FUND BALANCE WITH TREASURY RECONCILIATION PROCEDURES

####  *A Supplement to the TFM*

**I. Date of Standard Operating Procedures (SOPs):**

> These SOPs were established May 31, 1999, but are subject to change as
> deemed necessary. The month and date of any change will be
> appropriately documented. The Financial Analysis Branch (FAB)
> maintains this document. FAB will provide revised procedures
> electronically via Internet, transmittal letter updates and in the
> Treasury Financial Manual (TFM).

**II. Purpose:**

> The procedures defined in this document provide step-by-step
> instructions on reconciling the Fund Balance with Treasury (FBWT).
> Also included is guidance on reconciling warrant and nonexpenditure
> transactions. These procedures pertain to Federal agencies that must
> report receipt and disbursement activity to Treasury.

**III. Acronyms and Forms:**

> The acronyms used throughout this document are summarized below.
>
> **A. Acronyms**
>
> **ACR** Agency Confirmation Report
>
> **ALC** Agency Location Code
>
> **CFO** Chief Financial Officer
>
> **CP&R** Check Payment and Reconciliation System
>
> **EFT** Electronic Funds Transfer
>
> **DO** Disbursing Officer
>
> **FAB** Financial Analysis Branch
>
> **FBWT** Fund Balance with Treasury

**FI** Financial Institution

> **FMS** Financial Management Service
>
> **FRB** Federal Reserve Bank
>
> **FY** Fiscal year
>
> **G/L** General Ledger
>
> **GOALS** Government On-line Accounting Link System
>
> **JV** Journal Voucher
>
> **OMB** Office of Management and Budget
>
> **OPAC** On-line Payment and Collection System
>
> **NTDO** Non-Treasury Disbursing Office
>
> **RFC** Regional Financial Center
>
> **SGL** Standard General Ledger
>
> **SIBAC** Simplified Interagency Billing and Collection
>
> **SOD** Statements of Differences

**STAR** FMS\'s integrated accounting system

> **USDO** U.S. Disbursing Officer
>
> **B. Forms**
>
> **SF 215:** Deposit Ticket
>
> **SF 224:** Statement of Transactions
>
> **SF 1081:** Voucher and Schedule of Withdrawals and Credits
>
> **SF 1098:** Schedule of Canceled or Undelivered Checks
>
> **SF 1151:** Nonexpenditure Transfer
>
> **SF 1166:** Voucher and Schedule of Payments

**SF 1218:** Statement of Accountability

**SF 1219:** Statement of Accountability

**SF 1220:** Statement of Transactions

**SF 1221:** Statement of Transactions

**SF 5515:** Debit Voucher

**FMS 145:** Schedule of Canceled EFT Items

> **FMS 1185:** Schedule of Unavailable Checks/Cancellations/Credits

**FMS 2108:** Yearend Closing Statement

> **FMS 5206:** Advice of Check Issue Discrepancy
>
> **FMS 6200:** Warrants

**FMS 6652:** Statement of Differences

**FMS 6653:** Undisbursed Appropriation Ledger

**FMS 6654:** Undisbursed Appropriation Account Trial Balance

**FMS 6655:** Receipt Account Ledger

> **FMS 6655:** Receipt Account Trial Balance
>
> **FMS 6655:** Report of Unavailable Receipt Transactions

**IV. Background:**

> The FBWT account is an asset account representing the future economic
> benefit of monies that can be spent for authorized transactions. The
> SGL defines the FBWT as consisting of all funds on deposit with
> Treasury, excluding seized cash deposited, reported on the Statement
> of Transactions, Statement of Accountability and the Yearend Closing
> Statement. Federal agencies use the FBWT account to record
> appropriation, receipt, transfer and disbursement activity. Typical
> fund balance transactions involve: (1) appropriations; (2) accounts
> receivable; (3) disbursements/deposits in transit; (4) accrued
> payroll/benefits; (5) accounts payable; (6) miscellaneous receipts;
> and (7) advances on customer orders. Agencies record this activity in
> the U.S. Standard General Ledger (SGL) Account 1010 and any related
> subaccounts. The fund balance is increased by a debit general ledger
> (G/L) entry. Credit G/L entries decrease the fund balance. Federal
> agencies must use the FBWT account to reconcile with the Department of
> the Treasury, Financial Management Service (FMS) records. This
> reconciliation is essential to enhancing internal controls, improving
> the integrity of various U.S. Government financial reports and
> providing a more accurate measurement of budget results.
>
> Federal agencies derive fund balances from different sources. At the
> agency level, agencies accumulate the fund balance from the numerous
> receipt and disbursement transactions they record in the SGL 1010
> account during an accounting month. Agencies also report this activity
> on their Statement of Transactions and Statement of Accountability.
> FMS uses STAR, an accounting and reporting system that integrates data
> from financial institutions (FIs) via CA\$HLINK, the On-line Payment
> and Collection System (OPAC) and the Regional Finance Centers (RFCs).
> FMS uses the information consolidated into STAR to compare agencies
> reported receipts and disbursements to amounts reported by
> depositories using form FMS 6652. Therefore, any discrepancies between
> agency reports and data from banks, RFCs and the OPAC system are
> reported on FMS 6652. FMS also uses STAR information to generate and
> present accounting results for the month by fund to Federal agencies.
> FMS presents those accounting results on the FMS 6653: Undisbursed
> Appropriation Account Ledger, FMS 6654: Undisbursed Appropriation
> Account Trial Balance, FMS 6655: Receipt Account Ledger/Trial Balance,
> and FMS 6652: Statement of Differences (SOD). FMS 6653 and 6654 give
> agencies their closing fund balances. The FMS 6655 discloses agencies=
> receipt account totals. Agencies may access those reports, FMS 6652,
> 6653, 6654 and 6655, using either the Government On-line Accounting
> Link System (GOALS) or microfiche. See Appendix 5 of this document for
> a map of reconciliation process procedures.

**V. Policy:**

> **A. Periodic Review and Evaluation**
>
> Federal agencies must reconcile their SGL 1010 account and any related
> subaccounts with the FMS 6652, 6653, 6654 and 6655 on a monthly basis
> (at minimum). They must review those accounts each month to maintain
> the accuracy and reliability of their fund balance records for both
> prior year and current year appropriations. Agencies must reconcile
> no-year, revolving, deposit and trust fund accounts. They also must
> reconcile clearing and receipt accounts. This detailed reconciliation
> assures that agency data accumulated in the fund balance account is
> accurate. It also allows the agency to resolve differences in a timely
> manner. When resolving differences, agencies should maintain detailed
> reconciliation worksheets (see Appendix 1) that, if needed, can be
> reviewed by the agency=s auditors or Treasury.
>
> **B. Differences**
>
> Federal agencies must research and resolve differences reported on the
> monthly FMS 6652. They also must resolve all differences between the
> balances reported on their G/L FBWT accounts and balances reported on
> the FMS 6653, 6654 and 6655. FMS notifies agencies of their deposit
> and disbursement differences on FMS 6652. FAB also sends periodic
> reminder letters of deposit and disbursement differences to each
> agency.
>
> **C. Adjustments**
>
> An agency may not arbitrarily adjust its FBWT account. Only after
> clearly establishing the causes of errors and properly documenting
> those errors, should an agency adjust its FBWT account balance. If an
> agency must make material adjustments, the agency must maintain
> supporting documentation. This will allow correct interpretation of
> the error and its corresponding adjustment.

**D. Financial Management System Responsibilities**

> Reconciliation and related verifications ensure and demonstrate the
> integrity of the accounting system. These functions are necessary for
> a well-regulated system. To increase the efficiency of reconciling the
> fund balance, each agency=s system should perform the following:

-   Each financial system=s policies and documented procedures should
    provide for: (1) regular and routine reconciliation of G/L
    accounts, (2) thorough investigation of differences, (3)
    determination of specific causes of differences and (4) initiation
    of corrective action. This includes having the ability to schedule
    coordinated cutoffs and systematically produce a trial balance of
    the G/L. These activities must be scheduled and conducted to
    facilitate rather than impede the reconciliation process.

-   Also, the accounting system should be capable of producing
    subsidiary reports that provide a detailed history of receipt and
    disbursement activity recorded during the month, by fund. The
    subsidiary report balances should agree with the G/L.

-   Processing controls and error checks should be programmed into the
    automated system, to the extent feasible. This will provide the
    maximum assurance that data recorded in the fund balance account is
    accurate.

-   Federal agencies= financial management systems should satisfy the
    directives promulgated by the Joint Financial Management Improvement
    Program, Core Financial System Requirements; the Chief Financial
    Officers Act of 1990; Government Management Reform Act of 1994; the
    Office of Management and Budget (OMB) Circular A-127, Financial
    Management Systems; OMB Circular A-123, Management Accountability
    and Control; the Federal Managers= Financial Integrity Act; and the
    Treasury Financial Manual. These regulations provide guidance on the
    development and maintenance of agency accounting systems to ensure
    each system, in addition to meeting the specific needs of the
    agency, will consistently provide compatible data required by
    Treasury, Congress, OMB and other regulatory agencies.

**E. Internal Controls**

> All receipt and disbursement transactions should be reviewed by
> trained and knowledgeable staff prior to recording the transaction
> into the financial system or reporting the activity on the Statement
> of Transactions. This includes verifying that the arithmetic is
> correct and data elements are properly classified (*i.e.,* the fund
> account symbol). In addition, authorized officials should approve any
> adjustments to the fund balance. These controls help to attain a high
> degree of accuracy in reporting.

**VI. Fund Account Symbols:**

> Agencies must identify each receipt or disbursement accounting
> transaction with the appropriate Treasury fund account symbol. Fund
> account symbols are used for internal and external reporting purposes.
> The symbol consists of a series of digits that range from 6 (XX XXXX)
> to 15 ((XX) XX-XX X/X XXXX (XXX)) characters in length. Refer to
> Treasury=s FASTBOOK for specific information about fund account
> symbols. In general, the fund account symbol indicates (1) the
> department to which funds were appropriated; (2) the fiscal year(s)
> during which the appropriation is available for obligation; and (3)
> the basic fund group and numerical identification of the
> appropriation. Fund symbols that are 13 digits in length with 2-digit
> prefixes (XX) represent the subclassification prefix. The prefix
> denotes the agency to which the funds are transferred. The basic fund
> groups are categorized as follows:

+------------------------------------------------+----------+----------+
| **Fund Group**                                 | **       |          |
|                                                | Identifi |          |
|                                                | cation** |          |
+------------------------------------------------+----------+----------+
|                                                | **From** | **To**   |
+------------------------------------------------+----------+----------+
| Receipt account symbols                        |          |          |
+------------------------------------------------+----------+----------+
| -   General funds                              | 0000     | 3899     |
+------------------------------------------------+----------+----------+
| -   Special funds                              | 5000     | 5999     |
+------------------------------------------------+----------+----------+
| -   Trust funds                                | 8000     | 8999     |
+------------------------------------------------+----------+----------+
| Expenditure account symbols                    |          |          |
+------------------------------------------------+----------+----------+
| -   General funds                              | 0000     | 3799     |
+------------------------------------------------+----------+----------+
| -   Clearing accounts                          | 3800     | 3899     |
+------------------------------------------------+----------+----------+
| -   Consolidated working funds                 | 3900     | 3999     |
+------------------------------------------------+----------+----------+
| -   Revolving funds                            | 4000     | 4499     |
+------------------------------------------------+----------+----------+
| -   Working capital funds                      | 4500     | 4999     |
+------------------------------------------------+----------+----------+
| -   Special funds                              | 5000     | 5999     |
+------------------------------------------------+----------+----------+
| -   Deposit funds                              | 6000     | 6999     |
+------------------------------------------------+----------+----------+
| -   Trust funds                                | 8000     | 8999     |
+------------------------------------------------+----------+----------+

> Reference the complete fund account symbols on accounting documents.
> Each agency=s accounting system must, by law, report and classify
> funds appropriated or authorized by Congress within the above
> budgetary classifications. Fund Balance Reconciliation (section VIII)
> issues guidance on how to reconcile discrepancies in fund reporting
> between the G/L and FMS 6653, 6654 and 6655.

**VII. Agency Location Code (ALC):**

> The ALC is a unique numeric symbol used as an identifier in financial
> reports and documents prepared by or for agencies and disbursing
> offices. The ALC contains eight, four or three digits. An 8-digit ALC,
> XX-XX-XXXX, identifies the reporting and accounting sources. The first
> two characters of the 8-digit code identify the department or agency.
> The third and fourth digits represent the bureau within the department
> or agency. The remaining four digits identify the accounting station
> within the bureau. The 4-digit ALC, 00-00-XXXX, is the non-Treasury
> disbursing office symbol. Treasury establishes and approves each ALC.

**VIII. Fund Balance Reconciliation:**

> Agencies must perform fund balance reconciliation for each Treasury
> fund account symbol. **Any reports or documents used to reconcile must
> reflect an identical accounting month and fund account symbol.** If an
> agency=s G/L Chart of Accounts includes subaccounts for the SGL 1010
> account, agencies must include subaccount balances in the summary SGL
> account total.
>
> **A. Documentation Used for Reconciliation**
>
> The basic records used to report collection and disbursement activity
> are derived from source documents that evidence a transaction. These
> documents serve as the official means of reference to reconcile the
> FBWT account. Federal agencies may use the source documents identified
> below in part 1, "Agency Source Documents." The documents FMS uses to
> compare fund balance activity are identified in the following listing,
> under part 2 "Treasury Reports."
>
> **1. Agency Source Documents**
>
> Federal agencies may internally develop and use various documents to
> track, record and report financial events. They should record only
> those documents that comply with statutory requirements. Agencies
> should use the following sources, currently used throughout the
> Federal Government, to report on the status of receipts or
> disbursements:

-   Letters of credit.

-   SF 1166.

-   SF 1081.

-   SF 1098.

-   SF 1151.

-   SF 215.

-   SF 5515.

-   FMS 145.

-   FMS 1185.

```{=html}
<!-- -->
```
-   FMS 6200.

-   OPAC (in lieu of SF 1081).

> Agencies generally use the trial balance to obtain the SGL 1010
> account balances. The trial balance should reveal, at a minimum, the
> following information by fund account symbol for easier
> reconciliation:

-   Balance forwarded from previous month.

-   Current month debits/credits (based on increases and decreases to
    the account).

-   Ending fund balance (the difference between the balance forwarded
    and net current month activity).

> **2. Treasury Reports**
>
> FMS provides FMS 6652, 6653, 6654 and 6655 reports to Federal agencies
> monthly. These reports capture data recorded on agencies= Statements
> of Transactions and Accountability reports and data entered into the
> FMS central accounting and reporting system. Agencies should use these
> reports to reconcile their FBWT account. The reconciliation helps to
> (1) validate that reliable data is reported, (2) identify and correct
> errors with agencies= records and (3) determine any discrepancies
> reported by FMS. Agencies should notify FMS of any discrepancies.
>
> **a. SF 224: Statement of Transactions**
>
> The SF 224 is the central accounting document used *only* by 8-digit
> ALCs to report their monthly accounting activity to Treasury. The SF
> 224 provides Treasury with information on agency deposits and
> disbursements. The report captures data by appropriation, fund and
> receipt accounts.
>
> Agencies for which Treasury disburses must prepare and submit the SF
> 224 via GOALS by the 5th workday of the current month. A separate SF
> 224 must be furnished for each 8-digit ALC. The SF 224 may contain
> adjustments for prior month=s accounting activity or reflect no
> activity for the month, if applicable. Agencies must submit a
> supplemental SF 224 by the 8th workday of the current month. FMS uses
> the supplemental SF 224 to capture financial activity not reported on
> the original SF 224 or to adjust information reported on the original
> SF 224.
>
> FMS relies on the totals reported on the SF 224 to identify
> differences between Federal agencies= records and Treasury control
> totals reported by financial institutions. The total in section II,
> line 1, identifies the net disbursements recorded by an agency. It is
> separated into current and prior month amounts. The amount on this
> line is compared to Treasury disbursement control totals. The total in
> section III, line 3, identifies the collection and deposit activity.
> It includes total collections for the current and prior months.
> Information on this line is compared to Treasury deposit control
> totals.
>
> **b. SF 1218/1221: Statement of Accountability/Transactions**
>
> The SF 1218 is the means by which Treasury determines the
> accountability of foreign disbursing officers (USDOs) for funds held
> outside Treasury. SF 1218 reflects accountability transactions
> reported under the 4-digit ALC. An SF 1218 must be provided whenever
> an SF 1221 is submitted.
>
> The SF 1221 is prepared by USDOs who collect and/or disburse foreign
> currency. In this report, the information is classified by
> appropriation, fund and receipt accounts. The SF 1221 supports the SF
> 1218 and provides Treasury with a monthly statement of payments and
> collections made by USDOs. The SF 1218 and 1221 reports are due to
> Treasury by the 7th workday following the close of an accounting
> month.
>
> **c. SF 1219/1220: Statement of Accountability/Transactions**
>
> Domestic DOs and other agencies with disbursing authority submit a
> monthly SF 1219 and 1220 to Treasury. Treasury uses the reports to
> summarize collection and disbursement activity for the month. This
> includes all Electronic Fund Transfer payments, prepared checks or
> other disbursements. SF 1219 provides detailed information about
> disbursing office collections and disbursements. Section I of the SF
> 1219 discloses changes to the disbursing officer=s accountability.
> These changes are based on increases and decreases to fund balances.
> Section II provides details of disbursement and deposit activity as
> well as prior period adjustments. SF 1220: Statement of Transactions
> is similar to the SF 224. It also provides Treasury with information
> related to an agency=s disbursement and collection activity. Agencies
> report the disbursement and collection data by appropriation, fund and
> receipt accounts. The SF 1219 and 1220 statements must be submitted to
> Treasury by the 7th workday following the close of the accounting
> month.
>
> **d. Reconciliation of Checks Issued**
>
> FMS performs a two-step reconciliation of checks issued by RFCs and
> NTDOs. First, FMS compares item for item each check issued to the
> amount paid by the Federal Reserve Banks (FRBs) as presented through
> financial institutions. Second, FMS compares Statements of
> Accountability, SF 1219 or 1218 (line 2.10), to the detail of checks
> issued to assure all checks issued have been recorded as charges
> against appropriation or fund account symbols.

At the close of each week and month, disbursing officers submit to FMS a
Level 8 magnetic tape (or electronic file transmission) that details by
check symbol, serial number and amount all checks issued during the
period (refer to I TFM 4-6500 for specific reporting requirements).
Daily, FRB check processing offices submit to FMS an electronic file
that details by check symbol, serial number and amount all checks paid
that business day. The Level 8 check data and the FRB paid data are
entered into the FMS Check Payment and Reconciliation (CP&R) system.
Items that match exactly are reconciled and placed in archive. For items
that do not match exactly, FMS reviews an image of the check to
determine if a forgery has been paid or if the issue data was erroneous.
Where forgery has occurred, FMS reclaims the payment amount from the
financial institution. When the issue record is at fault, FMS issues the
DO an FMS Form 5206. The DO must review each FMS 5206, determine the
reason for the error, record an appropriate adjustment and report such
adjustments on their next SF 1219 or 1218.

> Monthly, each DO prepares and submits to FMS their SF 1219 or 1218.
> Line 2.10 summarizes the Level 8 detail check data submitted net of
> FMS 5206 adjustments processed and other DO identified adjustments.
> FMS compares SF 1219/1218 reporting to check issue data, FMS 5206
> adjustments and DO requested adjustments entered into the FMS CP&R
> system. For discrepancies detected in this comparison, FMS sends the
> DO notification by letter. The DO must review the letter and determine
> the appropriate action needed to bring the CP&R system and the SF
> 1219/1218 reporting into agreement (see section VIII, part 3, exhibit
> 3E).
>
> **e. FMS 6652: Statement of Differences**
>
> FMS provides FMS 6652 to Federal agencies for both disbursements and
> deposits. A FMS 6652 is generated for each ALC by accounting and
> accomplished month if there is a discrepancy. The accounting month is
> the month the report is generated. The accomplished month is the month
> the difference occurred. Differences resulting from deposits indicate
> there is a discrepancy between the monthly totals submitted through
> the banking system via SF 215/5515s and the totals provided by the
> agency on the SF 224 (section III, line 3) or 1219 (section I, line
> 4.2). Treasury removes deposit differences of less than \$50 and more
> than 6 months old to a small difference account. The SOD for
> Disbursement transactions reveal discrepancies between monthly totals
> reported by the RFCs and/or through OPAC transactions between agencies
> and totals in agency reports on the SF 224 (section II, line 1) or
> 1219 (line 2.80). As stated in section V, agencies must research and
> resolve *all* differences. Differences that are not cleared during the
> next accounting month are carried forward to subsequent months until
> cleared. Agencies should report clearly supported corrective entries
> on the subsequent month=s Statement of Transactions/ Accountability.
>
> Federal agencies should compare the items reported on their internal
> deposit listing or collection schedules to the monthly deposit
> ticket/debit voucher support listing received via GOALS or CA\$HLINK
> to reconcile deposit differences. An agency can reconcile disbursement
> differences by comparing the transactions reported on the support
> listings for disbursement transactions to the agency=s internal
> subsidiary report or control ledger of disbursement activity and/or
> individual disbursement source documents. The disbursement support
> listings generated from GOALS include the RFC Agency Link (agency
> confirmation report) and OPAC transactions.
>
> **f. FMS 6653: Undisbursed Appropriation Account Ledger**
>
> FMS provides Federal agencies with a monthly FMS 6653 for expenditure
> accounts that have monthly activity. FMS 6653 provides information
> about the appropriation warrants issued, nonexpenditure transfers,
> transactions reported by agencies on the Statement of Transactions and
> those reported by other agencies as well as certain centrally
> processed FMS documents. Transactions commonly reported by other
> agencies and FMS are the nonexpenditure transfer, payroll
> disbursements, warrant and GOALS charges.
>
> FMS 6653 is arranged to report the opening fund balance for the month,
> current month transactions, net disbursements and the closing balance
> at the end of the accounting month. Federal agencies must reconcile
> the FBWT account to the closing balance presented on FMS 6653 and
> FACTS II.
>
> The transaction codes reported on FMS 6653 indicate the type of
> activity reported. The most commonly used transaction codes are *10:*
> appropriation warrant, *61:* disbursements and *71:* repayments. A
> detailed listing of transaction codes that may appear on FMS 6653 is
> shown in Appendix 2.
>
> **g. FMS 6654: Undisbursed Appropriation Account Trial Balance**
>
> FMS 6654 provides agencies with summary data about their expenditure
> accounts. This data is summarized for each appropriation and fund
> account at the department level and at the bureau level for certain
> executive departments. The data reveals the balance forwarded at the
> beginning of the fiscal year, cumulative warrants, nonexpenditure
> transactions, net disbursements to date and closing balances at month
> end. Federal agencies must reconcile their FBWT accounts to the
> closing balances shown in this report.
>
> **h. FMS 6655: Unappropriated Receipt Account Ledger**
>
> FMS 6655 contains detailed receipt transactions and balances reported
> by an agency during an accounting month. These balances are
> unavailable for expenditure until Congress passes specific
> appropriation legislation. It discloses information related to the
> balance forwarded, current month receipt transactions and the
> month-end closing account total. This information is reported for each
> special and trust fund receipt account. Federal agencies must
> reconcile their receipt activity to the closing balance shown on FMS
> 6655. The transaction codes that may appear on the FMS 6655 are
> disclosed in Appendix 2.
>
> **i. FMS 6655: Receipt Account Trial Balance**
>
> FMS 6655 shows receipt balances by fund account symbol and department.
> This includes year-to-date and current month receipt totals. Federal
> agencies must reconcile their current month and year-to-date receipt
> activity to the balances disclosed in this report.
>
> **j. FMS 6655: Report of Unavailable Receipt Transactions**
>
> FMS 6655 shows collections or deposits of funds in accounts that are
> not immediately available for expenditure. The unavailable receipt
> balances are provided for each receipt account symbol.
>
> **k. FMS 2108: Yearend Closing Statement**
>
> FMS 2108 reports the fund balance for each expenditure account symbol
> that has a balance and/or activity for the fiscal year. The FMS 2108
> also reports the amount of receivables, unfilled customer orders,
> unobligated balances and unpaid obligations. Beginning fiscal 1999,
> Federal agencies will submit the FMS 2108 data to FMS using the
> Federal Agencies= Centralized Trial Balance System (FACTS II).

**B. Step-By-Step Reconciliation Process**

> The steps used to perform fund balance reconciliation are presented in
> exhibits 1A through 4A. Each exhibit uses three column headings:
> "step," "action" and "required documents." The "step" column numbers
> the actions that must be accomplished to complete the reconciliation.
> The "action" column describes each step in terms of the specific
> processes that need to be performed to accomplish the reconciliation.
> The "action" column also gives examples of common discrepancies and
> details corrections that must be made to the agency's Statement of
> Transactions/Accountability and/or the G/L. "Action" also describes
> common reconciliation worksheet annotations. The final column titled
> "required documents" lists the reports an agency will use to perform
> the actions/reconciliations.
>
> This section provides step-by-step procedures for reconciling the
> agency FBWT accounts to the FMS 6653. The following procedures also
> apply to reconciling FMS 6654 (when there is no monthly activity for
> an expenditure account symbol), FMS 6655 as well as the SF 224,
> 1218/1221 and 1219/1220 reports. **The procedures are in how-to
> exhibit formats**. As a quick reference, the exhibits provide
> step-by-step directions for the following:

1.  Comparing FMS 6653 and General Ledger Totals

-   Exhibit 1A**---**How to Compare FMS 6653 and General Ledger Totals.

-   Exhibit 1B**---**How to Identify Differences in FMS 6653 and General
    Ledger Entries Reported by the Agency.

-   Exhibit 1C**---**How to Identify Differences in FMS 6653 and General
    Ledger Entries Reported by Another Agency.

-   Exhibit 1D**---**How to Determine the Month-End Unreconciled
    Balance.

2.  Identifying Prior Month Differences

-   Exhibit 2A**---**How to Identify Prior Month Differences.

3.  Reconciling Statements of Differences

-   Exhibit 3A**---**How to Reconcile Statement of Differences for
    Disbursements.

-   Exhibit 3B**---**How to Use Worksheet 1B: Statement of Differences
    for Disbursements.

-   Exhibit 3C**---**How to Reconcile Statement of Differences for
    Deposits.

-   Exhibit 3D**---**How to Use Worksheet 1C: the Statement of
    Differences for Deposits.

-   Exhibit 3E**---**How to Reconcile Check Issue Audits Using FMS 5206.

4.  Researching Uncleared Differences

-   Exhibit 4A**---**How to Research Uncleared Differences.

**1. Comparing FMS 6653 and General Ledger Totals**

> This section provides detailed instructions on reconciling the FMS
> 6653 to the FBWT SGL account. Exhibit 1 furnishes guidance on
> comparing the FMS 6653 and SGL 1010 balances. Exhibit 2 issues
> directives on identifying entries reported by the reconciling agency.
> Exhibit 3 provides instructions on identifying transactions reported
> by other Federal agencies. Exhibit 4 furnishes guidance on determining
> the residual unreconciled balance.

**Exhibit 1ACHow to Compare** **FMS 6653 and General Ledger Totals**

+--------+--------------------------------------------------+----------+
| **EX   | **ACTION**                                       | **RE     |
| HIBIT- |                                                  | QUIRED** |
| STEP** |                                                  |          |
|        |                                                  | **DOC    |
|        |                                                  | UMENTS** |
+========+==================================================+==========+
| **E    | Determine if the SGL ending balance and the FMS  | -        |
| xhibit | 6653 closing balance are equal. The balances     |    Trial |
| 1      | should be compared for the same accounting month |          |
| A-Step | and fund account symbol. The agency\'s trial     |  balance |
| 1**    | balance report should disclose the SGL 1010      |          |
|        | balance. If the SGL has subaccounts for SGL      | -   FMS  |
|        | 1010, combine these amounts to obtain the ending |     6653 |
|        | balance. **If the SGL and FMS 6653 are not       |          |
|        | equal, proceed to E1A-2.**                       |          |
+--------+--------------------------------------------------+----------+
| **E    | Using the FMS 6653, record the reconciling       | -   FMS  |
| 1A-2** | month=s closing balance in column D of Worksheet |     6653 |
|        | 1A: FMS 6653 and General Ledger Reconciliation,  |          |
|        | found in Appendix 1. If it is the beginning of   | -   W    |
|        | the fiscal year (FY) and a balance is carried    | orksheet |
|        | forward from a prior year, record instead the    |     1A   |
|        | prior year=s closing balance in column D. This   |          |
|        | balance is reported as the balance forward.      |          |
|        | Refer to Worksheet 1A to determine how to record |          |
|        | the FMS 6653 balance forward.                    |          |
+--------+--------------------------------------------------+----------+
| **E    | Using the trial balance, record the reconciling  | -   W    |
| 1A-3** | month=s ending balance for SGL 1010 (column E)   | orksheet |
|        | of Worksheet 1A in Appendix 1. If it is the      |     1A   |
|        | beginning of the FY and a balance is carried     |          |
|        | forward from the prior year, record instead the  | -        |
|        | prior year=s ending balance in column E of       |    Trial |
|        | Worksheet 1A. This balance is reported as the    |          |
|        | balance forward. The balance forward should only |  balance |
|        | be recorded at the beginning of the fiscal year. |          |
|        | It is the previous fiscal year\'s ending         |          |
|        | balance. Refer to Worksheet 1A to determine how  |          |
|        | to record the FMS 6653 balance forward.          |          |
+--------+--------------------------------------------------+----------+
| **E    | Verify that the net difference between the FMS   | -   W    |
| 1A-4** | 6653 (column D) and SGL (column E) is reflected  | orksheet |
|        | on Worksheet 1A in Appendix 1. If not, record    |     1A   |
|        | the net difference or input the necessary        |          |
|        | formula on the worksheet to obtain the net       |          |
|        | difference. If the spreadsheet is created in     |          |
|        | Microsoft Excel or Lotus, a basic formula to     |          |
|        | derive the net difference is \@sum (indicate     |          |
|        | column and row the FMS 6653 is reported) minus   |          |
|        | (-) \@sum (indicate column and row SGL is        |          |
|        | reported). This formula should be copied to each |          |
|        | row. **Note: The FMS 6653 and SGL entries netted |          |
|        | should be reported on the identical row.**       |          |
+--------+--------------------------------------------------+----------+

**Exhibit 1BCHow to Identify Differences in FMS 6653 and General Ledger
Entries Reported by the Agency**

+---------+----------------------------------------------+-------------+
| **EXH   | **ACTION**                                   | *           |
| IBIT-** |                                              | *REQUIRED** |
|         |                                              |             |
| *       |                                              | **          |
| *STEP** |                                              | DOCUMENTS** |
+=========+==============================================+=============+
| **      | Verify the transactions reported by your     | -   FMS     |
| Exhibit | agency on the FMS 6653 by using the SF 224,  |     6653    |
| 1B-Step | 1219/1220 and/or 1218/1221 source documents, |             |
| 1**     | disbursement/receipt transaction logs or an  | -   Source  |
|         | automated report of source documents that    |             |
|         | were posted (or should have been posted) to  |   documents |
|         | the G/L during the month being reconciled.   |             |
|         |                                              | -           |
|         |                                              | Transaction |
|         |                                              |     logs    |
+---------+----------------------------------------------+-------------+
| **      | If a valid disbursement or receipt is posted | -   FMS     |
| E1B-2** | in the SGL, but not reported on the FMS      |     6653    |
|         | 6653, record the document total in column D  |             |
|         | of Worksheet 1A in Appendix 1. Refer to      | -   Source  |
|         | Worksheet 1A to determine how to record the  |             |
|         | FMS 6653 balance forward. Record any         |   documents |
|         | previous month=s disbursement, not reported, |             |
|         | in section II of the next SF 224, 1218 or    | -   SF 224  |
|         | 1219 as a prior month adjustment. Also,      |             |
|         | record (classify) the disbursement in        | -   SF 1218 |
|         | section I of the next SF 224 or 1220/1221.   |             |
|         | Prior month adjustments for disbursements    | -   SF 1219 |
|         | must be reported on the SF 224 (section II,  |             |
|         | line 1) or 1218/1219 \[line(s) 2.10, 2.11,   | -   SF 1220 |
|         | 2.12, or 2.80\]. Prior month adjustments for |             |
|         | receipts must be reported on the SF 224      | -   SF 1221 |
|         | (section III, line 3) or 1219 (section I,    |             |
|         | part A, line 4.20).                          | -   Trial   |
|         |                                              |     balance |
+---------+----------------------------------------------+-------------+
| **      | If a receipt or disbursement is reported on  | -   FMS     |
| E1B-3** | the SF 224/1220/1221 and reflected on the    |     6653    |
|         | FMS 6653, but not posted to the SGL, obtain  |             |
|         | a copy of the document and record the        | -   Source  |
|         | document total in column E of Worksheet 1A   |             |
|         | in Appendix 1. Refer to Worksheet 1A to      |   documents |
|         | determine how to record the FMS 6653 balance |             |
|         | forward. Also, record the valid disbursement | -   Trial   |
|         | or deposit transaction into the SGL when the |     balance |
|         | document is received.                        |             |
+---------+----------------------------------------------+-------------+
| **      | If a receipt or disbursement is erroneously  | -   Source  |
| E1B-4** | posted to the SGL, record the document total |             |
|         | in column E. Refer to Worksheet 1A in        |   documents |
|         | Appendix 1 to determine how to record the    |             |
|         | FMS 6653 balance forward. Also, reverse the  | -   Trial   |
|         | entry in the G/L. A Journal Voucher (JV)     |     balance |
|         | should be used to document the SGL reversal. |             |
|         | An approving official must sign the JV.      | -   FMS     |
|         |                                              |     6653    |
|         |                                              |             |
|         |                                              | -   JV      |
+---------+----------------------------------------------+-------------+
| **      | If a receipt or disbursement is erroneously  | -   Source  |
| E1B-5** | reported by the agency on the FMS 6653 via   |             |
|         | the SF 224, SF 1218/1221 or 1219/1220,       |   documents |
|         | record the entry in column D. Refer to       |             |
|         | Worksheet 1A in Appendix 1 to determine how  | -   FMS     |
|         | to record the FMS 6653 balance forward.      |     6653    |
|         |                                              |             |
|         | Adjust the entry reported on the next SF     | -   SF 224  |
|         | 224. Reverse any erroneous disbursement in   |             |
|         | the SF 224 (section II ) or 1218/1219 (line  | -   SF      |
|         | 2.80) as a prior month adjustment. Also      |             |
|         | re-classify the transaction in the next SF   |   1219/1220 |
|         | 224 (section I) or 1220/1221. Reverse any    |             |
|         | erroneous deposit in the SF 224 (section     | -   SF      |
|         | III) or 1218/1219 (line 4.20).               |             |
|         |                                              |   1218/1221 |
+---------+----------------------------------------------+-------------+

**Exhibit 1CCHow to Identify Differences in FMS 6653**

**and General Ledger Entries Reported by Another Agency**

+--------+-------------------------------------------------+----------+
| **EXHI | **ACTION**                                      | **RE     |
| BIT-** |                                                 | QUIRED** |
|        |                                                 |          |
| **     |                                                 | **DOC    |
| STEP** |                                                 | UMENTS** |
+========+=================================================+==========+
|        | Typical entries reported by other agencies      |          |
|        | include the appropriation warrant,              |          |
|        | non-expenditure transfer, GOALS user fees and   |          |
|        | Thrift Savings Plan (TSP) transactions. Entries |          |
|        | reported by other Federal agencies are          |          |
|        | distinguished by an ALC different from the      |          |
|        | reconciling agency.                             |          |
+--------+-------------------------------------------------+----------+
| **E    | Verify the amount reported on the FMS 6653 as   | -   FMS  |
| xhibit | ACurr yr app@ by comparing this amount to the   |     6653 |
| 1      | amount reported in the G/L for the              |          |
| C-Step | appropriation warrant as well as the amount     | -        |
| 1**    | reported as available receipts. If the amounts  |    Trial |
|        | differ, obtain a copy of the Warrant received   |          |
|        | from Treasury to determine the correct amount   |  balance |
|        | and/or see exhibit 3A for deposits in           |          |
|        | reconciling the available receipt amount.       | -        |
|        | Sample Letter 2 shown in Appendix 4 can be used |  Warrant |
|        | to request the document.                        |          |
|        |                                                 | -   JV   |
|        | -   If the amount is incorrectly recorded in    |          |
|        |     the SGL, record the SGL difference (between | -        |
|        |     the amount recorded and amount of the       |   Letter |
|        |     actual warrant) in column E of Worksheet 1A |          |
|        |     in Appendix 1. Refer to Worksheet 1A to     |          |
|        |     determine how to record the FMS 6653        |          |
|        |     balance forward. Also, increase or decrease |          |
|        |     the SGL total to equal the amount disclosed |          |
|        |     on the Warrant. Use a JV to document the    |          |
|        |     SGL entry. An approving official must sign  |          |
|        |     the JV.                                     |          |
|        |                                                 |          |
|        | -   If the amount shown on the FMS 6653 is      |          |
|        |     incorrect, record the difference (between   |          |
|        |     the amount reported and amount of the       |          |
|        |     actual warrant) in column D of Worksheet    |          |
|        |     1A. Also, request Treasury, Finance         |          |
|        |     Management Branch to adjust the entry       |          |
|        |     reported on the FMS 6653. Sample Letter 1   |          |
|        |     shown in Appendix 4 can be used to request  |          |
|        |     the adjustment.                             |          |
+--------+-------------------------------------------------+----------+
| **E    | Compare the Anon-exp transaction@ amount        | -   SF   |
| 1C-2** | reported on the FMS 6653 and in the G/L. The    |     1151 |
|        | agency should have a copy of the SF 1151 to     |          |
|        | verify the amount reported. Otherwise, request  | -        |
|        | from the agency a copy of the document. Sample  |    Trial |
|        | Letter 2 shown in Appendix 4 can be used to     |          |
|        | request the document.                           |  balance |
|        |                                                 |          |
|        | -   If the amount is incorrectly recorded in    | -   FMS  |
|        |     the SGL, record the difference (between the |     6653 |
|        |     amount reported and the SF 1151 amount) in  |          |
|        |     column E of Worksheet 1A in Appendix 1.     | -   JV   |
|        |     Also, increase or decrease the SGL total    |          |
|        |     based on the amount disclosed on the        | -        |
|        |     SF 1151. Use a JV to document the SGL       |   Letter |
|        |     entry. An approving official must sign the  |          |
|        |     JV.                                         |          |
|        |                                                 |          |
|        | -   If the amount shown on the FMS 6653 is      |          |
|        |     incorrect, record the difference (between   |          |
|        |     the amount reported/SF 1151) in column D of |          |
|        |     Worksheet 1A. Refer to Worksheet 1A to      |          |
|        |     determine how to record the FMS 6653        |          |
|        |     balance forward. Also, notify Treasury=s    |          |
|        |     Finance Management Branch to adjust the     |          |
|        |     entry reported on the FMS 6653. Sample      |          |
|        |     Letter 1 shown in Appendix 4 can be used to |          |
|        |     request the adjustment.                     |          |
+--------+-------------------------------------------------+----------+
| **E    | Compare the amount reported by Treasury, for    | -        |
| 1C-3** | the monthly GOALS user fees, to the amount      |    GOALS |
|        | recorded in the SGL.                            |     s    |
|        |                                                 | tatement |
|        | -   If the amount is incorrectly recorded in    |          |
|        |     the SGL, record the difference (between the | -   FMS  |
|        |     amount reported and the GOALS statement) in |     6653 |
|        |     column E of Worksheet 1A in Appendix 1.     |          |
|        |     Refer to Worksheet 1A to determine how to   | -        |
|        |     record the FMS 6653 balance forward. Also,  |    Trial |
|        |     increase or decrease the SGL total to the   |          |
|        |     amount shown on the GOALS statement. Use a  |  balance |
|        |     JV to document the SGL entry. An approving  |          |
|        |     official must sign the JV.                  | -   JV   |
|        |                                                 |          |
|        | -   If the amount shown on the FMS 6653 is      | -        |
|        |     incorrect, record the difference (between   |   Letter |
|        |     the amount reported and GOALS statement) in |          |
|        |     column D of Worksheet 1A. Also, notify      |          |
|        |     Treasury GOALS Marketing to adjust the      |          |
|        |     entry reported on the FMS 6653. Sample      |          |
|        |     Letter 1 shown in Appendix 4 can be used to |          |
|        |     request the adjustment.                     |          |
+--------+-------------------------------------------------+----------+
| **E    | Compare the Thrift Savings Plan (TSP) amount    | -   NFC  |
| 1C-4** | reported by the National Finance Center (NFC)   |     TSP  |
|        | to the TSP amount reported in the SGL for the   |          |
|        | month.                                          |  monthly |
|        |                                                 |          |
|        | -   If the amount is incorrectly reported in    |   report |
|        |     the SGL, record the difference (between the |          |
|        |     amount reported and NFC report) in column E | -   FMS  |
|        |     of Worksheet 1A in Appendix 1. Also,        |     6653 |
|        |     increase or decrease the SGL total to equal |          |
|        |     the amount disclosed on the Payroll report. | -        |
|        |     Use a JV to document the SGL entry. An      |    Trial |
|        |     approving official must sign the JV.        |          |
|        |                                                 |  balance |
|        | -   If the amount shown on the FMS 6653 is      |          |
|        |     incorrect, record the difference (between   | -        |
|        |     the amount reported and NFC report) in      |   Letter |
|        |     column D of Worksheet 1A. Refer to          |          |
|        |     Worksheet 1A to determine how to record the |          |
|        |     FMS 6653 balance forward. Also, notify the  |          |
|        |     TSP Division to adjust the entry reported   |          |
|        |     on the FMS 6653. Sample Letter 1 shown in   |          |
|        |     Appendix 4 can be used to request the       |          |
|        |     adjustment.                                 |          |
+--------+-------------------------------------------------+----------+
| **E    | If any other transaction reflected on the FMS   | -   FMS  |
| 1C-5** | 6653 is incorrect, as reported by another       |     6653 |
|        | agency via the SF 224, 1218/1221 or 1219/1220,  |          |
|        | contact the agency to request a reversal of the | -   W    |
|        | transaction. A formal letter that is signed by  | orksheet |
|        | an approving official should be sent to the     |     1A   |
|        | agency to request the reversal. Sample Letter 1 |          |
|        | shown in Appendix 4 can be used to request the  | -        |
|        | adjustment. Follow-up with the agency to ensure |   Letter |
|        | the correction is made. The difference should   |          |
|        | be recorded in column D of Worksheet 1A in      |          |
|        | Appendix 1.                                     |          |
+--------+-------------------------------------------------+----------+
| **E    | If the amount reflected on the FMS 6653 as      | -   FMS  |
| 1C-6** | reported by another agency is correct, but is   |     6653 |
|        | not posted in the G/L, contact the agency to    |          |
|        | request the source documentation to verify the  | -   W    |
|        | entry. Sample Letter 2 shown in Appendix 4 can  | orksheet |
|        | be used to request documentation.               |     1A   |
|        |                                                 |          |
|        | -   Record the transaction in column E of       | -        |
|        |     Worksheet 1A in Appendix 1. When the        |    Trial |
|        |     document is received, record its            |          |
|        |     corresponding G/L entry. **Note: Follow-up  |  balance |
|        |     with the agency to ensure receipt of the    |          |
|        |     document(s).**                              | -        |
|        |                                                 |   Source |
|        |                                                 |     d    |
|        |                                                 | ocuments |
|        |                                                 |          |
|        |                                                 | -        |
|        |                                                 |   Letter |
+--------+-------------------------------------------------+----------+

**Exhibit 1DCHow to Determine the Month-End Unreconciled Balance**

+---------+------------------------------------------------+-----------+
| **EXH   | **ACTION**                                     | **R       |
| IBIT-** |                                                | EQUIRED** |
|         |                                                |           |
| *       |                                                | **DO      |
| *STEP** |                                                | CUMENTS** |
+=========+================================================+===========+
|         | Exhibits 1A through 1C explain how to identify |           |
|         | and reconcile differences. Based on the        |           |
|         | reconciliation there may be an unreconciled    |           |
|         | amount. Exhibit 1D explains how to determine   |           |
|         | the unreconciled difference. Unreconciled      |           |
|         | balances should be shown under Cumulative      |           |
|         | Difference (column G) of Worksheet 1A in       |           |
|         | Appendix 1.                                    |           |
+---------+------------------------------------------------+-----------+
| **      | Determine if the net difference amount is      | -         |
| Exhibit | reported on Worksheet 1A in Appendix 1 for     | Worksheet |
| 1D-Step | each row. If not, follow the guidance provided |     1A    |
| 1**     | in E1A-4 on how to calculate the net           |           |
|         | difference.                                    |           |
+---------+------------------------------------------------+-----------+
| **      | Compute the cumulative difference balance on   | -         |
| E1D-2** | Worksheet 1A in Appendix 1. The total is       | Worksheet |
|         | derived by adding the current column/row net   |     1A    |
|         | difference amounts to the previous cumulative  |           |
|         | difference amount. The final cumulative        |           |
|         | difference for the month is the remaining      |           |
|         | unreconciled amountC it will become a prior    |           |
|         | month difference during the next month=s       |           |
|         | reconciliation. Verify the cumulative          |           |
|         | difference by subtracting the ending SGL       |           |
|         | balance(s) for the fund from the closing       |           |
|         | balance on the FMS 6653.                       |           |
+---------+------------------------------------------------+-----------+
| > **    | The difference between the amount reported on  | -         |
| E1D-3** | the FMS 6653 and G/L should equal the total of | Worksheet |
|         | all uncleared differences. If not, perform     |     1A    |
|         | another review to ensure that all *cleared*    |           |
|         | differences are canceled in the same amount.   |           |
|         | Also, verify both the net difference and       |           |
|         | cumulative difference calculations.            |           |
+---------+------------------------------------------------+-----------+
| **      | After completing the reconciliation for the    | -         |
| E1D-4** | month, give Worksheet 1A in Appendix 1 to an   | Worksheet |
|         | approving official for signature/review. It    |     1A    |
|         | will also be helpful to attach a memorandum    |           |
|         | that details the results of the current        | -   Memo  |
|         | month=s reconciliation. Sample Memo 1 shown in |           |
|         | Appendix 4 can be used for this purpose. The   |           |
|         | memorandum is titled "FMS 6653: Monthly Fund   |           |
|         | Balance Reconciliation."                       |           |
+---------+------------------------------------------------+-----------+

**2. Identifying Prior Month Differences**

> Prior month differences are uncleared items carried over from previous
> months.

**Exhibit 2ACHow to Identify Prior Month Differences**

+-------+------------------------------------------------+-------------+
| **    | **ACTION**                                     | *           |
| EXHIB |                                                | *REQUIRED** |
| IT-** |                                                |             |
|       |                                                | **          |
| **S   |                                                | DOCUMENTS** |
| TEP** |                                                |             |
+=======+================================================+=============+
| E2A   | Federal agencies should adhere to the          |             |
|       | following when reconciling prior month items:  |             |
|       |                                                |             |
|       | > When any prior month difference is           |             |
|       | > identified and substantiated, properly       |             |
|       | > adjust the G/L or Statement of Transactions/ |             |
|       | > Accountability to clear the difference.      |             |
|       | >                                              |             |
|       | > If any of the reconciling items identified   |             |
|       | > in the monthly reconciliation process        |             |
|       | > detailed in exhibits 2 and 3 offset any      |             |
|       | > previous months= differences, mark both the  |             |
|       | > previous month=s and this month=s            |             |
|       | > reconciling item as cleared.                 |             |
|       | >                                              |             |
|       | > Annotate the month and year (00/00) the item |             |
|       | > cleared in the reconciliation worksheet      |             |
|       | > (column C).                                  |             |
|       | >                                              |             |
|       | > **Do not** permit prior month differences to |             |
|       | > remain outstanding for more than 3 months.   |             |
|       | > Any differences more than 3 months old       |             |
|       | > should be disclosed separately and explained |             |
|       | > on the FMS 6653 worksheet.                   |             |
+-------+------------------------------------------------+-------------+

> **3. Reconciling the Statements of Differences**
>
> This section provides guidance on reconciling the SOD for
> Disbursements and Deposits. The disbursement reconciliation is
> outlined in exhibit 3A. Exhibit 3C provides guidance on how to
> reconcile deposit differences. Refer to FMS 6652 (section VIII, part
> 2, paragraph E) for specific information about the report.

**Exhibit 3AHow to Reconcile the Statement of Differences for
Disbursements**

+-------+---------------------------------------------------+----------+
| **    | **ACTION**                                        | **RE     |
| EXHIB |                                                   | QUIRED** |
| IT-** |                                                   |          |
|       |                                                   | **DOC    |
| **S   |                                                   | UMENTS** |
| TEP** |                                                   |          |
+=======+===================================================+==========+
| # Ex  | Access GOALS to determine if a SOD for            | -   SOD  |
| hibit | Disbursements has been generated.                 |          |
|  3A-S |                                                   |          |
| tep 1 |                                                   |          |
+-------+---------------------------------------------------+----------+
| **E3  | If the disbursement amount is out of balance, a   | -   ACR  |
| A-2** | SOD for Disbursements has been generated. The     |          |
|       | OPAC and Agency Confirmation Reports (ACR)        |          |
|       | generated from GOALS can be used to research      |          |
|       | disbursement differences. First, verify that the  |          |
|       | SF 1166 amount reported on the SF 224 matches the |          |
|       | agencies= SF 1166 listing. If these amounts       |          |
|       | agree, begin the disbursement SOD reconciliation  |          |
|       | match and check off the following line items on   |          |
|       | the Statement of Transactions:                    |          |
|       |                                                   |          |
|       | -   This month=s SF 1166 schedules listed against |          |
|       |     positive entries on the ACR. The ACR lists    |          |
|       |     all SF 1166 items Treasury control records    |          |
|       |     indicate were disbursed for the month.        |          |
|       |                                                   |          |
|       | -   This month=s canceled check items against     |          |
|       |     negative (minus) entries on the ACR.          |          |
+-------+---------------------------------------------------+----------+
| ##    | Compare the SF 1166 schedule number and amount to | -   ACR  |
| E3A-3 | the ACR list.                                     |          |
|       |                                                   | -   SF   |
|       |                                                   |     1166 |
+-------+---------------------------------------------------+----------+
| **E3  | If the schedule number is on the list, check the  | -   ACR  |
| A-4** | item on the ACR.                                  |          |
|       |                                                   | -   SF   |
|       |                                                   |     1166 |
+-------+---------------------------------------------------+----------+
| **E3  | Annotate the payment date on the SF 1166.         | -   SF   |
| A-5** |                                                   |     1166 |
+-------+---------------------------------------------------+----------+
| ##    | If the ACR does not list the SF 1166:             | -        |
| E3A-6 |                                                   |   Reconc |
|       | -   File the schedule in the next month=s folder. | iliation |
|       |                                                   |          |
|       | -   The ACR report for the next month should      |   folder |
|       |     include the schedule.                         |          |
+-------+---------------------------------------------------+----------+
| **E3  | If the ACR lists an SF 1166 that is not reported  | -   SF   |
| A-7** | on the SF 224:                                    |     224  |
|       |                                                   |          |
|       | -   Note the number of the unreported schedule.   | -   SF   |
|       |                                                   |     1    |
|       | -   Research the agency=s disbursement files to   | 218/1221 |
|       |     retrieve the unreported SF 1166.              |          |
|       |                                                   | -   SF   |
|       | -   **Adjustment**: Report the unreported SF 1166 |     1    |
|       |     as a prior month item in the Statement of     | 219/1220 |
|       |     Transactions (sections I and II).             |          |
|       |                                                   | -   ACR  |
|       | -   Verify that the amount is accurately reported |          |
|       |     in the G/L; if not make the necessary         | -   G/L  |
|       |     adjustment to the G/L.                        |          |
|       |                                                   |          |
|       | -   If the ACR lists an SF 1166 that was reported |          |
|       |     on the SF 224 but classified in the incorrect |          |
|       |     fund symbol, then reclassify the SF 1166 to   |          |
|       |     the correct fund symbol (in section I only)   |          |
|       |     of the next SF 224.                           |          |
+-------+---------------------------------------------------+----------+
| **E3  | Identify the amounts of canceled checks.          | -   ACR  |
| A-8** |                                                   |          |
|       | -   Each cancellation schedule Treasury completes | -   SF   |
|       |     during the report month shows as a negative   |     1098 |
|       |     (minus) entry of the ACR report.              |          |
|       |                                                   | -   FMS  |
|       | -   Match each cancellation item with the         |     145  |
|       |     agency=s cancellation source document (SF     |          |
|       |     1098, FMS 145 or 1185).                       | -   FMS  |
|       |                                                   |     1185 |
+-------+---------------------------------------------------+----------+
| **E3  | If the ACR lists a cancellation not reported on   | -   SF   |
| A-9** | the SF 224:                                       |     224  |
|       |                                                   |          |
|       | -   Note the number of the unreported             | -   SF   |
|       |     cancellation.                                 |     1    |
|       |                                                   | 218/1221 |
|       | -   Research the cancellation and identify the    |          |
|       |     source document.                              | -   SF   |
|       |                                                   |     1    |
|       | -   **Adjustment:** Report the cancellation as a  | 219/1220 |
|       |     prior month item in the Statement of          |          |
|       |     Transactions (sections I and II).             | -   SF   |
|       |                                                   |     1098 |
|       | -   Verify that the amount is accurately recorded |          |
|       |     in the G/L; if not, make the necessary        | -   SF   |
|       |     adjustment to the G/L.                        |     1185 |
|       |                                                   |          |
|       |                                                   | -   G/L  |
+-------+---------------------------------------------------+----------+
| **E3A | Retrieve from GOALS the Monthly Register of       | -   OPAC |
| -10** | Transactions, OPAC Transactions.                  |          |
|       |                                                   |   report |
+-------+---------------------------------------------------+----------+
| ## E  | Compare the OPAC payment transactions to those    | -   OPAC |
| 3A-11 | reported on the SF 224, 1218/1221 or 1219/1220.   |          |
|       |                                                   |   report |
|       |                                                   |          |
|       |                                                   | -   SF   |
|       |                                                   |     224  |
|       |                                                   |          |
|       |                                                   | -   SF   |
|       |                                                   |     1    |
|       |                                                   | 218/1221 |
|       |                                                   |          |
|       |                                                   | -   SF   |
|       |                                                   |     1    |
|       |                                                   | 219/1220 |
+-------+---------------------------------------------------+----------+
| **E3A | If the OPAC report lists an OPAC not reported on  | -   OPAC |
| -12** | the SF 224, 1218 or 1219:                         |          |
|       |                                                   |   report |
|       | -   Annotate the number of the unreported OPAC.   |          |
|       |                                                   | -   SF   |
|       | -   Research the unreported OPAC.                 |     224  |
|       |                                                   |          |
|       | -   Verify that the support documentation has     | -   SF   |
|       |     been provided to the agency. If the agency    |     1218 |
|       |     does not have the support documentation,      |          |
|       |     contact the billing agency to request that    | -   SF   |
|       |     the documentation be submitted. Sample Letter |     1219 |
|       |     2 shown in Appendix 4 can be used to request  |          |
|       |     the documentation.                            | -   G/L  |
|       |                                                   |          |
|       | -   **Adjustment**: When the support              |          |
|       |     documentation is received, include the        |          |
|       |     unreported OPAC as a prior month item in the  |          |
|       |     next month=s SF 224 (section II) or 1218/1219 |          |
|       |     (line 2.80). Also, record (classify) the      |          |
|       |     amount in the SF 224 (section I) or           |          |
|       |     1220/1221.                                    |          |
|       |                                                   |          |
|       | -   Verify that the amount is accurately recorded |          |
|       |     in the G/L; if not, make the necessary        |          |
|       |     adjustment to the G/L.                        |          |
+-------+---------------------------------------------------+----------+
| ## E  | If the OPAC report lists an OPAC that should not  | -        |
| 3A-13 | be reported to the agency=s ALC:                  |    GOALS |
|       |                                                   |     OPAC |
|       | -   Inform the billing agency that the charge is  |          |
|       |     incorrect.                                    |          |
|       |                                                   |          |
|       | -   Chargeback the amount to the agency that      |          |
|       |     originated the OPAC.                          |          |
+-------+---------------------------------------------------+----------+

##### 

##### Exhibit 3BHow to Use Worksheet 1B: Statement of Differences for Disbursements 

+-------+--------------------------------------------------+----------+
| **    | **ACTION**                                       | **RE     |
| EXHIB |                                                  | QUIRED** |
| IT-** |                                                  |          |
|       |                                                  | **DOC    |
| **S   |                                                  | UMENTS** |
| TEP** |                                                  |          |
+=======+==================================================+==========+
| **Ex  | The reconciliation performed in exhibit 3A will  | -   W    |
| hibit | involve SOD items. Therefore, obtain a blank     | orksheet |
| 3B    | copy of Worksheet 1B, part 1: Proposed           |     1B,  |
| -Step | Adjustments to Resolve the Statements of         |          |
| 1**   | Differences for Disbursements, and part 2:       |    parts |
|       | Statement of Differences for Disbursements       |     1    |
|       | Reconciliation. Both worksheets are provided in  |     and  |
|       | Appendix 1. In addition, retrieve from GOALS a   |     2    |
|       | copy of the reconciling month=s SOD.             |          |
+-------+--------------------------------------------------+----------+
| **E   | -   Using Worksheet 1B, part 1, in Appendix 1,   | -   W    |
| 3     |     list the documents that should be reported   | orksheet |
| B-2** |     by the agency in the column designated       |     1B,  |
|       |     "increase." Refer to Worksheet 1B, part 1,   |          |
|       |     to determine how to record this transaction. |    parts |
|       |     The entries recorded as an increase are      |     1    |
|       |     transactions reported by Treasury on the     |     and  |
|       |     OPAC and/or ACR report that have not yet     |     2    |
|       |     been reported by the agency and/or are items |          |
|       |     in which an incorrect amount was initially   |          |
|       |     reportedCthis amount must be increased to    |          |
|       |     reflect the accurate value. Provide          |          |
|       |     reconciliation explanations in the column    |          |
|       |     designated for "explanation."                |          |
|       |                                                  |          |
|       | -   Using the Worksheet 1B, part 2, in Appendix  |          |
|       |     1, the items annotated above as an increase  |          |
|       |     should also be recorded in the columns       |          |
|       |     designated for "Treasury doc #" and          |          |
|       |     "Treasury amount." The "Treasury doc #" is   |          |
|       |     the schedule/OPAC number shown on the        |          |
|       |     Treasury reports. The "Treasury amount" is   |          |
|       |     the dollar value associated with the         |          |
|       |     document. Refer to Worksheet 1B, part 2, to  |          |
|       |     determine how to record this transaction.    |          |
+-------+--------------------------------------------------+----------+
| **E   | -   Using Worksheet 1B, part 1, in Appendix 1,   | -   W    |
| 3     |     record disbursements that are not captured   | orksheet |
| B-3** |     by Treasury on the OPAC and/or ACR report,   |     1B,  |
|       |     but reported by the agency as a decrease.    |          |
|       |     Other decreases will include transactions    |    parts |
|       |     that require downward adjustments because    |     1    |
|       |     they were initially recorded for erroneous   |     and  |
|       |     amounts. Record any reconciliation           |     2    |
|       |     explanations in the column designated for    |          |
|       |     "explanation." Refer to Worksheet 1B, part   |          |
|       |     1, to determine how to record this           |          |
|       |     transaction. Using Worksheet 1B, part 2, in  |          |
|       |     Appendix 1, record items the agency          |          |
|       |     reported, but were not reported by Treasury  |          |
|       |     on the Simplified Interagency Billing and    |          |
|       |     Collection (SIBAC)/OPAC and/or ACR. These    |          |
|       |     items should be reported on Worksheet 1B,    |          |
|       |     part 2, in the columns designated for        |          |
|       |     "agency ref #" and "agency amount." The      |          |
|       |     "Agency ref #" is the Federal agency=s       |          |
|       |     source document number. "Agency amount" is   |          |
|       |     the dollar value associated with the         |          |
|       |     document. Refer to Worksheet 1B, part 2, to  |          |
|       |     determine how to record this transaction.    |          |
+-------+--------------------------------------------------+----------+
| ## E  | > Complete Worksheet 1B, part 2, in Appendix 1,  | -   W    |
|  3B-4 | > by providing the additional information        | orksheet |
|       | > requested on the worksheet.                    |     1B,  |
|       |                                                  |     part |
|       |                                                  |     2    |
+-------+--------------------------------------------------+----------+

**Exhibit 3CCHow to Reconcile the Statement of Differences for
Deposits**

+--------+-------------------------------------------------+-----------+
| **EXHI | **ACTION**                                      | **R       |
| BIT-** |                                                 | EQUIRED** |
|        |                                                 |           |
| **     |                                                 | **DO      |
| STEP** |                                                 | CUMENTS** |
+========+=================================================+===========+
| **E    | Print the monthly deposit ticket/debit voucher  | -   DT/DV |
| xhibit | support listing (DT/DV) from GOALS. In          |           |
| 3      | addition, obtain a copy of Treasury=s CA\$HLINK | -         |
| C-Step | report of receipts. Both reports will usually   | CA\$HLINK |
| 1**    | have the same data, except in the case of       |           |
|        | timing differences.                             |    report |
+--------+-------------------------------------------------+-----------+
| **E    | -   Compare agency list of DT/DVs to the amount | -   DT/DV |
| 3C-2** |     reported on the SF 224.                     |           |
|        |                                                 | -         |
|        | -   Reconcile each SF 215 reported on the SF    | CA\$HLINK |
|        |     224 or SF 1219/1218 to a positive item on   |           |
|        |     the DT/DV.                                  | -   SF    |
|        |                                                 |     215   |
|        | Reconcile CA\$HLINK transactions to agency      |           |
|        | related source documents. CA\$HLINK             | -         |
|        | transactions include: ACH Lockbox, ASAP, Credit |    Source |
|        | Card, Commodity Credit (CCC), EFT Payments,     |           |
|        | Fedwire, Farmers Home Administration (FHA),     | documents |
|        | Federal Reserve Bank (FRB), FEDTAX II, Lockbox  |           |
|        | (LB), Star Transactions (ST), and Domestic and  |           |
|        | International Treasury General Account (TGA).   |           |
+--------+-------------------------------------------------+-----------+
| **E    | If a SF 215 is not reported on the DT/DV:       | -   DT/DV |
| 3C-3** |                                                 |           |
|        | -   Review uncleared items from previous months | -   G/L   |
|        |     to determine if the SF 215 clears a prior   |           |
|        |     month difference. If so, adjust the amount  |           |
|        |     between months and mark as cleared from the |           |
|        |     prior SOD.                                  |           |
|        |                                                 |           |
|        | -   Verify that the amount is accurately        |           |
|        |     reported in the G/L; if not, make the       |           |
|        |     necessary adjustment to the G/L.            |           |
+--------+-------------------------------------------------+-----------+
| **E    | File unreported SF 215s (any reported by the    | -   Recon |
| 3C-4** | agency not Treasury) for the next month=s SF    | ciliation |
|        | 224 or SF 1219. The next month=s DT/DV should   |           |
|        | include the missing SF 215s. If it does not,    |    folder |
|        | contact the bank to verify the SF 215s were     |           |
|        | processed and to request they report the        |  deposits |
|        | activity to Treasury.                           |           |
+--------+-------------------------------------------------+-----------+
| **E    | If a SF 215 is on the DT/DV Monthly Deposit     | -   DT/DV |
| 3C-5** | Ticket/Debit Voucher Support Listing, but not   |           |
|        | reported by the agency:                         | -   SF    |
|        |                                                 |     215   |
|        | -   Obtain a copy of the SF 215 and report the  |           |
|        |     transaction on the next month=s SF 224 or   | -   G/L   |
|        |     SF 1219/1218 as a prior month deposit.      |           |
|        |     Also, record the SF 215 in the G/L, if      |           |
|        |     necessary.                                  |           |
+--------+-------------------------------------------------+-----------+
| **E    | If a SF 215 is listed on the DT/DV for a        | -   SF    |
| 3C-6** | different amount than reported by the agency:   |     215   |
|        |                                                 |           |
|        | -   Obtain a copy of the SF 215. If the amount  | -   DT/DV |
|        |     reported on the SF 224 or 1219/1218 is      |           |
|        |     incorrect, adjust the G/L for the           | -   G/L   |
|        |     difference. The adjustment will be the      |           |
|        |     difference between the amount shown on the  |           |
|        |     SF 215 and the original amount reported by  |           |
|        |     the agency.                                 |           |
|        |                                                 |           |
|        | -   Report the difference on the next month=s   |           |
|        |     SF 224 or 1219/1218.                        |           |
+--------+-------------------------------------------------+-----------+
| **E    | If the amount reported on the DT/DV is          | -   DT/DV |
| 3C-7** | incorrect, contact the bank and request that    |           |
|        | the bank correct the amount in the next         | -   SF    |
|        | accounting month. Notify FMS=s Banking          |     215   |
|        | Operations Branch if the correction is not made |           |
|        | by the bank.                                    |           |
+--------+-------------------------------------------------+-----------+
| **E    | Reconcile each SF 5515 to a negative (minus)    | -   DT/DV |
| 3C-8** | item on the DT/DV Support Listing.              |           |
|        |                                                 | -   SF    |
|        |                                                 |     5515  |
+--------+-------------------------------------------------+-----------+
| ##     | If a SF 5515 is not reported on the DT/DV:      | -   SF    |
|        |                                                 |     5515  |
| ##     | -   Review previous months= uncleared items to  |           |
|  E3C-9 |     determine if the transaction clears a prior |           |
|        |     month difference. If so, adjust the amount  |           |
|        |     between months and mark as cleared from the |           |
|        |     prior SOD.                                  |           |
+--------+-------------------------------------------------+-----------+
| **E3   | If a SF 5515 is on the DT/DV, but not reported  | -   SF    |
| C-10** | by the agency:                                  |     5515  |
|        |                                                 |           |
|        | -   Obtain a copy of the SF 5515 and report it  | -   DT/DV |
|        |     on the next month=s SF 224 or 1219/1218 as  |           |
|        |     a prior month debit voucher. Also, record   |           |
|        |     the SF 5515 in the G/L, if necessary.       |           |
+--------+-------------------------------------------------+-----------+
| **E3   | If a SF 5515 is listed on the DT/DV in a        | -   SF    |
| C-11** | different amount than reported by the agency:   |     5515  |
|        |                                                 |           |
|        | -   Obtain a copy of the SF 5515. If the amount | -   DT/DV |
|        |     reported on the SF 224 or SF 1219/1218 is   |           |
|        |     incorrect, adjust the G/L as appropriate.   |           |
|        |     The adjustment will be the difference       |           |
|        |     between the amount shown on the SF 5515 and |           |
|        |     the original amount reported by the agency. |           |
+--------+-------------------------------------------------+-----------+
| ##     | If the amount reported on the DT/DV is          | -   SF    |
| E3C-12 | incorrect:                                      |     5515  |
|        |                                                 |           |
|        | -   Contact the bank and request the bank       | -   DT/DV |
|        |     correct the amount immediately.             |           |
|        |                                                 |           |
|        | -   Notify FMS\'s Banking Operations Branch if  |           |
|        |     the bank does not make the correction.      |           |
+--------+-------------------------------------------------+-----------+
| **E3   | File unreported SF 5515s (any reported by the   | -   Recon |
| C-13** | agency not Treasury) for the next month=s SF    | ciliation |
|        | 224 or 1219 reconciliation. The next month=s    |           |
|        | DT/DV should include the missing SF 5515s. If   |    folder |
|        | it does not, contact the bank to verify that    |     debit |
|        | the SF 5515s were processed and to request that |           |
|        | they report the activity to Treasury.           |  vouchers |
+--------+-------------------------------------------------+-----------+

**Exhibit 3DCHow to Use Worksheet 1C for the Statement of Differences
for Deposits**

+--------+------------------------------------------------+-----------+
| **EXHI | **ACTION**                                     | **R       |
| BIT-** |                                                | EQUIRED** |
|        |                                                |           |
| **     |                                                | **DO      |
| STEP** |                                                | CUMENTS** |
+========+================================================+===========+
| **E    | The reconciliation performed in exhibit 3C     | -         |
| xhibit | will involve SOD items. Therefore, obtain a    | Worksheet |
| 3      | blank copy of Worksheet 1C, part 1: Proposed   |     1C,   |
| D-Step | Adjustments to Resolve Statements of           |     parts |
| 1**    | Differences for Deposits, and part 2:          |     1 and |
|        | Statement of Differences for Deposits          |     2     |
|        | Reconciliation. Both worksheets are provided   |           |
|        | in Appendix 1. In addition, retrieve a copy of | -         |
|        | the reconciling month=s SOD.                   |  Proposed |
|        |                                                |           |
|        |                                                |  adjusted |
|        |                                                |           |
|        |                                                |  deposits |
+--------+------------------------------------------------+-----------+
| **E    | -   Using Worksheet 1C, part 1, in Appendix 1, | -   DT/DV |
| 3D-2** |     list the documents that should be reported |           |
|        |     by the agency in the column designated     |   listing |
|        |     Aincrease.@ Refer to Worksheet 1C, part 1, |           |
|        |     to determine how to record this            | -         |
|        |     transaction. The entries reported as an    | CA\$HLINK |
|        |     increase are transactions reported by      |           |
|        |     Treasury on the DT/DV and/or CA\$HLINK     |    Report |
|        |     report, but are not yet reported by the    |           |
|        |     agency and/or are items for which an       | -         |
|        |     incorrect amount was initially reportedC   | Worksheet |
|        |     this amount must be increased to reflect   |     1C,   |
|        |     the accurate value. Provide reconciliation |     parts |
|        |     explanations in the column designated for  |     1 and |
|        |     Aexplanation.@                             |     2     |
|        |                                                |           |
|        | -   Using Worksheet 1C, part 2, in Appendix 1, | -         |
|        |     the items annotated above as an increase   |  Proposed |
|        |     should be reported in the columns          |     a     |
|        |     designated for ATreasury doc #@ and        | djustment |
|        |     Atreasury amount.@ The ATreasury doc #@ is |           |
|        |     the reference number shown on Treasury     |  deposits |
|        |     reports. "Treasury amount" is the dollar   |           |
|        |     value associated with the document. Refer  |           |
|        |     to Worksheet 1C, part 2, to determine how  |           |
|        |     to record this transaction.                |           |
+--------+------------------------------------------------+-----------+
| **E    | -   Using Worksheet 1C, part 1, in Appendix 1, | -         |
| 3D-3** |     record valid deposits not captured by      | Worksheet |
|        |     Treasury on the DT/DV listing and/or       |     1C,   |
|        |     CA\$HLINK Receipt Listing, but reported by |     parts |
|        |     the agency as a decrease. Other decreases  |     1 and |
|        |     will include transactions that require     |     2     |
|        |     downward adjustments because they were     |           |
|        |     initially recorded for erroneous amounts.  |           |
|        |     Record any reconciliation explanations in  |           |
|        |     the column designated for "explanation."   |           |
|        |     Refer to Worksheet 1C, part 1, to          |           |
|        |     determine how to record this transaction.  |           |
|        |     Using Worksheet 1C, part 2, in Appendix 1, |           |
|        |     record items that the agency reported, but |           |
|        |     are not reported by Treasury on the DT/DV  |           |
|        |     and/or CA\$HLINK report. These items       |           |
|        |     should be reported on Worksheet 1C, part   |           |
|        |     2, in the columns designated for "agency   |           |
|        |     ref #" and "agency amount." The "agency    |           |
|        |     ref #" is the Federal agency=s source      |           |
|        |     document number. "Agency amount" is the    |           |
|        |     dollar value associated with the document. |           |
|        |     Refer to Worksheet 1C, part 2, to          |           |
|        |     determine how to record this transaction.  |           |
+--------+------------------------------------------------+-----------+
| **E    | Complete Worksheet 1C, part 2, in Appendix 1,  | -         |
| 3D-4** | by providing the additional information        | Worksheet |
|        | requested on the worksheet.                    |     1C,   |
|        |                                                |     part  |
|        |                                                |     2     |
+--------+------------------------------------------------+-----------+

**Exhibit 3ECHow to Reconcile Check Issue Audits Using FMS 5206**

+--------+--------------------------------------------------+----------+
| **EXHI | **ACTION**                                       | **RE     |
| BIT-** |                                                  | QUIRED** |
|        |                                                  |          |
| **     |                                                  | **DOC    |
| STEP** |                                                  | UMENTS** |
+========+==================================================+==========+
|        | A FMS Form 5206 is issued by FMS to NTDOs when   |          |
|        | the information Treasury receives from the FRBs  |          |
|        | on paid check amounts differs from the           |          |
|        | information reported by the agency on their      |          |
|        | check issue Level 8 tape. Therefore, a           |          |
|        | discrepancy exists when the totals reported on   |          |
|        | lines 2.10, 2.11 and 2.12 of the SF 1219 are     |          |
|        | different from the amounts recorded in the CP&R  |          |
|        | based on agencies submissions of their check     |          |
|        | issue Level 8 tapes.                             |          |
|        |                                                  |          |
|        | **Refer to section VIII, part 2DCReconciliation  |          |
|        | of Checks Issued, for more specific information  |          |
|        | about the check issue Level 8 tape submission.** |          |
+--------+--------------------------------------------------+----------+
| **E    | Agencies should maintain a check issue log that  | -        |
| xhibit | provides specific information about the check    |    Check |
| 3      | issue amount reported on the actual check and    |          |
| E-Step | checks that were voided and/or canceled. For     |    issue |
| 1**    | example, the log should include information      |     log  |
|        | about the check amount, check number that was    |          |
|        | paid, check number that was voided, check number | -   FMS  |
|        | that was canceled and information about the      |     5206 |
|        | credit received from Treasury on cancellation of |          |
|        | check.                                           |          |
+--------+--------------------------------------------------+----------+
| **E    | Compare the information reported on the check    | -   SF   |
| 3E-2** | issue log to the information reported by         |     1179 |
|        | Treasury in the CP&R system. Unmatched items     |          |
|        | should be researched to determine the cause of   | -   SF   |
|        | discrepancy. In addition, unmatched items should |     5206 |
|        | be annotated on a reconciliation listing that    |          |
|        | includes the cumulative unreconciled amounts for | -   SF   |
|        | the fiscal year. A cumulative listing will make  |     1219 |
|        | it easier to identify reconciling items that     |          |
|        | clear prior month differences. When a prior      | -   SF   |
|        | month difference is cleared, the month/year the  |     1220 |
|        | difference cleared should be annotated on the    |          |
|        | listing. In general:                             |          |
|        |                                                  |          |
|        | -   If a FMS 5206 adjustment is reported by      |          |
|        |     Treasury but not the agency, contact FMS=s   |          |
|        |     Check Reconciliation Branch (CRB) if a copy  |          |
|        |     of the FMS 5206 has not been received.       |          |
|        |     Report the FMS 5206 on the SF 1219 (section  |          |
|        |     I, part A, line 2.11) and on the SF 1220.    |          |
|        |                                                  |          |
|        | -   If a limited payability credit has been      |          |
|        |     issued by FMS=s Accounts Branch through      |          |
|        |     OPAC, the credit should be reported in SF    |          |
|        |     1219 (section I, part A, line 2.12 and line  |          |
|        |     2.80) and 1220.                              |          |
|        |                                                  |          |
|        | -   If the limited payability credit has been    |          |
|        |     issued via SF 1081, report the check issue   |          |
|        |     difference on the SF 1219 (section I, part   |          |
|        |     A, line 2.12) and 1220. Charge the same fund |          |
|        |     account shown on the SF 1081.                |          |
|        |                                                  |          |
|        | -   If void checks were reported on the DO's     |          |
|        |     Level 8 tape with dollar amounts, contact    |          |
|        |     FMS=s CRB and request that the checks be     |          |
|        |     voided in the CP&R system. **Note:** This    |          |
|        |     must be accomplished within 12 months or the |          |
|        |     Accounts Branch will issue a limited         |          |
|        |     payability.                                  |          |
|        |                                                  |          |
|        | -   If an amount is incorrectly reported by the  |          |
|        |     agency on the SF 1219, line 2.10, report the |          |
|        |     difference between the SF 1219 and the Level |          |
|        |     8 tape on the next month's SF 1219, line     |          |
|        |     2.12.                                        |          |
|        |                                                  |          |
|        | -   If an amount is incorrectly reported by the  |          |
|        |     agency on the Level 8 tape, contact the CRB. |          |
|        |                                                  |          |
|        | -   If Treasury has not processed a check issue  |          |
|        |     Level 8 tape, contact the CRB.               |          |
|        |                                                  |          |
|        | -   If Treasury has not processed an SF 1219,    |          |
|        |     contact the agency that submits the SF 1219. |          |
+--------+--------------------------------------------------+----------+

> **4. Researching Uncleared Differences**
>
> Uncleared differences are amounts that remain unreconciled at month
> end. In general, differences result from disbursement or receipt
> transactions that have not been posted to the G/L and/or are not
> reported on the SF 224, 1219/1220 or 1218/1221. Erroneous transactions
> posted by other Federal agencies to the reconciling agency=s fund
> symbols via SF 224/1220/1221 will subsequently create a difference.
> Refer to exhibit 1C for directives on how to reconcile differences
> reported by other Federal agencies. The fund balance will also be out
> of balance with Treasury if transactions are recorded to the incorrect
> fund account symbol either in the SGL or monthly reports submitted to
> Treasury.

**Exhibit 4ACHow to Research Uncleared Differences**

+--------+----------------------------------------------+--------------+
| **EXHI | **ACTION**                                   | **REQUIRED** |
| BIT-** |                                              |              |
|        |                                              | *            |
| **     |                                              | *DOCUMENTS** |
| STEP** |                                              |              |
+========+==============================================+==============+
| **E    | Review the remaining uncleared differences   | -            |
| xhibit | from the previous months and current month   |    Worksheet |
| 4      | to eliminate and clear offsetting items.     |     1A       |
| A-Step |                                              |              |
| 1**    |                                              | -            |
|        |                                              |    Worksheet |
|        |                                              |     1B, part |
|        |                                              |     2, and   |
|        |                                              |              |
|        |                                              |    Worksheet |
|        |                                              |     1C, part |
|        |                                              |     2        |
+--------+----------------------------------------------+--------------+
| **E    | The total uncleared FBWT difference should   | -            |
| 4A-2** | be shown in the Acumulative difference@      |    Worksheet |
|        | column on Worksheet 1A in Appendix 1. The    |     1A       |
|        | total receipt or disbursement differences    |              |
|        | are shown on the SOD reconciliation          |              |
|        | worksheets found in Appendix 1 \[1B (part 2) |              |
|        | and 1C (part 2)\].                           |              |
+--------+----------------------------------------------+--------------+
| **E    | Review adjustments proposed from Worksheet   | -            |
| 4A-3** | 1A (see exhibits 1A and 1B) in Appendix 1.   |    Worksheet |
|        |                                              |     1A       |
+--------+----------------------------------------------+--------------+
| **E    | For any remaining differences, begin         | -            |
| 4A-4** | research efforts to identify/clear these     |    Worksheet |
|        | differences in the next reporting period.    |     1A       |
+--------+----------------------------------------------+--------------+

**\
IX. General Information:**

> **A. Most Commonly Made Errors**
>
> Federal agencies can make several mistakes internally that lead to a
> difference in reporting between the agency and Treasury. These
> mistakes, when identified, must be appropriately resolved. Some of the
> more common errors in fund balance reporting include:

-   Reporting disbursement and/or receipt transactions to the incorrect
    receipt, expenditure or suspense account in the SGL.

-   Reporting disbursement and/or receipt transactions to the incorrect
    receipt, expenditure or suspense account on the SF 224, 1220 or
    1221.

-   Recording a valid transaction in the SGL, but not reporting it on
    the SF 224, 1219/1220 or 1218/1221.

-   Assigning an incorrect value to a disbursement or receipt
    transaction in the SGL.

-   Assigning an incorrect value to a disbursement or receipt
    transaction on the SF 224, 1219/1220 or 1218/1221.

-   Reporting the disbursement or receipt transaction in the incorrect
    column on the Statement of Transactions (i.e., a receipt is reported
    as a disbursement or a disbursement is reported as a receipt).

-   Not recording a valid transaction on the SF 224, 1219/1220 or
    1218/1221.

-   Federal agencies are not being notified when they report an
    incorrect transaction or amount to the reconciling agency=s fund
    symbolCthe transaction is not reversed.

-   Items reported for an incorrect month by the bank, RFC or billing
    agency on OPAC.

-   ALC reported incorrectly by the agency, bank and/or RFC.

-   Items reported for an incorrect month by the agency, bank and/or
    RFC.

-   Difference between the dollar amounts reported by the bank, RFC,
    OPAC system and the agency.

-   Transaction reported to the incorrect month.

-   Transaction posted to the incorrect ALC.

> **B. Frequently Asked Questions/Answers**
>
> Federal agencies often contact the FMS to ask specific questions about
> reconciling the FBWT. This section addresses the most frequently asked
> questions.

+-----------------------------------------------------------------------+
| **Question:** How are FBWT differences resolved?                      |
|                                                                       |
| **Answer:** There are two ways differences may be resolved. They are: |
|                                                                       |
| > \(1\) Additional reporting via the agency=s SF 224, 1219/1220 or    |
| > 1218/1221.                                                          |
| >                                                                     |
| > \(2\) Adjustments to the agency=s G/L.                              |
+-----------------------------------------------------------------------+
| **Question:** What tools are needed to reconcile the FBWT?            |
|                                                                       |
| **Answer:** The basic tools that are used in the FBWT reconciliation  |
| process are:                                                          |
|                                                                       |
| > \(1\) Source documents.                                             |
| >                                                                     |
| > \(2\) SGL 1010 account balance.                                     |
| >                                                                     |
| > \(3\) FMS 6652, 6653, 6654 and 6655.                                |
| >                                                                     |
| > \(4\) Reconciliation spreadsheet.                                   |
| >                                                                     |
| > \(5\) FACTS II.                                                     |
| >                                                                     |
| > \(6\) CA\$HLINK.                                                    |
| >                                                                     |
| > \(7\) GOALSCAgency Confirmation Report, OPAC.                       |
| >                                                                     |
| > \(8\) SF 1218/1221, 1219/1220 and 224.                              |
+-----------------------------------------------------------------------+
| **Question:** How are the FMS 6654 and 6655 used in the FBWT          |
| reconciliation process?                                               |
|                                                                       |
| **Answer:** These statements are the sources an agency uses to        |
| determine Treasury=s control balance for each of its fund account     |
| symbols. It is essential that the balances contained on these         |
| statements be compared to the agency=s G/L balances to determine if   |
| they agree.                                                           |
+-----------------------------------------------------------------------+
| **Question:** What actions are required to correct another agency=s   |
| entry reported erroneously on your FMS 6653?                          |
|                                                                       |
| **Answer:** To correct another agency=s entry reported on the FMS     |
| 6653, identify the name of the agency that reported the error. The    |
| name of the agency will correspond with the ALC annotated on the FMS  |
| 6653. In addition, request the reporting agency reverse the entry.    |
| Finally, verify that the transaction was corrected within the next    |
| reporting period. If not, under certain circumstances, the entry may  |
| be reversed by the reconciling agency.                                |
+-----------------------------------------------------------------------+
| **Question:** How often should the FBWT be reconciled?                |
|                                                                       |
| **Answer:** The FBWT should be reconciled monthly. The more           |
| frequently the reconciliation is performed, the better the audit      |
| trail and the probability that transactions can be traced to the      |
| point of entry and source documents.                                  |
+-----------------------------------------------------------------------+
| **Question:** How are corrections made to the FMS 6653?               |
|                                                                       |
| **Answer:** The FMS 6653 is adjusted via the SF 224, 1219/1220 and    |
| 1218/1221 reports as well as Treasury JVs. The corrections are        |
| processed by Treasury and reflected on the subsequent month=s FMS     |
| 6653.                                                                 |
+-----------------------------------------------------------------------+
| **Question:** What agency transactions are reported to the SGL that   |
| impact the FBWT SGL 1010 account?                                     |
|                                                                       |
| **Answer:** Agency transactions reported to SGL 1010 that impact the  |
| FBWT include:                                                         |
|                                                                       |
| > \(1\) Miscellaneous receipts.                                       |
| >                                                                     |
| > \(2\) Accounts payable and receivable.                              |
| >                                                                     |
| > \(3\) Disbursements-in-transit.                                     |
| >                                                                     |
| > \(4\) Advances.                                                     |
| >                                                                     |
| > \(5\) Accrued payroll and benefits.                                 |
| >                                                                     |
| > \(6\) Canceled authority.                                           |
+-----------------------------------------------------------------------+
| **Question:** What reporting documents are used to compile the FMS    |
| 6653, 6654 and 6655?                                                  |
|                                                                       |
| **Answer:** The documents used to compile the FMS 6653, 6654 and 6655 |
| are the SF 224, 1220/1221, 1151 and appropriation warrants.           |
+-----------------------------------------------------------------------+
| **Question:** Is it necessary to reconcile the FMS 6652 prior to the  |
| FMS 6653?                                                             |
|                                                                       |
| **Answer:** No. However, an integrated reconciliation of both the FMS |
| 6652 and the fund balance (FMS 6653, 6654 and 6655) are required.     |
+-----------------------------------------------------------------------+

> **C. Helpful Hints**
>
> Federal agencies should consider several points when reconciling FBWT
> accounts. These hints help make the reconciliation process easier. It
> is suggested that the hints listed below be disseminated to all
> persons responsible for reporting activity that affect the fund
> balance.

-   Reconcile the FBWT SGL 1010 account monthly to FMS 6653, 6654 and
    6655.

-   Do not assume Treasury control totals are accurate. However, Federal
    agencies must provide documented proof to dispute the amounts
    reported or adjust their reports accordingly.

-   SF 1179 (line 1) should equal SF 1219 (line 2.10).

-   SF 1179 (line 2b) should equal SF 1219 (line 2.12).

-   SF 1179 (line 2a) should equal SF 1219 (line 2.11).

-   FMS 6652 for disbursements is issued when Treasury control totals do
    not equal SF 224 (section II, line 1) or 1219 (section I, part A,
    line 2.80).

-   Post all transactions reported on the SF 224, 1218/1221 and
    1219/1220 to the SGL.

-   A supplemental SF 224 can be submitted to adjust the original report
    transmitted to Treasury. The supplemental is due by the 8th workday.

-   A supplemental SF 1219/1220 can be submitted to adjust the original
    reports transmitted to Treasury. The supplemental is due by the 7th
    workday.

-   Report prior month adjustments on the SF 224 (section II, line 1) or
    1219 (section I, part A, line 2.80).

-   Report prior month adjustments for deposits on the SF 224 (section
    III, line 3) or 1219 (section I, part A, line 4.20).

-   The budget clearing account process has been discontinued per TFM
    Bulletin 98-07.

-   Support adjustments to the G/L with valid documentation.

-   Notify Federal agencies and other sources that report activity
    affecting the reconciling agencies= ALC to adjust discrepancies in
    their reporting by the next reporting period. If this is not
    accomplished, agencies should notify Treasury.

-   Research differences.

-   Properly document adjustments.

-   Use the DT/DV generated from GOALS to reconcile deposit activity.
    The CA\$HLINK report can also be used to reconcile deposits. Note:
    Treasury transfers deposit differences of \$50 or less that have
    aged 6 months to a small difference account.

-   Use the ACR and Monthly Register of Transactions, SIBAC/OPAC, to
    reconcile disbursement and OPAC transactions respectively. Both
    reports are available from GOALS.

-   Reconcile the SOD and check issue audit report monthly.

-   Federal agencies= financial systems should produce subsidiary
    reports that disclose monthly disbursement and receipt activity. If
    possible, the system should separate data by transaction type
    *(e.g.,* credit card, lockbox, FRB and SF 1166). If automated
    reports are not available, Federal agencies should maintain a
    control log of this information.

-   FMS= FAB can assist agencies with SODs and check issue audit
    reconciliation. FAB can be reached on 202-874-7980.

-   FAB, if necessary, can adjust CA\$HLINK for errors related to the
    voucher date/number or ALC.

-   FMS= Center for Applied Financial Management can train Federal
    agencies to reconcile the FBWT or reconcile their fund balance on a
    reimbursable basis. Contact 202-874-9560.