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U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes

November 30, 2006

GENERAL ITEMS:

Kathy Winchester (FMS) opened the meeting by reviewing the meeting agenda. Introductions were made.

HANDOUTS:

  • Deposit Fund Trial Balance Tie-Points 1-13 - Draft

  • Deposit Fund Trial Balance Tie-Points 14-15 - Draft

  • Deposit Fund Trail Balance Tie-Points Exception List - Draft

  • Key to Trial Balance Deposit Fund Tie-Points - Draft

  • Special Fund Trial Balance Tie-Points 1-13 - Draft

  • Special Fund Trial Balance Tie-Points 14-15 - Draft

  • Special Fund Exception Trial Balance Tie-Points - Draft

  • Special Fund Trail Balance Tie-Points Exception List - Draft

  • Key to Trial Balance Special Fund Tie-Points - Draft

  • Trust Fund Trial Balance Tie-Points 1-13 - Draft

  • Trust Fund Trial Balance Tie-Points 14-15 - Draft

  • Trust Fund Exception Trial Balance Tie-Points - Draft

  • Trust Fund Trail Balance Tie-Points Exception List - Draft

  • Key to Trial Balance Trust Fund Tie-Points - Draft

Karen Metler (FMS) thanked the agencies for providing comments on the tie-points. She requested that agencies continue to review the draft tie-points and provide comments to her or Michele Crisman (FMS). Karen explained that this was the initial attempt to consolidate agency comments, work through each tie-point, and create a list of tie-point exceptions. She also stated that the tie-points now are categorized into Deposit, Special, Trust, Revolving, and General Funds. Once the Deposit, Special, and Trust Fund Tie-Points have been completed, the IRC will work on the Revolving and General Fund Tie-Points. Karen projected that the tie-points will be available on the USSGL Web site by the end of January. She reminded attendees that the tie-point workbooks are "living" documents that will require periodic updates and will assist agencies in reconciling USSGL account reporting.

Michele provided a brief background on the format for the tie-point handouts, which were available on the USSGL Web site. For each fund type there was a separate Excel tie-point workbook that contained separate worksheets to capture tie-points unique to each fund type. USSGL accounts were matched to each fund type. For consistency purposes, all worksheets followed the same format and the tie-point numbers were the same. The tie-points will remain the same across all workbooks, even if a particular tie-point is not applicable for that particular fund type. In addition, the workbook footers identified the separate worksheets. The official date of the tie-points will be consistent with the date the tie-points are uploaded to and available on the USSGL Web site.

Michele stated that tie-points without valid exceptions will be indicated by the following note, "There are no known exceptions at this time." This note also should satisfy possible audit inquiries. After discussion, the IRC agreed to replace this note for Deposit Fund Tie-Point 2-15 with the following, "This is not a valid tie-point for Deposit Fund Tie-Point numbers 2-15." Michele requested that agencies provide other suggestions via e-mail to michele.crisman@fms.treas.gov by December 8, 2006.

Michele emphasized that each of the tie-point workbooks follows standard "textbook" logic. Since the tie-point workbooks are categorized by fund type, only the USSGL accounts typically associated with each particular fund type are included. For example, Trust and Special Funds generally do not receive appropriations from the General Fund of the Treasury (USSGL account 4119, "Other Appropriations Realized"). Therefore, USSGL account 4119 will not appear in the Trust or Special Fund Tie-Point workbooks. However, there are exceptions, and those known exceptions will be listed on either the Exception List worksheet or the Supplemental Trial Balance Tie-Points worksheet.

Michele developed individual charts of accounts for each fund type by reviewing the USSGL Chart of Accounts. She noted each fund type to which each USSGL account typically would apply. Agencies were encouraged to review the worksheet chart of accounts along with the other worksheets for each fund type.

DEPOSIT FUND TIE-POINT REVIEW

Deposit Fund Tie-Point 1, Assets = Liabilities, Net Position, Revenue, Expenses, and Gains/Losses (Preclosing)

Eileen Parlow (FASAB) indicated in addition to USSGL accounts 1010, "Fund Balance With Treasury"; 1110, "Undeposited Collections"; and 1190, "Other Cash," the Deposit Fund Tie-Points can have other asset accounts. She suggested researching the Thrift Savings Plan (TSP) statements to determine other asset accounts used. Additionally, she explained that deposit funds must use accrual accounting and that, although deposit funds are "non-budgetary," this does not mean that deposit funds are "off budget." Lynn Poyner (DoJ) mentioned that the Department of Justice uses investment accounts in its deposit funds. Michele stated that all USSGL 16XX (Investment series), will be added to Tie-Point 1. A suggestion was made to add USSGL account 1090, "Fund Balance With Treasury Under a Continuing Resolution," but the IRC commented that a continuing resolution will not be in a deposit fund. Therefore, it was agreed that USSGL account 1090 should not be included in the Deposit Fund Tie-Point. Michele also will research adding applicable USSGL accounts 2XXX (Liabilities) to Tie-Point 1.

Deposit Fund Tie-Points 2-13 and 15

These tie-points are not applicable for deposit funds because they include budgetary accounts. Therefore, the note will be changed to read, "This tie-point is not applicable for deposit funds." This note also will be added to the Exception List.

Deposit Fund Tie-Point 14, Postclosing (Prior Year) = Beginning (Current Year)

Michele explained that USSGL accounts added to Tie-Point 1 will be added to Tie-Point 14 as well.

SPECIAL FUND TIE-POINT REVIEW

Special Fund Tie-Point 1, Assets = Liabilities, Net Position, Revenue, Expenses, and Gains/Losses (Preclosing)

USSGL accounts 16XX (Investments) were erroneously removed. They will be replaced in Special Fund Tie-Point 1.

Special Fund Tie-Point 2, Budgetary Cash = Proprietary Cash

For Special Fund Tie-Point 2, there are two different approaches. Tie-point 2A addresses proprietary cash using the FMS 2108, "Year-End Closing Statement," perspective. Tie-Point 2B compares proprietary cash to budgetary cash received, less what was disbursed, which follows the strict cash test.

An IRC opinion was taken as to the preference of Tie-Point 2A vs. 2B. Agency representatives unanimously preferred Tie-Point 2B; however, they will follow up with their agencies and let Michele know their preference by December 8, 2006. Barbara Harbell (DoE) suggested adding "or" between options A and B, if both approaches are kept, to help clarify that there are two separate options.

The following changes were made to Tie-Point 2A:

  • USSGL accounts 4221, "Unfilled Customer Orders Without Advance"; 4225, "Appropriation Trust Fund Transfers - Receivable"; 4232, "Appropriation Trust Fund Transfers - Receivable - Transferred"; 4233, "Reimbursements and Other Income Earned - Receivable - Transferred"; 4283, "Interest Receivable from Treasury"; 4285, "Receivable from the Liquidating Fund"; and 4286, "Receivable from the Financing Fund" will be added.

  • USSGL accounts 1610 through 1638 will not be removed.

Marilyn Evans (DHS) mentioned that Tie-Point 2A is similar to, if not the same as, Note 3 of the Notes to the Financial Statement. Michele explained that the current tie-points focus on the Trial Balance and the next phase will include tie-points between financial statements.

The following changes were made to Tie-Point 2B:

  • USSGL account 4222, "Unfilled Customer Orders With Advance"; 4231, "Unfilled Customer Orders With Advance - Transferred"; and all USSGL accounts 16XX will be added.

  • A note will be added to the Exception List stating, "If authorized to use USSGL account 4119, "Other Appropriations Realized" in agency legislation, it will create a valid exception.

Special Fund Tie-Point 3, Unpaid Expended Authority = Accounts Payable

The IRC questioned why USSGL account 4971, "Downward Adjustment of Prior-Year Unpaid Delivered Orders - Obligations, Recoveries" had been removed. The IRC consensus was that USSGL account 4971 should not have been removed. Michele will determine why the account was removed. The IRC also questioned whether USSGL accounts 2910, "Prior Liens Outstanding on Acquired Collateral," and 2960 "Accounts Payable From Canceled Appropriations" should be added. These issues will be researched.

Special Fund Tie-Point 4, Expended Obligations = Proprietary Costs and Capitalized Costs

The IRC questioned why USSGL account 4971 was removed (same as Tie-Point 3). Also, a question was raised regarding the use of USSGL account 4981, "Upward Adjustment of Prior-Year Delivered Orders - Obligations, Unpaid" versus USSGL account 4971. This issue will be researched.

A note will be added to Tie-Point 4 and the Exception List stating, "If prior-period adjustments are involved, further analysis will be necessary."

Special Fund Tie-Point 5,Total Advances and Other Prepayments = Undelivered Orders Prepaid/Advances

Kathy Sherrill (DoD) indicated that DoD has valid advances for contracts after the appropriation lapses. Kathy Winchester (FMS) stated that DoD can only use those advances if it receives extended disbursing authority for the affected Treasury Appropriation Fund Symbol through legislation. Without the extended disbursing authority, DoD should move the advances to USSGL account 1990, "Other Asset." Therefore, no change to Tie-Point 5 is necessary. The IRC/USSGL staff will address other changes to Tie-Point 5, if DoD receives the extended disbursing authority.

Special Fund Tie-Point 6, Unfilled Customer Orders With Advance = Unearned Revenues

The separate Tie-Point 6 workbooks titled, "Exception List" and "Exception Trial Balance Tie-Points," were causing confusion. It was suggested that the title "Exception Trial Balance Tie-Points" be changed to "Supplemental Trial Balance Tie-Points." When there is a supplemental tie-point, the note, "Check the Supplemental Trial Balance Tie-Point 6," will be provided on the Exception List. If there is no supplemental tie-point, the note, "No known exceptions," will be provided.

The meeting concluded with the review of Tie-Point 6. Next week, the meeting will begin with Special Fund Tie-Point 7. The goal will be to complete review of the Special and Trust Fund Trial Balance Tie-Points.

Attendees were reminded to bring the tie-point handouts from today's meeting, which will remain on the USSGL Web site, to the follow-up meeting on December 7, 2006.

ATTENDEES:

Kathy Winchester, FMS
Karen Metler, FMS
Keith Mertz, FMS
Michele Crisman, FMS
Karl Foltz, FMS
Gwen Marshman, FMS
Donald Wood, FMS
Andrea Cherry, FMS
Dawn Sharps, FMS
Valeria Spinner, FMS
Eileen Parlow, FASAB
Kathy Sherrill, DoD
Maryla Engleking, DoD
Barbara Harbell, DoE
Patrice Cousins, NSF
Shashi Patel, NSF
Souleymane Dosso, DoJ
Kim Williams, DoJ
Lynn Poyner, DoJ
Yen Le, State
Tesfaye Wyes, DoC
Catherine Irani, GSA
Britt Fucito, USPTO
Geneva Jones, HHS
Jenny Smith, HHS
Christine Kent, OPM
Marilyn Evans, DHS
Teresa Lampkin, DoT
Edward Ramos, DoT
Yong Sun, HUD


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