Presentation to the SGL Board

February 24, 1999

Proposal to Establish a Standard General Ledger Account

For

Allocation Transfers from Prior Year Balances

This proposal illustrates an allocation transfer of prior year balances
and is applicable to general funds. It was recommended that a separate
account be established for allocation transfer of prior year balances by
a FACTS II subcommittee whose purpose is to ensure that the SGL and
FACTS II provide consistent guidance. Currently, only allocation
transfers from current year balances are captured in an SGL account
(4175-Allocation Transfers from Current-Year Balances). The following
outline summarizes some important aspects of allocation transfers for
both current year and prior year.

1\. Purpose:

> Transfers to Carry Out the Purposes of the Parent Treasury
> Appropriation Fund Symbol (TAFS).
>
> 2\. Establishment:
>
> The authority to obligate and spend funds made available to one TAFS
> may be delegated to another TAFS in law. The authority is made
> available to the parent TAFS while the authority to obligate and spend
> is delegated to the transfer TAFS.
>
> 3\. TAFS Accounts:
>
> The allocation account carries the same symbol and title as the parent
> account with the 2-digit prefix of the receiving agency.

Parent TAFS: 12X0200

Transfer TAFS: 46-12X0200

4\. Availability:

> Available for obligation only for the same period as the parent TAFS

5\. Apportionment:

> Parent will submit a consolidated S.F. 132 covering both the parent
> and all allocations.

6\. Reports on Budget Execution:

> The parent will submit a consolidated S.F. 133 covering both the
> parent and the transfer TAFS.

In the following scenario transactions are shown for both the parent
TAFS and the transfer (receiving TAFS). The parent receives the
authority in year 1 and transfers the allocation in year 2 via 1151 Non-
expenditure Transfer Authorization. The transfer TAFS obligates and
expends the authority in year 2. The parent TAFS expires at the end of
year 2 and is canceled five years later.

February 24, 1999

+----------------+-------------------------+---------------------------+
| Events         | Parent TAFS             | Transfer TAFS             |
+----------------+-------------------------+---------------------------+
| 1\.            | [P                      | [Proprietary]{.underline} |
| Postclosing    | roprietary]{.underline} |                           |
| Trial Balance  |                         | [Debit]{.underline}       |
| Year 1         | [Debit]{.underline}     | [Credit]{.underline}      |
|                | [Credit]{.underline}    |                           |
|                |                         | 1010 0                    |
|                | 1010 1,000              |                           |
|                |                         | 3100 0                    |
|                | 3100 1,000              |                           |
|                |                         | [Budgetary]{.underline}   |
|                | [Budgetary]{.underline} |                           |
|                |                         | 4201 0                    |
|                | 4201 1,000              |                           |
|                |                         | 4450 0                    |
|                | 4450 1,000              |                           |
+----------------+-------------------------+---------------------------+
| 2\. At the     | [P                      | [Proprietary]{.underline} |
| beginning of   | roprietary]{.underline} |                           |
| year 2 , the   |                         | No entry                  |
| Parent TAFS    | No entry                |                           |
| submits an     |                         | [Budgetary]{.underline}   |
| SF-132         | [Budgetary]{.underline} |                           |
| requesting OMB |                         | No entry                  |
| to apportion   | 4450 Unapportioned      |                           |
| \$1,000. OMB   | Authority 1,000         |                           |
| approves the   |                         |                           |
| request SF 132 | 4510 Apportionments     |                           |
| apportioning   | 1,000                   |                           |
| the full       |                         |                           |
| amount         |                         |                           |
| requested.[^1] |                         |                           |
+----------------+-------------------------+---------------------------+
| 3\. In year 2, | [P                      | [Proprietary]{.underline} |
| the actual     | roprietary]{.underline} |                           |
| transfer of    |                         | 1010 Fund Balance with    |
| authority      | 3100 Unexpended         | Treasury 100              |
| based on an    | Appropriations 100      |                           |
| approved       |                         | 3100 Unexpended           |
| allocation     | 1010 Fund Balance with  | Appropriations 100        |
| transfer       |                         |                           |
| Inter-agency   | Treasury 100            | [Budgetary]{.underline}   |
| agreement      |                         |                           |
| (IAG) is       | [Budgetary]{.underline} | 4176 Allocation           |
| recorded for   |                         | Transfer - Prior Year     |
| \$100. The SF  | 4510 Apportionments 100 |                           |
| 1151 is        |                         | Balances 100              |
| prepared and   | 4176 Allocation         |                           |
| processed.     | Transfer - Prior        | 4510 Apportionments 100   |
|                |                         |                           |
|                | Year Balances 100       |                           |
+----------------+-------------------------+---------------------------+
| 4\. In year 2, | [P                      | [Proprietary]{.underline} |
| the Transfer   | roprietary]{.underline} |                           |
| TAFS allots    |                         | No Entry                  |
| the funding    | No Entry                |                           |
| authority from |                         | [Budgetary]{.underline}   |
| the IAG in the | [Budgetary]{.underline} |                           |
| amount of      |                         | 4510 Apportionments 100   |
| \$100.         | No Entry                |                           |
|                |                         | 4610 Allotments-Realized  |
|                |                         |                           |
|                |                         | Resources 100             |
+----------------+-------------------------+---------------------------+
| 5\. In year 2, | [P                      | [Proprietary]{.underline} |
| the Transfer   | roprietary]{.underline} |                           |
| TAFS Agency    |                         | No Entry                  |
| enters into a  | No Entry                |                           |
| \$50           |                         | [Budgetary]{.underline}   |
| commitment.    | [Budgetary]{.underline} |                           |
|                |                         | 4610 Allotments-Realized  |
|                | No Entry                | Re-                       |
|                |                         |                           |
|                |                         | sources 50                |
|                |                         |                           |
|                |                         | 4700 Commitments 50       |
+----------------+-------------------------+---------------------------+
| 6\. In year 2, | [P                      | [Proprietary]{.underline} |
| the Transfer   | roprietary]{.underline} |                           |
| TAFS incurs a  |                         | No Entry                  |
| \$50           | No Entry                |                           |
| obligation.    |                         | [Budgetary]{.underline}   |
|                | [Budgetary]{.underline} |                           |
|                |                         | 4700 Commitments 50       |
|                | No Entry                |                           |
|                |                         | 4801 Unexpended           |
|                |                         | Obligations               |
|                |                         |                           |
|                |                         | \- Unpaid 50              |
+----------------+-------------------------+---------------------------+
| 7\. In year 2, | [P                      | [Proprietary]{.underline} |
| the Transfer   | roprietary]{.underline} |                           |
| TAFS expends   |                         | 6100 Operating            |
| the \$50       | No Entry                | Expenses/Program          |
| obligation.    |                         |                           |
|                | [Budgetary]{.underline} | Costs 50                  |
|                |                         |                           |
|                | No Entry                | 1010 Fund Balance with    |
|                |                         |                           |
|                |                         | Treasury 50               |
|                |                         |                           |
|                |                         | 3100 Unexpended           |
|                |                         | Appropriations 50         |
|                |                         |                           |
|                |                         | 5700 Expended             |
|                |                         | Appropriations            |
|                |                         |                           |
|                |                         | Used 50                   |
|                |                         |                           |
|                |                         | [Budgetary]{.underline}   |
|                |                         |                           |
|                |                         | 4801 Unexpended           |
|                |                         | Obligations               |
|                |                         |                           |
|                |                         | \- Unpaid 50              |
|                |                         |                           |
|                |                         | 4902 Expended Authority   |
|                |                         |                           |
|                |                         | \- Paid 50                |
+----------------+-------------------------+---------------------------+
| 8\. The        | [P                      | [Proprietary]{.underline} |
| preclosing     | roprietary]{.underline} |                           |
| adjusted trial |                         | [Debit]{.underline}       |
| balance is     | [Debit]{.underline}     | [Credit]{.underline}      |
| prepared for   | [Credit]{.underline}    |                           |
| year 2.        |                         | 1010 50                   |
|                | 1010 900                |                           |
|                |                         | 3100 50                   |
|                | 3100 900                |                           |
|                |                         | 5700 50                   |
|                | [Budgetary]{.underline} |                           |
|                |                         | 6100 50                   |
|                | 4176 100                |                           |
|                |                         | [Budgetary]{.underline}   |
|                | 4201 1,000              |                           |
|                |                         | 4176 100                  |
|                | 4450 0                  |                           |
|                |                         | 4510 0                    |
|                | 4510 900                |                           |
|                |                         | 4610 50                   |
|                |                         |                           |
|                |                         | 4700 0                    |
|                |                         |                           |
|                |                         | 4801 0                    |
|                |                         |                           |
|                |                         | 4902 50                   |
+----------------+-------------------------+---------------------------+
| 9\. Closing    | 4176 Allocation         | 4201 Total Actual         |
| entries for    | Transfer - Prior        | Resources-                |
| year 2 are     |                         |                           |
| recorded.      | Year Balances 100       | Collected 100             |
|                |                         |                           |
| [Budgetar      | 4201 Total Actual       | 4176 Allocation           |
| y]{.underline} | Resources-              | Transfer - Prior          |
|                |                         |                           |
| 9a. To         | Collected 100           | Year Balances 100         |
| consolidate    |                         |                           |
| resources      | No Entry                | 4902 Expended Authority   |
|                |                         | -Paid 50                  |
| 9b. To close   | 4510 Apportionments 900 |                           |
| expended       |                         | 4201 Total Actual         |
| authority      | 4650 Allotments-Expired | Resources-                |
|                |                         |                           |
| 9c. To record  | Authority 900           | Collected 50              |
| expired        |                         |                           |
| authority      | No Entry                | 4610 Allotments-Realized  |
|                |                         |                           |
| [Proprietar    |                         | Resources 50              |
| y]{.underline} |                         |                           |
|                |                         | 4650 Allotments-Expired   |
| 9d. To close   |                         |                           |
| expenses to    |                         | Authority 50              |
| cumulative     |                         |                           |
| results of     |                         | 3310 Cumulative Results   |
| operations     |                         | of                        |
|                |                         |                           |
| 9e. To close   |                         | Operations 50             |
| expended       |                         |                           |
| appropriations |                         | 6100 Operating            |
| used to        |                         | Expenses/Program          |
| cumulative     |                         |                           |
| results of     |                         | Costs 50                  |
| operations.    |                         |                           |
|                |                         | 5700 Expended             |
|                |                         | Appropriations            |
|                |                         |                           |
|                |                         | Used 50                   |
|                |                         |                           |
|                |                         | 3310 Cumulative Results   |
|                |                         | of                        |
|                |                         |                           |
|                |                         | Operations 50             |
+----------------+-------------------------+---------------------------+
| 10\.           | [P                      | [Proprietary]{.underline} |
| Postclosing    | roprietary]{.underline} |                           |
| trial balance  |                         | [Debit]{.underline}       |
| is prepare.    | [Debit]{.underline}     | [Credit]{.underline}      |
|                | [Credit]{.underline}    |                           |
|                |                         | 1010 50                   |
|                | 1010 900                |                           |
|                |                         | 3100 50                   |
|                | 3100 900                |                           |
|                |                         | 3310 0                    |
|                | [Budgetary]{.underline} |                           |
|                |                         | [Budgetary]{.underline}   |
|                | 4176 0                  |                           |
|                |                         | 4176 0                    |
|                | 4201 900                |                           |
|                |                         | 4201 50                   |
|                | 4450 0                  |                           |
|                |                         | 4510 0                    |
|                | 4510 0                  |                           |
|                |                         | 4610 0                    |
|                | 4650 900                |                           |
|                |                         | 4650 50                   |
|                |                         |                           |
|                |                         | 4700 0                    |
|                |                         |                           |
|                |                         | 4801 0                    |
|                |                         |                           |
|                |                         | 4902 0                    |
+----------------+-------------------------+---------------------------+
| 11\. When      | [P                      | [Proprietary]{.underline} |
| either the     | roprietary]{.underline} |                           |
| work has been  |                         | 3100 Unexpended           |
| completed or   | 1010 Fund Balance with  | Appropriations 50         |
| the TAFS is    | Treasury 50             |                           |
| about to be    |                         | 1010 Fund Balance with    |
| canceled, the  | 3100 Unexpended         | Treasury 50               |
| unus           | Appropri-               |                           |
| ed/unobligated |                         | [Budgetary]{.underline}   |
| authority      | ations 50               |                           |
| needs to be    |                         | 4650 Allotments - Expired |
| transferred    | [Budgetary]{.underline} | Authority 50              |
| back to the    |                         |                           |
| Parent TAFS.   | 4176 Allocation         | 4176 Allocation           |
| An 1151 is     | Transfer - Prior Year   | Transfer - Prior          |
| prepared and   |                         |                           |
| processed.     | Balances 50             | Year Balances 50          |
|                |                         |                           |
|                | 4650 Allotments -       |                           |
|                | Expired Authority 50    |                           |
+----------------+-------------------------+---------------------------+
| 12\.           | [P                      | [Proprietary]{.underline} |
| Unadjusted     | roprietary]{.underline} |                           |
| trial balance  |                         | [Debit]{.underline}       |
| prior to       | [Debit]{.underline}     | [Credit]{.underline}      |
| cancellation   | [Credit]{.underline}    |                           |
|                |                         | 1010 0                    |
|                | 1010 950                |                           |
|                |                         | 3100 0                    |
|                | 3100 950                |                           |
|                |                         | [Budgetary]{.underline}   |
|                | [Budgetary]{.underline} |                           |
|                |                         | 4176 50                   |
|                | 4176 50                 |                           |
|                |                         | 4201 50                   |
|                | 4201 900                |                           |
|                |                         | 4510 0                    |
|                | 4450 0                  |                           |
|                |                         | 4610 0                    |
|                | 4510 0                  |                           |
|                |                         | 4650 0                    |
|                | 4650 950                |                           |
|                |                         | 4700 0                    |
|                |                         |                           |
|                |                         | 4801 0                    |
|                |                         |                           |
|                |                         | 4902 0                    |
+----------------+-------------------------+---------------------------+
| 13\. An        | [P                      | [Proprietary]{.underline} |
| adjusting      | roprietary]{.underline} |                           |
| entry is made  |                         | No Entry                  |
| to cancel the  | 3100 Unexpended         |                           |
| expired        | Appropriations 950      | [Budgetary]{.underline}   |
| authority.     |                         |                           |
|                | 1010 Fund Balance with  | No Entry                  |
|                |                         |                           |
|                | Treasury 950            |                           |
|                |                         |                           |
|                | [Budgetary]{.underline} |                           |
|                |                         |                           |
|                | 4650 Allotments-Expired |                           |
|                | Authority 950           |                           |
|                |                         |                           |
|                | 4350 Canceled Authority |                           |
|                | 950                     |                           |
+----------------+-------------------------+---------------------------+
| 14\.           | [P                      | [Proprietary]{.underline} |
| Preclosing     | roprietary]{.underline} |                           |
| adjusted trial |                         | [Debit]{.underline}       |
| balance is     | [Debit]{.underline}     | [Credit]{.underline}      |
| prepared.      | [Credit]{.underline}    |                           |
|                |                         | 1010 0                    |
|                | 1010 0                  |                           |
|                |                         | 3100 0                    |
|                | 3100 0                  |                           |
|                |                         | [Budgetary]{.underline}   |
|                | [Budgetary]{.underline} |                           |
|                |                         | 4176 50                   |
|                | 4176 50                 |                           |
|                |                         | 4201 50                   |
|                | 4201 900                |                           |
|                |                         | 4350 0                    |
|                | 4350 950                |                           |
+----------------+-------------------------+---------------------------+
| 15\. A closing | [Budgetary]{.underline} | [Budgetary]{.underline}   |
| entry to       |                         |                           |
| consolidate    | 4201 Total Actual       | 4176 Allocation           |
| budgetary      | Resources-              | Transfer - Prior          |
| resources is   |                         |                           |
| recorded.      | Collected 50            | Year Balances 50          |
|                |                         |                           |
|                | 4176 Allocation         | 4201 Total Actual         |
|                | Transfer -              | Resources-                |
|                |                         |                           |
|                | Prior Year Balances 50  | Collected 50              |
+----------------+-------------------------+---------------------------+
| 16\.           | [P                      | [Proprietary]{.underline} |
| Postclosing    | roprietary]{.underline} |                           |
| trial balance  |                         | [Debit]{.underline}       |
| is prepared.   | [Debit]{.underline}     | [Credit]{.underline}      |
|                | [Credit]{.underline}    |                           |
|                |                         | 1010 0                    |
|                | 1010 0                  |                           |
|                |                         | 3100 0                    |
|                | 3100 0                  |                           |
|                |                         | [Budgetary]{.underline}   |
|                | [Budgetary]{.underline} |                           |
|                |                         | 4176 0                    |
|                | 4176 0                  |                           |
|                |                         | 4201 0                    |
|                | 4201 950                |                           |
|                |                         | 4350 0                    |
|                | 4350 950                |                           |
+----------------+-------------------------+---------------------------+

17\. Statements - Year 2

+-----------------+-------------------------+-------------------------+
| 17A.            | 2\. Unobligated         |                         |
| Consolidated SF | balance,                |                         |
| 133 (Refer to   |                         |                         |
| the trial       | 2A. Brought forward,    |                         |
| balance,        | Oct 1                   |                         |
| transaction #8, |                         |                         |
| page 5.)        | 4201B \$1000            |                         |
|                 |                         |                         |
| Per A-34,       | 2B. Net transfers,      |                         |
| section 11.2:   | prior year              |                         |
| Receiving       |                         |                         |
| agencies will   | balance, actual (+ or   |                         |
| submit to the   | -)                      |                         |
| parent the      |                         |                         |
| information     | 4176E \$(100)           |                         |
| required for    |                         |                         |
| reports on      | 4176E [100]{.underline} |                         |
| budget          | \$ 0                    |                         |
| execution not   |                         |                         |
| later than 15   | 7\. Total resources     |                         |
| calendar days   | \$1000                  |                         |
| following the   |                         |                         |
| close of the    | 8\. Obligations         |                         |
| reporting       | incurred                |                         |
| period. The     |                         |                         |
| information     | 8A. Direct              |                         |
| shall be        |                         |                         |
| submitted in    | 4902E \$ 50             |                         |
| the form and    |                         |                         |
| manner required | 9\. Unobligated balance |                         |
| by the parent   |                         |                         |
| agency. Unless  | 9A1. Apportioned,       |                         |
| specifically    | available               |                         |
| requested by    |                         |                         |
| OMB, no         | 4510E \$ 900            |                         |
| separate        |                         |                         |
| submission to   | 4610E 50                |                         |
| OMB is needed   |                         |                         |
| for allocation  | 11\. Total status       |                         |
| accounts. The   | \$1000                  |                         |
| agency          |                         |                         |
| administering   |                         |                         |
| the parent      |                         |                         |
| account will    |                         |                         |
| submit to OMB a |                         |                         |
| consolidated SF |                         |                         |
| 133 covering    |                         |                         |
| both the parent |                         |                         |
| account and the |                         |                         |
| related         |                         |                         |
| transfer        |                         |                         |
| appropriation   |                         |                         |
| accounts.       |                         |                         |
+-----------------+-------------------------+-------------------------+
| 17B. FMS 2108   | [Parent                 |                         |
|                 | TAFS]{.underline}       |                         |
| The parent      |                         |                         |
| reports both    | Col 2: Provided by      |                         |
| the parent TAFS | Treasury \$900          |                         |
| activity and    |                         |                         |
| the transfer    | Col 5: 1010E \$900      |                         |
| TAFS activity   |                         |                         |
| on the FMS      | Col 11: 4510E \$900     |                         |
| 2108. However,  |                         |                         |
| for the FMS     | [Transfer               |                         |
| 2108, the       | TAFS]{.underline}       |                         |
| parent TAFS and |                         |                         |
| the transfer    | Col 2: Provided by      |                         |
| TAFS maintain a | Treasury \$ 50          |                         |
| separate        |                         |                         |
| identity.       | Col 5: 1010E \$ 50      |                         |
|                 |                         |                         |
|                 | Col 11: 4610E \$ 50     |                         |
+-----------------+-------------------------+-------------------------+

**Account Title:** Allocation Transfer - Prior-Year Balances

**Account Number:** 4176

**Normal Balance:** Either

**Type of Account:** Posting

**Definition:** The amount of prior year balances transferred between a
parent appropriation and a transfer appropriation during the fiscal
year. Fund balance transfers, which may or may not occur at the time of
the transfer of balances, will be accomplished via SF-1151
Nonexpenditure transfer Authorization.

[^1]: Per A-34, section 11.2: The agency responsible for administering
    the parent appropriation will submit a consolidated SF 132 covering
    both the parent account and all allocations therefrom. (Usually, the
    receiving agencies will not prepare an SF 132 for transfer
    appropriation accounts unless requested by OMB).