# Presentation: 895431

## Statement of Financing: A Reconciliation of Budgetary Net Obligations and Proprietary Net Cost of Operations

- Presented by**Kevin Close and Connie Constance**

## Statement of FinancingQuick Reference Guide

- Statement of Financing:
- (+) Net Obligations (Budgetary Resources)
- (+) Other Resources (Non-Budgetary Resources)
- (+) Resources Not Part of Net Cost
- (+) Components of Net Cost Not Part of Resources
-  =   Net Cost

- Office of the Chief Financial Officer

## Statement of FinancingNet Obligations (Budgetary Resources)

- Net Obligations:
- (+) Gross Obligations (SBR Line 8)
- (-) Recoveries (SBR Line 2)
- (-) Offsetting Collections (SBR Line 3D):
- Actual Cash Collections
- Budgetary Receivables
- Unfilled Orders
- (-) Offsetting Receipts (SBR Line 19C)

- Office of the Chief Financial Officer

## Statement of FinancingOther Resources (Non-Budgetary Resources)

- Other Resources:
- (+)    Donations and Forfeitures of Property (NP Line 10)
- (+/-)  Transfers in/out without Reimbursement
-          (NP Line 11)
- (+)    Imputed Financing from costs absorbed by Others
-         (NP Line 12)
- (+/-) Other (NP Line 13)

- Office of the Chief Financial Officer

## Statement of FinancingResources Not Part of Net Cost

- Other Resources Not Part of Net Cost:
- (+/-) Change in Undelivered Orders (SOF Line 12)
- (-)    Decrease in Unfunded Liabilities (SOF Line 13)
- (+/-) Change in Unfilled Orders (SOF Line 14b)
- (+)   Decrease in Receivables from the public
-        (SOF Line 14b)
- (+)   Other Budgetary Offsetting Collections that do not affect Net
-        Cost (SOF Line 14b)
- (-)    Acquisition of Assets (SOF Line 15)
- (+/-) Other Resources or Adjustments that do not affect Net Cost
-         (SOF Line 16)

- Office of the Chief Financial Officer

## Statement of FinancingComponents of Net Cost Not Part of Resources

- Components of Net Cost Not Part of Resources:
- (+) Increase in Annual Leave Liability (SOF Line 19)
- (+) Increase in Environmental and Disposal Liability (SOF Line 20)
- (-) Increase in Exchange Revenue Receivables from the Public (SOF Line 22)
- (+/-) Other Components Requiring or Generating Resources in Future Period (SOF Line 23)
- (+) Depreciation and Amortization (SOF Line 25)
- (+/-) Revaluation of Assets or Liabilities (SOF Line 26)
- (+/-) Other Components not Requiring or Generating Resources (SOF Line 27)

- Office of the Chief Financial Officer

## Statement of FinancingNet Cost

- Net Cost:
- (+) Gross Cost
- (-)  Earned Revenues

- Office of the Chief Financial Officer

## Statement of FinancingChange in Undelivered Orders (Line 12)

**Resources Used to Finance Activities**
- Budgetary Resources Obligated
- Obligations Incurred                                             **$100**
**Resources Used to Finance Items not Part of**
**the Net Cost of Operations**
- Change in budgetary resources obligated for
-  goods, services and benefits ordered but not yet
-  provided                                                                 **<$100>**
**30. Net Cost of Operations                                      - 0 -**

- Office of the Chief Financial Officer

## Statement of FinancingAcquisition of Property (Line 15)

**Resources Used to Finance Activities**
- Budgetary Resources Obligated
- Obligations Incurred                                          **$1,000**
**Resources Used to Finance Items not Part of**
**the Net Cost of Operations**
- 15. Resources that finance the acquisition of
-  assets                                                                 **<$1,000>**
**30. Net Cost of Operations                                      - 0 -**

- Office of the Chief Financial Officer

## Statement of FinancingIncrease in Annual Leave Liability (Line 19)

**Components of Net Cost of Operations that will**
**not Require or Generate Resources in the Current**
**Period:**
- Components requiring or Generating Resources
- In Future Periods:
- 19. Increase in annual leave liability                         **$10**
**30. Net Cost of Operations                                     $10**

- Office of the Chief Financial Officer

## Statement of FinancingDecrease in Annual Leave Liability

|    A. | Beginning Balance |     $1,000 |
| --- | --- | --- |
|    B. | Leave Earned |          200 |
|    C. | Leave Taken |          250 |
|    D. | Ending Balance |        $950 |

- Office of the Chief Financial Officer

## Statement of FinancingDecrease in annual Leave Liability (Line 13)

**Resources Used to Finance Activities**
- Budgetary Resources Obligated
- Obligations Incurred                                             **$250**
**Resources Used to Finance Items not Part of**
**the Net Cost of Operations**
- 13. Resources that finance expenses recognized
- in prior periods                                                            **<50>**
**30. Net Cost of Operations                                      $200**

- Office of the Chief Financial Officer

## Statement of FinancingDepreciation on Capitalized Assets (Line 25)

**Components of Net Cost of Operations that will**
**not Require or Generate Resources in the Current**
**Period:**
- Components not requiring or Generating Resources:
- 25. Depreciation and amortization                              **$100**
**30. Net Cost of Operations                                       $100**

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- The USSGL crosswalk is used to prepare section 1 of the statement of financing in the FSDW.
- Section 2 and Section 3 are derived from a combination of FFIS accounting entries (transactions-based) and USSGL accounts.
- Activity for the reporting period is summarized by FFIS accounting entry.
- The USSGL account that causes a reconciling difference for each entry is used to assign the accumulated amounts to a statement line.
- Certain accounting entries may crosswalk to either of two** **statement lines, depending on the sign of the amount.

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- FFIS accounting entry SR3M is used to record an
- undelivered order.

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## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- FFIS accounting entry SRN5 is used to record the
- acquisition of property.

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- FFIS accounting entry FY08 is used to record the
- liability for unfunded annual leave.

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- FFIS accounting entry F608 is used to record
- depreciation expense.

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- The previous examples are illustrated for a single
-       reporting entity.
- When two or more reporting entities are consolidated, the application of the crosswalk is not parallel.
- Accounting entries are summarized for all reporting entities and mapped to the statement line based on the consolidated amount.

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

-   Assume that three reporting entities will be consolidated.
-   Each entity used accounting entry FY08 to record
-   unfunded annual leave as reflected in the table below.

- Office of the Chief Financial Officer

## Statement of FinancingGeneration of the Statement of Financing in the USDA Financial Statement Data Warehouse (FSDW)

- At the consolidated level, the reconciling factor would be a positive $25 on line 19 (SOF_DEBIT).

- Office of the Chief Financial Officer

## Statement of Financing

**Questions?**

- Office of the Chief Financial Officer