U.S. Government Standard General Ledger Board and
Issues Resolution Committee Meeting Minutes

USSGL Board Minutes

May 23, 2002

PLACE: Department of Transportation
400 7th Street, SW Room 3328, Washington, D.C.

TIME: 9:00 a.m. to 10:30 p.m.

PARTICIPANTS:

Judy Yuran, Financial Management Service

Christine Chang, Financial Management Service

Ava Cox, Financial Management Service

Jeff Hoge, Financial Management Service

Veronica Kitchen, Financial Management Service

Karen Metler, Financial Management Service

Kathy Winchester, Financial Management Service

Andrea Cherry, Financial Management Service

Thurman Solomon, Financial Management Service

Marilyn Evans, Financial Management Service

Melinda Pope, Financial Management Service

Toni Clark, Financial Management Service

Gwen Ferrell, Financial Management Service

Karl Foltz, Financial Management Service

Tajuan Brown, Financial Management Service

Don Mckay, Financial Management Service

Carol Israel, Health and Human Services

Insuk Chinn, Health and Human Services

Christine Kent, Department of Transportation

Tim Siebaka, Federal Communications Commission

Veronica Freeman, Department of Labor

Joe Keady, Agency for International Development

Leon Fleischer, Department of Education

Linda P. Rodgers, Department of Housing and Urban Development/FHA

Tracia Carroll, Department of Housing and Urban Development

Monica Clarke, Department of Housing and Urban Development

Phil Daniels, Department of Interior

Rick Loyd, Department of Energy

Barbara Harbell, Department of Energy

Mark Staley, Federal Emergency Management Administration

Joseph Henry, Small Business Administration

Frank Synowiec, Government Accounting Office

Teresa Tancre, Office of Management and Budget

Susan Jones, Nuclear Regulatory Commission

Carol Kohler, Department of State

Bruce Crippin, Department of State

Michael Swanchara, General Services Administration

Kotora Padgett, Department of Justice

Janet Mclean, Veterans Administration

Richard Fontenrose, Federal Accounting Standards Advisory Board

Rita Cronley, Department of Defense

Meeting handouts:

• FACTS changes Fiscal 2003 Reporting
• Streamline Accounts for Fiscal 2003
• Scenario on Spending Authority From Offsetting Collections Applied to Liquidate a Deficiency
• USSGL Board Voting Ballot # 02-02
• Technical Changes to Existing USSGL Accounts

Presentations and Discussions:

Judy Yuran (FMS) opened the meeting with the following announcements:

• Changes must be made to the USSGL structure to resolve elimination differences in agency reporting. The changes will contribute towards a clean audit opinion on the Financial Report of the United States Government.

• FMS will be proposing new USSGL accounts related to activity in the Treasury General Fund accounts. The goal is to separate the activity of the Department of the Treasury from the activity in the Treasury General Fund accounts, which are classified as custodial activity by the Department of the Treasury.

FACTS Changes Fiscal 2003 Reporting

FACTS II

Jeff Hoge (FMS) noted that Definite/ Indefinite Authority is identified in the Treasury Central Accounting System (STAR) by Treasury Appropriation Fund Symbol (TAFS). Therefore, beginning in 2003, FACTS II will supply the Definite/Indefinite attributes. The 2003 FACTS II attribute table has been updated accordingly. Agencies need to examine the accounts appearing on the 2108 to ensure that STAR TAFS designation as Definite or Indefinite is correct. We know that some TAFS do not have the correct Definite/Indefinite classification in STAR and we want to correct the errors. Jeff asked the agency representatives to review the handout and let him know if a correction is needed. Also, some TAFS have both definite and indefinite authority in the same TAFS. The Office of Management and Budget (OMB) has verified that this is correct. FMS will try to identify which TAFS have both authority. However, the agencies will need to look at each TAFS and work closely with their OMB budget examiner to provide the correct information.

FACTS I - new requirement for Fiscal 2003

Jeff explained that beginning in FY 2003, agencies will be required to report the four digit main account of their trading partner’s TAFS in addition to their two digit code which is currently required. This applies only to trading partner transactions with other Federal agencies, which are classified in the agencies automated trial balance with an "F"attribute attached to designated USSGL accounts. This is needed to identify agency transactions with their trading partners below the department code level.

Rick Loyd (DOE) expressed concern about the high cost of making the changes to report the four-digit fund symbol in his agency’s accounting system. He asked if FMS or anyone had done an estimate of the cost to the federal government. No one indicated that they were aware of any cost/benefit analysis that had been performed.

Streamline USSGL Accounts for Fiscal 2003

Ava Cox (FMS) discussed the streamlining of USSGL accounts that included "definite/indefinite" authority in the account title. We have consolidated and revised several USSGL accounts. In the 2003 FACTS II system, agencies will not have to select which account is definite or indefinite. FMS will identify the "definite/indefinite" authority by the Treasury fund symbol in the FACTS II system. As a result, the elimination of the following USSGL budgetary accounts has been proposed:

• 4116 Entitlement Loan Subsidy Appropriation - Indefinite
• 4121 Loan Subsidy Appropriation - Indefinite - Current
• 4132 Current - Year Contract Authority Realized - Indefinite
• 4142 Current -Year Borrowing Authority Realized - Indefinite
• 4272 Actual Program Fund Subsidy Collected - Indefinite - Permanent
• 4274 Actual Program Fund Subsidy Collected - Indefinite - Current
• 4282 Actual Program Fund Subsidy Receivable - Indefinite - Permanent
• 4284 Actual Program Fund Subsidy Receivable - Indefinite - Current

In addition, nine USSGL account titles are being revised:

• 4032 Estimated Indefinite Contract Authority
• 4042 Estimated Indefinite Borrowing Authority
• 4115 Loan Subsidy Appropriation
• 4117 Loan Administrative Expense Appropriation
• 4118 Re-estimated Loan Subsidy Appropriation
• 4141 Current-Year Borrowing Authority Realized
• 4271 Actual Program Fund Subsidy Collected
• 4281 Actual Program Fund Subsidy Receivable
• 4131 Current - Year Contract Authority Realized

Scenario: Spending Authority from Offsetting Collections Applied to Liquidate a Deficiency

Melinda Pope (FMS) discussed the scenario, which outlined the preferred method of accounting and reporting for deficiencies where revenue from offsetting collections is authorized. She explained that the funding is requested after a deficiency is known and in this scenario is derived from other income earned and collections to date during the current fiscal year. She noted that a new USSGL account (4212 Liquidation of Deficiency – Offsetting Collections) was added.

Office of Management and Budget (OMB) Update

Teresa Tancre (OMB) noted that OMB is working closely with the Treasury, USSGL Division and the IRC to clarify OMB reporting requirements.

Reporting Improvements:

• Sixteen lines which were previously unsupported on the Program and Financing (P & F) Schedule are now supported by USSGL accounts. With this addition all lines are now supported on the P & F.

• Indefinite/definite authority is no longer required to be supplied by the agencies, it will be derived from the TAFS in FACTS II.

• The SF-132 process has been automated at OMB. The appropriate information on the SF-132 and SF-133 will be compared to ensure consistency. Additionally, OMB is merging their circulars A-11 and A-34. The merged guidance will be released this summer as OMB Circular A-11.

• During the preparation of the FY 2004 Budget, the OMB's budget preparation system, MAX A-11, will contain several new edit-checks to ensure that amounts certified by FACTS II users as actual, are not changed by budget office staff. These edit checks will affect new obligation obligated balances (begin and end of year) and unobligated balances (begin and end of year). See OMB Circular No. A-11, section 82 for details.

• For the FY 2004 Budget, separate lines for unobligated and obligated balances of contract authority will be eliminated in schedule P but will require unobligated and obligated balances of contract authority to be reported separately in schedule I.

Voting Ballot and Technical Changes To Miscellaneous USSGL Accounts

Gwen Ferrell (FMS) discussed Voting Ballot number 02-02 and a list of USSGL technical changes. The technical changes do not require a vote, but will be included in the upcoming Treasury Financial Manual. All ballots must be received by FMS by the close of business June 6, 2002. The Voting Ballot includes the addition of one new USSGL account 4212. The ballot also includes definition and title changes to the following accounts not previously noted:

• 4212 Liquidation of Deficiency – Offsetting Collections
• 1010 Fund Balance with Treasury
• 4112 Liquidation of - Deficiency Appropriations
• 7180 Unrealized Gains
• 7280 Unrealized Losses

Technical changes to existing USSGL accounts, not previously noted, that do not require a vote and are not listed in the voting ballot include the following:

• 4047 Anticipated Transfers to the General Fund of the Treasury
• 4170 Transfers – Current – Year Authority
• 4195 Transfers of Obligated Balances
• 5799 Adjustment of Appropriations Used
• 5990 Collections for Others
• 5991 Accrued Collections for Others
• 6190 Contra Bad Debt Expense – Incurred for Others
• 6310 Interest Expense on Borrowing from the Bureau of the Public Debt and/or the Federal Financing Bank
• 7500 Distribution of Income - Dividend

Closing Remarks:

Judy Yuran (FMS) noted the following:

We intend to add additional new USSGL accounts effective fiscal 2003. Another USSGL TFM update will be released in August.

The USSGL Division is currently commenting on the draft of the OMB business rules for Intragovernmental Purchases.

The Closing Package proposal will be ready mid June and a briefing will be given by FMS to the IRC at that time.