# Presentation: 115020

## Adjustment to Total Resources – Disposition of Canceled Payables

- Michele Crisman
- USSGL Staff

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## OMB Guidance1

- "Legitimately incurred obligations that have not been disbursed (i.e. paid) at the time a Treasury Appropriation Fund Symbol (TAFS) is canceled cannot be disbursed from the canceled obligated or unobligated balances of the canceled TAFS. After a TAFS is canceled, any obligations or adjustments to obligations that would have been properly chargeable to that TAFS may be disbursed from an unexpired TAFS that is available for obligation for the same purpose as the closed TAFS... .“
- “Payment of obligations against canceled TAFSs from unexpired TAFSs are limited to one percent of the appropriation in the unexpired TAFS. No more than one percent of an unexpired TAFS may be used to pay any combination of canceled obligations. This is a single, cumulative limit... .”
- “Antideficiency Act provisions continue to apply to canceled TAFSs. The authority to pay obligations against closed TAFSs from one percent of unexpired TAFSs cannot be used to exceed the original appropriation.”
- “ When you cancel obligations under the provisions of Public Law 101–510 (31 U.S.C. 1551–1557), a tracking process should be maintained. You must maintain proper U.S. Standard General Ledger (USSGL) controls for obligations pertaining to canceled appropriations to prevent overpayment. The Treasury's Financial Management Service provides USSGL accounting instructions.”
*1**OMB Circular No. A-11, Section 130.14, dated July 2007. (See site for specific provisions.)*

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## The Issue

- When a valid bill is presented for a canceled payable the current treatment is:

| Canceled TAFS | Current/Unexpired TAFS |
| --- | --- |
| Budgetary
4350 Canceled Authority
  4201 Total Actual Resources-Collected

Proprietary
2960 Accounts Payable from Canceled Approp.
  6800 Future Funded Expenses | Budgetary
4610 Allotments – Realized Resources
  4901 Delivered Orders – Obligations, Unpaid

Proprietary
6100 Operating Expenses/Program Costs
  2110 Accounts Payable

3107 Unexpended Approp. – Used
  5700 Expended Appropriations

 |

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## The Issue Cont’d

- Rule:
- USSGL 4201, “Total Actual Resources – Collected,” should only be used in a closing entry.
- The current treatment violates this rule.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## The Proposal

- Create USSGL 4208, “Adjustments to Total Resources – Disposition of Canceled Payables.”
- USSGL 4208 facilitates compliance with the rule.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration

| Trial BalanceYear xx062 |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Canceled
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| Budgetary
4201 Total Actual Resources - Collected
4350 Canceled Authority

Proprietary
2960 A/P from Canceled Approp.
3310 Cumulative Results of Operations | 
70

70 | 

70

70 | Budgetary
4119 Other Appropriations Realized
4610 Allotments – Realized Resources

Proprietary
1010 Fund Balance With Treasury
3101 Unexpended Approp. – Approp. Rec. | 
7000

7000

 | 

7000

7000 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration1. Pay outstanding payable from current year-appropriation.  Remove the “canceled payable” from canceled TAFS and reestablish the account payable in the current year2. 

| Canceled 
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
4350 Canceled Authority
    4208 Adjustments to Total Resources –  
    Disposition of Canceled Payables

Proprietary
2960 A/P from Canceled Approp.
    6800 Future Funded Expenses | 
70

70
 | 

70

70 | Budgetary
4610 Allotments – Realized Resources
    4901 Delivered Orders – Obligations, 
    Unpaid

Proprietary
6100 Operation Expenses/Program Costs
    2110 Accounts Payable

3107 Unexpended Appropriations – Used
    5700 Expended Appropriations
 | 
70

70

70 | 

70

70

70 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration 2. Pay the invoice for the valid account payable related to TAFS XX00 (canceled appropriation).2 

| Canceled 
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
No Entry

Proprietary
No Entry |  |  | Budgetary
4901 Delivered Orders – Obligations, 
  Unpaid
  4902 Delivered Orders – Obligations, 
  Paid

Proprietary
2110 Accounts Payable
  1010 Fund Balance With Treasury | 

70

70

 | 

70

70 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration

| Preclosing Trial BalanceYear XX062 |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Canceled 
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| Budgetary
4201 Total Actual Resources – Coll. 
4208 Adj. to Res.  – Disp. of Can. Pyble

Proprietary
3310 Cumulative Results of Operation 
6800 Future Funded Expenses | 
70

70
 | 

70

70 | Budgetary
4119 Other Approp. Realized
4610 Allotments – Realized Resources
4902 Delivered Orders – Obligations, Pd

Proprietary
1010 Fund Balance With Treasury
3101 Unexp. Approp. – Approp. Realized
3107 Unexp. Approp. – Used
5700 Expended Appropriations
6100 Operating Expenses/Program Costs | 
7000

6930

70

70 | 

6930
70

7000

70 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration C2. To record the closing of expended authority paid.2 

| Canceled 
TAFS XX00 |  |  | Unexpired
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
No Entry

Proprietary
No Entry |  |  | Budgetary
4902 Delivered Orders – Obligations, Paid
    4201 Total Actual Resources – 
    Collected

Proprietary
No Entry | 

70

 | 

70 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

##  Illustration Closing Entries:C1. To record the consolidation of actual net funded resources and reductions for withdrawn funds.2 

| Canceled
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
4208 Adjustments to Resources – Disposition 
of Canceled Payables
    4201 Total Actual Resources –  Collected

Proprietary
No Entry | 

70 | 

70 | Budgetary
4201 Total Actual Resources – Collected
    4119 Other Appropriations Realized

Proprietary
No Entry | 
7000

 | 

7000 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration C4. To record the closing of unobligated balances to expiring authority.2 

| Canceled 
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
No Entry

Proprietary
No Entry |  |  | Budgetary
4610 Allotments – Realized Resources
    4650 Allotments – Expired Authority

Proprietary
No Entry | 
6930

 | 

6930 |

- 2For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration C5. To record the closing of fiscal-year activity to unexpended appropriations.2 

| Canceled
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
No Entry

Proprietary
No Entry |  |  | Budgetary
No Entry

Proprietary
3100 Unexpended Appropriations – Cumulative
    3107 Unexpended Appropriations –  Used
3101 Unexpended Appropriations – Appropriations Received
    3100 Unexpended Appropriations – 
    Cumulative | 

70

7000 | 

70

7000 |

- 2.For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration C6. To record the closing of revenue, expense, and other financing accounts to cumulative results of operations.2 

| Canceled 
TAFS XX00 |  |  | Unexpired 
TAFS XX06 |  |  |
| --- | --- | --- | --- | --- | --- |
| Budgetary
No Entry

Proprietary
6800 Future Funded Expenses
    3310 Cumulative Results of Operations
   | 

70 | 

70 | Budgetary
No Entry

Proprietary
5700 Expended Appropriations
    3310 Cumulative Results of Operations
3310 Cumulative Results of Operations
    6100 Operating Expenses | 

70

70
 | 

70

70

 |

- 2.For further details see the draft Accounts Payable in a Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Illustration

| Post-Closing Trial BalanceYear XX062 |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Canceled TAFS XX00 |  |  | Unexpired TAFS XX06 |  |  |
| Budgetary
ALL BALANCES ARE ZERO

Proprietary
ALL BALANCES ARE ZERO |  |  | Budgetary
4201 Total Actual Resources - Collected
4650 Allotments – Expired Authority

Proprietary
1010 Fund Balance With Treasury
3100 Unexpended Appropriations | 
6930

6930 | 

6930

6930 |

- 2For further details see the draft Accounts Payable In A Canceled TAFS scenario dated 4/24/08.

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08

## Questions???

- Adj. to Total Res. - Disposition of Canceled Payables

- USSGL Board Meeting 4/24/08