**FACTS II**

**Indefinite No-year Accounts**

**Unfilled Customer Orders**

**Contract Authority**

**Funds Held by the Public**

**Adjusting Entries**

**Proposed Changes**

**to the Standard General Ledger**

**SGL Board Meeting**

**August 28, 1997**

Contents

p\. 3 Indefinite No-year Accounts

p\. 9 Unfilled Customer Orders

p.11 Contract Authority

p.14 Funds Held by the Public

p.15 Adjusting Entries

**FACTS II**

**[Reporting Increases and Decreases for Indefinite No-Year
Appropriations]{.underline}**

The amount that is appropriated each year for a general fund,
indefinite, no-year account is based on an estimate as to how much
funding is needed to meet the program responsibilities for the year. A
warrant is issued based on the estimate. At year end, resources should
equal obligations. However, funds may be unobligated at year end if the
estimate was more than the amount actually obligated during the year.
The reverse can happen, also: obligations may be more than what had been
estimated. In both instances obligations must be reconciled with
resources

There are two ways to reconcile obligations with resources: either by
warrant or by 1151. A warrant can be requested to cover obligations that
were over the estimate. And a negative warrant will cover the
unobligated amount. The warrants can be requested until the deadline at
year end. Once the deadline for requesting warrants has passed, an
agency may report the increase or the decrease on the 2108. The increase
and the decrease are reported on the 2108 in column 4-unobligated and
obligated balance withdrawn /canceled.

In the following scenario SGL account 4391 is used to capture this
activity. The scenario illustrates a **decrease** in an indefinite
no-year appropriation.

**1. A fund has indefinite authority and receives a \$100 appropriation
on October 1. Treasury issues a warrant for \$100. The amount
appropriated is based on an estimate of what the agency needs for the
year**.

[Budgetary]{.underline}

4119 Other Appropriations Realized 100

4450 Unapportioned Authority Available 100

[Proprietary]{.underline}

1010 Fund Balance with Treasury 100

3100 Unexpended Appropriations 100

**2. Agency submits apportionment schedule and the full amount is
approved**.

[Budgetary]{.underline}

4450 Unapportioned Authority Available 100

4510 Apportionments 100

[Proprietary]{.underline}

No entries

**3. The agency obligates \$75.**

[Budgetary]{.underline}

4510 Apportionments 75

4801 Undelivered Orders Unpaid 75

[Proprietary]{.underline}

No entries

**4. Goods are delivered and funds are disbursed**.

[Budgetary]{.underline}

4801 Undelivered Orders Unpaid 75

4902 Expended Authority Paid 75

[Proprietary]{.underline}

6100 Operating Expenses 75

1010 Fund Balance with Treasury 75

3100 Unexpended Appropriations 75

5700 Appropriations Used 75

**5. Preclosing Trial Balance**

1010 25

3100 25

5700 75

6100 75

4119 100

4510 25

4902 75

**6. At year end the fund has unobligated amounts which represent an
overestimation of how much was needed during the year.**

[Budgetary]{.underline}

4510 Apportionments 25

**4391 Adjustments to Indefinite No-year Authority** 25

[Proprietary]{.underline}

3100 Unexpended Appropriations 25

1010 Fund Balance with Treasury 25

**7. Preclosing Adjusted Trial Balance**

5700 75

6100 75

4119 100

**4391 25**

4510 0

4902 75

Budgetary Resources = Budgetary Status

4119 **+ 4391**= 4902

100 + (-25) =75

**8. SF 133**

1A. Appropriations 4119 100

**4391 -25**

2A. Unobligated Balance Brought Forward 4201B

7\. Total Resources Calc 75

8A. Obligations Incurred 4902E 75

9A. Unobligated Balance Available, Apportioned 4510 0

11\. Total Status Calc 75

15\. Outlays Calc 75

(8-3abd-4a+12+or-13-(-14a-14b+14c+14d)

Should also equal disbursements reported on SF 224

4902 75

**9. 2108**

Column 2: Preclosing Unexpended Balance 25

(Provided by Treasury )

Column 4: Unobligated and Obligated Balance

Withdrawn/Canceled **4391** 25

Column 5: Postclosing Unexpended Balance 1010 0

Proof: Column 2 - Column 4 = Column 5

25 - 25 = 0

**10. Closing Entries**

[Budgetary]{.underline}

A. To record consolidation of resources

4201 Total Actual Resources 100

4119 Other Appropriations Realized 100

**4391 Adjustments to Indefinite No-Year 25**

**Authority**

4201 Total Actual Resources 25

B. To close expended authority

4902 Expended Authority Paid 75

4201 Total Actual Resources 75

[Proprietary]{.underline}

To close appropriations used and expenses to cumulative results of
operations.

5700 Appropriations Used 75

3310 Cumulative Results of Operations 75

3310 Cumulative Results of Operations 75

6100 Operating/Program Expenses 75

.

**11. Post Closing Trial Balance**

5700 0

6100 0

4119 0

4201 0

4391 0

4510 0

4902 0

**Account title:** ~~Restorations, Writeoffs and Withdrawals~~
Adjustments to Indefinite No- year Authority

**Account Number:** 4391

**Normal Balance:** Either

**Type of Account:** Posting

**Definition:** ~~Amount available for obligation during the year that
ceased to be available during or at the end of the fiscal year, other
than amounts rescinded by law. Includes unobligated balances expiring
for obligation, amounts written off or withdrawn by administrative
action, unobligated balances returned to unappropriated receipts,
amounts withdrawn/lapsed from liquidating appropriations~~. The amount
necessary to reconcile obligations with resources for indefinite no-year
appropriations and that is reportable on the 2108.

**FACTS II**

**[Unfilled Customer Orders: Without Advance and With
Advance]{.underline}**

The BACS/FACTS II Subcommittee has recommended that account
4220-Unfilled Customer Orders be expanded to two accounts: one without
advance and one with advance. Currently attributes are used to capture
advances/ no advances in 4220. Since these attributes do not apply to
any other SGL account for 2108/133 reporting purposes, the subcommittee
agreed that the data should be collected in separate accounts.

The proposed accounts are as follows:

**Account Title:** Unfilled Customer Orders Without Advance

**Account Number:** 4221

**Normal Balance:** Debit

**Type of Account:** Posting

**Definition:** The total amount of unearned reimbursable orders
accepted without an advance ~~and unearned~~. This account represents
the amount of goods and/or services to be furnished for other government
agencies and for the public if permitted by law and by longstanding,
generally accepted practice. At the time the goods and/or services are
furnished, the amount becomes reimbursements earned.

**Account Title:** Unfilled Customer Orders With Advance

**Account Number:** 4222

**Normal Balance:** Debit

**Type of Account:** Posting

**Definition:** The total amount of unearned reimbursable orders
accepted with an advance ~~and unearned~~. This account represents the
amount of goods and/or services to be furnished for other government
agencies or the public. At the time the goods and/or services are
furnished, the amount becomes reimbursements earned.

**Proposed change to an existing SGL account:**

.

**Account Title:** Unfilled Customer Orders

**Account Number:** 4220

**Normal Balance:** Debit

**Type of Account:** ~~Posting~~ Summary

**Definition:** The total amount of unearned reimbursable orders
accepted with or without an advance ~~and unearned~~. This account
represents the amount of goods and/or services to be furnished for other
government agencies or the public. At the time the goods and/or services
are furnished, the amount becomes reimbursements earned.

**FACTS II**

**[Reporting Administrative Reductions and Administrative Reinstatements
of Amounts Previously Reduced for Definite Contract
Authority]{.underline}**

Definite contract authority can be reduced by legislative or
administrative action. An administrative action can also reinstate the
amount previously reduced by administrative action. Currently, a
reduction by legislative action is captured in account 4133-Actual
Reductions to Contract Authority, but a reduction or the reinstatement
of the amount previously reduced by administrative action is not
captured in the SGL account structure.

**[SGL Account Changes]{.underline}**

The following is a proposal to capture increases and decreases based on
administrative action to contract authority in the SGL and consists of
changing the titles and definitions of accounts 4034 and 4133.

**Account Title:** Anticipated Adjustments ~~Reductions~~ to Contract
Authority

**Account Number:** 4034

**Normal Balance:** ~~Credit~~ Either

**Type of Account:** Posting

**Definition:** The estimated amounts of reductions or increases during
the fiscal year to contract authority.

**Account Title:** Actual Adjustments ~~Reductions~~ to Contract
Authority

**Account Number:** 4133

**Normal Balance:** ~~Credit~~ Either

**Type of Account:** Posting

**Definition:** The amount of contract authority that is reduced by
legislation that cancels budget authority during the fiscal year; or the
amount of contract authority that is reduced by administrative action;
or the amount of contract authority previously reduced by administrative
action that is administratively restored.

**1. To record anticipated reductions to contract authority.**

4450 Unapportioned Authority - Available

4034 Anticipated Adjustments ~~Reductions~~ to Contract

Authority

**2. To record reductions to contract authority that were**

**anticipated.**

4034 Anticipated Adjustments ~~Reductions~~ to Contract

Authority

4133 Actual Adjustments ~~Reductions~~ to Contract

Authority

**3. To record reductions to contract authority not anticipated.**

4450 Unapportioned Authority - Available

4133 Actual Adjustments ~~Reductions~~ to Contract

Authority

**4. To record anticipated restorations to contract authority.**

4034 Anticipated Adjustments to Contract Authority

4450 Unapportioned Authority - Available

**5. To record restorations to contract authority that were
anticipated.**

4133 Actual Adjustments ~~Reductions~~ to Contract Authority

4034 Anticipated Adjustments ~~Reductions~~ to Contract

Authority

**6. To record restorations to contract authority not anticipated.**

4133 Actual Adjustments ~~Reductions~~ to Contract Authority

4450 Unapportioned Authority - Available

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

The balance of 4133, whether debit or credit, will be reported in column
5- Writeoffs, Restorations, or Adjustments. A credit balance represents
a net reduction in contract authority and a debit balance represents a
net increase in contract authority.

**[133 Reporting]{.underline}**

Net credit balance will be reported on line 6D-Permanently Not
Available: Other Authority Withdrawn (A-34, p.141: Include amounts of
contract and borrowing authority withdrawn). A net debit balance will be
reported on line 1C-Contract Authority.

**FACTS II**

**[Funds Held by the Public]{.underline}**

Certain agencies are required to report funds held by the public on the
2108. The National Park Service-Interior and the Universal Service
Fund-FCC are such examples as described below. The descriptions were
taken from an enclosure included with a letter dated March 19, 1996 from
Alice M. Rivlin, Director of The Office of Management and Budget to the
Honorable Robert C. Byrd. The enclosure was entitled Significant
Presentation and Technical Changes in the Budget of the United States
Government, Fiscal year 1997\".

The National Park Service has contracts with the private
concessionaires to provide visitor services within the national parks.
Often the contract stipulates that the concessionaires deposit a portion
of gross receipts or a fixed sum of money into a separate bank account.
The concessionaire may spend these funds only at the direction of the
park superintendent to improve or construct government-owned facilities
that directly support concession visitor services. Although these funds
are not deposited in the Treasury, they nevertheless are part of the
return to the Government from these contracts and are spent at the
Governments direction. Therefore, they have been included in the budget
in a special fund in the National Park Service portion of the budget
beginning in 1995. The receipts and outlays are classified as
mandatory.

The Universal Service Fund was established in 1984 as a
non-governmental entity at the behest of the Federal Communication
Commission (FCC). The purpose of the fund was to ensure universal access
to telecommunications services. The Telecommunications Act of 1996
expanded its authorized uses. In scoring the Act, OMB and the
Congressional Budget Office determined that the fund was governmental in
nature and that its receipts and outlays should be included in the
budget. Although the fund is maintained outside the Treasury by a
non-governmental entity, the FCC approves the rates for payments by
telecommunications providers into the fund and the uses of the fund. The
fund is included in the FCC portion of the budget as a special fund
beginning in 1995. The receipts and outlays are classified as
mandatory.

To facilitate reporting of the funds held by the public, a new account
1130-Funds Held by the Public has been proposed to and accepted by the
Issues Resolution Committee.

**Account Title:** Funds Held by the Public

**Account Number:** 1130

**Normal Balance:** Debit

**Type of Account:** Posting

**Definition:** Funds held by the public which OMB has determined will
be included in the budget.

**FACTS II**

**[Adjusting and Closing Entries]{.underline}**

There is a need to distinguish adjusting entries from closing entries.
Certain year-end entries are needed to complete the 2108 and SF 133.
These entries will be referred to as adjusting entries and the trial
balance used for the 2108 and SF 133 will be a preclosing adjusted trial
balance. The following entries will be considered adjusting entries.

**1. To adjust anticipated items to zero:**

4032 Anticipated Contract Authority

4034 Anticipated Reductions to Contract Authority

4042 Anticipated Borrowing Authority

4044 Anticipated Reductions to Borrowing Authority

4047 Anticipated Payments to Treasury

4060 Anticipated Collections from Non-Federal Sources

4070 Anticipated Collections from Federal Sources

4120 Appropriations Anticipated-Indefinite

4160 Anticipated Transfers-Current Year Authority

4165 Anticipated Allocation Transfers

4180 Anticipated Transfers-Prior Year Authority

4210 Anticipated Reimbursements

4215 Anticipated Trust Fund Expenditure Transfers

4310 Anticipated Recoveries of Prior-Year Obligations

**2. To adjust budget resources to amount supported by obligations:**

4220 Unfilled Customer Orders

4142 Current Year Borrowing Authority Realized - Indefinite

4132 Current Year Contract Authority Realized - Indefinite

4391 Adjustments to Indefinite Authority

**3. Move from expired to canceled authority:**

4350 Canceled Authority