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

August 21, 2003

GENERAL ITEMS

Judy Yuran (FMS) opened the meeting and introductions were made. Judy informed the agencies that Susan Lee (FASAB) would brief the committee on her study on Federal Government leases. If agency representatives have information on their agency's lease agreements and how they handle the accounting for their agency, they should provide it to Susan. Judy also mentioned that Marilyn Evans (FMS) would present draft USSGL crosswalks for the Closing Package statements. The review would concentrate on a line-by-line analysis to ensure that all necessary USSGL accounts are listed. Judy suggested that if any issues arise with the TFM guidance, we would make a note of them and forward them to the Financial Reports Division at FMS. If necessary, we could discuss them at future IRC meetings because she wanted to finish the review of the crosswalks as they are scheduled to be included in the next release of the USSGL TFM (projected for the end of next week). If time permits, the committee would review the Payroll Scenario that Christine Chang (FMS) drafted.

HANDOUTS

• USSGL Crosswalks for the Closing Package for the Governmentwide Financial Report System (GFRS) Balance Sheet, Statement of Changes in Net Position, and Statement of Net Cost for Fiscal 2004
• I TFM 2-4700, Appendices 1 and 2
• Draft Annual Leave Scenario

AGENDA ITEMS

USSGL Crosswalks for the Closing Package for the Governmentwide Financial Report System (GFRS) Balance Sheet, Statement of Changes in Net Position, and Statement of Net Cost for Fiscal 2004

Marilyn mentioned that the draft crosswalks will be included in a new and separate Section VI, of the USSGL TFM. These crosswalks support the Financial Reports Division of FMS' TFM. This TFM does not belong to the USSGL, therefore any concerns will have to be addressed through Faye McCreary (FMS). Marilyn said that the guidance addresses three statements (Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position). These statements are different in many ways from the OMB Form and Content statements. One significant difference is that the Balance Sheet is pre-closing instead of post-closing. Dana James (OMB) questioned this concept. Marilyn explained that the information will be coming from agency audited financial statements and not FACTS I ATBs, except for the non-verifying agencies, who will be submitting FACTS I ATBs; and that there will be non-CFO agencies reporting the Closing Package statements.

In addition, agencies will reclassify their audited financial statement figures to the Closing Package financial statements. The guidance provides the elimination reciprocal codes for Federal transactions and Marilyn included them on the appropriate lines. Barbara Hill (DoD) noted that the guidance in the TFM is not consistent when comparing Appendices 1 and 2. The committee agreed that they should be consistent. Bob James (LoC) suggested that the guidance provide a description for Federal Capitalized Assets to include "purchased from the public." Lena Lewis (FMS) made note of these issues and will bring them back to the eliminations staff.

Judy reminded the committee to make sure all the appropriate USSGL accounts were included on each line. The committee reviewed the guidance and the draft crosswalks together to assure consistency and accuracy.

Balance Sheet

A committee member questioned the use of Fed and Non-Fed attributes for USSGL account 2130, "Contract Holdbacks." Although the FACTS I attribute table indicates that they can be both, the question was if a contract could be held back between two Federal agencies. Joe McAndrew (Treas) offered that he did know of an example of two agencies where this had occurred. Eileen Parlow (DoD) mentioned that USSGL account 2960, "Accounts Payable From Canceled Appropriations," should crosswalk to the accounts payable line and not to the other liabilities line. In addition, problems are being created when appropriations with significant balances are canceled. When the accounts payable moves from USSGL account 2110, "Accounts Payable" to account 2960, it should not be migrating to a different line on the agency's Balance Sheet. Judy said she would look into it.

Joe questioned having USSGL account 5799, "Adjustments to Appropriations Used," in the guidance and on the crosswalk for Line 9, "Cumulative Results of Operations." Eileen said it was for credit reform. The FACTS I Account Attribute Table for this USSGL account does not indicate a Fed or Non-Fed attribute.

Statement of Net Cost

It was noted that the USSGL account 7000 series for gains should be grouped with "revenue" (line 8) instead of with "cost" (line 3). Form and Content Statement of Net Cost crosswalk will be adjusted to show this change as well. It is appropriate to use the exchange attribute as the gain is earned and earned revenue is exchange revenue. Because line 6.3 for the buy/sell is not specified with an exchange attribute, then the reciprocal category on line 3 for the loss accounts (7210, 7211,7280,7290) should not be specified as exchange as well. This change was made to the crosswalk.

Statement of Changes in Net Position

This crosswalk is completely different than what we are used to seeing. 3100/3310 columns are not broken out as on the Form and Content Statement crosswalk. There are Fed lines by reciprocal categories. The issue of losses being classified as expenses on the Net Cost statement may result in changes to lines 5.7 through 7.8. For line 5, we will add "Treasury Only" to 5.1, 5.2, 5.3, 5.5, and "DHS Only" to 5.6. Please note that line 7.5 will net to zero for all agencies except the Treasury Department. Joe questioned including imputed financing in the reciprocal reconciliation as it is handled internally.

Federal Government Leases

Susan Lee briefed the committee on her project with FASAB to develop a paper to be presented at the October FASAB Board. Susan is collecting as many scenarios as she can to consolidate into the paper in order to provide FASAB with as much information as possible on how the Federal Government is conducting business in regard to leases and lease agreements. Susan shared that the issue is very complicated with all the various agency legislation and official guidance. There are indications that legislature will be allowing more Government agencies to enter lessor agreements. She is gathering information from accounting guidance in GASB, FASB, and OMB to compare with FASAB. An example that Susan shared was the fiscal clause provided in FASB that the lease is contingent on the availability of funds where FASAB does not include this. Susan is looking at agency information through four basic criteria:

1. Disclosure Notes from Statements
2. Policy guidance on leases and the capital threshold criteria
3. Who is using the policy
4. Posting logic

Susan is working with several agencies with partnership ventures including; DoD, VA, NASA, Energy, Interior, and DHS. She asked the GSA representative to contact her as well. Susan's phone number is 202-512-3522, fax 512-7366, and email leesk@fasab.gov.

It was mentioned that the new OMB Circular No. A-11 changed Appendix B, for lease purchases.

Annual Leave

Christine reviewed the draft scenario. In year two, page 5, transaction 3; the budgetary transaction second choice was decided upon. In year one, you ended the year with a balance in USSGL account 4901 "Delivered Orders - Obligations, Unpaid." On page 6, transaction 4B under unexpired appropriation, there is a note to highlight that for the Statement of Financing. It is important to do the reclassification of unfunded to funded.

CLOSING REMARKS

Judy mentioned that since we probably won't be meeting in the next couple weeks, she wanted to announce that Marilyn Evans from the USSGL staff has accepted a new position with the Department of Homeland Security. Judy thanked Marilyn for her work with the USSGL and wished her well.

ATTENDEES

Judy Yuran, FMS
Shadonna Broaddus, FMS
Christine Chang, FMS
Toni Clark, FMS
Marilyn Evans, FMS
Karl Foltz, FMS
Gwen Marshman, FMS
Karen Metler, FMS
Melinda Pope, FMS
Kathy Winchester, FMS
Don McKay, FMS/TAS
Lena Lewis, FMS/FRD
Linda Rodgers, HUD
Earl Barnes, GSA
Catherine Irani, GSA
Christine Kent, DoT
Su-Fang Stevens, DoJ
Letha Holliday, SSA
Veronica Freeman, DoL
Elbert Robert Booker, DoD/DFAS
Eileen Parlow, DoD
Barbara Hill, DoD
Leslie Godsey, SBA
Joseph Henry, SBA
Joe McAndrew, Treas
Jeanette Kuendel, PTO
Cindy Scharf, LoC
Bob James, LoC
Vickie Massey, FCC
Donald Dispanet, HUD
Dana James, OMB
E. Holzbar, DoC
Chaleta Moore, DoC
Joe Sorbera, Exim
Leon Fleischer, Education
Kotora Padgett, DoJ
Tawanda Smith, USDA
Charleta Dixon, USDA