U.S. Government Standard General Ledger Board and Issues Resolution Committee Meeting Minutes
August 8, 2002
GENERAL ITEMS:
Gwen Ferrell (FMS) opened the meeting. She reviewed the topics that would be presented today. Gwen stated that she would discuss the FACTS I attribute definitions. In addition, Karen Metler (FMS) will review a new Trust and Special Fund Scenario, the new USSGL account, the FACTS II attribute table and the interim updates to the 2002 Budget Program and Financing (P&F) Schedule.
Gwen informed the IRC that the USSGL Division is under tight deadlines to get the TFM out. There will be an informational board meeting on August 22, 2002. Agencies will receive a ballot and will have a week in which to vote. Ballots are due back to us by September 9th and the final TFM will be on the web by the end of September.
Rita Cronley (DOD) indicated that the time constraints are very tight. Several agencies are decentralized; therefore, a week is not a sufficient amount of time to get the ballot out for review. Rita suggested that a draft ballot be put on web prior to the August 22nd meeting. Gwen stated that putting the ballot on the web could be a problem because the ballot is not final and there may be last minute technical changes. Gwen mentioned that we would discuss this issue with Judy Yuran (FMS). Introductions of IRC members were made.
HANDOUTS:
FACTS I USSGL Account Attribute Definitions (dated 8/8/02)
Draft Proposal for Trust and Special Fund Nonexpenditure "Appropriation" Transfers (dated 8/8/02)
Draft Trust or Special Fund Refunds of Prior-Year Obligations (dated 8/8/02)
Interim Summary of Changes (Updates TFM S2-02-02 dated August 2002)
AGENDA ITEMS:
FACTS I USSGL Account Attribute Definitions
Gwen Ferrell (FMS) informed the IRC that FMS added a new attribute entitled, "Treasury Account Main Code". The definition of this attribute is a 4-digit identifier that corresponds to the Treasury account symbol found in the Federal Account Symbols and Titles (FAST) Book. This number is used in conjunction with the Federal (F) USSGL account attribute and the 2-digit trading partner. Gwen reviewed a portion of the Fiscal 2003 USSGL Account Attributes Required for FACT I Reporting. She indicated that the column, "Treasury Account Main Code" was added. When the Federal/NonFederal column has a "Y" or "F" attribute the Treasury Account Main Code will be required.
Bob Booker (DOD) asked would this be required for fiscal 2003? Gwen replied that the effective date has not been determined by FMS; however, the upcoming TFM will include this column. There were no comments on the definition.
Proposal for Trust Fund and Special Fund Nonexpenditure "Appropriation" Transfers
Karen Metler (FMS) discussed a situation where trust/special funds are established in such a way that the investment authority resides within one account, but another account has the authority to obligate and disburse. In order to maintain sound cash management principles, the funds must remain invested until needed for disbursement to maximize the interest earned. Since the investment function resides within one fund, and the obligation and disbursement function resides within another fund, a budgetary mechanism may be needed to transfer the budget authority prior to the actual transfer of funds. This would be in order to cover obligations, or as a result of an amount specified in an agency's appropriation or authorization act. Budgetary receivable and payable accounts are needed to correspond with the existing proprietary receivable and payable USSGL accounts (1330 Receivable for Transfers of Currently Invested Balances and 2150 Payable for Transfers of Currently Invested Balances).
Karen reviewed the two proposed new accounts that will be effective fiscal 2003; however, early implementation of the accounts will be in the FACTS II system for fiscal 2002, 4th Quarter reporting.
Proposed New Accounts:
4171 Transfers-Current-Year Authority - Receivable: amount to be transferred in of unrealized nonexpenditure appropriation transfers between two trust funds, two special funds, or a special fund and another Federal fund, where there is investment authority involved.
4172 Transfers-Current-Year Authority - Payable: amount to be transferred - out of unrealized nonexpenditure appropriation transfers between two trust funds, two special funds, or a special fund and another Federal fund, where there is investment authority involved. Karen noted that this account is the other side of 4171.
Teresa Tancre (OMB) noted that this a very unique situation that addresses 3 or 4 accounts within the entire federal government. FMS/OMB will monitor who is using these accounts.
Karen presented the proposed modification to USSGL 4170 Transfers - Current - Year Authority. She noted that there is not a need for a new USSGL account because this situation only pertains to 3 fund symbols.
Proposed Modification:
4170 Transfers - Current - Year Authority: record this account when an 1151 is accomplished. The amount of realized nonexpenditure transfers between two Treasury Appropriation Fund Symbols (TAFS) during the fiscal year of current-year unobligated authority. Karen noted that this amount also includes transfers of prior year amounts from invested balances that reduce previously established USSGL 4171, "Transfers - Current-Year Authority - Receivable" or 4172, "Transfers - Current - Year Authority - Payable." Rita Cronley (DOD) questioned the title of "Current-Year Authority" since the definition refers to transfers of "prior year" amounts. The definition appears to conflict with the title. Teresa Tancre (OMB) stated that the funds are invested and are not pulled until needed for disbursement. This is for cash management purposes; therefore, the transfers can include prior year invested amounts. Karen suggested that the term "prior year" be removed from the definition.
Karen reviewed the impact on the crosswalks for the following accounts:
4170
SF133, Line 1D, "E" balance
P&F Lines 4100, 4200, 6100, 6200 and 7000, "E" balance
4171
FMS 2108, column 7
SF133, Line 1D, "E-B" balance
SF133, Line 2A, "B" balance (stays open)
P&F Lines 4100, 4200, 6100, 6200 and 7000, "E-B" balance
4172
FMS 2108, column 10
SF133, Line 1D, "E-B" balance
SF133, Line 2A, "B" balance (stays open)
P&F Lines 4100, 4200, 6100, 6200 and 7000, "E-B" balance
Karen reviewed the transactions in the scenario between two trust funds, Trust Fund A and Trust Fund B.
Year 1
Trust Fund A had the authority to invest receipts that were collected, and record the payable for the transfer of authority and financing sources. Trust Fund B recorded the receivable for transfer of authority. At the end of the year, the payable and receivable accounts remained open. The transfer of authority is shown in both Trust Fund's SF 133 on line 1D. The receivable and payable is also shown on Trust Fund B's (receiving entity) FMS 2108, column 7 and column 11, respectively. It is also shown on the P&F lines as a mandatory transfer to (Trust Fund A's P&F line 6100) and mandatory transfer from (Trust Fund B's P&F line 6200).
Year 2
The actual transfer of funds occurred through a nonexpenditure transfer authorization (SF 1151). The receivable/payable account will be reduced and, the actual transfer of funds is recorded using (4170 Transfers - Current -Year Authority). The funds that were actually transferred are not included in year 2, SF 133, FMS 2108 or P&F Schedule.
Illustrative Flow chart
Karen briefly reviewed the illustrative flow charts for SF 1151 transfers for the following agencies:
Aquatic Resources Trust Fund and Related TAFS
Railroad Retirement Board
Department of Energy
Teresa Tancre (OMB) asked the agencies to coordinate with their counterparts for the receivable/payable at the end of the quarter or the fiscal year P&F and budget will not be correct.
DRAFT Trust or Special Fund Refunds of Prior-Year Obligations
Karen Metler (FMS)stated that when a general or revolving fund collects a refund of funds that were obligated in a previous year, and the appropriation against which the obligation was incurred remains available for new obligations, the refund is to be recorded as an offsetting collection. Any remaining unobligated balances will carry forward to the next year as unobligated balances brought forward, available for obligation. When a trust or special fund collects a refund of funds that were obligated in a previous year, the refund is also to be recorded as an offsetting collection. However, the collection may or may not be available for obligation.
If the collection is available for obligation, any remaining unobligated balances will carry forward to the next year as unobligated balances brought forward, available for obligation. If the collection is unavailable for obligation, however, the authority is withdrawn on SF 133 (line 6A), and reclassified at closing as unavailable for obligation. In other words, the unobligated balances are returned to unappropriated receipts, thus not brought forward as available for obligation. The funds collected will (generally) remain within the trust or special fund, regardless of whether the collection is available or unavailable for obligation.
Karen reviewed the scenario. She stated that the scenario is divided into two sections and each section is independent of the other.
Section I: Special Fund 14X5123 - Available for Investment and Obligation
Year 1 and Year 2 illustrate the accounting for a special fund where receipts and collections are available for obligation. The refund of funds obligated and disbursed in a previous year was collected and appears on the SF 224 against the special fund expenditure account (14X5123). The refund amount crosswalks to the SF 133 (line 3A1) and P&F lines 6900 and 8800. In year 2, the refund is included on the SF 133 (line 2A) and P&F line 2140.
Section II: Special Fund 14X5123 - Available for Investment and Unavailable for Obligation
Year A and Year B illustrate the accounting for a special fund where receipts and collections are unavailable for obligation. This section proposes the use of a new USSGL account 4381, Authority Withdrawn - Trust or Special Fund Refunds. This is the amount of authority in a trust or special Treasury Appropriation Fund Symbol (TAFS) that is withdrawn as a result of a refund collected that is unavailable for obligation.
Karen stated that a USSGL account is needed that crosswalks to SF 133, line 6A: Permanently Not Available and P&F, line 2398: Unobligated Balance Expiring or Withdrawn. Teresa Tancre (OMB) said that this account is used in rare exceptions and OMB will monitor who is using it. Karen may add to the definition, "use only with OMB approval". This account is effective for fiscal 2003 with early implementation in fiscal 2002.
Karen reviewed a transaction where the funds are invested in U.S. Treasury securities and the authority is withdrawn (USSGL account 4381). This USSGL account crosswalks to the SF 133, line 6A, and line 2398 on the P&F schedule. In Year B, there was no activity. Karen wanted to show how the balance is carried forward using account 4394 "Receipts Unavailable for Obligation Upon Collection".
Interim Summary of Changes
Karen Metler (FMS) reviewed the interim summary of changes and noted that this is an update from the June 2002 TFM. She also noted that these items are already on the web. Karen stated that there are several accounts that are officially effective for fiscal 2003 that can be early implemented in fiscal 2002. The IRC wanted a list of all accounts that are effective for fiscal 2003 that can be early implemented in fiscal 2002.
OTHER ITEMS:
Kathy noted that the in the FAST book, Treasury will mark the accounts in the receipt section for distributed offsetting receipts. This will be released within the next three weeks.
Teresa Tancre (OMB) stated that Public Law 107-206 across-the-board cut OMB
bulletin has been issued. If you have any question contact Kathy Winchester
(FMS) who will work with you on this. In addition, OMB's MAX A-11 budget preparation system will have five new edit checks for the Program and Financing (P&F) schedule related to FACTS II amounts. See OMB Circular No. A-11, section 82 for details. To prepare for this, you may want to visit http://www.whitehouse.gov/OMB/reports which, until 11/14/02, has a report highlighting the five P&F lines that will be edit-checked.
The report shows the difference between the FY 2001 year-end amount that FACTS II users reported last year, versus the amount that the budget office staff reported last
year. After 11/14/02, there will only be a report there showing the FY 2002
actuals as reported in FACTS II and crosswalked to P&F lines Teresa also informed the agencies if agencies are reporting 4114 (Appropriated Trust or Special Fund Receipts) and 4119 (Other Appropriation Realized) incorrectly in FACTS II, these balances will not accurately crosswalk to the P&F.
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