+-----------------------------------------------------------------------+
| ####                                                                  |
|                                                                       |
| #### PROPOSED ACCOUNTING TRANSACTIONS FOR FOREIGN CURRENCY            |
+-----------------------------------------------------------------------+

PLEASE NOTE THAT THIS ILLUSTRATION IS A ROUGH DRAFT. WE NEED AGENCIES
THAT HAVE THESE TYPE OF ACTIVITIES TO REVIEW AND PROVIDE US WITH
COMMENTS.

> Prepared by Christine Chang,
>
> Department of Treasury, Financial
>
> Management Service, USSGL
>
> 202-874-6445
>
> Christine.Chang@fms.treas.gov
>
> File: PURCH 2

**PART I.**

Assume Agency X does not have a disbursing authority and will use State
Department's disbursing officer to make payments

+--------------------+-----------------------+-------------------------+
| **DESCRIPTION**    | **AGENCY X**          | **STATE DEPARTMENT'S**  |
|                    |                       |                         |
|                    |                       | **DISBURSING OFFICER**  |
+--------------------+-----------------------+-------------------------+
| 1)  To record      | # Proprietary         | # Proprietary           |
|     receipt of     |                       |                         |
|     Agency X's     | 1010. FBWT 70         | None                    |
|     appropriation, |                       |                         |
|     apportionment  | ```{=html}            | # Budgetary             |
|     and allotment. | <!-- -->              |                         |
|                    | ```                   | *None*                  |
|                    | 3100. Unexp app 70    |                         |
|                    |                       |                         |
|                    | # Budgetary           |                         |
|                    |                       |                         |
|                    | # Other app realiz 70 |                         |
|                    |                       |                         |
|                    | 4450. Unapportioned   |                         |
|                    |       70              |                         |
|                    |                       |                         |
|                    | ```{=html}            |                         |
|                    | <!-- -->              |                         |
|                    | ```                   |                         |
|                    | 4450. Unapportioned   |                         |
|                    |       70              |                         |
|                    |                       |                         |
|                    | ```{=html}            |                         |
|                    | <!-- -->              |                         |
|                    | ```                   |                         |
|                    | 4510. Apportionments  |                         |
|                    |       70              |                         |
|                    |                       |                         |
|                    | ```{=html}            |                         |
|                    | <!-- -->              |                         |
|                    | ```                   |                         |
|                    | 4510. Apportionments  |                         |
|                    |       70              |                         |
|                    |                       |                         |
|                    | > 4610 Allotment 70   |                         |
+--------------------+-----------------------+-------------------------+
| 2\) D.O. writes a  | # Proprietary         | # Proprietary           |
| Check issued by    |                       |                         |
| Treasury           | None                  | 1010 FBWT???? 50        |
|                    |                       |                         |
|                    | # Budgetary           | 2310 Advances from      |
|                    |                       | others 50               |
|                    | # None                |                         |
|                    |                       | #                       |
+--------------------+-----------------------+-------------------------+
| 3\) To record      | # Proprietary         | # Proprietary           |
| disbursing officer |                       |                         |
| purchasing foreign | None                  | 1200. Foreign Currency  |
| currency           |                       |       50                |
|                    | # Budgetary           |                         |
| Treasury exchange  |                       | 1010 FBWT???? 50        |
| rate               | # None                |                         |
|                    |                       | # Budgetary             |
| \$1 = 4 Psos       |                       |                         |
|                    |                       | *None*                  |
+--------------------+-----------------------+-------------------------+
| 4\) Agency X       | # Proprietary         | # Proprietary           |
| incurs expense     |                       |                         |
| (120 Psos) for     | 6100. Operating       | None                    |
| services received  |       expense 30      |                         |
| from a foreign     |                       | # Budgetary             |
| national.          | ```{=html}            |                         |
|                    | <!-- -->              | # None                  |
| 120 Psos/4 = \$30  | ```                   |                         |
|                    | 2110. A/P 30          |                         |
|                    |                       |                         |
|                    | ```{=html}            |                         |
|                    | <!-- -->              |                         |
|                    | ```                   |                         |
|                    | 3100. Unexp App 30    |                         |
|                    |                       |                         |
|                    | > 5700 App used 30    |                         |
|                    |                       |                         |
|                    | # Budgetary           |                         |
|                    |                       |                         |
|                    | # Allotment 30        |                         |
|                    |                       |                         |
|                    | > 4901 Exp Au -- unpd |                         |
|                    | > 30                  |                         |
+--------------------+-----------------------+-------------------------+
| 5\) On 10/2/x0,    | # Proprietary         | # Proprietary           |
| the Disbursing     |                       |                         |
| Officer makes the  | 2110. A/P 30          | 2310 Advances from      |
| payment on behalf  |                       | others 30               |
| of the agency X    | 1010 FBWT 30          |                         |
| and the agency's   |                       | 1200 F.Currency 30      |
| appropriation is   | # Budgetary           |                         |
| charged. Agency X  |                       | ## Budgetary            |
| provides a voucher | # Exp Au -- unpd 30   |                         |
| with financial     |                       | None                    |
| information to     | #                     |                         |
| allow State        |  4902 Exp Au -- pd 30 |                         |
| Department's D.O.  |                       |                         |
| to charge it to    |                       |                         |
| the appropriate    |                       |                         |
| appropriation.     |                       |                         |
|                    |                       |                         |
| Treasury exchange  |                       |                         |
| rate               |                       |                         |
|                    |                       |                         |
| \$1 = 4 Psos       |                       |                         |
+--------------------+-----------------------+-------------------------+
| 6\) At the end of  | # Proprietary         | # Proprietary           |
| FY 9/30/x1,        |                       |                         |
| foreign currency   | None                  | 7290G O. Losses 6.67    |
| (200 Psos -- 120   |                       |                         |
| Psos = 80 Psos) is | # Budgetary           | 1200 F. Currency 6.67   |
| revalued.          |                       |                         |
|                    | None                  | # Budgetary             |
| Treasury exchange  |                       |                         |
| rate is            |                       | None                    |
|                    |                       |                         |
| \$1 = 6 Psos       |                       |                         |
|                    |                       |                         |
| 80 Psos X.25 =     |                       |                         |
| \$20               |                       |                         |
|                    |                       |                         |
| 80 Psos x .1667 =  |                       |                         |
| [\$                |                       |                         |
| 13.33]{.underline} |                       |                         |
|                    |                       |                         |
| Loss 6.67          |                       |                         |
|                    |                       |                         |
| ***Note: State     |                       |                         |
| Department's       |                       |                         |
| disbursing         |                       |                         |
| activity is not    |                       |                         |
| reported on the    |                       |                         |
| State Department's |                       |                         |
| financial reports. |                       |                         |
| Treasury picks up  |                       |                         |
| the foreign        |                       |                         |
| currency balance   |                       |                         |
| from State         |                       |                         |
| department's       |                       |                         |
| SF1221 and         |                       |                         |
| Treasury reports   |                       |                         |
| that balance.***   |                       |                         |
+--------------------+-----------------------+-------------------------+

######### TRIAL BALANCES

+------------------------------------+---------------------------------+
| **AGENCY X**                       | **TREASURY VIA**                |
|                                    |                                 |
|                                    | **STATE DEPARTMENT**            |
+------------------------------------+---------------------------------+
| # Proprietary                      | # Proprietary                   |
|                                    |                                 |
| 1010 FBWT 40                       | 1200 Foreign Currency 13.33     |
|                                    |                                 |
| 3100 Unexpended Appropriation 40   | 2310 Advances from others 20    |
|                                    |                                 |
| 5700 Appropriation Used 30         | 7290 Other losses 6.67          |
|                                    |                                 |
| 6100 Operating expense 30          | # Budgetary                     |
|                                    |                                 |
| # Budgetary                        | None                            |
|                                    |                                 |
| # 41                               |                                 |
| 19 Other Appropriation realized 70 |                                 |
|                                    |                                 |
| 4610 Allotment 40                  |                                 |
|                                    |                                 |
| 4902 Expended authority -- unpd 30 |                                 |
+------------------------------------+---------------------------------+

PART II.

Assume agency has a disbursing authority

+----------------------+----------------------+------------------------+
| **DESCRIPTION**      | **AGENCY X's**       | **AGENCY X'S**         |
|                      |                      |                        |
|                      | **Operating Fund**   | **DISBURSING OFFICER** |
|                      |                      |                        |
|                      |                      | **(Treasury Fund       |
|                      |                      | Symbol ????)**         |
+----------------------+----------------------+------------------------+
| 1\) To record        | # Proprietary        | # Proprietary          |
| receipt of Agency    |                      |                        |
| X's appropriation,   | 1010 FBWT 70         | 1010 FBWT 50           |
| apportionment and    |                      |                        |
| allotment.           | > 3100 Unexp app 70  | > 3100 Unexp app 50    |
|                      |                      |                        |
|                      | # Budgetary          | # Budgetary            |
|                      |                      |                        |
|                      | # 4110               | # 41                   |
|                      |  Other app realiz 70 | 10 Other app realiz 50 |
|                      |                      |                        |
|                      | > 4450 Unapportioned | > 4450 Unapportioned   |
|                      | > 70                 | > 50                   |
|                      |                      |                        |
|                      | 4450 Unapportioned   | 4450 Unapportioned 50  |
|                      | 70                   |                        |
|                      |                      | > 4510 Apportionments  |
|                      | > 4510               | > 50                   |
|                      | > Apportionments 70  |                        |
|                      |                      | 4510 Apportionments 50 |
|                      | 4510 Apportionments  |                        |
|                      | 70                   | 4610 Allotment 50      |
|                      |                      |                        |
|                      | > 4610 Allotment 70  |                        |
+----------------------+----------------------+------------------------+
| 2\) Agency X's D.O.  | # Proprietary        | # Proprietary          |
| writes a check to    |                      |                        |
| purchase foreign     | None                 | None                   |
| currency             |                      |                        |
|                      | # Budgetary          | #                      |
|                      |                      |                        |
|                      | # None               | # Budgetary            |
|                      |                      |                        |
|                      |                      | *None*                 |
+----------------------+----------------------+------------------------+
| 3\) To record        | # Proprietary        | # Proprietary          |
| disbursing officer   |                      |                        |
| purchasing foreign   | None                 | 1200 Foreign Currency  |
| currency (200 Psos). |                      | 50                     |
|                      | # Budgetary          |                        |
| Treasury exchange    |                      | 1010 FBWT 50           |
| rate                 | # None               |                        |
|                      |                      | # Budgetary            |
| \$1 = 4 Psos         |                      |                        |
|                      |                      | *????*                 |
+----------------------+----------------------+------------------------+
| 4\) Agency X's       | # Proprietary        | # Proprietary          |
| operating fund       |                      |                        |
| incurs expense for   | 6100 Operating       | None                   |
| services received    | expense 50           |                        |
| from a foreign       |                      | # Budgetary            |
| national.            | > 2110 A/P 50        |                        |
|                      |                      | # None                 |
|                      | 3100 Unexp App 50    |                        |
|                      |                      |                        |
|                      | > 5700 App used 50   |                        |
|                      |                      |                        |
|                      | # Budgetary          |                        |
|                      |                      |                        |
|                      | # 4610 Allotment 50  |                        |
|                      |                      |                        |
|                      | > 4901 Exp Au --     |                        |
|                      | > unpd 50            |                        |
+----------------------+----------------------+------------------------+
| 5\) On 10/2/x0, the  | # Proprietary        | # Proprietary          |
| Disbursing Officer   |                      |                        |
| makes the payment    | 2110 A/P 30          | 1010 FBWT 30           |
| (120 Psos) on behalf |                      |                        |
| of the operating     | 1010 FBWT 30         | 1200 F.Currency 30     |
| fund and the         |                      |                        |
| operating fund's     | # Budgetary          | ## Budgetary           |
| appropriation is     |                      |                        |
| charged.             | # 49                 | ????                   |
|                      | 01 Exp Au -- unpd 30 |                        |
| Treasury exchange    |                      |                        |
| rate                 | #                    |                        |
|                      | 4902 Exp Au -- pd 30 |                        |
| \$1 = 4 Psos         |                      |                        |
+----------------------+----------------------+------------------------+
| 6\) At the end of FY | # Proprietary        | # Proprietary          |
| 9/30/x1, foreign     |                      |                        |
| currency (200 Psos   | None                 | 7290G O. Losses 6.67   |
| -- 120 Psos = 80     |                      |                        |
| Psos) is revalued.   | # Budgetary          | 1200 F. Currency 6.67  |
|                      |                      |                        |
| Treasury exchange    | None                 | # Budgetary            |
| rate is              |                      |                        |
|                      |                      | None                   |
| \$1 = 6 Psos         |                      |                        |
|                      |                      |                        |
| 80 Psos X.25 = \$20  |                      |                        |
|                      |                      |                        |
| 80 Psos x .1667 =    |                      |                        |
| [                    |                      |                        |
| \$13.33]{.underline} |                      |                        |
|                      |                      |                        |
| Loss 6.67            |                      |                        |
+----------------------+----------------------+------------------------+