U.S. Government Standard General Ledger Board and Issues Resolution Committee Meeting Minutes
July 28, 2005
GENERAL ITEMS
Judy Yuran (FMS) opened the meeting stating that Keith Mertz will present the accounts closing chart and Eileen Parlow will discuss the Accounting for Fiduciary Activities Revised Exposure Draft.
HANDOUTS
Accounting for Fiduciary Activities - Power Point Presentation
Accounting for Fiduciary Activities - Revised Exposure Draft, June 27, 2005
Listing of USSGL Accounts and Accounts They Close To
AGENDA ITEMS
Keith Mertz (FMS) briefly discussed the accounts closing chart stating that changes were made based on comments from the IRC. Proprietary accounts were added and it was expanded to show expired accounts in addition to unexpired accounts. Canceled accounts will also be added after issues concerning canceled accounts are resolved. August 17, 2005, was given as a deadline for comments on the accounts closing chart.
Eileen Parlow (FASAB) presented an overview of Accounting for Fiduciary Activities as outlined in the Statement of Federal Financial Accounting Standards Revised Exposure Draft dated June 27, 2005. The presentation included an outline and explanation of exposure draft issues some of which are noted below.
Definition of fiduciary activities:
Fiduciary activities consist of funds held by a Federal entity in which non-Federal individuals or entities have an ownership interest that must be upheld.
Examples of fiduciary activity include the Indian Tribal Trust Funds managed by the Department of Interior and The Federal Retirement Board - Federal Thrift Savings Plan. Also, included as fiduciary activity are seized monetary assets until they are forfeited, prisoner deposit funds, and loan escrow accounts.
Exclusions (amounts not to be included in fiduciary activity): Amounts related to unpaid payroll withholdings and garnishments and unearned revenue are not to be reported as fiduciary activity.
Reporting requirements for Federal component entities: Fiduciary activity is to be reported in two notes to the financial statements.
Note 1 would state that fiduciary assets are not assets of the Federal Government and are not to be included on the Balance Sheet.
Note 2 would include a narrative describing the fiduciary relationship and activity, a Schedule of Fiduciary Activity, and a Schedule of Fiduciary Net Assets.
Agencies will need to decide how to capture fiduciary activity information in their accounting systems. Suggested methods include: Additional USSGL accounts, the addition of a USSGL account attribute to existing accounts, or through the Treasury Account Fund Symbols.
Judy Yuran noted that an IRC subcommittee will be formed to discuss the issue and recommend a solution to the IRC for approval.
Two alternative views to accounting for fiduciary activities were presented in the Revised Exposure Draft:
David Mosso (FASAB Board Chairman) is recommending a separate principal financial statement to replace the proposed note for fiduciary activities and net assets.
Bob Dacy (GAO) is recommending that the reporting requirements for the Financial Report of the United States Government be consistent with the requirements for Federal component entities.
Eileen Parlow noted that FASAB will hold a public hearing on fiduciary activity on August 17, 2005. Agencies are invited to appear before the board to state their views. To appear before the board send a bio of the speakers and prepared written testimony to Wendy Comes, Executive Director, by August 3, 2005.
CLOSING REMARKS:
Judy noted that she would prepare IRC comments on the exposure draft based on feedback from the IRC members. The IRC members should forward their comments to her so that she can meet the FASAB due date of August 30, 2005, for exposure draft comments.
ATTENDEES:
Judy Yuran, FMS
Michele Crisman, FMS
Melinda Pope, FMS
Karl Foltz, FMS
Keith Mertz, FMS
Oscar Castro, DOD/FMS
Eileen Parlow, FASAB
Christine Kent, OPM
Grace Kim, Ed.
Tara Tucker, Ed.
Patrice Cousins, NSF
Shashi Patel, NSF
Kim Williams, DOJ
Lynn Poyner, DOJ
Traci Carroll, HUD
Gregory Parker, HUD
Christine Chang, DOT
Teresa Lampkin, DOT
Richard Ebaugh, DFAS
Martha Hooks, USPTO
Joe McAndrew, Treas.
Don Geiger, Treas.
Bob James, LOC
Jacqueline Harvey, FCC
Kurt Kramer, NOAA
Joe McClintock, NOAA
