U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
July 30, 2009
This meeting was held at the Government Accountability Office, 441 G Street, NW., Room 7B15 (Campbell Room), Washington, DC.
Kathy Winchester (FMS) opened the meeting, and introductions were made. She provided an overview of the agenda.
Deposit Funds - Accounting for Market Based Securities - Draft, dated July 30, 2009
USSGL by Fund Type - Draft, dated July 30, 2009
Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Crosswalk Review
GTAS Crosswalk Reference
Inconsistencies Within Proprietary Financial Statement Crosswalks
Christine Chang (FMS) said that during several GTAS meetings, some inconsistencies were identified within the proprietary financial statement crosswalks. Christine discussed the following inconsistencies:
Currently, USSGL tax revenue accounts 5800 through 5896 have a domain value "Y" for the "Fed/NonFed" attribute. However, their corresponding tax receivable and allowance accounts (USSGL accounts 1325, "Taxes Receivable," and 1329, "Allowance for Loss on Taxes Receivable") have an "N" for the attribute domain value. A revenue account should match its corresponding receivable and allowance account. Therefore, the USSGL staff is proposing to change the domain values to a "Y" for USSGL accounts 1325 and 1329. Additionally, the Balance Sheet will need to include the "F" attribute domain value for the "Fed/NonFed" attribute for these two accounts. There were no comments from the IRC. The changes will be effective for fiscal 2010.
Currently, on the Balance Sheet line 12, USSGL account 1571, "Stockpile Materials Held in Reserve," only has an "E" domain value for the "Entity/NonEntity" attribute. However, it came to the USSGL staff's attention that DOE is holding assets for DOD. The domain value for USSGL account 1571 should be changed to "E/O." There were no comments from the IRC. The changes will be effective for fiscal 2010.
Currently, domain values "C" and "U" for the "Covered/NotCovered" attribute apply to USSGL accounts 2220, "Unfunded Leave"; 2225, "Unfunded FECA Liability"; and 2290, "Other Unfunded Employment Related Liability." However, the definitions of these three accounts are unclear for the "Covered" domain value. The definitions of "Covered" and "Not Covered" were reviewed from OMB Circular No. A-136 to see how they relate to these unfunded accounts. The IRC also reviewed the definition of Liabilities Covered by Budgetary Resources (OMB Circular No. A-136, Section 184.108.40.206, page 44) that states:
"Liabilities are considered covered by budgetary resources if they are to be funded by permanent indefinite appropriations, which have been enacted and signed into law and are available for use as of the balance sheet date, provided that the resources may be apportioned by OMB without further action by the Congress and without a contingency having to be met first."
Based on this statement, the IRC determined that, because it is possible to have unfunded resources that are covered by future budgetary resources, the definitions of these three accounts should be amended as follows:
Account Title: Unfunded Leave Account Number: 2220 Normal Balance: Credit Definition: The amount recorded by an employer agency for unpaid leave earned that the employee is entitled to upon separation and that will be funded by future years' [deleted "appropriations"] budgetary resources.
Account Title: Unfunded FECA Liability Account Number: 2225 Normal Balance: Credit Definition: The amount of Federal Employees' Compensation Act (FECA) liability billed to agencies by the Department of Labor for FECA payments made on the agencies' behalves. [Deleted "The funding for the liability will be made from a future appropriation"] This liability will be funded by future years' budgetary resources. This is not an actuarial liability.
Account Title: Other Unfunded Employment Related Liability Account Number: 2290 Normal Balance: Credit Definition: Amounts of unfunded employment related liabilities [deleted "not covered by the current year's budget authority and"] not otherwise classified above that will be funded by future years' budgetary resources. Include the unfunded liability for unemployment for Federal employees in this account.
Currently, the USSGL 7000 account series are crosswalked on the Statement of Changes in Net Position (SCNP), lines 9 and 13. However, according to Statement of Federal Financial Accounting Standards (SFFAS) No. 7, paragraphs 313 and 311, gains and losses are considered nonexchange when a debt is canceled or when the debt is retired prior to maturity in the special trust funds. The gain and loss should be accounted for as nonexchange if interest related to the debt securities is classified as nonexchange.
There was uncertainty as to whether some of the USSGL 7000 accounts should be crosswalked to the SCNP. Christine assumed the transaction should be considered only as exchange revenue for gains and losses on disposition of assets. However, Carol Gower (State) gave the example that DOD might have equipment in a war area that is blown up and needs to be disposed of before the equipment reaches its useful life. In this example, a gain or loss would be recorded and considered nonexchange. The IRC decided not to make any proposed changes to the SCNP now regarding these accounts. However, further research is needed for USSGL account 7112, "Gains on Disposition of Borrowings." Also, further clarification of the definition for this account is needed.
Proposed FACTS I Attributes for GTAS
Christine provided some possible FACTS I attributes for GTAS, which included Treasury Account Symbol (TAS) level and USSGL level attributes. The TAS level attributes that were discussed were "Fiduciary/Non Fiduciary" and "Earmarked/Nonearmarked." Carol asked the USSGL staff if, because of GTAS, agencies' accounting systems would have to include these attributes in order to determine the domain values. Kathy responded that they would, but she stressed that it is only at the TAS level and not at the USSGL level. Kathy also mentioned that GFRS provided a data call to the agencies to find out:
Which agencies have fiduciary fund symbols?
What the agencies are expecting for fiscal 2010 reporting?
Do the agencies have fiduciary funds mixed with other funds?
Kathy will research when the findings will be released.
This is a new proposal. Currently, everything associated with a TAS comes through OMB's Master Account File, and the requirement for the TAS level reporting is something outside the budgetary arena. However, IRC members need to know about these TAS.
Christine discussed the USSGL level attributes. The following are the attributes discussed:
"Entity/NonEntity" and "Covered/NotCovered" - These are not FACTS I attributes and, therefore, they are not really applicable to the USSGL Balance Sheet crosswalk since the USSGL does not crosswalk to notes. It was agreed that the "Entity/Nonentity" and "Covered/NotCovered" USSGL attributes should be taken off the crosswalk and added to an attribute table.
"Exchange/Nonexchange" and "Fed/NonFed" - These are FACTS I attributes, and therefore, no changes are necessary at this time.
"Budget/NoBudget" - The SCNP has two sections [USSGL Budgetary Financing Sources and Other Financing Sources (Non Exchange)] that have some accounts (approximately 18) included in both the budgetary and nonbudgetary sections. For GTAS, these 18 USSGL accounts will either need to be split for the budgetary and nonbudgetary sections on the crosswalk or a new attribute will need to be created. The IRC decided that a new attribute will be created.
"Related to Program/Not Related to Program" - This is related to the Statement of Net Cost (SNC). This statement has program costs at the top and non-program costs at the bottom with the USSGL accounts crosswalking to both lines. A distinction needs to be made between the two lines. The IRC decided that a new attribute will be created.
"Production/NonProduction" - The IRC determined that the footnote on the SNC for 2010 will be removed, but the USSGL staff will continue to work with OMB if the OMB Circular No. A-136 subcommittee determines that this information should be shown somewhere else.
Deposit Fund Tie-Points
Because of time constraints, Michele Crisman (FMS) will start the discussion on Deposit Fund Tie-Points at a future meeting.
Kathy Winchester, FMS
Michele Crisman, FMS
Gwen Marshman, FMS
Sherry Pontell, FMS
Melinda Pope, FMS
Claudia Donovan, FMS
Robin Gilliam, FMS
Christine Chang, FMS
Karl Foltz, FMS
Jenny Smith, HHS
Yong Sun, FHA
Alice Rice, DOD
Brandi Erdtmann, DHS
Eileen Parlow, FASAB
Regina Kearney, OMB
Kim Klein, DOE
Carol Gower, State
Patrice Cousins, NSF
Boris Lyubovitsky, USDA
Susan Stengel, NRC
Junghee Gogue, SSA
Barbara Ricks, SSA
Paul Webster, SSA
Ana Labador, SSA
Robert M. Daniels, SSA
Judith Twitty, SSA
Bethany Williams, DOE