April 23, 1998

**(Revised August 1998)**

**CASE STUDY - Disposition of personal property**[^1]

[NOTE]{.underline}:

 40 USC, 481(c), In acquiring personal property, *any executive
agency*, under regulations to be prescribed by the Administrator,
subject to regulations prescribed by the Administrator for Federal
Procurement Policy pursuant to the Office of Federal Procurement Policy
Act *may exchange or sell similar items and may apply the exchange
allowance or proceeds of sale in such cases in whole or in part payment
for the property acquired* . . . . . .

 According to OMB, the Federal Property and Administrative Services Act
(FPASA) of 1949 *[gives all agencies, unless directed otherwise in their
specific legislation, authority to collect]{.underline}* proceeds from
sale of personal property which can be applied to replace similar
property during the fiscal year in which the property is sold and one
fiscal year thereafter. The collection will be brought in as an
offsetting collection on line 3 of SF133.

[Assumption]{.underline}:

 For illustrative purpose the calender year is used for the accounting
period.

 The case study illustrated is a very simple and basic scenario for
annual appropriation. This model **may** be used for multi year or no
year accounts when applicable.

 In reality the acquistion and the sale of property probably will occur
within several years. However, for this illustration the purchase of the
original equipment was made in year 1 (expired) and the sale of original
equipment and the purchase of replacement property were made in year 2
(unexpired).

**YEAR 19X1**

+-----------------+-------------------------+-------------------------+
| EVENT           | ANNUAL APPROPRIATION    | F3845 - PROCEEDS OF     |
| DESCRIPTION     |                         | SALE, PERSONAL PROPERTY |
|                 | (EXPIRED)               | (CLEARING ACCOUNT)      |
+-----------------+-------------------------+-------------------------+
| 1\) An agency   | **Proprietary**         |                         |
| receives        |                         |                         |
| appropriations  | 1010 FBWT 2,000         |                         |
| and it is       |                         |                         |
| apportioned and | 3100 Unexp App 2,000    |                         |
| allotted        |                         |                         |
|                 | **Budgetary**           |                         |
|                 |                         |                         |
|                 | 4119 Other Appro Realiz |                         |
|                 | 2,000                   |                         |
|                 |                         |                         |
|                 | 4450 Unapportioned auth |                         |
|                 | ava2,000                |                         |
|                 |                         |                         |
|                 | 4450 Unapportioned auth |                         |
|                 | ava 2,000               |                         |
|                 |                         |                         |
|                 | 4510 Apportionment      |                         |
|                 | 2,000                   |                         |
|                 |                         |                         |
|                 | 4510 Apportionment      |                         |
|                 | 2,000                   |                         |
|                 |                         |                         |
|                 | 4610 Allotments 2,000   |                         |
+-----------------+-------------------------+-------------------------+
| 2\) \$1,700 is  | **Proprietary**         |                         |
| obligated to    |                         |                         |
| purchase        | None                    |                         |
| equipments A, B |                         |                         |
| and C           | **Budgetary**           |                         |
| (**original**)  |                         |                         |
|                 | 4610 Allotments 1,700   |                         |
|                 |                         |                         |
|                 | 4801 Undel Ord - unpd   |                         |
|                 | 1,700                   |                         |
+-----------------+-------------------------+-------------------------+
| 3\) The agency  | **Proprietary**         |                         |
| makes following |                         |                         |
| purchases on    | 1750 Equipment 1,700    |                         |
| 3/30/X1:        |                         |                         |
|                 | 1010 Fund Bal w Trea    |                         |
| Equipment A for | 1,700                   |                         |
| \$600           |                         |                         |
|                 | 3100 Unexpended approp  |                         |
| Equipment B for | 1,700                   |                         |
| \$400           |                         |                         |
|                 | 5700 Appro Used 1,700   |                         |
| Equipment C for |                         |                         |
| \$700           | **Budgetary**           |                         |
|                 |                         |                         |
|                 | 4801 Undel Ord - unpd   |                         |
|                 | 1,700                   |                         |
|                 |                         |                         |
|                 | 4902 Exp Authority - pd |                         |
|                 | 1,700                   |                         |
+-----------------+-------------------------+-------------------------+
| 4)To record     | **Proprietary**         |                         |
| depreciation    |                         |                         |
| expense for the | 6710 Depreciation exp   |                         |
| year (12/31/X1) | 243                     |                         |
|                 |                         |                         |
| Equipment A     | 1759 Acc Dep 243        |                         |
| \$10/month      |                         |                         |
|                 | **Budgetary**           |                         |
| Equipment B \$  |                         |                         |
| 5/month         | None                    |                         |
|                 |                         |                         |
| Equipment C     |                         |                         |
| \$12/month      |                         |                         |
|                 |                         |                         |
| \$27 x 9 =      |                         |                         |
| \$243           |                         |                         |
+-----------------+-------------------------+-------------------------+

**YEAR 19X1** [Preclosing Trial Balance]{.smallcaps} and [Closing
Entries]{.smallcaps}

+-----------------------------------+----------------------------------+
| **Proprietary**                   | **Budgetary**                    |
+-----------------------------------+----------------------------------+
| [Preclosing Trial                 | [Preclosing Trial                |
| Balance]{.smallcaps}              | Balance]{.smallcaps}             |
+-----------------------------------+----------------------------------+
| 1010 Fund Balance with Treasury   | 4119 Other Appropriations        |
| 300                               | Realized 2,000                   |
|                                   |                                  |
| 1750 Equipment 1,700              | 4610 Allotments - Realized       |
|                                   | Resources 300                    |
| 1759 Accumualted Depreciation 243 |                                  |
|                                   | 4902 Expended Authority - Paid   |
| 3100 Unexpended Appropriation 300 | [1,700]{.underline}              |
|                                   |                                  |
| 5700 Appropriation Used 1,700     | \$2,000 \$2,000                  |
|                                   |                                  |
| 6710 Depreciation expense         |                                  |
| [243]{.underline}                 |                                  |
|                                   |                                  |
| \$2,243 \$2,243                   |                                  |
+-----------------------------------+----------------------------------+
| [Closing Entries]{.smallcaps}     | [Closing Entries]{.smallcaps}    |
+-----------------------------------+----------------------------------+
| 5700 Appropriations Used 1,700    | 4902 Expended Authority 1,700    |
|                                   |                                  |
| 3310 Cumulative results 1,700     | 4201 Total Actual Resources      |
|                                   | collected 300                    |
| 3310 Cumulative results 243       |                                  |
|                                   | 4119 Other Appropriations        |
| 6710 Depreciation Expense 243     | Realized 2,000                   |
|                                   |                                  |
|                                   | 4610 Allotments - realized       |
|                                   | resources 300                    |
|                                   |                                  |
|                                   | 4650 Allotments - expired        |
|                                   | authority 300                    |
+-----------------------------------+----------------------------------+

**YEAR 19X1** - **STATEMENTS**

+-----------------------------------+-----------------------------------+
| [[Statement of Net                |                                   |
| Cost]{.underline}]{.smallcaps}    |                                   |
|                                   |                                   |
| 6710 Depreciation Exp             |                                   |
| [243]{.underline}                 |                                   |
|                                   |                                   |
| **Net Cost** **\$243**            |                                   |
+-----------------------------------+-----------------------------------+
| [[Statement of Change in Net      | [[Statement of                    |
| P                                 | fi                                |
| osition]{.underline}]{.smallcaps} | nancing]{.underline}]{.smallcaps} |
|                                   |                                   |
| Net Cost 243                      | Obligation Incurred               |
|                                   |                                   |
| Financing Sources                 | 4902 Expended Auth - Pd           |
|                                   | [1,700]{.underline}               |
| 5700 Appropriation used           |                                   |
| [1,700]{.underline}               | **Total Obligations as Adjusted   |
|                                   | Nonbudget Res 1,700**             |
| **Net Result of operation         |                                   |
| [1,457]{.underline}**             | Costs Capitalized on the Balance  |
|                                   | Sheet                             |
| Unexpended Appropriation          |                                   |
|                                   | 1750 Equipment 1,700              |
| 3100 300                          |                                   |
|                                   | 1759 Accumulated Dep [(           |
| **Net Position Beginning of the   | 243)]{.underline}                 |
| Peirod [0]{.underline}**          |                                   |
|                                   | **Total Resources that Do Not     |
| **Net Position End of the Peirod  | Fund Net Cost                     |
| \$1,757**                         | [1,457]{.underline}**             |
|                                   |                                   |
|                                   | **Net Cost \$ 243**               |
+-----------------------------------+-----------------------------------+

**YEAR 19X2**

+------------------+---------------------------+-----------------------+
| EVENT            | ANNUAL APPROPRIATION      | F3845 - PROCEEDS OF   |
| DESCRIPTION      |                           | SALE, PERSONAL        |
|                  | (UNEXPIRED)               | PROPERTY (CLEARING    |
|                  |                           | ACCOUNT)              |
+------------------+---------------------------+-----------------------+
|                  | A. SALE OF PROPERTY       |                       |
|                  | **BEFORE**[^2] AN         |                       |
|                  | OBLIGATION OF REPLACEMENT |                       |
|                  | PROPERTY HAS BEEN         |                       |
|                  | INCURRED                  |                       |
+------------------+---------------------------+-----------------------+
| 5\) An agency    | **Proprietary**           |                       |
| receives         |                           |                       |
| appropriations   | 1010 FBWT 1,500           |                       |
| and it is        |                           |                       |
| apportioned and  | 3100 Unexp App 1,500      |                       |
| allotted         |                           |                       |
|                  | **Budgetary**             |                       |
|                  |                           |                       |
|                  | 4119 Other Appro Realiz   |                       |
|                  | 1,500                     |                       |
|                  |                           |                       |
|                  | 4450 Unapportioned auth   |                       |
|                  | ava1,500                  |                       |
|                  |                           |                       |
|                  | 4450 Unapportioned auth   |                       |
|                  | ava 1,500                 |                       |
|                  |                           |                       |
|                  | 4510 Apportionment 1,500  |                       |
|                  |                           |                       |
|                  | 4510 Apportionment 1,500  |                       |
|                  |                           |                       |
|                  | 4610 Allotments 1,500     |                       |
+------------------+---------------------------+-----------------------+
| 6\) The agency   | **Proprietary**           |                       |
| anticipates      |                           |                       |
| collection of    | None                      |                       |
| \$1,100 from a   |                           |                       |
| sale of property | **Budgetary**             |                       |
| which is         |                           |                       |
| apportioned and  | 4070 Anticipated coll for |                       |
| allotted         | Fed 400                   |                       |
| accordingly.     |                           |                       |
|                  | 4060 Anticipated coll for |                       |
| From Federal     | Nonfed 700                |                       |
| source \$400     |                           |                       |
|                  | 4450 Unapp authority -    |                       |
| From NonFed      | ava 1,100                 |                       |
| source \$700     |                           |                       |
|                  | 4450 Unapp authority -    |                       |
|                  | ava 1,100                 |                       |
|                  |                           |                       |
|                  | 4510 Apportionment 400    |                       |
|                  |                           |                       |
|                  | 4590 Apportionment -      |                       |
|                  | unavailable700            |                       |
|                  |                           |                       |
|                  | 4510 Apportionment 400    |                       |
|                  |                           |                       |
|                  | 4610 Allotments 400       |                       |
+------------------+---------------------------+-----------------------+
| 7\) on 1/1/x2    | **Proprietary**           | **Proprietary**       |
| the agency sold  |                           |                       |
| Equipment A for  | 1010 Fund bal w Treas 380 | 1010 FBWT 380         |
| \$380 and        |                           |                       |
| administrative   | 1759 Acc dep - equip 90   | 5720 Fin source trans |
| determination    |                           | in w/o reimb380       |
| has been made to | 7210 Loss on dis of asset |                       |
| acquire a        | 130                       | **Budgetary**         |
| replacement      |                           |                       |
| equipment.       | 1750 Equipment 600        | None                  |
|                  |                           |                       |
| The sales        | 5730 Fin source trans out |                       |
| proceed is       | w/o reimb380              |                       |
| deposited to the |                           |                       |
| F3845- Sales    | 1010 FBWT 380             |                       |
| proceeds,        |                           |                       |
| personal         | **Budgetary**             |                       |
| property, a     |                           |                       |
| clearing         | None - There is no        |                       |
| account, until   | budgetary impact because  |                       |
| money is needed  | the [cash is immediately  |                       |
| to acquire a     | transferred to the        |                       |
| replacement      | clearing                  |                       |
| property.        | account]{.underline}      |                       |
+------------------+---------------------------+-----------------------+
| 8)To record      | **Proprietary**           | **Proprietary**       |
| obligation       |                           |                       |
| incurred for the | 1010 FBWT 380             | 5730 Fin source trans |
| Equipment X, a   |                           | out w/o reimb380      |
| replacement      | 5720 Fin source trans-in  |                       |
| property for     | w/o reimb380              | 1010 FBWT 380         |
| \$600 on         |                           |                       |
| 5/30/X2.         | **Budgetary**             | **Budgetary**         |
|                  |                           |                       |
| *The appropriate | 4277 Other actual coll -  | None                  |
| budget clearing  | Fed 380                   |                       |
| account will be  |                           |                       |
| charged and the  | 4070 Ant coll from Fed    |                       |
| appropriation    | 380                       |                       |
| account will be  |                           |                       |
| credited when    | 4610 Allotment 600        |                       |
| the obligation   |                           |                       |
| is subsequently  | 4801 Undelivered orders - |                       |
| incurred for the | unpd600                   |                       |
| replacement      |                           |                       |
| property.*       | (\$380 from collections   |                       |
|                  | and \$220 from            |                       |
|                  | appropriations)           |                       |
+------------------+---------------------------+-----------------------+
| 9\) On 7/1/X2    | **Proprietary**           | **Proprietary**       |
| agency used      |                           |                       |
| \$380 from the   | 1750 Equip 600            | None                  |
| sales proceeds   |                           |                       |
| of equipment and | 1010 FBWT 600             | **Budgetary**         |
| used an          |                           |                       |
| additional       | 3100 Unexp 220            | None                  |
| appropriation to |                           |                       |
| buy equipment X, | 5700 App Used 220         |                       |
| a replacement    |                           |                       |
| property for     | **Budgetary**             |                       |
| \$600.           |                           |                       |
|                  | 4801 Undelivered ord -    |                       |
|                  | unpd 600                  |                       |
|                  |                           |                       |
|                  | 4902 Exp Auth - pd 600    |                       |
+------------------+---------------------------+-----------------------+
| 10\) To record   | **Proprietary**           |                       |
| depreciation     |                           |                       |
| expense for      | 6710 Depreciation exp 66  |                       |
| equipment X for  |                           |                       |
| the year on      | 1759 Acc depreciation -   |                       |
| 12/31/X2         | equip66                   |                       |
|                  |                           |                       |
| Equipment X      | **Budgetary**             |                       |
| \$11/month       |                           |                       |
|                  | None                      |                       |
| \$11 x 6 = \$66  |                           |                       |
+------------------+---------------------------+-----------------------+
|                  | B. SALE OF PROPERTY       |                       |
|                  | **AFTER**[^3] THE         |                       |
|                  | PURCHASE OF REPLACEMENT   |                       |
|                  | PROPERTY                  |                       |
+------------------+---------------------------+-----------------------+
| 11\) On 7/1/X2   | **Proprietary**           |                       |
| Equipment Y, a   |                           |                       |
| replacement      | 1750 Equip 700            |                       |
| property was     |                           |                       |
| purchased for    | 1010 FBWT 700             |                       |
| \$700.           |                           |                       |
|                  | 3100 Unexp 700            |                       |
|                  |                           |                       |
|                  | 5700 App Used 700         |                       |
|                  |                           |                       |
|                  | **Budgetary**             |                       |
|                  |                           |                       |
|                  | 4610 Allotments 700       |                       |
|                  |                           |                       |
|                  | 4902 Expended authority - |                       |
|                  | pd700                     |                       |
+------------------+---------------------------+-----------------------+
| 12\) To record   | **Proprietary**           |                       |
| depreciation     |                           |                       |
| expense for      | 6710 Depreciation exp 45  |                       |
| Equipment B for  |                           |                       |
| the year on      | 1759 Acc depreciation -   |                       |
| 9/30/X2.         | equip45                   |                       |
|                  |                           |                       |
| \$5 x 9 = \$45   | **Budgetary**             |                       |
|                  |                           |                       |
|                  | None                      |                       |
+------------------+---------------------------+-----------------------+
| 13\) On 9/30/X2  | **Proprietary**           |                       |
| the agency sold  |                           |                       |
| Equipment B for  | 1010 Fund bal w Treas 350 |                       |
| \$350.           |                           |                       |
|                  | 1759 Acc dep - equip 90   |                       |
|                  |                           |                       |
|                  | 1750 Equipment 400        |                       |
|                  |                           |                       |
|                  | 7110 Gain on disp of      |                       |
|                  | asset 40                  |                       |
|                  |                           |                       |
|                  | **Budgetary**             |                       |
|                  |                           |                       |
|                  | 4266 Other actual coll -  |                       |
|                  | Nonfed 350                |                       |
|                  |                           |                       |
|                  | 4060 Anticip Nonfed coll  |                       |
|                  | 300                       |                       |
|                  |                           |                       |
|                  | 4590 Apportionment -      |                       |
|                  | unavaliable 350           |                       |
|                  |                           |                       |
|                  | 4610 Allotments 350       |                       |
+------------------+---------------------------+-----------------------+
| 14\) At the end  | **Proprietary**           |                       |
| of the year,     |                           |                       |
| depreciation     | 6710 Depreciation exp 90  |                       |
| expense for      |                           |                       |
| Equipment Y was  | 1759 Acc depreciation -   |                       |
| recorded.        | equip90                   |                       |
|                  |                           |                       |
| Equipment Y      | **Budgetary**             |                       |
| \$15/month       |                           |                       |
|                  | None                      |                       |
| \$15 x 6 = \$90  |                           |                       |
+------------------+---------------------------+-----------------------+

+------------+--------------------+-----------------+-----------------+
| EVENT      | ANNUAL             | F3845 -         | TREASURY        |
| D          | APPROPRIATION      | PROCEEDS OF     | MISCELLANEOUS   |
| ESCRIPTION |                    | SALE, PERSONAL  | RECEIPTS        |
|            | (UNEXPIRED)        | PROPERTY        | (GENERAL FUND)  |
|            |                    | (CLEARING       |                 |
|            |                    | ACCOUNT)        |                 |
+------------+--------------------+-----------------+-----------------+
|            | C. THE REPLACEMENT |                 |                 |
|            | PROPERTY WAS **NOT |                 |                 |
|            | ACQUIRED**[^4]     |                 |                 |
+------------+--------------------+-----------------+-----------------+
| 15\) To    | **Proprietary**    |                 |                 |
| record     |                    |                 |                 |
| de         | 6710 Depreciation  |                 |                 |
| preciation | exp 72             |                 |                 |
| expense    |                    |                 |                 |
| for        | 1759 Acc           |                 |                 |
| Equipment  | depreciation -     |                 |                 |
| C for the  | equip72            |                 |                 |
| year on    |                    |                 |                 |
| 6/30/X2.   | **Budgetary**      |                 |                 |
|            |                    |                 |                 |
| \$12 x 6 = | None               |                 |                 |
| \$72       |                    |                 |                 |
+------------+--------------------+-----------------+-----------------+
| 16\) The   | **Proprietary**    | **Proprietary** |                 |
| agency     |                    |                 |                 |
| sold the   | 1010 FBWT 400      | 5720 Trans in   |                 |
| Equipment  |                    | 400             |                 |
| C on       | 1759 Acc dep 180   |                 |                 |
| (7/01/X2). |                    | 1010 FBWT 400   |                 |
|            | 7210 Loss 120      |                 |                 |
|            |                    | **Budgetary**   |                 |
|            | 1750 Equipment 700 |                 |                 |
|            |                    | None            |                 |
|            | 5730 Trans out w/o |                 |                 |
|            | reim 400           |                 |                 |
|            |                    |                 |                 |
|            | 1010 FBWT 400      |                 |                 |
|            |                    |                 |                 |
|            | **Budgetary**      |                 |                 |
|            |                    |                 |                 |
|            | None - There is no |                 |                 |
|            | budgetary impact   |                 |                 |
|            | because the [cash  |                 |                 |
|            | is immediately     |                 |                 |
|            | transferred to the |                 |                 |
|            | clearing           |                 |                 |
|            | ac                 |                 |                 |
|            | count]{.underline} |                 |                 |
+------------+--------------------+-----------------+-----------------+
| 17\) The   | **Proprietary**    | **Proprietary** | **Proprietary** |
| agency     |                    |                 |                 |
| determined | None               | 5730 Trans out  | 1010 FBWT 400   |
| that the   |                    | 400             |                 |
| r          | **Budgetary**      |                 | 5720 Trans in   |
| eplacement |                    | 1010 FBWT 400   | 400             |
| property   | None               |                 |                 |
| will not   |                    | **Budgetary**   | **Budgetary**   |
| be         |                    |                 |                 |
| acquired   |                    | None            | N/A             |
| and the    |                    |                 |                 |
| receipt    |                    |                 |                 |
| will be    |                    |                 |                 |
| returned   |                    |                 |                 |
| to         |                    |                 |                 |
| Treasury   |                    |                 |                 |
| mis        |                    |                 |                 |
| cellaneous |                    |                 |                 |
| receipt    |                    |                 |                 |
| account.   |                    |                 |                 |
| (this      |                    |                 |                 |
| would also |                    |                 |                 |
| apply to   |                    |                 |                 |
| the agency |                    |                 |                 |
| that does  |                    |                 |                 |
| not        |                    |                 |                 |
| replace    |                    |                 |                 |
| the        |                    |                 |                 |
| property   |                    |                 |                 |
| [within    |                    |                 |                 |
| the        |                    |                 |                 |
| prescribed |                    |                 |                 |
| time       |                    |                 |                 |
| limit]{.un |                    |                 |                 |
| derline}). |                    |                 |                 |
+------------+--------------------+-----------------+-----------------+

**YEAR 19X2** [Preclosing Trial Balance]{.smallcaps} and [Closing
Entries]{.smallcaps}

+-----------------------------------+-----------------------------------+
| **Proprietary**                   | **Budgetary**                     |
+-----------------------------------+-----------------------------------+
| [Preclosing Trial                 | [Preclosing Trial                 |
| Balance]{.smallcaps}              | Balance]{.smallcaps}              |
+-----------------------------------+-----------------------------------+
| 1010 Fund Balance with Treasury   | 4060 Anticipated Collections from |
| 1,230                             | Nonfed 350                        |
|                                   |                                   |
| 1750 Equipment 1,300              | 4070 Anticipated Collections from |
|                                   | Fed 20                            |
| 1759 Accumualted Depreciation 156 |                                   |
|                                   | 4119 Other Appropriations         |
| 3100 Unexpended Appropriation 880 | Realized 1,500                    |
|                                   |                                   |
| 3310 Cumulative Results 1,457     | 4266 Other Actual Collections -   |
|                                   | Nonfed 350                        |
| 5700 Appropriation Used 920       |                                   |
|                                   | 4277 Other Actual Coll - Fed 380  |
| 5720 Fin Source Transfer in 1,160 |                                   |
|                                   | 4590 Apportionments - Unavailable |
| 5730 Fin Source Transfer out      | 350                               |
| 1,560                             |                                   |
|                                   | 4610 Allotments - Realized        |
| 6710 Depreciation expense 273     | Resources 950                     |
|                                   |                                   |
| 7110 Gain on Disosition of Assets | 4902 Expended Authority - Paid    |
| 40                                | [1,300]{.underline}               |
|                                   |                                   |
| 7210 Losses on Disposition of     | \$2,600 \$2,600                   |
| Assets [250]{.underline}          |                                   |
|                                   |                                   |
| \$4,613 \$4,613                   |                                   |
+-----------------------------------+-----------------------------------+
| [Closing Entries]{.smallcaps}     | [Closing Entries]{.smallcaps}     |
+-----------------------------------+-----------------------------------+
| 7110 Gains on Disposition of      | 4902 Expended Authority 1,300     |
| Assets 40                         |                                   |
|                                   | 4201 Total Actual Resources       |
| 5720 Fin Sources Trans in w/o     | collected 930                     |
| Reimb 1,160                       |                                   |
|                                   | 4119 Other Appropriations         |
| 5700 Appropriations Used 920      | Realized 1,500                    |
|                                   |                                   |
| 3310 Cumulative results 2,120     | 4266 Other Actual Coll - Nonfed   |
|                                   | 350                               |
| 3310 Cumulative results 2,083     |                                   |
|                                   | 4277 Other Actual Coll - Fed 380  |
| 5730 Fin Sources Trans out w/o    |                                   |
| Reimb 1,560                       | 4590 Apportionments - Unavaliable |
|                                   | 950                               |
| 6710 Depreciation Expense 273     |                                   |
|                                   | 4610 Allotments - realized        |
| 7210 Losses on Disposition of     | resources 350                     |
| Assets 250                        |                                   |
|                                   | 4650 Allotments - expired         |
|                                   | authority 930                     |
|                                   |                                   |
|                                   | 4060 Anticipated Collections from |
|                                   | Nonfed 350                        |
|                                   |                                   |
|                                   | 4070 Anticipated Collections from |
|                                   | Fed 20                            |
+-----------------------------------+-----------------------------------+

**YEAR 19X2** [-]{.smallcaps} **STATEMENTS**

+-----------------------------------+-----------------------------------+
| [[Statement of Net                |                                   |
| Cost]{.underline}]{.smallcaps}    |                                   |
|                                   |                                   |
| 6710 Depreciation Exp 273         |                                   |
|                                   |                                   |
| 7110 Gains on disposition of      |                                   |
| asset (40)                        |                                   |
|                                   |                                   |
| 7210 Losses on disposition of     |                                   |
| asset [250]{.underline}           |                                   |
|                                   |                                   |
| **Net Cost** **\$483**            |                                   |
+-----------------------------------+-----------------------------------+
| [[Statement of Change in Net      | [[Statement of                    |
| P                                 | Fi                                |
| osition]{.underline}]{.smallcaps} | nancing]{.underline}]{.smallcaps} |
|                                   |                                   |
| Net Cost 483                      | Obligation Incurred               |
|                                   |                                   |
| Financing Sources                 | 4902 Expended Auth - Pd 1,300     |
|                                   |                                   |
| 5700 Appropriation used 920       | Less: Offsetting Collections      |
|                                   |                                   |
| 5720 Fin Sources Trans in 1,160   | 4266 Other Actual coll - Nonfed   |
|                                   | (350)                             |
| 5730 Fin Sources Trans out        |                                   |
| [(1,560)]{.underline}             | 4277 Other Actual coll - fed      |
|                                   | (380)                             |
| **Net Result of operation         |                                   |
| [37]{.underline}**                | Transfer in 5720 1,160            |
|                                   |                                   |
| Increase in Unexpended            | Transfer out 5730                 |
| appropriation                     | [(1,560)]{.underline}             |
|                                   |                                   |
| 3100 Unexpended app 580           | **Total Obligations as Adjusted   |
|                                   | Nonbudget Res 170**               |
| **Change in Net Position**        |                                   |
| **617**                           | Costs Capitalized on the Balance  |
|                                   | Sheet                             |
| Net Position - Beginning of the   |                                   |
| Period                            | 1750 Equipment (400)              |
|                                   |                                   |
| 3100 Unexpended Appropriation 300 | 1759 Accumulated Dep [(           |
|                                   | 87)]{.underline}                  |
| 3310 Cumulative Results of        |                                   |
| Operation [1,457]{.underline}     | **Total Resources that Do Not     |
|                                   | Fund Net Cost [313]{.underline}** |
| Net Position - End of the Period  |                                   |
| \$2,374                           | Net Cost \$483                    |
+-----------------------------------+-----------------------------------+

[^1]: ^?^ CFR 41, Chapter 101-43.001-23, Personal Property is defined as
    any property, except real property, records of the Federal
    Government, and naval vessels of the following categories:
    Battleship . . . . .

[^2]: ^?^ GAO Policy and Procedures Manual (Title VII) dated May 1993,
    pgs7.5-8,9, If the sales proceeds are received before an obligation
    for replacement property has been incurred, . . . . document such
    *proceeds will be used as an appropriation reimbursement to apply
    against an obligation* which will be incurred within the prescribed
    time limit, *the proceeds should be credited to the appropriate
    budget clearing account . . . . . The appropriate budget clearing
    account will be charged and the appropriation account will be
    credited when the obligation is subsequently incurred for the
    replacement property.* **

    CFR 41, Chapter 101, section 101-46.304(a), When the property to be
    replaced is sold before the acquisition of the replacement property,
    the proceeds of such sales will be credited to the agencys
    account.

[^3]: ^?^ GAO Policy and Procedures manual dated May 1993, page 7.5-8,
    If the sales proceeds are received after and obligation for
    replacement property has been incurred and within the prescribed
    time limit, *the proceeds may be credited as a direct reimbursement
    to the appropriation account charged or chargeable for the
    replacement property*.

    CFR 41, Chapter 101, section 101-46.304 states  When the
    replacement property is sold after the acquisition of the
    replacement property, the proceeds of such sale may be deposited as
    a direct reimbursement credit to the appropriation previously
    charged for the replacement of similar items of personal property.

[^4]: ^?^ GAO Policy and Procedures Manual, dated May 1993, pg7.5-9, If
    the sales proceeds are not available for obligation or are not to be
    applied to replacement purchases, the proceeds will be *deposited in
    the Treasury as miscellaneous receipts* in the general funds.

    CFR 41, Chapter 101, section 101-46.304, Proceed of sales related to
    personal property for which an obligation for replacement has not
    been incurred during the period of availability following the date
    of sale, or sales proceeds which for other reasons an agency elects
    not to apply to replacement costs, shall be deposited to
    miscellaneous receipts account.