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

June 27, 2002

Summary of Outstanding Issues:

Handouts

• Technical Changes to USSGL Accounts, dated 6/27/02
• Prior Period Adjustment Reference Materials, dated 6/27/02
• Prior Period Adjustments, dated 6/26/02
• Proposed Account Changes, dated 6/27/02
• Proposed Accounts, dated 6/27/02

General Items

Judy Yuran (FMS) opened the meeting. The previously scheduled July 18, 2002 USSGL Board meeting has been postponed until August. The new date will be announced in the near future. Additional time is needed to document requirements for the upcoming "closing package." The revised Statement of Changes in Net Position will include adjusting accounts that were previously discussed at the May 16, 2002 IRC meeting. The package will document all transaction flows that will require agencies to make adjustments. In brief, an agency's Statement of Changes in Net Position non-Federal cumulative amount will equal the Governmentwide Balance Sheet cumulative of assets minus liabilities. A series of new USSGL accounts for purchases will also be added in the memorandum series, which will help with preparation of the Statement of Financing.

Agenda Items

Technical Changes

Gwen Ferrell (FMS) discussed technical changes to USSGL account titles and definitions. The changes are effective for FY 2003, and will be reflected in the USSGL TFM scheduled for release August 2002. Gwen noted that the new USSGL TFM (S2-02-02) will be released and available on the USSGL Web site (www.fms.treas.gov/ussgl) next week.

Prior Period Adjustments

Veronica Kitchen (FMS) presented a scenario and proposal for new/modified USSGL accounts pertaining to prior period adjustments. Currently, many agencies are recording all prior period adjustments in USSGL account 7400 Prior Period Adjustments. This is incorrect per SFFAS No. 21, Reporting Corrections of Errors and Changes in Accounting Principles, which requires that non-material adjustments be recorded as current-year activity. Additionally, guidance is written as to whether or not prior period adjustments should result in restating the financial statements. SFFAS No. 21 states that financial statements are to be restated only if 1) the statements are provided for comparative purposes and if 2) the amounts are material.

Furthermore, note that it is NOT CORRECT under any circumstances to change balances in USSGL accounts from the previous year, or to make adjustments directly to USSGL 3310 Cumulative Results of Operations relating to prior period adjustments. Some agencies are currently doing this, and it must not continue.

The transactions in the scenario provide guidance for recording transactions related to changes in accounting principle, corrections of material errors requiring financial statement restatement, and corrections of non-material errors that do not require financial statement restatement. In order to facilitate proper reporting, the following new USSGL accounts are proposed:

3108 Unexpended Appropriations - "Prior Period Adjustments - Restated"
5708 Expended Appropriations - Prior Period Adjustments - Restated
5709 Expended Appropriations - Prior Period Adjustments - Not Restated
7401 Prior Period Adjustments - Restated

The following modified USSGL account titles are proposed:

3109 Unexpended Appropriations - "Prior Period Adjustments - Not Restated"
7400 Prior Period Adjustments - Not Restated

When submitting FACTS I data to FMS, the beginning balances in cumulative results (USSGL 3310) and Unexpended Appropriations (USSGL 3100) MUST equal the ending balances submitted the previous period, not the ending balances restated. However for agencies required to restate their financial statements, the prior period adjustment must be reflected. In FACTS I, this information is required in a footnote. The new and modified USSGL accounts proposed will accommodate both.

The following comment was received on the presentation of the prior period adjustment line on the Statement of Changes in Net Position. How will the USSGL crosswalks be presented, and will this require a change in the Form and Content format? At this point in time, it has not been communicated that the Form and Content format will change. Therefore, Veronica will modify the handout for the Statement of Changes in Net Position so that it is in conformity with Form and Content.

The proposed new definitions of USSGL 3109 and 7400 were modified as follows:

Proposed Account Title: 3109 Unexpended appropriations - "Prior Period Adjustments - Not Restated"
Proposed Definition: The amount of net increase or decrease to unexpended appropriations as a result of posting a "prior period adjustment." This USSGL account is used only when making a "prior period adjustment" that does not require restatement of prior period financial statements in accordance with SFFAS No. 21.

Proposed Account Title: 7400 Prior Period Adjustments - Not Restated
Proposed Definition: Material adjustments affecting the cumulative results of operations. These adjustments do not require restatement of prior period financial statements in accordance with SFFAS Number 21.

A discussion followed as to whether the definitions should include a sentence pertaining to agencies that are currently not required to prepare comparative financial statements. Veronica will research and re-present to the IRC before the accounts become final.

Note: Technical corrections to handout for proposed new accounts:

Change 5708 "Expended Appropriations - Restated" to "Expended Appropriations - Prior Period Adjustments - Restated."

Change 5709 "Expended Appropriations - Prior Period Adjustments Not Restated" to "Expended Appropriations - Not Restated."

Attendees

Judy Yuran FMS/USSGL
Christine Chang FMS/USSGL
Gwen Ferrell FMS/USSGL
Karl Foltz FMS/USSGL
Veronica Kitchen FMS/USSGL
Karen Metler FMS/USSGL
Kathy Winchester FMS/USSGL
Mercedes Lewis FMS
Ann Burnell HHS
Teri Lin USDA/CCC
Lynn Moaney USDA/OCFO
Vickie Massey FCC
Jim Brady EPA
Bob Booker DOD/DFAS
Barbara Hill DOD/DFAS
Linda Rodgers HUD
Traci Carroll HUD
Monica Clarke HUD
Michael Swanchara GSA
Earl Barnes GSA
Janice Alexander NSF
Carla Kohler State
Christine Kent DOT
Scott Chayette DOE
Don McKay Treasury/Agency Services