ACCOUNTING FOR EXPIRED AND CANCELLED AUTHORITY FOR OTHER THAN SPECIAL AND TRUST FUNDS

BACKGROUND

In November 1990, Congress passed, and the President signed, Public Law 101-510, which superseded prior reporting requirements.  This law requires that agencies keep any remaining budget authority for five years after the appropriation expires to use in paying unliquidated obligations and liabilities on the books at expiration.  At the end of that five-year period for that Treasury Appropriation Fund Symbol (TAFS):

· all budgetary resources, both obligated and unobligated, is canceled;

· fund balance is returned to Treasury; and

· any receivables and payables are canceled for that TAFS.

At the time a TAFS is canceled, any collectible account receivable is re-established in a miscellaneous receipt account.  Upon collection, the funds are deposited to Treasury miscellaneous receipt account 3200 – Collections of Receivables from Canceled Accounts.  Any valid obligations and payables associated with the canceled TAFS may be paid from budget authority that is available for the same general purpose but still in the unexpired phase, as in accordance with OMB Circular No. A-11 requirements.  Failure to meet these provisions may result in a violation of the Anti-Deficiency Act.  Further guidance is provided in OMB Circular No. A-11, Section 130.10 for canceled obligations and payables.  See also the Bureau of Fiscal Service web site at https://www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl_home.htm for a scenario on canceled payables.

This guidance**relates to appropriations that have definite expiration dates.  No-year authority usually stays in the unexpired phase until fully obligated and disbursed.  When the purposes for which the authority was made available have been achieved, the account may be closed and the authority canceled.

The following illustration provides generic procedures for principal transactions agencies would encounter. Receivables are listed generically, using the USSGL account number for Accounts Receivable 1310. Payables are illustrated via the USSGL account number for Accounts Payable 2110.  Agencies may have other receivables and payables, and should use appropriate USSGL account numbers.

#### YEAR 1

**1.  To record the enactment of an annual appropriation for other than special and trust funds.**

### 2.  To record anticipated reimbursements. 

#### 3.  To record budgetary authority apportioned by OMB and available for allotment. (Direct Appropriation)

**4.  To record anticipated resources apportioned but not available for use until realized.**

#### 5.  To record the allotment of authority. (Direct Appropriation)

**6.  To record a commitment. (Direct Appropriation)**

#### 7.  To record current year undelivered orders. (Direct Appropriation)

**8.  To record the delivery of goods or services and accrue a liability. (Direct Appropriation)**

**9.  To pay $400 obligation originally recorded for $500 in the current year and decrease current year obligations. The invoice was less than expected.  (Direct Appropriation)**

**10.  To record a commitment of $100.  (Direct Appropriation)**

#### 11.  To record current year undelivered orders.  (Direct Appropriation)

**12.  To record the delivery of goods or services and accrue a liability. (Direct Appropriation.)**

**13.  To pay $100 of accounts payable balance.**

**14.  Determined that the $100 in the above transaction was paid in error and that a refund was due.  (Note:  this is a non-federal receivable)**

### 15.  To record the estimated allowance for bad debts related to non-credit reform receivables.  (*estimates for bad debts are normally done at the beginning of fiscal year)

**16.  To record the realization of previously anticipated and apportioned authority, and record a reimbursable agreement without an advance – Reimbursable Order #1.**

**17.  To record the realization of previously anticipated and apportioned authority, and record a reimbursable agreement with an advance – Reimbursable Order #2.**

### 18. To record current year undelivered orders – Reimbursable Order #1($200); Reimbursable Order #2($150).

**19.  To record the delivery of goods or services and accrue a liability – Reimbursable Order #1.**

### 20.  To record revenue earned for services performed on a reimbursable order without an advance – Reimbursable Order #1.

**21.  To record the delivery of goods or services and accrue a liability – Reimbursable Order #2.**

**22.  To record earned revenue related to a reimbursable agreement – Reimbursable Order #2.**

###### Pre-Closing Adjusting Entries

**23.  To record the removal of unobligated unfilled customer orders without advance in excess of obligations.**

**24.  To record removal of unobligated unfilled customer orders with advance and return advance in excess of obligations – Reimbursable Order #2.**

**25.  To record adjustments for anticipated resources not realized.**

**USSGL 2108 –Year End Closing Statement**

**Year 1**

Column 5 Unexpended Balance (1010E)650

Column 7 Reimbursements Earned and Refunds (4251E)200

Column 10 Accounts Payable and Other Liabilities (4901E)750

Column 11 Unobligated Balance (4610E)100

**FACTS II Edit Check:  Columns 5+6+7+8=9+10+11**

**SF-133 REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/**

**SBR:  STATEMENT OF BUDGETARY RESOURCES  (YEAR 1)**

**BUDGETARY RESOURCES**

1.  Budget authority

A.  Appropriations received (4119E)1,000

3.  Spending authority from offsetting collections

A.  Earned

      1. Collected (4252E)150

      2.  Receivable from Federal sources (4251E-B)200

E.  Subtotal350

7.**Total Budgetary Resources1,350**

**STATUS OF BUDGETARY RESOURCES**

8. Obligations incurred:

A.  Direct (4901E-B) + (4902E)900

B.  Reimbursable (4901E-B)350

C. Subtotal1,250

9.  Unobligated balance:

A. Apportioned

     1. Balance, currently available (4610E)100

11.**Total Status of budgetary resources1,350**

**RELATIONSHIP OF OBLIGATIONS TO OUTLAYS**

14. Obligated balance net, end of period

A.  Accounts receivable (-) (4251E)(200)

D.  Accounts payable (+) (4901E)750

15. Outlays

A.  Disbursements (+) (4902E)500

B.  Collections (-)  (4252E)(150)

C.  Subtotal (calc 15A..15B)350

16. Less:  Offsetting receipts____

17.  **Net Outlays350**

**BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR YEAR ACTUAL COLUMN FOR YEAR 1 REPORTING**

**OBLIGATIONS BY PROGRAM ACTIVITY**

1000 Total new obligations (4901E-B+4902E)1,250

**BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION**

2200 New budget authority (gross) (+)1,350

2395 Total new obligations (-)(1,250)

2398 Unobligated balance expiring or withdrawn (-) (4610E)(100)

**NEW BUDGET AUTHORITY (GROSS), DETAIL**

4000 Appropriation (4119E)1,000

6800 Spending authority from offsetting collections (cash) (+) (4252E)150

6810 Change in uncollected customer payments from Federal sources

(unexpired)  (4251E-B)200

6890 Spending authority from offsetting collections (total discretionary) (+)350

7000 Total new budget authority (gross) (-)1,350

**CHANGE IN OBLIGATED BALANCES**

7310 Total new obligations1,250

7320 Total outlays (gross) (-) (4902E)(500)

7400 Change in uncollected customer payments from Federal sources (unexpired)(200)

7440 Obligated balance, end of year (+)  (4251E)(4901E)550

**OUTLAYS (GROSS), DETAIL**

8690 Outlays from new discretionary authority (+) (4902E)500

8700 Total outlays (gross) (+)500

**OFFSETS**

8800 Federal sources (-) (4222E-B) (4252E)(150)

8895 Change in uncollected customer payments from Federal sources (unexpired)(200)

**NEW BUDGET AUTHORITY AND OUTLAYS**

8900 Budget authority (net) (+)1,000

9000 Outlays (net) (+)350

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF NET COST**

**For the year ended September 30, YEAR 1**

**(in dollars/thousands/millions)**

Program Costs:

1.  Intragovernmental gross costs (6100E)350

2.  Less: Intragovernmental earned revenue (5200E)(350)

3. Intragovernmental net costs (calc)0

Gross Costs with the Public:

4.  Gross costs with the public (6100E+6720E+6790E)900

5. Less:  Earned revenues from the public

6. Net costs with the public (calc)900

7.      Total net cost900

8. Cost not assigned to programs

9. Less:  Earned revenues not attributed to programs

**10**. **Net Cost of Operations****900**

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the year ended September 30, YEAR 1**

**(in dollars/thousands/millions)**

**Cumulative ResultsUnexpended**

**Of OperationsAppropriations**

Budgetary Financing Sources:

4.  Appropriations Received (3101E)1,000

7.  Appropriations Used (5700E) (3107E)      900(900)

Other Financing Sources:

15. Other (+/-)

16. Total Financing Sources (calc)900100

17.  Net Cost of Operations (+/-)            (900)

18. Ending Balances 0100

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF FINANCING**

**For the year ended September 30, YEAR 1**

**(in dollars/thousands/millions)**

**Resources Used to Finance Activities***:*

**Budgetary Resources Obligated**

1.  Obligations Incurred (4901E-B)+(4902E)1,250

2.  Less:  Spending Authority for Offsetting Collections and Recoveries

(4251E-B+4252)350

3.  Obligations Net of Offsetting Collections and Recoveries (CALC 1-2)900

4.  Less:  Offsetting Receipts

5. Net Obligations (CALC 3-4)900

11. Total Resources Used to Finance Activities (CALC 5+10)900

**Resources Used to Finance Items not Part of the Net Cost of Operations**

12.  Change in Budgetary Resources Obligated for Goods, Services, and

Benefits Ordered but not yet Provided 

17.  Total Resources Used to Finance Items not Part of the Net Cost of

          Operations (CALC 12..16)____

18.  Total Resources Used to Finance the Net Cost of Operations900

**Components of the Net Cost of Operations that will not Require or Generate Resources in the Current Period***:*

27. Other (6720E+6790E)0

29. Total Components of Net Cost of Operations that will not require or

           Generate Resources in the Current Period____

30.  Net Cost of Operations (CALC 18+29)900

**The appropriation has expired, record closing entries at the end of year one.**

**26.  To record the consolidation of actual net-funded resources.**

**27.  To record the closing of Expended Authority - Paid.**

**28. To record the closing of revenue, expense, and other financing source accounts to cumulative results of operations.**

**29.  To record the closing of unobligated balances to expired authority.**

**30.  To record closing of fiscal year activity to unexpended appropriations.**

**Department/Agency/Reporting Entity**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, YEAR 1**

**(in dollars/thousands/millions)**

**Assets**

**Intragovernmental:**

1. Fund balance with Treasury (1010E)650

3.  Accounts receivable (1310E)200

6.  Total Intragovernmental950

15.  Total Assets850

**Liabilities**

**Intragovernmental**

     16.  Accounts Payable (2110E)350

**With the Public**

     20.  Accounts Payable (2110E)400

     27. Total Liabilities750

Net Position:

     29.  Unexpended appropriations (3100E)100

     30.  Cumulative results of operations (3310E) 0

     31.  Total Net Position (calc)100

32. Total Liabilities and Net Position850

**YEAR 2  (expired)**

**31.  To record the collection of refund due for assets purchased and expenses incurred in a prior year that create budgetary resources when collected. (non-fed)**

**32.  To pay $400 of accounts payable balance. (Direct Appropriation)**

**33. Determined that $200 in the above transaction was paid in error and that a refund was due.      (Note:  this is a non-federal receivable)**

**USSGL 2108 –Year End Closing Statement**

**Year 2**

Column 5 Unexpended Balance (1010E)350

Column 7 Reimbursements Earned and Refunds (4251E)200

Column 10 Accounts Payable and Other Liabilities (4901E)350

Column 11 Unobligated Balance (4650E)200

**FACTS II Edit Check:  Columns 5+6+7+8=9+10+11**

**SF-133 REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/**

**SBR:  STATEMENT OF BUDGETARY RESOURCES  (YEAR 2)**

**BUDGETARY RESOURCES**

2.Unobligated balance

A.  Beginning of period (4201B+4251B-4901B)100

3.Spending authority from offsetting collections

A. Earned

     1. Collected (4972E)100

7.  Total budgetary resources**200**

**STATUS OF BUDGETARY RESOURCES**

10.  Other (4650E)200

11.  Total status of budgetary resources**200**

**RELATIONSHIP OF OBLIGATIONS TO OUTLAYS**

12.  Obligated balance, net, beginning of period (4251B-4901B)550

14.  Obligated balance, net, end of period

       A. Accounts receivable (-) (4251E)(200)

       D. Accounts payable (4901E)350

15.  Outlays

        A.  Disbursements (4902E)400

        B.  Collections (4972E)(100)

        C.   Subtotal300

16.  Less:  offsetting receipts

17.  Net outlays**300**

**BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR YEAR ACTUAL COLUMN FOR YEAR 2 REPORTING**

**CHANGE IN OBLIGATED BALANCES**

7240 Obligated balance, start of year (+) (4221B) (4251B) (4901B)550

7320 Total outlays (gross) (-) (4902E)(400)

7440 Obligated balance, end of year (+) (4251E) (4901E)150

**OUTLAYS (GROSS), DETAIL**

8693 Outlays from discretionary balances (+) (4902E)400

**OFFSETS**

8800 Offsetting collections from federal sources (-) (4972E)(100)

8896 Portion of offsetting collections (cash) credited to expired accounts (4972E)100

**NEW BUDGET AUTHORITY AND OUTLAYS**

8900 Budget authority (net) (+)0

9000 Outlays (net) (+)300

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF NET COST**

**For the years ended September 30, YEAR 2**

**(in dollars/thousands/millions)**

Program Costs:

4.  Gross costs with the public (6100E+6790E)(200)

6.  Net Costs with the Public (calc)(200)

7.   Total net cost(200)

**10**. **Net Cost of Operations**(**200)**

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the year ended September 30, YEAR 2**

**(in dollars/thousands/millions)**

**Cumulative ResultsUnexpended**

**Of OperationsAppropriations**

Budgetary Financing Sources:

3.  Beginning Balances100

4.  Appropriations Received (3101E)0

7.  Appropriations Used (5700E) (3107E)      (100)100

Other Financing Sources:

15. Other (+/-)

16. Total Financing Sources (calc)      (100)100

17.  Net Cost of Operations (+/-)      200

18.  Ending Balances    (300)200

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF FINANCING**

**For the Years Ended September 30, YEAR 2**

**(in dollars/thousands/millions)**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

1.  Obligations Incurred (4901E-B)+(4902E)

2.  Less:  Spending Authority for Offsetting Collections

          and Recoveries (4972E)100

3.  Obligations Net of Offsetting Collections and Recoveries (calc 1-2)(100)

4.  Less:  Offsetting Receipts___

5.  Net Obligations (calc 3-4)(100)

Other Resources

9. Net Other Resources Used to Finance Activities___

11. Total Resources Used to Finance Activities (calc)(100)

**Resources Used to Finance Items not Part of the Net Cost of Operations**

13.  Resources that Fund Expenses Recognized in Prior

          Periods (1310E-B)(100)

17.  Total Resources Used to Finance Items not Part of the

          Net Cost of Operations(calc)(100)

18.  Total Resources Used to Finance the Net Cost of 

          Operations (calc 11-17)(0)

**Components of the Net Cost of Operations that will not Require or Generate                  Resources in the Current Period***:*

22. Increase in exchange revenue receivable from the public0

24. Total Components of Net Cost of Operations That Will

          Require or Generate Resources in Future Periods (calc)0

27. Other (6790E)(200)

28. Total Components of Net Cost of Operations That Will

          Not require or generate Resources (calc)(200)

29. Total Components of Net Cost of Operations That Will

      Not Require or Generate Resources in the Current Period(200)

30.  Net Cost of Operations**(200)**

**Recorded closing entries at the end of year two.**

**34.  To record the closing of adjustments to Expended Authority – Paid.**

**35.  To record the closing of Expended Authority – Paid.**

**36.  To record the closing of revenue, expense, and other financing sources to cumulative results of operations.**

**37.  To record closing of fiscal year activity to cumulative unexpended appropriations.**

**Department/Agency/Reporting Entity**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, YEAR 2**

**(in dollars/thousands/millions)**

**Assets**

**Intragovernmental:**

1. Fund Balance with Treasury (1010E)350

3. Accounts Receivable (1310E) (Fed)200

6.  Total Intragovernmental calc 550

9.  Accounts receivable, net (1310E) (1319E)(Nonfed)100

15.  Total Assets calc 650

**Liabilities with the Public**

     20.  Accounts Payable (2110E)350

     27. Total Liabilities calc 350

**Net position**

****29.  Unexpended appropriations 200

     30. Cumulative results of operations (3310E)100

     31. Total net position calc (29+30)300

32. Total Liabilities and Net Position calc (27+31)650

**YEAR 6   (Canceling Year)**

**Assuming that no further transactions took place in years 3-5, the following entries would be made to cancel the accounts.  Note that the entries for recording a canceled receivable or payable are considered adjusting entries.**

**38.  To cancel receivable for reimbursable activity.**

**Canceled receivables** are re-established in the Treasury General Fund miscellaneous receipt account 3200 - Collections of Receivables from Canceled Accounts.  Amounts collected from these receivables are deposited to Treasury using the same account.  The purpose of this illustration is not to address timing issues, however, agencies must conform with provisions for receivables as set forth in the Debt Collection Act of 1996.  Further information on the Debt Collection Act may be found on the Bureau of the Fiscal Service web site at.**https://fiscal.treasury.gov/fsservices/gov/debtColl/dms/debt_home.htm**

**39.  To reclassify receivable as non-entity and recognize liability. (non-entity asset)**

**40.  To record canceled receivable. (non-federal)  (reverse original transaction)**

**and**

**41.  To reclassify receivable as non-entity and recognize liability. (non-entity asset)**

**Canceled payables** must be paid from funds of subsequent appropriations available for the same general purpose as the one from which the payables were canceled.  These payments are subject to the 1 percent limitation rule (the sum of all items paid from a current appropriation for all past canceled appropriations may not exceed 1 percent of the current appropriation).**Further guidance is provided in OMB Circular No. A-11, Section 130.10 for canceled obligations and payables.  Also see the Bureau of the Fiscal Service web site at https://www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl_home.htm for a scenario on canceled payables.

**42.  To record canceled payable.**

**43. To re-establish payable in canceled account.**

**44.  To record cancellation of expired authority and withdraw funds via USSGL 2108: Year End Closing Statement.**

**USSGL 2108 –Year End Closing Statement**

**Year 6**

Column 2 Treasury supplied350

Column 4 Unobligated & Obligated Balance Withdrawn/Canceled (4350E)350

**SF-133 REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/**

**SBR:  STATEMENT OF BUDGETARY RESOURCES  (YEAR 6)**

**BUDGETARY RESOURCES**

2.  Unobligated balance

A. Beginning of period (4201B+4251B-4901B)100

3.  Spending authority from offsetting collections

A. Earned – Receivable from federal sources 

2. Receivable from Federal Sources (4251E-B)(200)

B. Change in unfilled customer orders

1. Advance received 

2. Without advance from federal sources 

E.  Subtotal(200)

4. Recoveries of prior year obligations 

A. Actual (4971E)450

6. Permanently not available

A. Cancellations of expired and no-year accounts (4350E)(350)

7**.  Total budgetary resources****0**

**STATUS OF BUDGETARY RESOURCES**

8. Obligations incurred  (4901E-B) (4902E)

10.  Unobligated balance not available 

D.  Other (4650E)

11. **Total status of budgetary resources****0**

**RELATIONSHIP OF OBLIGATIONS TO OUTLAYS**

12. Obligated balance, net, beginning of period (4251B-4901B)250

14. Obligated balance, net, end of period

D. Accounts payable (4901E+4971E)

15. Outlays

B.  Collections 0

16. Less:  offsetting receipts 

17.  Net outlays**0**

**BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR YEAR ACTUAL COLUMN FOR YEAR 6 REPORTING**

******CHANGE IN OBLIGATED BALANCES**

7240 Obligated balance, start of year (+) (4251B+4901B)250

7340 Adjustments in expired accounts (net) (4901E-B-4971E)(450)

7410 Change in uncollected customer payments for Federal sources (expired)200

**NET BUDGETARY AUTHORITY AND OUTLAYS**

8900 Budget authority (net) (+)0

9000 Outlays (net) (+)0

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF NET COST**

**For the year ended September 30, YEAR 6**

**(in dollars/thousands/millions)**

Program Costs:

4.  Gross costs with the public (6100E) (6790E) (6800E)200

5.  Less: Earned revenues (5200E) (5900E)(200)

6.  Net Costs with the Public (calc)0

7.   Total net cost0

10. **Net Cost of Operations****0**

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the year ended September 30, YEAR 6**

**(in dollars/thousands/millions)**

**Cumulative ResultsUnexpended**

**Of OperationsAppropriations**

3.  Beginning Balances (3310B) (3100B)     100          200

Budgetary Financing Sources:

4.  Appropriations received (3101E)

6.  Other adjustments  (3106E) (350)

7.  Appropriations used (5700E) (3107E)      (350)350

Other Financing Sources:

15. Other (+/-) (5900E)(400)____

16. Total Financing Sources (calc)(750)(0)

17.  Net Cost of Operations (+/-)(0)

18.  Ending Balances(650)200

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF FINANCING**

**For the year ended September 30, YEAR 6**

**(in dollars/thousands/millions)**

**Year 6**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

1.  Obligations Incurred (4901E-B)+(4902E)

2.  Less: Spending Authority for Offsetting Collections

          and Recoveries (4251E-B) (4971E)150

3.  Obligations Net of Offsetting Collections and Recoveries (calc)150

5. Net Obligations(150)

**Other Resources**

9.  Other Resources (+/-) (5900E)400

11. Total Resources Used to Finance Activities (calc)250

**Resources Used to Finance Items not Part of the Net Cost of Operations**

13.  Resources that Fund Expenses Recognized in Prior Periods (1310E-B)200

14b. Other400

15. Resources that Finance the Acquisition of Assets or Liquidation of

           Liabilities 

17.  Total Resources Used to Finance Items not Part of the Net Cost of

          Operations (calc)400

18.  Total Resources Used to Finance the Net Cost of Operations(350)

**Components of the Net Cost of Operations that will not Require or Generate                  Resources in the Current Period:**

23. Other (6800E) (350)

24. Total Components of Net Cost of Operations That Will Require or

          Generate Resources in Future Periods (calc)(350)

27. Other (6790E)0

28. Total Components of Net Cost of Operations That Will Not Require or

           Generate Resources0

29. Total Components of Net Cost of Operations That Will Not Require or

           Generate Resources in the Current Period**(350)

30.  Net Cost of Operations**0**

**45. To close revenue, expense, and other financing sources to cumulative results.**

**46.  To record the closing of related adjustments to Expended Authority – Unpaid.**

**47.  To record closing of fiscal year activity that increases unexpended appropriations.**

**Department/Agency/Reporting Entity**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, YEAR 6**

**(in dollars/thousands/millions)**

Assets

Intragovernmental:

****3.  Accounts receivable (1310E)(non-entity)200

6.  Total intragovernmental200

Assets with the Public:

9.  Accounts receivable (1310E) (1319E)(non-entity)100

15.  Total assets300

Liabilities

     26.  Other liabilities with the public (2960E, 2980E)750

     27. Total liabilities750

Net Position

     29. Unexpended Appropriations - Cumulative (3100E)200

     30. Cumulative results of operations (3310E)(650)

     31. Total net position(450)

32. Total liabilities and net position300

**YEAR 7  (TAFS canceled in previous year)**

**The following transactions illustrate the collection of canceled receivables and subsequent transfer of cash to Treasury miscellaneous receipt account 3200.**

**48.  To record collection of canceled receivables.**

**49.  To record transfer of cash to Treasury miscellaneous receipt account 3200.**

� United States Code Title 31>Subtitle II>Chapter 15>Subchapter IV>Sections 1551-1557

� OMB Circular No. A-11, Section 20.4

� Reverse original entry (R = Reverse)

� The USSGL does not endorse recording a budgetary resource for federal refunds receivable.

� Determined that receivables would not be totally collected and more than a 50% chance of loss existed.

� There is no budgetary authority involved after receivables are canceled; only proprietary accounts are recorded.

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