U.S. Government Standard General Ledger Board and Issues Resolution Committee Meeting Minutes
May 22, 2003
OPENING REMARKS
Judy Yuran (FMS) opened the meeting with an overview of topics to be discussed and introductions.
HANDOUTS
Governmentwide Systems Update Power Point Presentation
Late 224 Reporting - March 2003 Report Submission by Federal Program Agency
Category Summaries Report
Transfers Power Point Presentation
Transfers of Expired Expenditure Transfer Receivable - Accounting for Social Security Administration Limitation on Administration Expenses Trust Fund Scenario
Office of Management and Budget (OMB) A-11 Issue List
Eliminations Power Point Presentation
Federal Intragovernmental Transactions Categories of Reciprocal USSGL Proprietary Accounts Handout
Proposed new accounts related to Eliminations Presentation
Standard General Ledger Board Voting Ballot #03-01
PRESENTATIONS AND DISCUSSIONS
FMS SYSTEMS UPDATE (FACTS I AND II)
Jeff Hoge (FMS) presented an update to government-wide systems. He began with an update on minor changes to FACTS I. He indicated that there was a change to two separate "in-balance calculations"; one for 1XXX through 7XXX, and another 8XXX. In addition, a Note in which there are no details at this time has been deleted. Next, he discussed the Intragovernmental Fiduciary Confirmation System and stated that at this time, there are no changes to the system. Jeff referred to the Buy/Sell document provided which is an example of the data that is an output of the Intragovernmental Reporting and Analysis System. It indicates differences between agencies within category 24, Intragovernmental Revenue and Expenses, elimination differences. Ben Sussman (FMS) added that IRAS would be completed on a quarterly basis starting with the third quarter of fiscal 2003.
FACTS II
Jeff indicated that the second quarter was the easiest quarter thus far. He congratulated the Department of Education for submitting 98% of data and passing all edits on the second day of submission. In his presentation, he noted that the opening of the window depends on agency monthly reporting. Currently, 30% of the ALCs reported late and 86% reported by the third day. Depending on the timeliness of the agencies, the window may open a few days earlier possibly the 12th workday. For fiscal year (FY) 2004, a new edit will be in place as a result of the Department of Homeland Security (DHS) transfers. The edit will validate the entire SF 133, Report on Budget Execution and Budgetary Resources using the formula provided in the Office of Management and Budget (OMB) Circular No. A-11, Appendix F-21 - F-22.
A significant change to FACTS II is that OMB will begin tracking all obligations, both category A and B, by program. OMB will be aligning performance measures with obligations in the Budget. Part of the plan is to ensure correct performance measures are included in the budget, track outcomes and amounts obligated to obtain outcomes. Line 8A1, Obligations incurred will show the total amount in detailed stubs at the bottom of the statement. OMB will enter the information for the stubs through agency budget shops. The submitted stubs will be pre-approved by OMB budget examiners. This change will be phased in over the next several years. The Program Rpt. Code attribute should be used.
TRANSFER ACCOUNTS
Kathy Winchester (FMS) began her presentation by stating that transfers are a focus point for the USSGL division this year because of the creation of the DHS and the magnitude of entities being transferred to this new department. While developing transfer guidance for the DHS, the USSGL Division determined the crosswalk for transfers of net obligations on line 13 of the SF 133 was incomplete. Specifically, activity resulting from spending authority from offsetting collections (unfilled customer orders and receivables) was not included with the USSGL accounts crosswalked to line 13 of the SF 133. In addition, the USSGL division determined the transfers of amounts receivable from invested balances in trust or special funds were not, but should be, crosswalked to line 1 of the SF 133. Although the crosswalk changes were discovered in a review for the DHS, the proposed changes impact all entities.
To accommodate the new types of transfers, Kathy explained that the Issues Resolution Committee voted to create new domain values in the FACTS II Authority Type Attribute. The domain values are "T" = transferred and "K" = not transferred. That method of capturing transfer information is effective for FY 2003 only. For FY 2004, eight new accounts are being proposed to coincide with and replace the FY 2003 domain values. Five new accounts are proposed for the transfer of spending authority from offsetting collections, and the remaining three are proposed for amounts receivable from invested balances. Kathy presented tables that illustrate the relationship between the authority transferred, the FY 2003 account and attribute, and the FY 2004 proposed account for both transfer types and the effect on crosswalks. The titles of the accounts are the same as the original authority with transfer accounts adding, "transfer" to the end. The proposed new accounts are as follows:
4230 - Unfilled Customer Order Without Advance - Transferred
4231 - Unfilled Customer Order With Advance - Transferred
In addition she provided tables that crosswalk the accounts to the SF 133, FMS 2108 (Year End Closing Statement), Budget Program and Financing Schedule (P&F) and the Statement of Financing.
She informed the Board that Transfer In, Transfer Out and Transfer Out Completed scenarios are available on the USSGL Web site at www.fms.treas.gov/ussgl/.
TRANSFERS OF EXPIRED EXPENDITURE TRANSFERS RECEIVABLE
Karen Metler (FMS) proposed creating a new account, 4199, Transfer of Expired Expenditure Transfers Receivable effective FY 2004 and available for early implementation in FY 2003. The account was initially created for the Social Security Administration's (SSA's) Limitation on Administrative Expenses (LAE) account; however, it is not exclusive to SSA. She explained that the LAE trust fund is an annual-year TAFS that records account 4225, Appropriation Trust Fund Expenditure Transfers-Receivable, and maintains this receivable on the books due from various sources. Those sources maintain the invested balances. As the LAE TAFS needs to disburse, it draws down funds from invested balances. The annual account expires each year; however, SSA is permitted by law to transfer the unobligated balances from the expired annual account to an unexpired no-year account. Additionally, there is no movement of the Fund Balance With Treasury and therefore no SF 1151 is processed.
Karen explained the new account is needed to facilitate the transfer of expenditure transfers receivable (USSGL 4225) and the associated unobligated balances from an expired TAFS to an unexpired no-year TAFS. The new account will crosswalk to line 2B, Net Transfers, Actual, on the SF 133, column 7 of the FMS 2108, and Line 222X, on the P&F. The new account is illustrated in year 3 (new year created) of the Accounting for Social Security Administration Limitation on Administrative Expenses Trust Fund Scenario, which was originally approved in May of 2002 (year 1 and 2 only).
ELIMINATIONS
Marilyn Evans (FMS) began her presentation by stating that the Financial Reports Division (FRD) Eliminations Team requested the USSGL's assistance with updating the reciprocal categories and eliminations. As a result, the USSGL and FRD propose creating new accounts to update reciprocal categories 1, 3, 5, 6 and 10. Those accounts are as follows:
Break out of account 2530, Securities Issued by Federal Agencies Under General and Special Financing Authority
2531 - Discount on Securities Issued by Federal Agencies Under General Special Financing Authority (Category 1)
2532 - Premium on Securities Issued by Federal Agencies Under General Special Financing (Category 1)
2533 - Amortization of Discount and Premium on Securities Issued by Federal Agencies Under General Special Financing Authority (Category 1)
Break out of account 5310, Interest Revenue - Other
1In a subsequent IRC meeting, the title was changed to Interest Revenues - Loans Receivable/Uninvested Funds.
Break out of account 7110, Gains on Disposition of Assets - Other
7111-Gains on Investments (Category 3)2
7112-Gains on Borrowings (Category 6)3
2In a subsequent IRC meeting, the title was changed to Disposition of Gains on Investments. 3In a subsequent IRC meeting, the title was changed to Disposition of Gains on Borrowings.
Break out of account 7210, Losses on Disposition of Assets - Other
7211-Losses on Investments (Category 3)4
7212-Losses on Borrowings (Category 6)5
4In a subsequent IRC meeting, the title was changed to Disposition of Losses on Investments. 5In a subsequent IRC meeting, the title was changed to Disposition of Losses on Borrowings.
Marilyn explained that FRD revised all category titles by removing the "Federal" and "Intra-Governmental" references. Additionally, category 10 was renamed to Other Interest Expense/Interest Revenues from Credit Reform. Category 21, Benefit Program Contributions Receivables/Payables was created to accommodate splitting out Category 22, Receivable information.
Ben Sussman (FMS) inquired whether account 2540, Participation Certificates, is a valid account and if not, should it be deleted from the chart of accounts. Marilyn indicated that she had researched the use of account 2540, Participation Certificates, and the account has not been used within the last four years. The possible deletion of the account will be discussed later.
OFFICE OF MANAGEMENT AND BUDGET UPDATE
Teresa Tancre (OMB) provided a handout with changes to the A-11 that will be published in July. She requested that the Board not make copies and/or distribute the document outside their agency. The changes are as follows:
Reappropriations
A line will be added for "Expired unobligated balance transfer to unexpired account" to schedule P. This line will include amounts of expired unobligated balances that are transferred into an unexpired account as the result of authority to extend the period of availability of expired balances and are not considered a reappropriation. This change may require the creation of new USSGL accounts.
FACTS II Amounts
During the preparation of the FY 2004 Budget, OMB edit checked five lines in the prior-year column of the schedule P. OMB determined that 25% of the differences were related to accounting issues and reorganizations, 70% were related to DHS transfers, and 5% of the differences were related to judicial and legislative branches. As a result, for preparation of the FY 2005 Budget, OMB is going forward with six additional edit checks related to FACTS II amounts. Those checks will occur on the following P&F lines:
Discretionary Appropriation (P 4000)
Unobligated balance expiring or expired (P 2398)
Resources available from recoveries for prior-year obligations (P 2210)
Adjustments in expired accounts (P 7340)
Offsetting collections from Federal sources (P 8800)
Discretionary offsetting collections (P 6800)
Drop schedule I and add memo entries to P& F
Teresa explained that the schedule on unfunded contract authority will be eliminated and memorandum lines will be added to schedule P for contract authority. Additional edit checks will be created to analyze the amounts reporting for the unobligated and obligated balance, start and end of year lines versus the contract authority lines in schedule P.
Consolidate across-the-board reductions into a single line entry
Effective FY 2004 for budget execution reporting, OMB will collapse the terms rescissions and reductions into the term "reductions." She highlighted that line 6B of the SF 133 has been re-titled from "Enacted rescissions" to "Enacted reductions." OMB will identify temporary reductions on SF 133 line 5, Temporarily Not Available Pursuant to Public Law, whereas permanent reductions will crosswalk to SF 133 line 6B, Enacted Reductions. She further identified the three types of reductions as account-specific rescissions, across-the-board reductions, and budgetary resources canceled by sequester ordered by the President pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985. For budgetary reporting, she emphasized that one of the primary characteristics of reporting reductions is to identify it as temporary or permanent. This change will eliminate any confusion and the instructions will work better with the USSGL. The future necessity of USSGL account 4396 will be analyzed.
CLOSING PACKAGE UPDATE
Gary Ward (FMS) indicated that a new approach to the closing package has been created. The new approach includes agencies providing audited financial statements. Oracle is in the process of creating a new system so that agencies can submit the information through the Internet. The system should be available by the summer of 2004. The agencies would be required to provide the audited statements and reclassify those statements to the Financial Report standards. The agencies will also be required to provide the trading partners for the intragovernmental transactions. Additionally, the General Accounting Office will require two separate audit opinions, on the closing package and agency financial statements. OMB and GAO are currently working on agreed-upon procedures. Joe Mc Andrew (Treasury) indicated that agencies would have to collect additional information for notes to be prepared available for audit. Gary indicated the financial statements should be in compliance with FASAB versus OMB Form and Content. Gary informed the Board that the Net Position Note included in the original closing package is no longer required.
Kevin Kuesters (HHS) indicated that he thought the power point presentation provided by Gary at an early session was very clear in illustrating the format requested by FMS and how the statements should be crosswalked. Gary indicated that the closing package requirements will be provided in the June 2003 version of the TFM, and will be effective for FY 2004.
CLOSING REMARKS
Haywood Trapps (FMS) commented that in approximately one month the Intragovernmental area will have a Web site where agencies will be able to pull down IRAS, quarterly reconciliations, the Intragovernmental Guide, and the TFM. IFCS will only be provided through a link. Teresa Tancre (OMB) indicated that agencies can visit www.whitehouse.gov/omb/reports to obtain third-quarter FACTS II data and how it crosswalks to the P&F.
Judy closed the meeting by thanking the Board for another successful year.
ATTENDEES
Judy Yuran, Financial Management Service
Shariece Budd, Financial Management Service
Christine Chang, Financial Management Service
Rita Cronley, Financial Management Service
Marilyn Evans, Financial Management Service
Gwen Ferrell, Financial Management Service
Karl Foltz, Financial Management Service
Veronica Freeman, Financial Management Service
Jeff Hoge, Financial Management Service
Ella Hughes-Bailey, Financial Management Service
Karen Metler, Financial Management Service
Melinda Pope, Financial Management Service
Tricia Slaboda, Financial Management Service
Keith Stith, Financial Management Service
Benjamin Sussman, Financial Management Service
Hayward Trapps, Financial Management Service
Tranise Travis, Financial Management Service
Joseph Wang, Financial Management Service
Gary Ward, Financial Management Service
Kathy Winchester, Financial Management Service
Teresa Tancre, Office of Management and Budget
Judith Twitty, Social Security Administration
John Reisinger, Social Security Administration
Nancy Gribbin, Social Security Administration
Junghee Gogue, Social Security Administration
Letha Holliday, Social Security Administration
Kisha Bush, Nuclear Regulatory Commission
Damon Sutton, Health and Human Service
Paul Weinberger, Health and Human Service
Kelly Chance, Health and Human Service
Kevin Kuesters, Health and Human Service
Christine Kent , Department of Transportation
Cynthia Wilbur, Office of Personnel Management
Iris Edwards, Office of Personnel Management
Katherine Lee, Department of Commerce
Eileen Parlow, Department of Defense
Barbara Hill, Department of Defense/DFAS
Bob Booker, Department of Defense/DFAS
Jacqueline Harvey, Federal Communications Commission
Denise Robinson, Federal Communications Commission
Veronica Freeman, Department of Labor
Jim Brady, Environmental Protection Agency
Eileen Angle, Department of State
Charlene Williams, National Aeronautics and Space Administration
Traci Carroll, Department of Housing and Urban Development/FHA
Donald Dispamet, Department of Housing and Urban Development/FHA
Linda Rogers, Department of Housing and Urban Development/FHA
Jim Brady, Environmental Protection Agency
Joe Keady, Agency for International Development
Leon Fleischer, Department of Education
Mark Staley, Federal Emergency Management Agency
Gregory Teets, Federal Emergency Management Agency
Barbara Harbell, Department of Energy
Phil Daniels, Department of Interior
Korin Dasuki, Peace Corps
Janet McLean, Veterans Administration
Valerie Grant, Department of Justice
Joe Mc Andrew, Department of Treasury
Thurman Solomon, Department of Treasury
Kotora Padgett, Department of Justice
Bennie Buggs, Department of Justice
D. Scott, Department of Justice
James Eun, Department of Homeland Security
Paul Hoffman, Department of Agriculture
Sidney Reid, Department of Agriculture
Gene Kim, National Science Foundation
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