[Background]{.underline}

This scenario illustrates an early cancellation in a no-year Treasury
Appropriation Fund Symbol (TAFS). It includes the proposed USSGL account
4351, "Partial or Early Cancellation of Authority With a U.S. Treasury
Warrant," and modifications to USSGL accounts 8101, "Partial or Early
Cancellation of Authority," and 8102, "Offset for Partial or Early
Cancellation of Authority."

\"Legitimately incurred obligations that have not been disbursed (i.e.
paid) at the time a TAFS is canceled cannot be paid from the canceled
obligated or unobligated balances of the canceled TAFS.

After a TAFS is canceled, any obligations or adjustments to obligations
that would have been properly chargeable to that TAFS may be disbursed
from an unexpired TAFS that is available for obligation for the same
purpose as the closed TAFS....\" OMB Circular No. A-11, Section 130.14,
dated June 2006. (See cite for specific provisions)

Per TFM Volume I Bulletin No. 2006-08, "If an agency must liquidate
obligations after an account has been closed, it may use up to 1 percent
of its current appropriation by reporting a 46 subclass on the SOT or by
seeking a reappropriation. Collections received after an account has
been closed are deposited in miscellaneous receipts account 3200,
\"Collection of Receivables from Canceled Accounts.\""

This scenario uses the June 2006 TFM (TFM release S2-06-02 Part 1).

The following USSGL accounts are used in this scenario:

  --------------------------- ------------------------------------------------------------
  **Account Number**          **Account Name**

                              

  [Budgetary]{.underline}     

  4201                        Total Actual Resources - Collected

  4351                        Partial or Early Cancellation of Authority With a U.S.
                              Treasury Warrant

  4450                        Unapportioned Authority

                              

  [Proprietary]{.underline}   

  1010                        Fund Balance With Treasury

  3100                        Unexpended Appropriation - Cumulative

  3106                        Unexpended Appropriations - Adjustments

                              

  [Memorandum]{.underline}    

  8101                        Partial or Early Cancellation of Authority

  8102                        Offset for Partial or Early Cancellation of Authority

                              
  --------------------------- ------------------------------------------------------------

New account:

**Account Title**: Partial or Early Cancellation of Authority With a
U.S. Treasury Warrant

**Account Number**: 4351

**Normal Balance**: Credit

**Definition**: The amount of annual, multi-year, or no-year
appropriation authority that is canceled early by administrative action
in a definite account, or by early cancellation of the entire
appropriation. The cancellation will be accomplished with a U.S.
Treasury Warrant

**Justification**: *To segregate the accounting and reporting for
appropriation authority that is canceled early from appropriation
authority canceled 5 years after the expiration of an annual or
multiyear appropriation.*

Modifications to existing USSGL accounts:

**Account Title**: Canceled Authority

**Account Number**: 4350

**Normal Balance**: Credit

**Definition**: The amount of appropriation authority that is canceled 5
years after the expiration of an annual or a multi-year appropriation.
This is part of your year-end process and does not involve a U.S.
Treasury warrant.

***Justification**:* *To segregate the accounting and reporting for
appropriation authority that is canceled 5 years after the expiration of
an annual or multi-year appropriation from appropriation authority that
is cancelled early.*

**Account Title**: Partial Authority Cancellation

**Proposed Title**: Partial or Early Cancellation of Authority

**Account Number**: 8101

**Normal Balance**: Credit

**Definition**: The amount of authority canceled and recorded in USSGL
account 4351 "Partial or Early Cancellation of Authority With a U.S.
Treasury Warrant." This account will be maintained as a tracking
mechanism for the Antideficiency Act. Antideficiency Act provisions
continue to apply to canceled TAFS and to partially canceled authority
in TAFS that are otherwise still valid, such as partial cancellation of
authority in a no-year TAFS. The balance in USSGL account 4351, "Partial
or Early Cancellation of Authority With a U.S. Treasury Warrant" is
reclassified into this account in a closing entry.

***Justification**: To reflect USSGL account 4351, "Partial or Early
Cancellation of Authority With a U.S. Treasury Warrant."*

**Account Title**: Offset for Partial Authority Cancellation

**Proposed Title**: Offset for Partial or Early Cancellation of
Authority

**Account Number**: 8102

**Normal Balance**: Debit

**Definition**: To offset activity recorded in USSGL account 8101,
Partial or Early Cancellation of Authority," This account will be
maintained as a tracking mechanism for the Antideficiency Act.
Antideficiency Act provisions continue to apply to canceled TAFS and to
partially canceled authority in TAFS that are otherwise still valid,
such as partial cancellation of authority in a no-year TAFS.

***Justification: To reflect the title change to USSGL account 8101,
"Partial or Early Cancellation of Authority."***

**Year X**

**Beginning Trial Balance -- Year X**

  --------------------------------------------------- ----------------- ---------------------
  **USSGL**                                           **Debit**         **Credit**

                                                                        

  **[Budgetary]{.underline}**                                           

  4201 Total Actual Resources -- Collected            1,000             

  4450 Unapportioned Authority                        [0]{.underline}   [1,000]{.underline}

  **Total**                                           1,000             1,000

  **[Proprietary]{.underline}**                                         

  1010 Fund Balance With Treasury                     1,000             

  3100 Unexpended Appropriations -- Cumulative        [0]{.underline}   [1,000]{.underline}

  Total                                               1,000             1,000
  --------------------------------------------------- ----------------- ---------------------

There is no activity during the year and the entire fund is cancelled
early by administrative action.

1\. To record the early cancellation. Note, the entire fund is cancelled
early and the agency will request Treasury to process a warrant to
return fund balance. USSGL 4351, "Partial or Early Cancellation of
Authority With a U.S. Treasury Warrant" will not crosswalk to the FMS
2108 Yearend Closing Statement.

+--------------------------------------------------+-----+-----+-----+
| USSGL                                            | De  | Cre | TC  |
|                                                  | bit | dit |     |
+--------------------------------------------------+-----+-----+-----+
| *[Budgetary]{.underline}*                        | 1,  | 1,  | F   |
|                                                  | 000 | 000 | 122 |
| 4450 Unapportioned Authority                     |     |     |     |
|                                                  | 1,  | 1,  |     |
| 4351 Partial or Early Cancellation of Authority  | 000 | 000 |     |
|                                                  |     |     |     |
| With a U.S. Treasury Warrant                     |     |     |     |
|                                                  |     |     |     |
| *[Proprietary]{.underline}*                      |     |     |     |
|                                                  |     |     |     |
| 3106 Unexpended Appropriations - Adjustments     |     |     |     |
|                                                  |     |     |     |
| 1010 Fund Balance With Treasury                  |     |     |     |
+--------------------------------------------------+-----+-----+-----+

**Adjusted Pre-Closing Trial Balance -- Year X**

  --------------------------------------------------- ----------------- ---------------------
                                                      **Program A**     

  **USSGL**                                           **Debit**         **Credit**

                                                                        

  **[Budgetary]{.underline}**                                           

  4201 Total Actual Resources Collected               1,000             

  4351 Partial or Early Cancellation of Authority     [0]{.underline}   [1,000]{.underline}
  With a U.S. Treasury Warrant                                          

  Total                                               1,000             1,000

  **[Proprietary]{.underline}**                                         

  1010 Fund Balance With Treasury                     0                 

  3100 Unexpended Appropriations - Cumulative         0                 1,000

  3106 Unexpended Appropriations - Adjustments        1,000             

  Total                                               1,000             1,000
  --------------------------------------------------- ----------------- ---------------------

**Closing Entries -- Year X**

C1. To record closing of fiscal-year activity to unexpended
appropriations.

+--------------------------------------------------+-----+-----+------+
|                                                  | P   |     |      |
|                                                  | rog |     |      |
|                                                  | ram |     |      |
|                                                  | A   |     |      |
+--------------------------------------------------+-----+-----+------+
| USSGL                                            | De  | Cre |      |
|                                                  | bit | dit |      |
+--------------------------------------------------+-----+-----+------+
| 3100 Unexpended Appropriations -- Cumulative     | 1,  | 1,  | F342 |
|                                                  | 000 | 000 |      |
| 3106 Unexpended Appropriations -- Adjustments    |     |     |      |
+--------------------------------------------------+-----+-----+------+

C2. To reclassify Canceled Authority to memorandum accounts. Note, only
a TAFS with a balance in USSGL 4351 should use USSGL accounts 8101 and
8102

+-------------------------------------------------+-----+------+------+
| USSGL                                           | De  | Cr   | TC   |
|                                                 | bit | edit |      |
+-------------------------------------------------+-----+------+------+
| 4351 Partial or Early Cancellation of Authority | 1,  | 1    | F390 |
|                                                 | 000 | ,000 |      |
| With a U.S. Treasury Warrant                    |     |      | F301 |
|                                                 | 1,  | 1    |      |
| 4201 Total Actual Resources - Collected         | 000 | ,000 |      |
|                                                 |     |      |      |
| 8102 Offset for Partial or Early Cancellation   |     |      |      |
| of Authority                                    |     |      |      |
|                                                 |     |      |      |
| 8101 Partial or Early Cancellation of Authority |     |      |      |
+-------------------------------------------------+-----+------+------+

**Post-Closing Trial Balance**

  --------------------------------------------------- --------------------- -----------------
  **USSGL**                                           **Debit**             **Credit**

                                                                            

  **[Budgetary]{.underline}**                                               

  None                                                                      

  **[Proprietary]{.underline}**                                             

  None                                                                      

  **[Memorandum]{.underline}**                                              

  8101 Partial or Early Cancellation of Authority                           1,000

  8102 Offset for Partial or Early Cancellation of    [1,000]{.underline}   [0]{.underline}
  Authority                                                                 

  Total                                               1,000                 1,000
  --------------------------------------------------- --------------------- -----------------

**SF133 Report on Budget Execution and Budgetary Resources -- Year X**

  ------------- --------------- --------------------------------------------------- -----------
  **BUDGETARY                                                                       
  RESOURCES**                                                                       

  1\.                                                                               
  Unobligated                                                                       
  balance:                                                                          

                A. Brought                                                          1,000
                forward,                                                            
                October1                                                            
                (4201B)                                                             

  6\.                                                                               
  Permanently                                                                       
  not                                                                               
  available:                                                                        

                A.                                                                  (1,000)
                Cancellations                                                       
                of expired and                                                      
                no-year                                                             
                accounts (-)                                                        
                (4351E)                                                             

  7\. Total                                                                         0
  budgetary                                                                         
  resources                                                                         

  **status of                                                                       
  budgetary                                                                         
  resources**                                                                       

  11\. Total                                                                        0
  status of                                                                         
  budgetary                                                                         
  resources                                                                         

  **change in                                                                       
  obligated                                                                         
  balances**                                                                        

                                                                                    
  ------------- --------------- --------------------------------------------------- -----------

**FMS 2108 Yearend Closing Statement Unexpended Balances Investments,
and Imprest Funds - Year X**

\*This amount has been reduced by the amount of the canceled unobligated
balances that were processed via Treasury warrant.

**Budget Program and Financing (P&F) Schedule -- Year X**

  ------------------------------------------------------------ ----------
  **budgetary resources available for obligation**             

  2140 Unobligated balance carried forward, start of year      1,000

  2398 Unobligated balance expiring or withdrawn (-) (4351E)   (1,000)

  2440 Unobligated balance carried forward, end of year        0

                                                               

  **net budget authority and outlays**                         

  8900 Budget authority (net) (+) (sum 2200 -- (8800..8845),   0
  8895, 8896)                                                  

  9000 Outlays (net) (+) (sum (8690..8698) -- (8840..8845))    0

                                                               
  ------------------------------------------------------------ ----------

**OMB Form & Content Statements -- Year X**

**Balance Sheet -- Year X**

  ------------- ---------------- --------------------------------------------------- -----------
  Net position:                                                                      

                31\. Unexpended                                                      0
                appropriations                                                       
                -- other funds                                                       
                (3100B, 3106E)                                                       

  35\. Total                                                                         0
  liabilities                                                                        
  and net                                                                            
  position                                                                           

                                                                                     
  ------------- ---------------- --------------------------------------------------- -----------

**Net Cost -- Year X**

  --- ------------------------------------------------------- -----------
                                                              

      No amounts to report                                    
  --- ------------------------------------------------------- -----------

**Changes in Net Position -- Year X**

  ----------------- ----------------------------------- --------------- ---------------
                                                        Earmarked Funds All Other Funds

  Unexpended                                                            
  Appropriations:                                                       

  18\. Beginning                                                        1,000
  Balance (3100B)                                                       

  20\. Beginning                                                        1,000
  Balance, as                                                           
  adjusted                                                              

                                                                        

  Budgetary                                                             
  Financing                                                             
  Sources:                                                              

                    23\. Other Adjustments (3106)                       (1,000)

                    25\. Total Budgetary Financing                      (1,000)
                    Sources (21..24)                                    

  26\. Total                                                            0
  Unexpended                                                            
  Appropriations                                                        
  (20+25)                                                               

                                                                        

  27\. Net Position                                                     0
  (17+26)                                                               

                                                                        
  ----------------- ----------------------------------- --------------- ---------------

**Statement of Financing -- Year X**

  ----------------------------------------------------------- -----------
                                                              

  No amounts to report.                                       
  ----------------------------------------------------------- -----------