U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
September 28, 2006
Kathy Winchester (FMS) opened the meeting by stating that the agenda would include discussions on Reporting Distributed Offsetting Receipts (DOR) on the Statement of Budgetary Resources (SBR), Early Cancellation of Appropriations, Return of Funds via Nonexpenditure Transfers, and Tie-Points.
Kathy Winchester began by discussing the Guide to Reporting DOR on the SBR. She noted that the purpose of the guide is to assist agencies in determining what accounts are distributed offsetting receipts and to determine the proper amounts to report on the SBR.
Kathy noted that agencies should first check the Treasury Combined Statement, Part IV, Receipts by Department, to determine if they have DOR. In addition, agencies should check Treasury Financial Manual, Volume I, Bulletin No. 2006-05, to determine if there has been a redistribution of receipts to the agency since the end of the prior fiscal year. Other sources of determining DOR are the agency's budget personnel and the agency's Office of Management and Budget program examiner.
After the agency has determined that it has DOR, it should look at the Governmentwide Accounting (GWA) Account Statement for each identified Treasury Account Symbol (TAS) for the total amount to report on the SBR. Then, the agency should report the balance in the TAS if the TAS is swept annually by Treasury. If the TAS is not swept annually, the agency must report the difference between the beginning and ending balances. Consult the Guide to Reporting DOR on the SBR to determine the correct amount to use based on the TAS and the fiscal year identifier.
A USSGL-account-based trial balance is required for each TAS that contains the agency's 2-digit department code. These trial balances are used to compile the agency's financial statements.
Michele Crisman (FMS) thanked the agencies for providing their tie-point information. The Tie-Point Project was initiated by the Issues Resolution Committee (IRC) to develop a series of standard USSGL accounting relationships and to publish them in a workbook.
Michele began by giving the status of the Tie-Point Project. She noted that the tie-point information is still being updated. The goal is to have the valid tie-point information on the USSGL Web site by February 2007.
Karen Metler (FMS) discussed recording the return of funds that were originally received using USSGL account 5755, "Nonexpenditure Financing Sources - Transfers-In." The issue was whether USSGL account 5755 should be reversed or whether agencies should record USSGL account 5765, "Nonexpenditure Financing Sources - Transfers-Out," instead. The consensus was that if the funds were received and returned in the current year, then USSGL account 5755 should be used. If the transfer relates to a prior year, then agencies may still use USSGL account 5755, but it will cause an abnormal balance in the account. The agency would need to explain this abnormal balance activity. One agency representative noted that the auditors required an explanation of all abnormal balances to include support information for the accounting entry.
Although the IRC reached a consensus, the decision was not final. Ultimately, the decision rests with the agencies involved. However, the initiator of the SF 1151: Nonexpenditure Transfer, is required to indicate the USSGL account that is recorded. The recipient of the transfer should record the reciprocal account. If there is a discrepancy, then the two parties involved must work it out.
Michele Crisman discussed two draft scenarios: one on Accounting for Early Cancellation of the Entire Appropriation and one on Accounting for Partial Cancellation of No-Year TAFS With Definite Authority. The two scenarios include a new proposed USSGL account 4351, "Partial or Early Cancellation of Appropriation With a Warrant"; a revision to the definition of USSGL account 4350, "Canceled Authority"; and revisions to the account titles and definitions for USSGL accounts 8101, "Partial Authority Cancellation," and 8102, "Offset for Partial Authority Cancellation." New USSGL account 4351 is needed to record partial or early cancellations without an adjustment to the FACTS II System.
A suggestion was made and accepted to add the word "Treasury" to the title of USSGL account 4351. It will now read, "Partial or Early Cancellation of Appropriation With a Treasury Warrant."
After some discussion, the committee decided to make additional modifications to the draft scenarios and to present them at a future meeting.
Judy Yuran, FMS