U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
December 4, 2008
Judy Yuran (FMS) opened the meeting by formally announcing her retirement to the committee. She thanked everyone for their continuous support and effort over the years. She then reviewed the agenda, and introductions were made.
Presentation of Draft Prior Period (Proprietary) Adjustments (PPAs) and Prior Year (Budgetary) Adjustments (PYAs)
Kathy Winchester (FMS) began the presentation with a brief overview of Sherry Pontell's (FMS) presentation at the November 20, 2008, IRC meeting regarding correction of accounting errors that occurred in previous reporting periods.
Kathy began discussing the Statement of Budgetary Resources (SBR) in comparison to the SF 133: Report on Budget Execution and Budgetary Resources, and the proprietary and budgetary impact. Leon Fleischer (SBA) noted that the USSGL staff should specify that the PYAs apply to the SF 133 instead of the SBR. Cindy Scharf (Library of Congress) noted that the USSGL staff should not specify that the SBR is a proprietary financial statement since not all agencies agree with that concept. The USSGL staff will update that scenario.
Eileen Parlow (FASAB) stated that there may be immaterial amounts for proprietary reporting that are in current-year reporting; however, in budgetary reports the proprietarily immaterial amounts may be captured as prior-year reporting. Kathy agreed and stated that the situation is shown in one of the transactions displayed in the PYA/PPA scenario.
Catherine Irani (DOI) asked Rita Cronley (FMS) if FMS corrected the 1010 Edit in FACTS II. DOI had a PYA in fiscal 2008 with issues. Rita asked DOI if the problem was related to a backdated SF 224: Statement of Transactions, submitted during the FACTS II fourth-quarter window or the revision window. Rita noted that the FACTS II Edits accommodate reporting for PYA domain values "B" and "P." Rita added that backdated SF 224s or SF 1151s: Nonexpenditure Transfers, submitted during the FACTS II fourth-quarter reporting window and the revision window do not immediately update FACTS II data. Treasury contacts the FACTS II user when the FACTS II balances have been updated.
Eileen questioned how an agency would handle a situation if several TAFS containing immaterial corrections added up to an amount that is material. Kathy stated that the OMB Office of Federal Financial Management has not addressed that issue in OMB Circular No. A-136 and encouraged everyone to become actively involved in the OMB Circular No. A-136 subcommittee meetings. Karen Metler (FMS) reminded the committee that the SF 133 is being realigned and the SF 133 and SBR will be different in the future. Eileen suggested that the scenario display a reconciliation between the total budgetary resources on the SF 133 to what is presented on the SBR.
Kathy began an overview of the FMS 2108 (handout). She noted that the Column 2 balance is a Treasury-provided number that will include all of the adjustments marked with the FACTS II PYA attribute, domain value "B." The Column 5 number, which is often the same as the Column 2 number, will come from the agency-submitted FACTS II trial balance and should also include the PYA attribute, domain value "B." Following the FMS 2108 review, Kathy reviewed the Balance Sheet. Kathy stated that the fiscal XX08 column on the fiscal 2009 Balance Sheet is not equal to the fiscal XX08 column on the fiscal 2008 Balance Sheet because the scenario transactions involved restatements.
Eileen recommended that the USSGL staff consider putting the fiscal XX08 and fiscal XX09 comparative statement numbers side by side on the Statement of Changes in Net Position (SCNP). Sherry stated that the SCNP is not presented in the side by side format in OMB Circular No. A-136.
Note: The issue here was not the mechanics of how prior-year data should be displayed but rather that the prior-year data was completely omitted from the illustrated SCNP.
Kathy began an overview of the Work Paper Trial Balance for Proprietary Accounts. Eileen suggested presenting each transaction individually and walking it through all of the Financial Statements. Kathy decided that the IRC would take a look at Event 1 and walk the transactions through to the Balance Sheet. This walkthrough was not completed since the discussion became focused on the use of USSGL account 7400, "Prior-Period Adjustments Due to Corrections of Errors."
Eileen noted that the worksheet displayed in the case study was incorrect. It showed activity in USSGL account 7400 instead of USSGL account 6100, "Operating Expenses/Program Costs." Eileen stated that the purpose of the worksheet is to prepare restated financial statements. Agencies generally cannot reopen prior periods in their accounting systems, so they need to use worksheets to prepare the restated financial statements for prior periods. Agencies also need to use USSGL account 7400 to correct cumulative balances in their accounting systems. Additionally, Cindy suggested that the scenario indicates the statements are comparative (on page 6). Kathy stated that USSGL account 7400 is a part of the agencies' systems; it indicates that the adjustment occurred in a prior period. As used in the scenario, USSGL account 7400 does not necessarily crosswalk to the financial statements when comparative statements are prepared. Eileen stated that the issue with USSGL account 7400 needs some detailed explanatory data, and proposed that the USSGL staff have separate USSGL accounts for 7400 activity. The scenario review was ended at this point.
Kathy informed the committee that this scenario will be available on the USSGL Web site before the first-quarter fiscal 2009 FACTS II reporting period. Since all issues with proprietary USSGL accounts for prior-period adjustments will not be fully resolved by that time, the scenario will be under the "USSGL Proposed Scenarios" section of the USSGL Web site at http://www.fms.treas.gov/ussgl/proposed_scenarios/index.html.
Rita informed the committee that FMS's Budget Reports Division will post the FACTS II calculated fiscal 2009 beginning balances for every fund symbol on the FACTS II Web site. BRD will post the information as early as next week and will send a notice to all FACTS II users and USSGL agency representatives. She noted that agencies will fail FACTS II Edit 13 if their beginning balances do not match what is in FACTS II.
Teresa Tancre (OMB) began a brief presentation on the Schedule Realignment Project involving the SF 132: Apportionment and Reapportionment Schedule, SF 133, and the Budget Program and Financing (P&F) Schedule Prior-Year Actual Column. Because of time constraints, Teresa stated that anyone who had questions and/or concerns about the project could contact her personally.
Judy presented Leon Fleischer (SBA) with a Certificate of Appreciation signed by Jim Sturgill, Assistant Commissioner, Governmentwide Accounting, and Judy for his outstanding contributions and leadership on the Credit Reform Subcommittee.
Judy again thanked everyone for their cooperation, support, and effort over the years. The meeting was adjourned.
Judy Yuran, FMS