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

December 4, 2003

GENERAL ITEMS

Judy Yuran (FMS) opened the meeting and introductions were made. She indicated that Karen Metler (FMS) would be providing a summary of fourth quarter FACTS II issues. In addition, Christine Chang (FMS) would be presenting highlights on two FASAB exposure drafts.

HANDOUTS

• Architect of the Capitol - Lease Purchase Scenario
• Summary of Exposure Draft: Identifying and Reporting Earmarked Funds
• Exposure Draft: Identifying and Reporting Earmarked Funds
• Summary of Exposure Draft: Heritage Assets and Stewardship Land: Reclassification from Required Supplementary Stewardship Information

AGENDA ITEMS

Fourth Quarter FACTS II Issues

Karen Metler (FMS) highlighted the following issues that occurred during the fourth quarter submission:

Rescissions

Several agencies called with questions regarding rescissions of contract authority. We currently have nine scenarios addressing rescissions on the USSGL Web site that would have assisted in addressing some of the questions. There is not, however, a scenario that focuses on recording rescissions of contract authority. The USSGL Division will be developing a scenario on this in the near future.

Kathy Winchester (FMS) indicated that the Office of Management and Budget's (OMB) Circular A-11 included changes in where rescissions are recorded on the SF 133, Report on Budget Execution and Budgetary Resources. The changes included breaking out line 5, Temporarily Not Available Pursuant to Public Law, by temporary and permanent for special and trust funds. In addition, changes were made so that Line 6B, Enacted Rescissions, includes all regular rescissions, and line 6E, Pursuant to Public Law, includes all types of permanent reductions.

Rescissions in Trust and Special Funds

Karen explained that there are three USSGL accounts that should be used when recording rescissions in trust and special funds; USSGL accounts 4382, Rescission - New Authority - Special and Trust TAFS Designated by Treasury as "Available," 4383, Rescission - Prior-Year - Special and Trust TAFS Designated by Treasury as "Available," and 4386, Authority Permanently Unavailable for Obligation Pursuant to Public Law - Special and Trust TAFS Designated by Treasury as "Available." Rescissions that occur in available trust and special funds are distinguished from other rescissions in that the fund balance with treasury (FBWT) is not returned to the General Fund of the Treasury. The accounts mentioned, crosswalk to Column 11, Unobligated Balance, of the FMS 2108, Yearend Closing Statement, and Line 6B of the SF 133. However, OMB Circular A-11 states that Column 11 of the 2108 should equal the sum of Lines 9 and 10, Apportioned and Unobligated Balance Not Available, respectively, on the SF 133. Although OMB has no problems with this disconnect, the USSGL Division will still discuss revisions to the A-11 with OMB to resolve this issue.

Canceling Fund Symbols and Returning Unobligated Balances to Treasury

Numerous questions were received on how to cancel authority. Many questions could have been addressed by referring to the comprehensive scenario on cancellations on the USSGL Web site, www.fms.treas.gov/ussgl. Karen suggested for all agencies, not aware of the guidance, to read the scenario provided on our Web site.

In addition, she emphasized that agencies should note that there are different USSGL entries for reporting unobligated balances returned by a warrant and unobligated balances returned on the SF 2108. The reporting requirements are in Section III of the Treasury Financial Manual. For example, use USSGL account 4391, Adjustments to Indefinite No-Year Authority, to report amounts returned to Treasury on the SF 2108. It should also be noted that the use of USSGL account 4391 is only appropriate when a warrant is NOT issued. Teresa Tancre (OMB) re-emphasized that authority must equal obligations.

Changing of Beginning Balances

Many agencies requested that beginning balances be changed in order to pass edits. Karen explained that FMS cannot arbitrarily change beginning balances. Changes to beginning balances are dealt with on a case-by-case basis. To change beginning balances that affect fund balance, agencies must first contact the Budget Reports Division (BRD), at (202) 874-9902, and they will make the final decision on whether balances can be changed.

Edit 5 and 7 Errors (Fund Resources equal Fund Equities and Treasury Fund Balance verification (column 2 +/- column 4 equals column 5 on the 2108), respectively))

Karen pointed out that many of the edit 5 and 7 errors could have been eliminated if agencies had run the fourth quarter edits during the first three quarters. During the first three quarters, the edits are soft and if errors occur, those errors could be highlighted and/or resolved prior to the last quarter. Keith Stith (FMS) indicated that FACTS II has provided the ability to run all edits regardless of the quarter, since fiscal year 2002, and agencies should use that tool to their advantage. Currently the FACTS II group is working with the USSGL Division to evaluate the possibility of running all FMS 2108 edits during all quarters. In addition, he noted that beginning in quarter one, of fiscal year 2004, agencies will have a new data entry screen with an option (button) that will provide the status of all edits.

Cindy Scharf (LoC) expressed her concerns about not being able to get through to the FMS Help Desk and the time it takes to change passwords, etc. Keith informed the IRC that FMS recognizes that there is an issue with passwords and initiatives are being made to improve the process.

Transfers of Budgetary Receivables

Karen informed the IRC that the USSGL did not receive many calls in reference to the new guidance that was developed for the transfer of budgetary resources and that the addition of the attributes (fiscal 2003 requirement) went very well. However, it was brought to the USSGLs attention that USSGL account 4281, Actual Program Fund Subsidy Receivable, was not included in the original group of transfer scenarios. The revision of the account will be researched and the results will be presented to the IRC at a later date.

In addition Karen suggested that the IRC visit the TFM Web site, www.fms.treas.gov/tfm, to view a matrix that crosswalks the Governmentwide Accounting System non-expenditure transfer types to the Treasury Combined Statement, USSGL accounts, and the SF 133.

Cash and Investments Held Outside of Treasury (CIHO)

Judy explained that agencies are still confused on what should be classified as CIHO. If the money belongs to the Government, it must be associated with a budgetary fund symbol and the accounting would be the same as the accounting for a Treasury Account Fund Symbol (TAFS). If the money does not belong to the Government and it is not to be used to subsidize a program then the money should be placed in a deposit fund and budgetary accounting would not be required. She encouraged the IRC to review TFM Volume 1, Part 2, Section 3100 and/or contact the USSGL Division if there any questions regarding the accounting for CIHO.

Karen encouraged agencies to visit the USSGL Web site, www.fms.treas.gov/ussgl to review scenarios, which will answer and assist in eliminating many of the questions prior to the FACTS II submission period.

Architect of the Capitol

Christine Chang (FMS) presented a condensed version of the Architect of the Capitol scenario, focusing her presentation on the lease purchase guidance. In her presentation, she highlighted the use of USSGL account 4908, Authority Outlayed Not Yet Disbursed, and four key transactions that included recording the initial funding, the outlay of construction cost, the monthly interest accrual/amortization of discount, the receipt of semi-annual rent payment and the debt reduction/lease payment. The full scenario is agency specific and can be requested by contacting Christine at christine.chang@fms.treas.gov.

Exposure Draft: Identifying and Reporting Earmarked Funds

Christine presented a summary of the Exposure draft for earmarked funds. She noted that the exposure draft proposes standards that define and address "earmarked funds." It also includes a list of three criteria to assist agencies in identifying their earmarked funds. She indicated that the exposure draft emphasizes that the funds should be identified by the criteria stated versus being identified by a statute or based on being labeled by the unified budget.

Eileen Parlow (DOD), as well as other IRC members, expressed great concern over the definition that the Federal Accounting and Standards Advisory Board (FASAB) provided in the standard. They believe the definition is vague, and the term earmarked may also be confused with earmarked spending, which is set-aside for appropriations for specific purposes. The overall consensus was that a recommendation should be presented in the comments to revise the definition so that it is more specific. Additionally, it was noted that the statement in the exposure draft that indicates that interest earned is a part of other financing sources contradicts the Statements of Federal Financial Accounting Concepts and Standards (SFFAS) No. 7 - Accounting for Revenue and Other Financing Sources. In SFFAS No. 7, interest earned is generally classified as exchange revenue, not as another financing source. Christine indicated that she will incorporate these recommendations in her comments to FASAB, and she encouraged agencies to continue to review the exposure draft and consider its impact on their agency and provide comments/recommendations to her. Comments are due to FASAB on December 17, 2003; therefore, it is imperative that the IRC provide Christine with comments by close of business December 11, 2003. The standard is to be implemented by fiscal year 2006 with no early implementation.

Exposure Draft: Heritage Assets and Stewardship Land

Christine presented the scenario on Heritage Assets. She proposed adding a new USSGL account 5725, Transfer of General PP&E to Heritage Asset or Stewardship Land and revising the definition for USSGL account 5619, Contra Donated Revenue - No Financial Resources. Eileen Parlow (DOD) suggested implementing one USSGL account, versus two. Her suggestion included revising the title and definition of the proposed new USSGL account 5725, and crosswalk the account to the "Other" line on the Changes in Net Position Statement. The title would be revised to Offset to Donations and Transfer-In and the definition would be revised to allow for both donations and the transfer-in of heritage assets and stewardship land.

There was also a discussion on how the transferring agency should properly record the transfer of General Property, Plant, and Equipment (PP&E) to the recipient agency for use as General PP&E. It is the opinion of some agencies that they are able to book the original cost and accumulated depreciation while other agencies believe that, based on the accumulated depreciation reconciliation purpose, the PP&E recorded in the recipient entity should have the PP&E at the net carrying value (original cost less accumulated depreciation). Christine believes that FASAB gives agencies the flexibility in choosing the appropriate option, however, she will check the FASAB interpretation letter on what the "book value" means to the recipient entity and share her findings to the IRC at a later date.

Other Items

Teresa Tancre (OMB) informed the IRC that OMB would be locking the prior year column in the MAX system on December 17, 2003. OMB will only make an exception for the Department of Homeland Security. She also indicated that agencies can visit the OMB Web site at www.whitehouse.gov/omb/reports to review crosswalked FACTS II data. OMB will contact FMS and the agencies in which the FACTS II data did not crosswalk. The major issue that OMB is currently reviewing is the improper use of USSGL accounts 4114, Appropriated Trust or Special Fund Receipts, and 4119, Other Appropriations Realized.

Judy emphasized the importance of agencies using experienced employees to submit FACTS II data and for those employees to first contact the accountants responsible for that data prior to contacting FMS during the FACTS II submission period. Kathy added that it is also helpful if the agency contacts were knowledgeable on the type of TAFS they are working with. For example, how and why the TAFS is funded - general, special, trust, revolving, etc.

Judy informed the IRC that the Draft Framework for Federal Management Systems is available on the JFMIP Web site and comments are due by January 7, 2004.

CLOSING REMARKS

Judy thanked everyone for all of the hard work completed this year and adjourned the meeting.

ATTENDEES

Judy Yuran, FMS
Shadonna Broaddus, FMS
Christine Chang, FMS
Toni Clark, FMS
Karl Foltz, FMS
Gwen Marshman, FMS
Karen Metler, FMS
Keith Mertz, FMS
Melinda Pope, FMS
Keith Stith, FMS
Kathy Winchester, FMS
Cheryl Dixon, FMS/BRD
Don McKay, FMS/AS
Jacquelin Brown, FMS
Marilyn Evans, DHS
Lodi Holzbaur, DOC
Christine Kent, DoT
Su-Fang Stevens, DoJ
Eileen Parlow, DoD
Barbara Hill, DoD
Audrey Clark, DoD
Wanching Yu, DoD
Barbara Harbell, DoE
Cindy Scharf, LoC
Jim Brady, EPA
Jacqueline Harvey, FCC
Leslie Liu, NRC
Teresa Tancre, OMB
Jeanette Kuendal, PTO
Britt Fucito, PTO
Letha Holliday, SSA
Stephen Hull, SSA
Christopher Long, SSA
John Reisinger, SSA
Marge Barnes, SSA
Barbara Ricks, SSA
Junghee Gogue, SSA
Joe Keady, USAID
David Surti, USDA
Janet Winchester, VA