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

June 13, 2002

Summary of Outstanding Issues:

Judy Yuran (FMS) opened the meeting and introductions were made. Judy explained that the IRC would review the remaining draft USSGL account crosswalks for the fiscal 2002 and 2003 OMB Form and Content Statements.

Judy shared that Gwen Ferrell(FMS) and Karen Metler (FMS) are comparing USSGL attribute definitions for FACTS I to those in FACTS II attributes to make the information consistent where possible. Rita Cronley (DoD) asked when these changes will be made. Judy replied that the changes (if any) depend on Gwen and Karen’s findings.

The USSGL Division will issue an updated USSGL TFM at the end of June. There will be another TFM issued at the end of August. Judy reminded the agency representatives that they are supposed to be following the USSGL Federal Trust Fund Guidance. Some agencies continue to erroneously record appropriated trust fund receipts as both revenue and as an appropriation using USSGL account 3100 "Unexpended Appropriations – Cumulative".

Meeting handouts

• Draft USSGL Proposed USSGL Accounts – 6/13/02
• Draft Fiscal 2002/2003 Summary of Changes for FACTS I; Statement of Changes in Net Position; Statement of Net Cost; Balance Sheet
• Draft Fiscal 2002/2203 USSGL Account Crosswalks for the Statement of Changes in Net Position
• Draft Fiscal 2002/2203 USSGL Account Crosswalks for the Statement of Net Cost
• Draft Fiscal 2002/2003 USSGL Account Crosswalks for the Balance Sheet
• Draft Fiscal 2002/2003 FACTS I USSGL Attribute Tables
• Draft Contract Authority Liquidated by Appropriations Scenario – 6/13/02
• Draft Portion Substituted for Borrowing Authority (Offsetting Collections) – 6/13/02
• Draft Portion Substituted for Borrowing Authority (Appropriation) Scenario – 6/13/02

Gwen Ferrell reviewed the USSGL Account Attribute FACTS I Tables for fiscal 2002 and 2003.

FACTS I USSGL Attribute Table for Fiscal 2002

Gwen proposed and the IRC agreed to remove the "NOTES" column from the table. The attributes in this column were intended to identify capital acquisitions to assist FMS in the elimination process for the Financial Report. However, the note in which this information was to be collected has never implemented in FACTS I. Judy mentioned that the purchases project will address data requirements related to acquisition of capitalized assets that will address the elimination issue and issues related to the Statement of Financing.

Gwen mentioned that on the fiscal 2002 table, the "F" (Federal/NonFed) and "Y" (Trading Partner) USSGL account attributes for USSGL accounts 3102 "Unexpended Appropriations – Transfers-In" and 3103 "Unexpended Appropriations – Transfers-Out" should have included in the fiscal 2002 table. The IRC agreed to include them for fiscal 2002 only if the FACTS I TFM includes them. Gwen will verify their inclusion in the FACTS I TFM and likewise, include them in the USSGL attribute table.

Gwen proposed to change the table column heading that is currently, "USSGL Attribute" to "USSGL Account Attributes" to be consistent with the other tables in the USSGL document.

FACTS I USSGL Account Attribute Table for Fiscal 2003

Gwen reviewed the changes to the attribute table resulting from the latest voting ballot and technical changes.

Balance Sheet USSGL Account Crosswalk for Fiscal 2002

Gwen proposed to change the crosswalk table column heading from "USSGL Attribute" to "USSGL Account Attributes" to be consistent with the other tables in the USSGL document.

Bruce Henshel (DoC) questioned why USSGL account 2995 "Estimated Cleanup Cost Liability" is not included on line 18 (Federal). Gwen acknowledged that there is a problem with the "Y" (Federal and NonFederal) USSGL account attribute on the FACTS I table for this account. The USSGL Division’s stand is that it should only be "N" because when a long-term liability is reported as Federal, the partner agency will not have an offsetting receivable and that it should only be crosswalked to line 24 (NonFederal). The IRC will revisit this issue at another time. Christine Chang (FMS) said that she is discussing this with the Financial Reports Division and it is likely that the August USSGL TFM, the FACTS I attribute table will reflect and "N" instead of "Y" for USSGL account 2995.

Balance Sheet USSGL Account Crosswalk for Fiscal 2003

Gwen reviewed the changes to the crosswalk. For consistency with the other fiscal 2003 crosswalks, we combined lines for each USSGL account where the same account attributes are used. This convention will only be used on lines where all other information is the same. An example of this convention is Line 1 for USSGL account 1010 "Fund Balance with Treasury". Currently, there are two lines for domain values E = Entity and O = NonEntity. For fiscal 2003, there will be one line and the domain will be "E/O". This change will be used for the Covered/NotCovered "C/U" as well.

Gwen reviewed changes resulting from the last voting ballot and technical changes.

Statement of Net Cost Crosswalk for Fiscal 2002

Karl Foltz (FMS) reviewed the changes to the crosswalk. The column heading "USSGL Attributes" was changed to "USSGL Account Attributes" to be consistent with the other statement crosswalks. A new footnote was added to the USSGL account attribute column "Federal/NonFederal". It reads, "The USSGL account attributes F and N should only be used to identify account transactions with another Federal trading partner (F) or transactions with a NonFederal trading partner (N)".

Statement of Net Cost Crosswalk for Fiscal 2003

Karl reviewed the changes for fiscal 2003 resulting from the latest voting ballot and technical changes.

Statement of Changes in Net Position for Fiscal 2002

Karl reviewed the changes for fiscal 2002. The column heading "USSGL Attributes" was changed to "USSGL Account Attributes" to be consistent with the other statement crosswalks.

Statement of Changes in Net Position for Fiscal 2002

Karl reviewed the changes for fiscal 2003 resulting from the last voting ballot and technical changes.

Ava Cox (FMS) provided an overview of the scenarios to be presented. The accounts that will be discussed support line 6D, Other Authority Withdrawn on the SF 133 and on various lines of the P & F. The accounts are reductions or withdrawals of budget authority. Ava presented the following scenarios:

Contract Authority Liquidated by Appropriations

Ava stated that agencies may have statutory authority allowing them to enter into contracts or incur obligations prior to an appropriation for the payment of obligations. Contract authority is "unfunded" and a subsequent appropriation or offsetting collection is needed to liquidate the obligation. Ava reviewed the definite and indefinite scenarios for contract authority. She reviewed the transaction and reporting requirement for account 4130 "Appropriation to Liquidate Contract Authority Withdrawn". This account is used when an agency received an appropriation to liquidate contract authority and did not use it all.

Ava reviewed the indefinite scenario for contract authority. She reviewed the use of USSGL accounts 4133 "Reductions of Contract Authority" and 4134 "Contract Authority Withdrawn". In the indefinite contract authority scenario, contract authority is estimated at the beginning of the year and actual contract authority is realized when an obligation is incurred. At the end of the year, the estimated contract authority is reduced to zero. USSGL account 4133, is used as a pre-closing adjusting entry in conjunction with other resource accounts to adjust the balance in the contract authority to the actual realized amount on the SF 133 and supports line 6610 on the OMB P & F. USSGL account 4134 was included in year 3 of the scenario for indefinite contract authority and used when there was a recovery of a prior year obligation that could not be re-used as contract authority. The reduction was taken on line 6D of the SF 133 and P & F lines 2210 and 7345. Rita Cronley (DoD) asked for this transaction to be shown in two steps using account 4450 "Unapportioned Authority" as shown in Section III of the USSGL TFM The IRC approved the scenario.

Portion Substituted for Borrowing Authority (Appropriation)

Ava stated that borrowing authority is a type of budget authority that permits agencies to incur obligation and make payments to liquidate obligations from borrowed moneys. However, once the money is actually borrowed, it is no longer borrowing authority. An agency may use an appropriation to liquidate obligations that were initially incurred against authority to borrow when the borrowing was not exercised.

Ava reviewed the definite and indefinite scenarios. She commented that the scenario does not pertain to accounting for credit reform. Ava pointed out the use of USSGL account 4140 "Substitution of Borrowing Authority" in year two. The agency has borrowing authority that was carried forward from year one. Based on an appropriation or authorizing language, the agency received an appropriation to liquidate obligations initially incurred against authority to borrow when the borrowing was not exercised. Account 4140 is a reduction to that authority. The reduction is reported on line 6D of the SF 133 and P & F line 6053 of the scenario. At yearend, account 4140 closes to 4149 "Borrowing Authority Carried Forward".

Ava then reviewed the indefinite scenario for borrowing authority. She discussed the use of USSGL accounts 4143 "Reductions of Borrowing Authority" and 4144 "Borrowing Authority Withdrawn". In the indefinite borrowing authority scenario, borrowing authority is estimated at the beginning of the year (page 18, transaction). When an obligation has been incurred, the actual borrowing authority is realized (page 18, transaction 4). At the end of the year, the estimated borrowing authority should have a zero balance. Account 4143 is used as a pre-closing adjusting entry in conjunction with other resource accounts to adjust the balance in borrowing authority to the actual realized amount on the SF 133. This account also supports P & F line 6710. Account 4144, included in year 2 of the scenario for indefinite borrowing authority, is used when there is a recovery of a prior-year obligations for borrowing authority. The reduction was taken on line 6D of the SF 133 and P & F lines 2210 and 7345. The IRC approved the scenario.

Portion Substituted for Borrowing Authority (Offsetting Collections)

Ava reviewed the scenario for indefinite and definite borrowing authority. She stated that this scenario does not pertain to accounting for credit reform. Ava noted that in rare instances, usually based on an appropriation or authorizing language, an agency may use offsetting collections to liquidate obligations that were initially incurred against authority to borrow when the borrowing was not exercised. Teresa Tancre (OMB) stated that this situation has not occurred in the last six budget cycles, although she agrees that it is possible.

Ava pointed out that USSGL account 4140 "Substitution of Borrowing Authority" is the same account used for the appropriation, but it has a domain value of "S – Spending Authority" for authority type due to offsetting collections. Account 4140 reduces borrowing authority and is reported on line 6D of the SF 133 and P & F line 6953. At year end, account 4140 closes to 4149 "Borrowing Authority Carried Forward". The IRC approved the scenario.

Ava reviewed the proposed USSGL accounts used in the above scenarios.

Proposed USSGL Account Title

• 4130 Appropriation To Liquidate Contract Authority Withdrawn
• 4134 Contract Authority Withdrawn
• 4140 Substitution of Borrowing Authority
• 4144 Borrowing Authority Withdrawn

Ava reviewed the proposed changes to USSGL accounts 4133 "Reductions of Contract Authority" and 4143 "Reductions of Borrowing Authority".

Open Discussion

Judy mentioned that the next USSGL Board meeting is tentatively scheduled for July 18, 2002. This will extend our changes for fiscal 2003 reporting with a new USSGL TFM to come out at the end of August 2002. There are several Treasury efforts that we would need to get into the USSGL by October 1, 2002. Changes will facilitate reporting purchases of capitalized assets, the footnote to the Statement of Changes in Net Position, prior period adjustments and changes to the budgetary accounts proposed at this meeting. FMS is working with OMB to create instructions for a closing package. The package includes the purchases model. The closing package will be audited and reported to Treasury via FACTS I. It is scheduled to replace AGWs beginning with reporting for fiscal 2003.

Attendees

Joe Keady USAID

Rita Cronley DoD

Bob Booker DoD/DFAS

Judy Twitty SSA

Kellice Chance HHS

Monica A. Clarke HUD

James White HUD/FHA

Barbara Harbell DoE

Bob Montgomery SBA

Letha Holliday SSA

Traci A. Carroll HUD

Valerie Grant DoJ

Kotora Padgett DoJ

Janet McLean VA

Carol Ann Miragliuolo VA

Leon Fleisher ED

Jennifer Fleming ED

Shashi Patel NSF

Bruce Henshel Commerce

Kelvin Baker USDA

Sid Reid USDA

Jacqueline Harvey FCC

Teri Lin USDA-CCC

Wesley Jarmon FCC

Cheryl Parker USDA-FNS

Michael Swanchara GSA

Bruce Crippin State

Christine Kent DOT

Linda Rogers HUD/FHA

Teresa Tancre OMB

Mercedes Lewis FMS, Accounting Systems

Christine Chang FMS, USSGL

Toni Clark FMS, USSGL

Ava Cox FMS, USSGL

Gwen Ferrell FMS, USSGL

Karl Foltz FMS, USSGL

Veronica Kitchen FMS, USSGL

Melinda Pope FMS, USSGL

Kathy Winchester FMS, USSGL

Judy Yuran FMS, USSGL