U.S. Government Standard General Ledger Board Meeting Minutes
USSGL Board Minutes
May 18, 2006
PLACE: Department of Transportation
400 7th Street, SW.
TIME: 9 a.m. to 11:30 a.m.
Judy Yuran (FMS)
Michele Crisman (FMS)
Kathy Winchester (FMS)
Keith Mertz (FMS)
Karen Metler (FMS)
Karl Foltz (FMS)
Toni Clark (FMS)
Christine Chang (FMS)
Melinda Pope (FMS)
Gwen Marshman (FMS)
Rita Cronley (FMS)
Arlene Johnson (FMS)
Carolann Marker (FMS)
Jeff Hoge (FMS)
Maureen Wheeler (FMS)
Mamie Goodwin (FMS)
Marilyn Evans (FEMA)
Joe McAndrew (Treasury)
Rick Loyd (DoE)
David Surti (USDA)
Quantwana Hobson (USDA)
Webster Coleman (DoL)
Al Buck (USAID)
Teresa Tancre (OMB)
Leon Fleischer (NRC)
Tesfaye Wyes (Commerce)
Traci Carroll (HUD)
Tai Westermann (HUD)
Maryla Engelking (DoD)
Kim Williams (DOJ)
Christine Kent (OPM)
Chris Long (SSA)
Stephen Hull (SSA)
Elliott Clark (Treasury)
Jeanette Kuendel (USPTO)
Wendy Stover (FHA)
Natalia Costello (GSA)
Eileen Parlow (FASAB)
Jennifer Fleming (Education)
Leon Scott (Education)
Shah Patel (NSG)
Katherine Lee (HHS)
Melajo Kubacki (NASA)
Hui Chi Kong (NASA)
Brian Sanuders (Education)
The following handouts were available:
USSGL Voting Ballot #06-01
Cancellations - Background and Overview Power Point Presentation (PPP)
Cancellations - Summary of Changes to USSGL Accounts
USSGL Guide to Cancellations (Cheat Sheet)
USSGL Scenario - Accounting for Expired and Canceled Authority for Agency Managed Trust or Special Funds (Unavailable Receipts)
USSGL Scenario - Accounting for Expired and Canceled Authority for Agency Managed Trust or Special Funds (Unavailable Receipts) PPP
USSGL Scenario - Cancellations - Available Trust or Special Funds With Invested Relationships
USSGL Scenario - Cancellations - Available Trust or Special Funds With Invested Relationships PPP
USSGL Scenario - Accounting for Partial Cancellations - No-Year TAFS with "Definite" Authority
USSGL Scenario - Accounting for Partial Cancellations - No-Year TAFS with "Definite" Authority PPP
Federal Agencies Centralized Trial-Balance System (FACTS) II Update PPP
Proposed Changes to USSGL Accounts 2190 and 2990
USSGL Account Normal Balance "Either"
Use of Central Accounting Data for Financial Statements
TFM Bulletin No. 2006-04
NET Transfers and USSGL Board Meeting PPP
The Redistribution of Clearing Accounts and Certain Miscellaneous Receipt Accounts PPP
USSGL Accounts 4119 and 4114 for Special and Trust Funds
PRESENTATIONS AND DISCUSSIONS
Judy Yuran (FMS) opened the meeting, introductions were made, and items on the agenda were presented to the USSGL Board.
Karen Metler (FMS) gave an overview of the cancellation guidance. Current cancellation guidance does not address the multiple types of cancellations that exist. As a result, FMS's Budget Control team, FACTS II team, U.S. Standard General Ledger (USSGL) team, and OMB worked together to provide more comprehensive guidance that meets both Treasury's and OMB's reporting requirements. This guidance currently includes three new cancellation scenarios, involving five new USSGL accounts and several modifications to existing USSGL accounts.
Because of the comprehensive and complex concepts that surround cancellations, the USSGL staff also has developed a "USSGL Guide to Cancellations (Cheat Sheet)." This Cheat Sheet provides agencies with guidance on how to account for cancellations and illustrates the various factors to use when determining the proper treatment for cancellations. For example, an agency must know the specific Treasury Appropriation Fund Symbol (TAFS) to which the cancellation applies, the TAFS period of availability, and the event that is causing the cancellation in order to determine the USSGL accounts to use for a cancellation.
Karen added that all existing and new USSGL scenario guidance on cancellations will be grouped together on the USSGL Web site (http://www.fms.treas.gov/ussgl/approved_scenarios/). The "Cheat Sheet" will be included with the guidance, and will also be included as an appendix to TFM Volume 1, Part 2, Chapter 4200, "Agency Reporting on Unexpended Balances of Appropriations and Funds (Federal Agency Centralized Trial-Balance System II, FMS 2108: Year-End Closing Statement."
Michele Crisman (FMS) reviewed new guidance for partial cancellations of no-year TAFS with definite authority. Partial cancellations are not common and typically would apply to a program operating within a Treasury Appropriation Fund Symbol (TAFS). Since the TAFS as a whole is not canceling, the current USSGL accounts and transactions did not prevent USSGL account 4350, "Canceled Authority," from reappearing on the following year's Report on Budget Execution and Budgetary Resources (SF 133). To correct this problem, Michele proposed USSGL memorandum accounts, 8101, "Partial Authority Cancellation," and 8102, "Offset for Partial Authority Cancellation." These new accounts will be used to reclassify amounts representing partial cancellations from USSGL account 4350, "Canceled Authority." The memorandum accounts do not flow to the SF 133 but track the canceled amounts to help agencies comply with certain Antideficiency Act provisions.
Toni Clark (FMS) reviewed new guidance for cancellations in trust or special fund TAFS with unavailable receipt accounts. When receipts are deposited to unavailable trust or special fund receipt accounts, they must be appropriated to the corresponding expenditure accounts via Treasury warrant. Therefore, when amounts are canceled, a Treasury warrant must be processed to return the fund balance back to the unavailable trust or special fund receipt account. The cancellation activity is to be reflected on Line 6A of the SF 133, and on Line 2441 of the Program and Financing Schedule (P&F). There is no impact on the FMS 2108: Year-End Closing Statement. In order to report this activity, USSGL account 4156, "Cancellation of Appropriation from Unavailable Receipts" is proposed to be added.
Karen Metler wrapped up the cancellation presentation by reviewing new guidance for cancellations of available trust or special fund TAFS with invested relationships. She stated that this situation is unique because the cancellation involves two entities: the invested TAFS and the recipient TAFS. The recipient TAFS is the entity that is to record the cancellation. In order for this to happen, two actions must take place. First, any remaining unobligated balances represented by fund balance on the books of the recipient must be returned to the originating invested TAFS via SF 1151: Nonexpenditure Transfer Authorization. Second, any remaining unobligated balances represented by a receivable from the invested TAFS must be canceled. In this case, there is no movement of fund balance. In order to properly reflect the entire amount of the cancellation on Line 6A of the SF 133 and Line 2440 of the P&F, two new USSGL accounts are being proposed. USSGL 4356, "Cancellation of Appropriation from Invested Balances," is needed to account for the cancellation of unobligated balances in the receiving TAFS represented by fund balance. USSGL account 4357, "Cancellation of Appropriated Amounts Receivable from Invested Special or Trust Funds," is needed to account for the cancellation of unobligated balances in the receiving TAFS represented by a receivable in the receiving TAFS and a payable in the invested TAFS.
Karen indicated that slide 13 of the power point presentation includes an error. The transaction code F204 should have a credit to USSGL account 4201, "Total Actual Resources Collected," and transaction code F249 should have a credit to USSGL account 4123, "Amounts Appropriated from Invested TAFS Reclassified - Receivable - Temporary Reduction/Cancellation."
FACTS II Update
Rita Cronley (FMS) gave a FACTS II update. She stated that the headquarters reviewer role has been upgraded to include viewing allocation account FACTS II submissions and print access to allocation accounts. FACTS II quarterly status reports are available on the FACTS II Web site. The quarterly status reports list, by agency, the number of Treasury Account Fund Symbol (TAFS) submitted and not submitted for the quarter. The Web site also has a list with special and trust fund exceptions that may use both USSGL accounts 4114, "Appropriated Trust or Special Fund Receipts" and 4119, "Other Appropriations Realized" and trust funds that use USSGL account 4119 only. FACTS II recertification begins June 1, 2006. Access to FACTS II will be revoked if the users are not recertified by June 26, 2006. FACTS II will open on the 5th workday of the next quarter at 2 p.m. The 3rd quarter reporting window is scheduled to open on Monday, July 10, 2006. With this earlier opening date, FACTS II will allow agencies to certify the preliminary data from their Statement of Transactions (FMS 224) submissions. However, if an agency changes TAFS balances after the 5th workday by submitting an FMS 224 late or submitting a supplemental FMS 224, then the FACTS II system automatically will return any previously certified data to the "editing" status. If data is moved from a "certified" to an "editing" status, FMS will e-mail each FACTS II preparer to notify them of the change in status and balances. Users will then be required to recertify their balances. Leon Fleischer (NRC) asked if the FACTS II team can send the notifications to other agency contacts besides the preparers. If feasible, Rita will accommodate his request.
Use of Central Accounting Data for Financial Statement
Jeff Hoge (FMS) summarized "Use of Central Accounting Data for Financial Statements." Jeff stated that for 9 years FMS has received a disclaimer on the audit of the Financial Report (FR) of the United States Government. The Governmentwide Financial Reporting System (GFRS) was created to improve the integrity of financial data submitted to Treasury by the agencies. However, the improvements have not been significant enough to change the disclaimer opinion FMS received on the FR. In order to help the agencies report better financial data to FMS, pending availability of funding, FMS is planning to provide financial data back to the agencies. The financial information provided will be a combination of data FMS collects from agencies and from internal databases such as the Treasury central accounting system. Initially, the data will be provided as a tool to help agencies reconcile data submitted through various systems and reporting points. Later, when the FACTS I and FACTS II systems become integrated, FMS could edit such information. Jeff reminded the Board members that we all work for the Federal Government and improving financial data should be everyone's goal.
Purchases Memorandum Accounts
Melinda Pope (FMS) summarized the proposed purchase memorandum accounts, USSGL accounts 8801, "Offset for Purchases of Assets," 8802, "Purchases of Property, Plant, and Equipment," 8803, "Purchases of Inventory and Related Property," and 8804, "Purchases of Assets - Other." Although these accounts are effective for fiscal 2007, they are available for early implementation in fiscal 2006.
Modifications to USSGL Accounts
Karen Metler, Keith Mertz, and Gwen Marshman (FMS) summarized
modifications to USSGL accounts 4126, "Amounts Appropriated From Specific Invested TAFS - Receivable," 4127, "Amounts Appropriated From Specific Invested TAFS - Payable," 4128, "Amounts Appropriated From Specific Invested TAFS - Transfers-In," 4129, "Amounts Appropriated From Specific Invested TAFS - Transfers-Out," 2190, "Other Liabilities With Related Budgetary Obligations," 2990, "Other Liabilities Without Related Budgetary Obligations," 1410, "Advances and Prepayments", 2310,"Liability for Advances and Prepayments," and 2320, "Other Deferred Revenue From Non-Federal Sources." USSGL account 1450, "Prepayments," is proposed for deletion.
TFM Bulletin Review - Redistribution of Clearing Accounts and Certain Miscellaneous Receipt Accounts
Arlene Johnson (FMS) stated that Department of the Treasury requested a permanent waiver for reporting certain receipt accounts as distributed offsetting receipts on their Statement of Budgetary Resources (SBR). As a result of Treasury's request, OMB researched this issue and made a determination that certain receipt accounts should be redistributed. In April, 2006, FMS issued TFM Bulletin No. 2006-05 that lists how certain receipt accounts have been redistributed. Kathy Winchester (FMS) stated that, when the crosswalk to the SBR is presented to the IRC in June 2006, the impact of the redistribution on the SBR, line 19C, will be discussed in more detail.
TFM Bulletin Review - Nonexpenditure Transfer
Carolann Marker and Kathy Winchester (FMS) went over the Nonexpenditure Transfer (NET) presentation as it relates to TFM Bulletin No. 2006-03. Both Carolann and Kathy stressed that this information needs to filter down to everyone who prepares transfers on the Governmentwide NET Application (GWA NET). Specifically, TFM Bulletin No. 2006-03 requires NET preparers to record one of two proprietary accounts in the comment box of the GWA NET. The proper USSGL account is selected based on the source of funding for the transfer. If the source of funding for a transfer is a general fund appropriation, then the preparer should record USSGL account 3103, "Unexpended Appropriations - Transfers-Out." But, if the source of funding is not a general fund appropriation, then the agency should record USSGL account 5765 "Nonexpenditure Financing Sources - Transfers-Out."
TFM Bulletin Review - Intragovernmental Payment Collection System (IPAC)
Mamie Goodwin (FMS) summarized TFM Bulletin No. 2006-04, which states that, effective May 1, 2006, four pilot agencies and their partner agencies must fill out the Treasury Account Symbol (TAS) and Business Event Type Code (BETC) fields in Intra-governmental Payment and Collection (IPAC) System transactions. Beginning August 1, 2006, all agencies will be required to record TAS and BETC information on IPAC transactions. Mamie also stated that no "F" accounts will be allowed to be reported in the IPAC System. With information from IPAC, an agency can generate a partial 224 and make any additions/adjustments for non-IPAC transactions to the partial 224 data. This will provide the same information as FMS 224 reporting, resulting in an eventual elimination of the FMS 224.
Gwen stated that the ballot is due on June 5, 2006, and Judy concluded the Board meeting.