting by reviewing the agenda. She said that this would most likely be the last IRC meeting of the year.

HANDOUTS:

  • Budgetary Impact Indicator (Proposed for Fiscal Year 2011), dated December 10, 2009

  • Forfeiture of Resources, dated December 10, 2009

  • Prior-Year Advances or Other Offsetting Collections Refunded in the Current Year as Obligations and Outlays, dated December 10, 2009

AGENDA ITEMS:

Budgetary Impact Indicator and Forfeiture of Revenues

Edwin Walker (FMS) reviewed the handout. He discussed the need for a new budget impact indicator proprietary attribute, effective fiscal 2011. The attribute will distinguish budgetary financing sources (proposed domain value "D") from non-budgetary financing sources (proposed domain value "E"), as required on the Statement of Changes in Net Position. Currently, for USSGL accounts to properly crosswalk, USSGL users must analyze the footnotes. Establishing the proposed attribute will eliminate the need for footnote numbers 2, 3, and 5. This attribute will crosswalk to the USSGL crosswalks for both the Statement of Changes in Net Position and the Reclassified Statement of Changes in Net Position.

In addition, Edwin proposed four new USSGL accounts pertaining to forfeitures of revenue, as follows:

  • 5640, "Forfeiture Revenue - Cash and Cash Equivalents";

  • 5649, "Contra Forfeiture Revenue - Cash and Cash Equivalents";

  • 5650, "Forfeitures Revenue - Forfeitures of Property";

  • 5659, "Contra Forfeitures Revenue - Forfeitures of Property."

Currently, this activity is captured in USSGL account 5900, "Other Revenue," and can only be crosswalked to the proper lines by application of the appropriate footnote. The proposed USSGL accounts, in conjunction with the proposed budget impact indicator proprietary attribute, will enable proper crosswalking to the Statement of Changes in Net Position and the Reclassified Statement of Changes in Net Position. Pending USSGL Board approval, these accounts will be effective fiscal 2011.

Alice Rice (DOD) asked if the new accounts would affect credit reform accounting. Melinda Pope (FMS) responded that they probably would affect credit reform accounting. The credit reform activity pertaining to forfeitures is in draft. However, all transactions pertaining to forfeitures and the proposed USSGL accounts will be incorporated into the guidance released in the USSGL TFM.

Prior-Year Advances or Other Offsetting Collections Refunded in the Current Year as Obligations and Outlays

Sherry Pontell (FMS) explained that the USSGL Board originally worked on the proposed USSGL account 4253, "Prior-Year Unfilled Customer Orders With Advance Refunded in the Current Year as Obligations and Outlays" on Ballot No. 09-01, dated May 14, 2009, for current-year accounting for refunds of cash advances. At that time, OMB classified that proposed USSGL account 4253 was for advances received in prior years only. The USSGL Board decided to hold off on the new account. After subsequent discussions, Treasury and OMB determined that the requirement to record refunds of prior-year advances as obligations and outlays also applies to all other types of spending authority from offsetting collections. These requirements have since been documented in OMB Circular No. A-11, dated August 2009 (refer to Section 20-11 and Appendix F).

The updated requirements impact the USSGL in the following ways:

  • A new USSGL account is required to capture refunds of prior-year advances;

    AND

  • Regarding all other types of spending authority from offsetting collections, a new USSGL account is not required, but current USSGL TFM Section III transactions will require revision.

Sherry reviewed the background in the draft scenario handout. This scenario illustrates a Treasury Appropriation Fund Symbol (TAFS) with a period of availability that is unexpired (either no-year or an unexpired multi-year). The second sentence of the second paragraph states that agencies should continue to record expired TAFS as upward adjustments of prior-year delivered orders - paid in USSGL account 4982, "Upward Adjustments of Prior-Year Delivered Orders - Obligations, Paid." Following discussions with OMB, Treasury and OMB determined that the accounting for refunds or prior-year collections that are refunded in an expired TAFS should be researched further. For now, this scenario will exclude refunds that occur in an expired TAFS. If a new scenario is required, the USSGL staff will develop a scenario and will present it to the IRC at a later date. They will keep the IRC informed as to the status.

The definition for proposed USSGL account 4253, "Prior-Year Unfilled Customer Orders With Advance - Refunds Paid" was revised to read: "The total amount of prior-year reimbursable orders with an advance returned in a subsequent year to the ordering entity as obligations and outlays." This account will close at yearend and is a current-year account.

Year 1 of the scenario displays two types of collections:

  • The collection of an advance for an unfilled customer order;

    AND

  • A straight forward collection from a non-Federal source.

The transactions in year 1 are existing USSGL transactions. No new accounting is being illustrated in year 1.

Year 2 introduces the proposed USSGL account and transactions. There are two types of refunds/returns illustrated in year 2:

  • A refund is paid for the prior-year unfilled customer orders with an advance that requires the use of proposed USSGL account 4253, "Prior-Year Unfilled Customer Orders With Advance Refunded in the Current Year as Obligations and Outlays."

    AND

  • A refund is paid for the prior-year non-Federal collection that was received.

Several changes to the scenario were discussed:

  • Year 1, transaction 4: The proprietary entry credit to USSGL account 5900, "Other Revenue," was questioned. It was suggested that USSGL account 5200, "Revenue From Services Provided," be used instead since it is indicated in the description. Result - Since the purpose of the transaction is to illustrate a straight-forward offsetting collection from a non-Federal source, all references to "orders" and "services " provided will be removed. USSGL account 5900, "Other Revenue" will remain.

  • Year 1, transaction 5: An additional entry will be added to show the expense and outlay related to the services provided.

  • Year 2, transactions 2 and 3: OMB would like a comment added indicating that Object Class 94 is required. An attendee asked if Object Class 44 could be used instead. OMB will follow-up on whether the scenario should reference Object Class 44 or 94.

  • Year 2, transaction 3: The debit to USSGL account 5900, "Other Revenue," for the return of the prior-year non-Federal collection will be changed to USSGL account 5909, "Contra Revenue for Other Revenue." The agencies asked which proprietary account they would debit for a refund of a prior-year collection. The general consensus was that a contra account to the original revenue would be recorded. The IRC concluded that this seems appropriate. Currently, USSGL TFM Section III: Accounting Transactions, associates contra accounts with allowances for uncollectable amounts. Transactions will be added to illustrate the use of contra accounts for refunds also.

ATTENDEES:

Karen Metler, FMS
Melinda Pope, FMS
Sherry Pontell, FMS
Edwin Walker, FMS
Gwen Marshman, FMS
Karl Foltz, FMS
Michele Crisman, FMS
Rosemarie Hillmon, FMS
David Surti, DHS
Boris Lyubovitsky, USDA
Kristina Poist, SSA
Marilyn Evans, Treasury
Teresa Tancre, OMB
Susan Stengel, NRC
Polly Law, NRC
Webster Coleman, DOL
Daniel Smith, USPTO
Yong Sun, HUD
Gene Kim, Energy
Chris Dyson, Education
Vickie Massey, FCC
Alice Rice, DOD
David Gaudette, DOJ
Drena McDaniel, DOT
Cindy Scharf, LOC
Bob James, LOC
Jenny Smith, HHS
Harold Blitz, FMS/AS
Bethany Williams, Energy
Stuart Turner, NOAA
Tom Sears, BPD
Paul Webster, SSA
Junghee Gogue, SSA
Evangeline Labadore, SSA
Ana Labador, SSA
Mark Graham, SSA
Letha Holliday, SSA
Michele Murrill, SSA


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