U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
March 23, 2006
Kathy Winchester (FMS) opened the meeting by stating that the agenda would include discussions on nonexpenditure transfers and miscellaneous receipts.
Kathy began by discussing the scenarios on Nonexpenditure Transfers: General Fund TAFS to a Revolving Fund TAFS and Special Fund TAFS to a General Fund TAFS. These scenarios outline the use of reciprocal pair USSGL accounts related to nonexpenditure transfers (NETs). Kathy stated that the accounting transactions outlined in these scenarios are designed to assist agencies in reducing their intragovernmental elimination differences. These scenarios also reflect a new proposal that will eventually require agencies to record the proper proprietary USSGL accounts directly on the NET document.
Kathy stated that mixed funding in a single TAFS has been an issue with some agencies. Therefore, we have noted in the scenario that mixed funding is proper in certain circumstances. The net position of a TAFS may be a mix of unexpended appropriations derived from general fund resources not earmarked by law for a specific purpose and financing sources, such as Economy Act revenue, which affect cumulative results of operation.
Carolann Marker (FMS) Budget Reports Division (BRD) discussed in detail how the new NET procedures involving proprietary USSGL accounts would work. BRD, which approves the nonexpenditure authorization documents will allow agencies to track proprietary USSGL accounts 3102/3103 or 5755/5765 in the comments section of the transfer document. For example, if the transferring agency indicates that the funds being transferred are from unexpended appropriations by recording proprietary USSGL 3103 on the NET document, then the receiving agency should record the reciprocal proprietary USSGL account 3102. Similarly, if the transferring agency records a proprietary USSGL account 5765 indicating that the funds being transferred are derived from other financing sources, then the receiving agency should record a proprietary USSGL account 5755.
BRD only will ensure that the originating NET document indicates a set of corresponding proprietary USSGL accounts 3102/3103 or 5755/5765. The BRD staff will not verify that the reciprocal pairs are used correctly since this information is only known by the transferring agency. If no proprietary USSGL accounts appear on the document, then BRD will reject the document, which will revert the NET to the "agency preparer" for correction. This ends BRD's involvement in the process.
If the receiving agency does not agree with the USSGL accounts recorded on the NET document, then the receiving agency should contact the transferring agency to resolve the issue. Corrections to the USSGL account information are not to be made by changing the NET document. Instead, corrections are to be made only by the agencies in their internal accounting systems. Carolann also emphasized that the incorrect use of proprietary USSGL accounts would not be a reason for BRD to deny a NET transfer.
To further assist the agencies in resolving USSGL differences, BRD plans to include the Web site address of the intragovernmental elimination contacts for all agencies. FMS maintains this list, which will be included in the comments section of the NET document. The timeframe for implementation is as follows: USSGL accounts will be optional on the transfer document through September 30, 2006, and will be required beginning October 1, 2006. Carolann asked that agencies provide comments on the new procedures to her no later than March 31, 2006.
Christine Chang (FMS) presented the draft Miscellaneous Receipt Account Guide. She stated that the goal is to provide consistent guidance on how agencies should report their miscellaneous receipts. Christine noted that agencies should report miscellaneous receipt activity on their financial statements for all miscellaneous receipts associated with the agency's two-digit department code.
Judy Yuran (FMS) noted that FASAB standards require agencies to report miscellaneous receipts on the agency financial statements. Discussions indicated that many agencies report miscellaneous receipts as nonentity assets in USSGL account 1010. However, some agencies considered miscellaneous receipts immaterial and did not include the information on the agency financial statements.
Judy requested that agencies provide the USSGL staff with their miscellaneous receipts transactions to ensure that we have considered all agency activity in the final Miscellaneous Receipt Account Guide. Agencies may e-mail or call Christine Chang with this information at email@example.com, telephone 202-874-6445.
Michele Crisman (FMS) thanked the agencies for providing their tie-point information to her. The Tie-Point Project was initiated to develop a series of standard USSGL accounting relationships and to publish them on the USSGL Web Site.
Judy noted that agencies can continue to provide their comments and tie-point information to Michele at firstname.lastname@example.org.
Judy Yuran, FMS