Scenario III illustrates the accounting and reporting procedures for
trust fund receipts available for investment, but not immediately
available for obligation. Examples include receipts collected in one
year that are not available for obligation until the following year, or
receipts only available for obligation subject to an annual
appropriation act. In both cases, the amounts *are* available for
investment, and therefore the unobligated balances should be reflected
on the FMS 2108. OMB, however, classifies these receipts as unavailable,
or unappropriated, and requires the amounts to be excluded from the SF
133 until the required conditions are met. An example would be the
Aquatic Resources Trust Fund.

As indicated in Treasury\'s FAST Book, most Federal trust funds are
designated as available, indicating that receipts collected are
immediately available for investment. Therefore, in Treasury\'s central
accounting system, when receipts are deposited into an available trust
fund receipt account, they are automatically credited to the
corresponding expenditure account, with no further action required by
Congress. Once in the expenditure account, the funds may be invested,
based upon terms stipulated in legislation or a trust agreement.
Regardless of whether a trust fund is designated as available in
Treasury\'s system, the receipts of that trust fund may or may not be
available to the agency for obligation. Obligational authority is also
determined in the legislation governing the trust fund. If a fund symbol
is available for both investment and obligation, then follow accounting
guidance illustrated in Scenario I, Basic Trust Fund Accounting.
However, if a fund symbol is designated as available for investment but
not available for obligation, then observe the guidance provided in
Scenario III.

This scenario illustrates the use of USSGL account 4394 Receipts Not
Available for Obligation Upon Collection. This account was established
to provide the mechanism for properly including balances on the FMS 2108
and excluding balances on the SF 133. Since there are more special funds
than trust funds that employ this type of activity, a more detailed
scenario was developed by the USSGL Special Fund Subcommittee, in
conjunction with the USSGL Trust Fund Subcommittee. For additional
background and presentation of this USSGL account, visit the USSGL Web
site.

**Year 1**

**1. To record the collection of excise taxes from the public into an
available trust fund receipt account. Because the trust fund is
designated as available, the receipts are automatically credited to the
corresponding expenditure account, so that they may be invested.**[^1]
**Assume that the legislation for this trust fund states that receipts
are not available for obligation until the next fiscal year. (TC A188)**

> ***Budgetary***
>
> 4114 Appropriated Trust or Special Fund Receipts 10,000
>
> 4394 Receipts Not Available for Obligation Upon Collection 10,000
>
> ***Proprietary***
>
> 1010 Fund Balance With Treasury 10,000
>
> 5800 Tax Revenue Collected 10,000

**2. The receipts are immediately invested in a U.S. Treasury Security
issued by the Bureau of Public Debt. The security has a par value of
\$10,000 and was purchased at a discount of \$2,000.**[^2] **(TC B128)**

> ***Budgetary***
>
> None
>
> ***Proprietary***
>
> 1610 Investments in U.S. Treasury Securities Issued
>
> by Public Debt 10,000
>
> 1611 Discount on U.S. Treasury Securities Issued
>
> by Public Debt 2,000
>
> 1010 Fund Balance With Treasury 8,000

**Year 1**

3.  **To record interest receivable on the Treasury security. This is
    not a budgetary resource until collected. (TC C215)**

> ***Budgetary***
>
> None
>
> ***Proprietary***
>
> 1340 Interest Receivable 1,000
>
> 5310 Interest Revenue 1,000

4.  **To record the amortization of the discount on the Treasury
    security. (TC D510)**

> ***Budgetary***
>
> None
>
> ***Proprietary***

1613. Amortization of Discount and Premium on U.S. Treasury Securities

> Issued by Public Debt 500
>
> 5310 Interest Revenue 500

**Year 1**

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

  ------------------- ------------------------- -------------------------
  4114                10,000                    

  4394                                          10,000

                      10,000                    10,000
  ------------------- ------------------------- -------------------------

**Budgetary Closing Entry:**

**C1. To record the consolidation of actual net-funded resources. (TC
F204)**

4201 Total Actual Resources - Collected 10,000

> 4114 Appropriated Trust or Special Fund Receipts 10,000

**Budgetary Post-closing Trial Balance:**

  ------------------- ------------------------- -------------------------
  4201                10,000                    

  4394                                          10,000

                      10,000                    10,000
  ------------------- ------------------------- -------------------------

**Year 1**

**Proprietary Pre-Closing Trial Balance (FACTS I Trial Balance):**

  ------------------- ------------------------- -------------------------
  1010                2,000                     

  1340                1,000                     

  1610                10,000                    

  1611                                          2,000

  1613                500                       

  5310                                          1,500

  5800                                          10,000

                      13,500                    13,500
  ------------------- ------------------------- -------------------------

**Proprietary Closing Entry:**

**C1. To record the closing of revenues to cumulative results of
operations. (TC F228)**

5310 Interest Revenue 1,500

5800 Tax Revenue Collected 10,000

**3310 Cumulative Results of Operations 11,500**

**Proprietary Post-Closing Trial Balance:**

  ------------------- ------------------------- -------------------------
  1010                2,000                     

  1340                1,000                     

  1610                10,000                    

  1611                                          2,000

  1613                500                       

  3310                                          11,500

                      13,500                    13,500
  ------------------- ------------------------- -------------------------

**Year 1**

**SF 133: Report on Budget Execution and Budgetary Resources (Quarter
4):**

1A Appropriations (4114E) 10,000

> (4394E-B) (10,000)

2A Unobligated Balance Brought Forward 0

**7 Total Budgetary Resources 0**

**11 Total Status of Budgetary Resources 0**

**FMS 2108: Year-end Closing Statement:**

Column 5 Post-Closing Unexpended Balance (1010E) 2,000

Column 6 Other Authorizations (1610E) 10,000

> 1611E (2,000)

Column 11 Unobligated Balance (4394E) 10,000

**Year 1**

**Program and Financing Schedule (P&F):**

**Obligations by Program Activity**

1000 Total new obligations 0

**Budgetary Resources Available for Obligation**

2140 Unobligated balance available, start of year 0

2200 New budget authority(gross) (sum 4000 to 6990) 0

2395 Total new obligations (-) (from line 1000) 0

2499 Unobligated balance carried forward, end of year 0

**New Budgetary Authority (Gross), Detail**

4026 Appropriation (trust fund, definite) (4114E + 4394E-B) 0

7000 Total new budget authority (gross) (4114E + 4394E-B) 0

**Memorandum Entries**

9201 Total investments, start of year (par) (1610B) 0

9202 Total investments, end of year (par) (1610E) 10,000

**Year 1 OMB Form and Content Statements**

+-----------------------------------------------------------------------+
| **Balance Sheet**                                                     |
|                                                                       |
| ASSETS                                                                |
|                                                                       |
| 1A1 Fund Balance With Treasury (1010E) 2,000                          |
|                                                                       |
| 1A4 Investments (1340E, 1610E, 1611E, 1613E) 9,500                    |
|                                                                       |
| LIABILITIES and NET POSITION                                          |
|                                                                       |
| 6B Cumulative Results of Operations (3310E) 11,500                    |
+-----------------------------------------------------------------------+
| **Statement of Net Cost**                                             |
|                                                                       |
| 1 Program Costs 0                                                     |
|                                                                       |
| 1D Less Earned Revenue 0[^3]                                          |
|                                                                       |
| 4 Net Cost of Operations (calculation) 0                              |
+-----------------------------------------------------------------------+
| **Statement of Changes in Net Position**                              |
|                                                                       |
| 1 Net Cost of Operations 0                                            |
|                                                                       |
| 2B Taxes (and other nonexchange revenue) (5310E, 5800E) 11,500        |
|                                                                       |
| 9 Net Position - End of Period (calculation) 11,500                   |
+-----------------------------------------------------------------------+

**Year 1 OMB Form and Content Statements (continued)**

+-----------------------------------------------------------------------+
| **Statement of Budgetary Resources**                                  |
|                                                                       |
| 1A Budget Authority - Appropriations (4114E, 4394E-B) 0               |
|                                                                       |
| **5 Total Budgetary Resources 0**                                     |
|                                                                       |
| 6 Obligations Incurred 0                                              |
|                                                                       |
| 7B Unobligated - Exempt from Apportionment (4620E) 0                  |
|                                                                       |
| **9 Total Status of Budgetary Resources 0**                           |
|                                                                       |
| 10 Obligations Incurred (4902E) 0                                     |
+-----------------------------------------------------------------------+
| **Statement of Financing**                                            |
|                                                                       |
| 1.  Obligations and Nonbudgetary Resources 0                          |
|                                                                       |
| 2.  Resources That Do Not Fund Net Cost of Operations 0               |
|                                                                       |
| 3 Components of Costs of Operations That Do Not Require               |
|                                                                       |
| or Generate Resources 0                                               |
|                                                                       |
| 4.  Financing Sources Yet to be Provided 0                            |
|                                                                       |
| 5 Net Cost of Operations 0                                            |
+-----------------------------------------------------------------------+

**Year 2**

**1. To record the collection of excise taxes from the public into an
available trust fund receipt account. Because the trust fund is
designated as available, the receipts are automatically credited to the
corresponding expenditure account, so that they may be invested. Assume
that the legislation for this trust fund states that receipts are not
available for obligation until the next fiscal year. (TC A188)**

> ***Budgetary***
>
> 4114 Appropriated Trust or Special Fund Receipts 7,000
>
> 4394 Receipts Not Available for Obligation Upon Collection 7,000

***Proprietary***

> 1010 Fund Balance With Treasury 7,000
>
> 5800 Tax Revenue Collected 7,000

**2. The receipts are immediately invested in a U.S. Treasury Security
issued by the Bureau of Public Debt. The security has a par value of
\$7,000 and was purchased at a premium of \$500. (OMB Circular A-34
requires that purchased premiums are to be recorded as a reduction of
receipts.) (TC B126)**

> ***Budgetary***
>
> 4394 Receipts Not Available for Obligation Upon Collection 500
>
> 4114 Appropriated Trust or Special Fund Receipts 500
>
> ***Proprietary***
>
> 1610 Investments in U.S. Treasury Securities Issued
>
> by Public Debt 7,000

1612. Premium on U.S. Treasury Securities Issued

> by Public Debt 500
>
> 1010 Fund Balance With Treasury 7,500

**Year 2**

3.  **To record collection of interest on a prior year investment. The
    legislation states that interest on investments is not available for
    obligation.**[^4] **(TC A196)**

> ***Budgetary***
>
> 4114 Appropriated Trust or Special Fund Receipts 1,000
>
> 4394 Receipts Not Available for Obligation Upon Collection 1,000
>
> ***Proprietary***
>
> 1010 Fund Balance With Treasury 1,000
>
> 1340 Interest Receivable 1,000

4.  **To record the portion of the prior-year=s receipts that become
    available for obligation, based upon conditions met in the
    legislation. Assume that this trust fund is not subject to
    apportionment.**[^5] **(TC A190)**

> ***Budgetary***
>
> 4394 Receipts Not Available for Obligation Upon Collection 2,000
>
> 4620 Unobligated Funds Not Subject to Apportionment 2,000

***Proprietary***

None

5.  **To record the amortization of the discount and premium on the
    Treasury securities. (TC D510)**

> ***Budgetary***
>
> None
>
> ***Proprietary***

1613. Amortization of Discount and Premium on U.S. Treasury Securities

> Issued by Public Debt 300
>
> 5310 Interest Revenue 300

5310 Interest Revenue 200

> 1613 Amortization of Discount and Premium on U.S. Treasury
>
> Securities Issued by Public Debt 200

**Year 2**

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

  ------------------- ------------------------- -------------------------
  4114                7,500                     

  4201                10,000                    

  4394                                          15,500

  4620                                          2,000

                      17,500                    17,500
  ------------------- ------------------------- -------------------------

**Budgetary Closing Entry:**

**C1. To record the consolidation of actual net-funded resources. (TC
F204)**

4201 Total Actual Resources - Collected 7,500

> 4114 Appropriated Trust or Special Fund Receipts 7,500

**Budgetary Post-closing Trial Balance:**

  ------------------- ------------------------- -------------------------
  4201                17,500                    

  4620                                          2,000

  4394                                          15,500

                      17,500                    17,500
  ------------------- ------------------------- -------------------------

**Year 2**

**Proprietary Pre-Closing Trial Balance (FACTS I Trial Balance):**

  ------------------- ------------------------- -------------------------
  1010                2,500                     

  1610                17,000                    

  1611                                          2,000

  1612                500                       

  1613                600                       

  3310                                          11,500

  5310                                          100

  5800                                          7,000

                      20,600                    20,600
  ------------------- ------------------------- -------------------------

**Proprietary Closing Entry:**

**C1. To record the closing of revenues to cumulative results of
operations. (TC F228)**

5310 Interest Revenue 100

5800 Tax Revenue Collected 7,000

> **3310 Cumulative Results of Operations 7,100**

**Year 2**

**Proprietary Post-Closing Trial Balance:**

  ------------------- ------------------------- -------------------------
  1010                2,500                     

  1610                17,000                    

  1611                                          2,000

  1612                500                       

  1613                600                       

  3310                                          18,600

                      20,600                    20,600
  ------------------- ------------------------- -------------------------

**Year 2**

**SF 133: Report on Budget Execution and Budgetary Resources (Quarter
4):**

1A Appropriations (4114E) 7,500

> (4394E-B) (5,500)

2A Unobligated Balance Brought Forward (4201B) 10,000

(4394B) (10,000)

**7 Total Budgetary Resources 2,000**

9\. Unobligated Balances Available (4620E) 2,000

**11 Total Status of Budgetary Resources 2,000**

**FMS 2108: Year-end Closing Statement:**

Column 5 Post-Closing Unexpended Balance (1010E) 2,500

Column 6 Other Authorizations (1610E) 17,000

> (1611E) (2,000)

Column 11 Unobligated Balance (4620E) 2,000

(4394E) 15,500

**Year 2**

**Program and Financing Schedule (P&F):**

**Obligations by Program Activity**

1000 Total new obligations (4902E) 0

**Budgetary Resources Available for Obligation**

2140 Unobligated balance available, start of year 0

2200 New budget authority(gross) (sum 4000 to 6990) 2,000

2395 Total new obligations (-) (from line 1000) 0

2499 Unobligated balance carried forward, end of year 2,000

**New Budgetary Authority (Gross), Detail**

4026 Appropriation (trust fund, definite) (4114E + 4394E-B) 2,000

7000 Total new budget authority (gross) (4114E + 4394E-B) 2,000

**Memorandum Entries**

9201 Total investments, start of year (par) (1610B) 10,000

9202 Total investments, end of year (par) (1610E) 17,000

**Year 2 OMB Form and Content Statements**

+-----------------------------------------------------------------------+
| **Balance Sheet**                                                     |
|                                                                       |
| ASSETS                                                                |
|                                                                       |
| 1A1 Fund Balance With Treasury (1010E) 2,500                          |
|                                                                       |
| 1A4 Investments (1610E, 1611E, 1612E, 1613E) 16,100                   |
|                                                                       |
| LIABILITIES and NET POSITION                                          |
|                                                                       |
| 6B Cumulative Results of Operations (3310E) 18,600                    |
+-----------------------------------------------------------------------+
| **Statement of Net Cost**                                             |
|                                                                       |
| 1 Program Costs 0                                                     |
|                                                                       |
| 1D Less Earned Revenue 0[^6]                                          |
|                                                                       |
| 4 Net Cost of Operations (calculation) 0                              |
+-----------------------------------------------------------------------+
| **Statement of Changes in Net Position**                              |
|                                                                       |
| 1 Net Cost of Operations 0                                            |
|                                                                       |
| 2B Taxes (and other nonexchange revenue) (5310E, 5800E) 7,100         |
|                                                                       |
| 7 Net Position - Beginning of Period (3310B) 11,500                   |
|                                                                       |
| 9 Net Position - End of Period (calculation) 18,600                   |
+-----------------------------------------------------------------------+

**Year 2 OMB Form and Content Statements (continued)**

+-----------------------------------------------------------------------+
| **Statement of Budgetary Resources**                                  |
|                                                                       |
| 1A Budget Authority - Appropriations (4114E, 4394E-B) 2,000           |
|                                                                       |
| **5 Total Budgetary Resources 2,000**                                 |
|                                                                       |
| 6 Obligations Incurred 0                                              |
|                                                                       |
| 7B Unobligated - Exempt from Apportionment (4620E) 2,000              |
|                                                                       |
| **9 Total Status of Budgetary Resources 2,000**                       |
|                                                                       |
| 10 Obligations Incurred (4902E) 0                                     |
+-----------------------------------------------------------------------+
| **Statement of Financing**                                            |
|                                                                       |
| 1.  Obligations and Nonbudgetary Resources 0                          |
|                                                                       |
| 2.  Resources That Do Not Fund Net Cost of Operations 0               |
|                                                                       |
| 3 Components of Costs of Operations That Do Not Require               |
|                                                                       |
| or Generate Resources 0                                               |
|                                                                       |
| 4.  Financing Sources Yet to be Provided 0                            |
|                                                                       |
| 5 Net Cost of Operations 0                                            |
+-----------------------------------------------------------------------+

[^1]: The transactions in this scenario combine the activity of the
    receipt and expenditure accounts into one. The receipt-expenditure
    account relationship is described in more detail in the Introduction
    of the Guide.

[^2]: This is a basic transaction to illustrate that the receipts
    collected are immediately invested. Investment transactions are kept
    to a minimum in this scenario in order to focus attention on the
    accounting for receipts that are available for investment but not
    obligation. Refer to Scenario IV, Trust Fund Investments, as well as
    Section III - Accounting Transactions of TFM S2-01-02 (as updated)
    for more detailed guidance on trust fund investments.

[^3]: For most trust funds, invested balances are derived predominantly
    from earmarked taxes and other non-exchange revenue. Accordingly,
    the interest earned is classified as non-exchange, thus **not**
    deducted from the gross cost of operations. For those trust funds,
    however, where the main source of balances consist of exchange
    revenue (e.g. Civil Service Retirement and Disability fund), the
    interest shall be classified as exchange, and thus deducted from the
    gross cost of operations. (See SFFAS #7, &306-308).

[^4]: If the legislation defines investment interest as available,
    credit the appropriate USSGL status account (e.g. 4450, 4620)
    instead of 4394.

[^5]: For trust funds subject to apportionment, refer to Section III -
    Accounting Transactions of TFM S2-01-02 (as updated) for additional
    transactions.

[^6]: For most trust funds, invested balances are derived predominantly
    from earmarked taxes and other non-exchange revenue. Accordingly,
    the interest earned is classified as non-exchange, thus **not**
    deducted from the gross cost of operations. For those trust funds,
    however, where the main source of balances consist of exchange
    revenue (e.g. Civil Service Retirement and Disability fund), the
    interest shall be classified as exchange, and thus deducted from the
    gross cost of operations. (See SFFAS #7, &306-308).