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

April 10, 2008

GENERAL ITEMS:

Katherine Winchester (FMS) opened the meeting by reviewing the agenda, and introductions were made.

HANDOUTS:

  • Voting Ballot #08-01

  • Proposed Changes to Existing USSGL Accounts

  • Proposed New Fiduciary Accounts

AGENDA ITEMS:

Christine Chang (FMS) summarized the fiduciary reporting options discussed at the last IRC meeting. At that meeting, the IRC agreed to add two additional new accounts, "Increases in Fiduciary Net Assets," and "Decreases in Fiduciary Net Assets," to record the inflows and outflows of the fiduciary activities. The two new accounts will close into proposed USSGL account 3400, "Fiduciary Net Assets," which will act as a cumulative account for all the 3400 series of accounts.

After Christine provided a summary of the last IRC meeting, Eileen Parlow (FASAB) expressed concern about using equity accounts to report the flows directly. Christine explained that at the last IRC meeting, the IRC determined that agencies should use the 9000 memorandum series to capture the detailed flows and that agencies will close the flow accounts into the proposed "Increases in Fiduciary Net Assets" and "Decreases in Fiduciary Net Assets" accounts before submitting a trial balance to FMS. Agencies can use the detailed flow information as well as the post-closing balance of USSGL account 3400, "Fiduciary Net Assets," to prepare their fiduciary footnote. Eileen stated that multiple closings would be too confusing for agencies.

Debra Carey (SEC) stated that agencies should not commingle the revenues and expenses with the equity contributions and distributions. The two new accounts only should record the equity contributions and distributions. For the expense/revenue inflows and outflows related to fiduciary activity, agencies can use the existing general ledger accounts that should close at yearend into USSGL account 3400, "Fiduciary Net Assets." She stated that an expanded trial balance including the flows would be better than the previously approved condensed trial balance without the flows. The expanded trial balance will allow agencies to prepare the fiduciary note as well as meet the FMS reporting requirements. The IRC agreed to the changes. The IRC also approved the use of language found in the 2008 draft OMB Circular No. A-136, note 40, for the following accounts and definitions.

Account Title: Fiduciary Net Assets
Account Number: 3400
Normal Balance: Credit
Definition: The value of beneficiaries' equity. Fiduciary activities generally do not crosswalk to the Federal entity's financial statements, but they should be included in the Federal entity's notes to the financial statements (as required by FASAB SFFAS No. 31).

Justification: For implementation of SFFAS No. 31

Account Title: Contributions to Fiduciary Net Assets
Account Number: 3410
Normal Balance: Credit
Definition: Contributions increase fiduciary net assets. Contributions include cash collected from and on behalf of beneficiaries and directly increase a beneficiary's equity. Fiduciary activities generally do not crosswalk to the Federal entity's financial statements, but they should be included in the Federal entity's notes to the financial statements (as required by SFFAS No. 31, paragraphs 17-24).

Justification: For implementation of SFFAS No. 31

Account Title: Withdrawals or Distributions of Fiduciary Net Assets
Account Number: 3420
Normal Balance: Debit
Definition: Disbursements to and on behalf of beneficiaries decrease fiduciary net assets. Disbursements are equity distributions to or on behalf of beneficiaries. Fiduciary activities generally do not crosswalk to the Federal entity's financial statements, but they should be included in the Federal entity's notes to the financial statements (as required by SFFAS No. 31, paragraphs 17-24).

Justification:

For implementation of SFFAS No. 31

There was some discussion as to whether a collection, such as fees collected for violation of law, is considered a revenue or contribution. The money is owned by the beneficiary even though the violators are putting up the money. Some IRC members thought it was revenue and some thought it was a contribution. The IRC decided to leave to individual agencies the determination of the nature of and the accounting for its fiduciary activity.

Gwen Marshman (FMS) reviewed the ballot (see above for the changes to fiduciary accounts). The proposed USSGL account 5313, "Interest Revenue - Subsidy Amortization," will add, "that are subject to the Credit Reform Act of 1990 as amended," to the end of the first sentence of the definition. In addition, the proposed USSGL account 6340, "Interest Expense Accrued on the Liability of Loan Guarantees," also will add "that are subject to the Credit Reform Act of 1990 as amended" to the end of the first sentence of the definition.

CLOSING REMARKS:

Kathy thanked everyone for attending and closed the meeting.

ATTENDEES:

Kathy Winchester, FMS
Christine Chang, FMS
Gwen Marshman, FMS
Keith Mertz, FMS
Karl Foltz, FMS
Oscar Castro, FMS
Victoria Leas, FMS
Ben Sussman, FMS
Cindy Scharf, LOC
Catherine Irani, DOI
Leon Fleischer, SBA
Teresa Lampkin, DOT
Kevin Dugas, DOT
Drena McDaniel, DOT
Bruce Henshel, DOC
Beverly Scott, DHS
Tai Westerman, DHS
Joseph Henry, SBA
Britt Fucito, USPTO
Sam Idahosa, Treasury
Debra Cary, SEC
Jenny Smith, HHS
Boris Lyubovitsky, USDA
Irene Hall, NASA
Webster Coleman, DOL
Eileen Parlow, FASAB
Susan Stengel, NRC
Lori King, Energy
Judy Twitty, SSA
Jaime Saling, BPD
Jill Stalnaker, BPD
Sherry Pontell, FMS


   Last Updated:  March 14, 2014