**[Preface]{.underline}**

The following scenario was proposed at the February 17, 2000 SGL Board
meeting. The proposal included four new SGL budgetary accounts (4157,
4158, 4397, 4398) and a technical revision to one existing account
(4395), pertaining to authority temporarily precluded from obligation.
It was developed to illustrate the proper recording of unobligated
balances that are subject to limitation. It **[pertains
only]{.underline}** to Treasury Appropriation Fund Symbols whose
receipts are immediately appropriated, but precluded from obligation at
year-end by a provision of law, such as a benefit formula or limitation.
For example, three trust funds that fall within this category are:
Federal Old Age and Survivors Insurance Trust Fund, Federal
Supplementary Medical Insurance Trust Fund, and Unemployment Trust Fund.
These funds must match budget authority with obligations.

Reporting guidelines stipulate that the year-end SF 133 Report on Budget
Execution must tie with the Program and Financing Schedule (P&F) in the
Budget Appendix of the U.S. Government. Furthermore, there is a
relationship that exists between the Schedule of Unavailable Collections
(Schedule N - located above the P&F in the Budget Appendix) and the P&F.
The year-end SF 133, P&F and Schedule N all reflect that the amount of
current year receipts less obligations equals the amount precluded from
obligation. Therefore, there are no beginning or ending unobligated
balances reported at year-end. The transactions and reports that follow
illustrate this as well.

In short, two budgetary accounts were needed to preclude authority from
obligation (one to preclude budget authority and the other to preclude
offsetting collections), and two were needed to record authority that
becomes available from balances previously precluded. These accounts are
essential for compliance with Treasury and OMB reporting requirements.
The revision of OMB Circular A-34, dated October 19, 1999, has clearly
defined the reporting requirements for authority temporarily unavailable
for obligation. Based upon this, and OMB Circular A-11 instructions for
the Program and Financing Schedule (P&F), the new accounts were
necessary. These accounts also comply with FACTS II reporting
requirements.

The **new accounts** are effective beginning October 1, 2000 (per
approved Voting Ballot #00-01). **Interim guidance**, effective for FY
2000, captures activity in SGL account 4395 - Authority Unavailable
Pursuant to Public Law -- Temporary, and is available on the SGL web
site (<http://www.fms.treas.gov/ussgl/sgl-impl.html>).

**[Year 1]{.underline}** (This scenario illustrates a trust fund. This
guidance, however, applies to any Treasury Appropriation Fund Symbol
where unobligated receipts are to be classified at year-end as
temporarily not available for obligation, and fits the requirements set
forth in OMB Circular A-34.)

+-----------------------------------------------------------------------+
| **1. To record appropriated receipts into a trust fund.**             |
|                                                                       |
| Proprietary                                                           |
|                                                                       |
| 1010 Fund Balance with Treasury 500                                   |
|                                                                       |
| > 5800G Tax Revenue Collected 500                                     |
|                                                                       |
| Budgetary                                                             |
|                                                                       |
| 4114 Appropriated Trust or Special Fund Receipts 500                  |
|                                                                       |
| > 4620 Unobligated Funds Not Subject to Apportionment 500             |
+-----------------------------------------------------------------------+
| **2. To record offsetting collections (Federal) received by trust     |
| fund for work performed under the Economy Act.**                      |
|                                                                       |
| Proprietary                                                           |
|                                                                       |
| 1010 Fund Balance with Treasury 700                                   |
|                                                                       |
| > 5200 Revenue from Services Provided 700                             |
|                                                                       |
| Budgetary                                                             |
|                                                                       |
| 4252 Reimbursements and Other Income Earned - Collected 700           |
|                                                                       |
| > 4450 Unapportioned Authority 700                                    |
+-----------------------------------------------------------------------+
| 3.  **To record obligation, expenditure and disbursement of funds     |
|     against portion of receipts collected in transaction 1.**         |
|                                                                       |
| Proprietary                                                           |
|                                                                       |
| 6100N Operating Expenses/Program Costs 225                            |
|                                                                       |
| > 1010 Fund Balance with Treasury 225                                 |
|                                                                       |
| Budgetary                                                             |
|                                                                       |
| 4620 Unobligated Funds Not Subject to Apportionment 225               |
|                                                                       |
| > 4902 Expended Authority - Paid 225                                  |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| 4.  **To record apportionment, allotment, and subsequent obligation,  |
|     expenditure and disbursement of funds against the offsetting      |
|     collections in transaction 2.**                                   |
|                                                                       |
| Proprietary                                                           |
|                                                                       |
| 6100N Operating Expenses/Program Costs 75                             |
|                                                                       |
| > 1010 Fund Balance with Treasury 75                                  |
|                                                                       |
| Budgetary                                                             |
|                                                                       |
| 4450 Unapportioned Authority 75                                       |
|                                                                       |
| > 4510 Apportionments 75                                              |
|                                                                       |
| 4510 Apportionments 75                                                |
|                                                                       |
| > 4610 Allotments - Realized Resources 75                             |
|                                                                       |
| 4610 Allotments - Realized Resources 75                               |
|                                                                       |
| > 4801 Unexpended Obligations - Unpaid 75                             |
|                                                                       |
| 4801 Unexpended Obligations - Unpaid 75                               |
|                                                                       |
| > 4902 Expended Authority - Paid 75                                   |
+-----------------------------------------------------------------------+
| **ADJUSTING ENTRIES:**                                                |
|                                                                       |
| **A1) To record appropriated receipts temporarily precluded from      |
| obligation.**                                                         |
|                                                                       |
| 4620 Unobligated Funds Not Subject to Apportionment 275               |
|                                                                       |
| > 4397 Receipts and Appropriations Temporarily Precluded from         |
| > Obligation 275                                                      |
|                                                                       |
| **A2) To record offsetting collections temporarily precluded from     |
| obligation.**                                                         |
|                                                                       |
| 4450 Unapportioned Authority 625                                      |
|                                                                       |
| > 4398 Offsetting Collections Temporarily Precluded from Obligation   |
| > 625                                                                 |
+-----------------------------------------------------------------------+

**[Year 1]{.underline}**

**Budgetary**

**Pre-Closing Adjusted Trial Balance (FACTS II ATB)**

  ------------------- ------------------------- -------------------------
  4114                500                       

  4252                700                       

  4397                                          *275*

  4398                                          *625*

  4902                                          300

                      1,200                     1,200
  ------------------- ------------------------- -------------------------

**Budgetary Closing Entries:**

C1. To consolidate resources

4201 Total Actual Resources - Collected 1,200

> 4114 Approp Trust or Sp Fd Receipts 500
>
> 4252 Reimb and Other Inc Earned - Coll 700

C2. To close expended authority paid

4902 Expended Authority - Paid 300

> 4201 Total Actual Resources - Collected 300

**Budgetary Post-Closing Trial Balance**

  ------------------- ------------------------- -------------------------
  4201                900                       

  4397                                          275

  4398                                          *625*

                      900                       900
  ------------------- ------------------------- -------------------------

**[Year 1]{.underline}**

**Proprietary**

**Pre-Closing Adjusted Trial Balance (FACTS I ATB)**

  ------------------- ------------------------- -------------------------
  1010                900                       

  5800                                          500

  5200                                          700

  6100                300                       

                      1,200                     1,200
  ------------------- ------------------------- -------------------------

**Proprietary Closing Entries:**

C1. To close revenues and expenses into cumulative results of operations

5800 Tax Revenue Collected 500

5200 Revenue fr Services Prov 700

> 3310 Cumulative Results of Operations 900
>
> 6100 Operating Exp/Prog Costs 300

**Proprietary Post-Closing Trial Balance**

  ------------------- ------------------------- -------------------------
  1010                900                       

  3310                                          900

                      900                       900
  ------------------- ------------------------- -------------------------

**[Year 1]{.underline}**

**[SF 133 - Quarter 4]{.underline}**

1A Appropriations (4114E) 500

2A Unobligated balance brought forward 0

3A1 Spending authority from offsetting collections (4252E) 700

5 Temporarily not available pursuant to P.L. (4397E-B, 4398E-B)
[(900)]{.underline}

**7 Total budgetary resources 300**

8A1 Obligations incurred, direct (4902E) 75

8A3 Obligations incurred, direct, not subj to apport (4902E) 225

9 Unobligated Balances Available [0]{.underline}

**11 Total Status of budgetary resources 300**

12\. Obligated Balance, net as of October 1

13\. Obligated Balance Transferred, net

14\. Obligated balance, net, end of period

15A. Disbursements (4902E) 300

15B. Collections (4252E) 700

**[FMS 2108]{.underline}**

Column 5 Post-closing unexpended balance (1010E) 900

Column 11 Unobligated balance (4397E, 4398E) 900

**[Schedule P - Program & Financing]{.underline}**

**Obligations by Program Activity**

1000 Total New Obligations (4902E) 300

**Budgetary Resources Available for Obligation**

2200 New budget authority (gross) (sum 4000 to 6990) 300

2395 Total new obligations (-) (from line 1000) [(300)]{.underline}

2499 Total unobligated balance, end of year **0**

**New Budgetary Authority (Gross) Detail**

6027 Appropriation (trust fund, indefinite) (4114E) 500

6045 Portion precluded from obligation (-) (4397E-B) (275)

6800 Discr spend authority from offsetting collections (4252E) 700

6845 Portion unavailable for obligation (-) (4398E-B)
[(625)]{.underline}

7000 Total new budget authority (gross) (4114E+4252E+4397E-B+4398E-B)
**300**

**[Year 1]{.underline} [Form and Content Reports]{.underline}**

+-----------------------------------------------------------------------+
| **[Balance Sheet]{.underline}**                                       |
|                                                                       |
| ASSETS                                                                |
|                                                                       |
| 1A1. Entity-Intragovernmental (1010E) 900                             |
|                                                                       |
| LIABILITIES & NET POSITION                                            |
|                                                                       |
| 8\. Cumulative Results of Operations (3310E) 900                      |
+-----------------------------------------------------------------------+
| **[Statement of Net Cost]{.underline}**                               |
|                                                                       |
| 1B1. Program Costs-Public-Production (6100E) 300                      |
|                                                                       |
| 1D. Less Earned Revenue (5200E) (700)                                 |
|                                                                       |
| 5\. Net Cost of Operations (calc) (400)                               |
+-----------------------------------------------------------------------+
| **[Statement of Changes in Net Position]{.underline}**                |
|                                                                       |
| 1\. Net Cost of Operations (400)                                      |
|                                                                       |
| 2B. Financing Sources-Taxes (5800E) 500                               |
|                                                                       |
| 9\. Net Position-End of Period (calc) 900                             |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **[Statement of Budgetary Resources]{.underline}**                    |
|                                                                       |
| 1A. Budg Auth - Approps (4114E) 500                                   |
|                                                                       |
| 3A1. Sp Auth from Off Coll (4252E) 700                                |
|                                                                       |
| 4B. Adj-Temp not Avail (4397E-B, 4398E-B) [(900)]{.underline}         |
|                                                                       |
| 5\. Total Budgetary Resources 300                                     |
|                                                                       |
| 6\. Obligations Incurred (4902E) [300]{.underline}                    |
|                                                                       |
| 9\. Total Status of Resources 300                                     |
|                                                                       |
| 10\. Obligations Incurred (4902E) 300                                 |
|                                                                       |
| 11A1. Sp Auth from Off Coll (4252E) 700                               |
|                                                                       |
| 15\. Total Outlays (calc) (400)                                       |
+-----------------------------------------------------------------------+
| **[Statement of Financing]{.underline}**                              |
|                                                                       |
| 1A. Obligations Incurred (4902E) 300                                  |
|                                                                       |
| 1B1a.Earned Reimb Collected (4252E) [(700)]{.underline}               |
|                                                                       |
| 1J. Total (calc) (400)                                                |
|                                                                       |
| 5.Net Cost of Operations (calc) (400)                                 |
+-----------------------------------------------------------------------+

**[Year 2]{.underline}**

+-----------------------------------------------------------------------+
| **1. To record appropriated receipts into a trust fund.**             |
|                                                                       |
| Proprietary                                                           |
|                                                                       |
| 1010 Fund Balance with Treasury 600                                   |
|                                                                       |
| > 5800G Tax Revenue Collected 600                                     |
|                                                                       |
| Budgetary                                                             |
|                                                                       |
| 4114 Appropriated Trust or Special Fund Receipts 600                  |
|                                                                       |
| > 4620 Unobligated Funds Not Subject to Apportionment 600             |
+-----------------------------------------------------------------------+
| **2a. To record obligation, expenditure and disbursement of funds.    |
| *Current year receipts do not cover expenses.***                      |
|                                                                       |
| Proprietary                                                           |
|                                                                       |
| 6100N Operating Expenses/Program Costs 750                            |
|                                                                       |
| > 1010 Fund Balance with Treasury 750                                 |
|                                                                       |
| Budgetary                                                             |
|                                                                       |
| 4620 Unobligated Funds Not Subject to Apportionment 750               |
|                                                                       |
| > 4902 Expended Authority - Paid 750                                  |
|                                                                       |
| \- and -                                                              |
|                                                                       |
| **2b. To record authority made available from previously unavailable  |
| balances.**                                                           |
|                                                                       |
| 4157 Authority Made Available from Receipt or Appropriation Balances  |
| Previously                                                            |
|                                                                       |
| > Precluded from Obligation\* 75                                      |
|                                                                       |
| 4158 Authority Made Available from Offsetting Collections Balances    |
| Previously                                                            |
|                                                                       |
| > Precluded from Obligation\* 75                                      |
| >                                                                     |
| > 4620 Unobligated Funds Not Subject to Apportionment 150             |
| >                                                                     |
| > *\*Note: Accounts 4157 and 4158 will close to 4397 and 4398,        |
| > respectively*                                                       |
+-----------------------------------------------------------------------+

**[Year 2]{.underline}**

**BUDGETARY**

**Pre-Closing Adjusted Trial Balance (FACTS II ATB)**

  ------------------- ------------------------- -------------------------
  4114                600                       

  4157                75                        

  4158                75                        

  4201                900                       

  4397                                          275

  4398                                          625

  4902                                          750

                      1,650                     1,650
  ------------------- ------------------------- -------------------------

**Budgetary Closing Entries:**

C1. To consolidate resources and close expended authority paid

4902 Expended Authority - Paid 750

> 4114 Approp Trust or Sp Fd Receipts 600
>
> 4201 Total Actual Resources - Coll 150

C2. To reduce balances prev precluded from obligation by amt needed to
cover current year obligations

*4397* *Receipts and Appropriations Temporarily*

> *Precluded from Obligation 75*

4157. *Authority Made Available from Receipt*

> *or Appropriation Balances Previously Precluded from Obligation 75*

*4398* *Offsetting Coll Temp Precl from Obligation 75*

> *4158 Authority Made Available from Offsetting Collections Balances
> Previously*
>
> *Precluded from Obligation 75*

**Budgetary Post-Closing Trial Balance**

  ------------------- ------------------------- -------------------------
  4201                750                       

  4397                                          200

  4398                                          550

                      750                       750
  ------------------- ------------------------- -------------------------

**[Year 2]{.underline}**

**PROPRIETARY**

**Pre-Closing Adjusted Trial Balance (FACTS I ATB)**

  -------------------- -------------------------- ------------------------
  1010                 750                        

  5800                                            600

  6100                 750                        

  3310                                            900

                       1,500                      1,500
  -------------------- -------------------------- ------------------------

**Proprietary Closing Entries:**

C1. To close revenues and expenses into cumulative results of operations

5800 Tax Revenue Collected 600

3310 Cumulative Results of Operations 150

> 6100 Operating Exp/Prog Costs 750

**Proprietary Post-Closing Trial Balance**

  -------------------- -------------------------- ------------------------
  1010                 750                        

  3310                                            750

                       750                        750
  -------------------- -------------------------- ------------------------

**[Year 2]{.underline}**

**[SF 133 - Quarter 4]{.underline}**

1A Appropriations (4114E+**4157E+4158E**) 750

2A Unobligated balance brought forward (4201B+**4397B+4398B**) 0

3A1 Spending authority from offsetting collections

5 Temporarily not available pursuant to P.L. (**4397E-B, 4398E-B**)
[0]{.underline}

**7 Total budgetary resources 750**

8A3 Obligations incurred, direct, not subj to apport (4902E) 750

9 Unobligated Balances Available [0]{.underline}

**11 Total Status of budgetary resources 750**

12\. Obligated Balance, net as of October 1

13\. Obligated Balance Transferred, net

14\. Obligated balance, net, end of period

15A. Disbursements (4902E) 750

**[FMS 2108]{.underline}**

Column 5 Post-closing unexpended balance (1010E) 750

Column 11 Unobligated balance (**4157E+4158E+4397E+4398E**) 750

**[Schedule P - Program & Financing]{.underline}**

**Obligations by Program Activity**

1000 Total New Obligations (4902E) 750

**Budgetary Resources Available for Obligation**

2200 New budget authority (gross) (sum 4000 to 6990) 750

2395 Total new obligations (-) (from line 1000) [(750)]{.underline}

2499 Total unobligated balance, end of year **0**

**New Budgetary Authority (Gross) Detail**

6027 Appropriation (trust fund, indefinite) (4114E) 600

6028 Appropriation (unavailable balances) (**4157E**) 75

6045 Portion precluded from obligation (-)

6800 Discr spend authority from offsetting collections

6826/6926 From offsetting collections (unavailable balances) (**4158E**)
75

6845 Portion unavailable for obligation (-) [0]{.underline}

7000 Total new budget authority (gross)
(4114E+4252E+**4157E+4158E+4397E-B+4398E-B**) **750**

**[Year 2]{.underline} [Form and Content Reports]{.underline}**

+-----------------------------------------------------------------------+
| **[Balance Sheet]{.underline}**                                       |
|                                                                       |
| ASSETS                                                                |
|                                                                       |
| 1A1. Entity-Intragovernmental (1010E) 750                             |
|                                                                       |
| LIABILITIES & NET POSITION                                            |
|                                                                       |
| 8\. Cumulative Results of Operations (3310E) 750                      |
+-----------------------------------------------------------------------+
| **[Statement of Net Cost]{.underline}**                               |
|                                                                       |
| 1B1. Program Costs-Public-Production (6100E) 750                      |
|                                                                       |
| 5\. Net Cost of Operations (calc) 750                                 |
+-----------------------------------------------------------------------+
| **[Statement of Changes in Net Position]{.underline}**                |
|                                                                       |
| 1\. Net Cost of Operations 750                                        |
|                                                                       |
| 2B. Financing Sources-Taxes (5800E) 600                               |
|                                                                       |
| 8\. Net Position-Beg of Period (3310B) 900                            |
|                                                                       |
| 9\. Net Position-End of Period (calc) 750                             |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **[Statement of Budgetary Resources]{.underline}**                    |
|                                                                       |
| 1A. Budg Auth - Approps (4114E, **4157E, 4158E**) 750                 |
|                                                                       |
| 4B. Adj-Temp not Avail (**4397E-B, 4398E-B**) [(0)]{.underline}       |
|                                                                       |
| 5\. Total Budgetary Resources 750                                     |
|                                                                       |
| 6\. Obligations Incurred (4902E) [750]{.underline}                    |
|                                                                       |
| 9\. Total Status of Resources 750                                     |
|                                                                       |
| 10\. Obligations Incurred (4902E) 750                                 |
|                                                                       |
| 15\. Total Outlays (calc) 750                                         |
+-----------------------------------------------------------------------+
| **[Statement of Financing]{.underline}**                              |
|                                                                       |
| 1A. Obligations Incurred (4902E) 750                                  |
|                                                                       |
| 1J. Total (calc) 750                                                  |
|                                                                       |
| 5.Net Cost of Operations (calc) 750                                   |
+-----------------------------------------------------------------------+