Appropriation to Liquidate a Deficiency 

Scenario 

An appropriation to liquidate a deficiency is an appropriation that is available to 

liquidate obligations in excess of budgetary resources but is not available to incur new 

obligations. Include an appropriation to liquidate a deficiency on line 1A of the Report 

on Budget Execution and Budgetary Resources (SF 133) and the Statement of Budgetary 

Resources (SBR). This should cover the deficiency (reflected as a negative unobligated 

balance carried forward on line 2A of the SF 133 and SBR). This applies to unexpired 

and expired accounts. Normally, there are no excess amounts because these 

appropriations are requested after the deficiency is known, whereas, the agencies 

normally budget for appropriations to liquidate debt and appropriations to liquidate 

contract authority.1 

At year-end, it was determined that a deficiency of $1,000 existed. The SF 133/SBR 

and the Budget Program and Financing schedule at year-end are as follows: 

SF133: REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/ 

SBR: STATEMENT OF BUDGETARY RESOURCES 

(YEAR-END) 

YEAR 1 

BUDGETARY RESOURCES 

1. Budget authority 

A. Appropriations received (4119E) 

7. Total budgetary resources 

STATUS OF BUDGETARY RESOURCES 

8. Obligations incurred: 

A. Direct (4801E+4902E)2 

9. Unobligated balance: 

A. Apportioned (4610E) 3 

11. Total status of budgetary resources 

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS 

14. Obligated balance, net, end of period: 

C. Undelivered orders (4801E)5 

15. Outlays: 

A. Disbursements (4902E) 

1

 OMB Circular No. A-34 (2000), Section 30.3

2

 8A1 on crosswalk

3

 9A1 on crosswalk

4

 Obligated more than apportioned

5

 14C on crosswalk

2,000 

2,000 

3,000 

(1,000)4 

2,000 

1,000 

2,000 

Page 1 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR-YEAR 

ACTUAL COLUMN FOR YEAR 1 REPORTING 

OBLIGATIONS BY PROGRAM ACTIVITY 

1000 Total new obligations (4801E+4902E) 3,000 

BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION 

2200 New budget authority (gross) 

2395 Total new obligations 

2397 Deficiency (4610E) 

NEW BUDGET AUTHORITY (GROSS), DETAIL 

4000 Appropriation (4119E) 

CHANGE IN OBLIGATED BALANCES 

7310 Total new obligations 

7320 Total outlays (gross) (4902E) 

7440 Obligated balance, end of year (4801E) 

OUTLAYS (GROSS), DETAIL 

8690 Outlays from new discretionary authority (4902E) 

NET BUDGET AUTHORITY AND OUTLAYS 

8900 Budget authority (net) 

9000 Outlays (net) 

MEMORANDUM (NON-ADD) ENTRIES 

9190 Unpaid obligation, end of year: Deficiency (4610E) 

2,000 

(3,000) 

1,000 

2,000 

3,000 

(2,000) 

1,000 

2,000 

2,000 

2,000 

1,000 

Page 2 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

Beginning Trial Balance 

YEAR 2 

YEAR 2 Debit Credit 

Budgetary 

44506 

4801 

Total 

Proprietary 

None 

1,000 

0 

1,000 

1,000 

1,000 

Year 2 

In addition to the annual appropriation of $4,000, an appropriation act to liquidate the 

prior year deficiency was enacted for $1,000. 

1. To record the enactment of an appropriation and receipt of warrant. 

YEAR 2 

Budgetary Entry 

DR 4119 Other Appropriations Realized 4,000 

DR 4112 Liquidation of Deficiency - Appropriations 1,000 

CR 4450 Unapportioned Authority 5,000 

Proprietary Entry 

DR 1010 Fund Balance with Treasury 5,000 

CR 3101 Unexpended Appropriations – Appropriations Received 5,000 

TC 

A104 

2. To record budgetary authority apportioned by OMB and available for allotment. 

YEAR 2 

Budgetary Entry 

DR 4450 Unapportioned Authority 4,0007 

CR 4510 Apportionments 4,000 

TC 

A116 

6

 Closed USSGL 4610, Allotments – Realized to USSGL 4450, Unapportioned Authority at year-end. 

7

 Only $4,000 of the $5,000 is available for allotment because $1,000 is for the liquidation of the 

deficiency. 

Page 3 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

3. To record allotment of authority. 

YEAR 2 

Budgetary Entry 

DR 4510 Apportionments 4,000 

CR 4610 Allotments – Realized Resources 4,000 

TC 

A120 

4. The Budget Office approved purchase request for goods/services. (Commitment) 

YEAR 2 

Budgetary Entry 

DR 4610 Allotments – Realized Resources 4,000 

CR 4700 Commitments 4,000 

TC 

B202 

5. To record current-year undelivered orders without an advance. 

YEAR 2 

Budgetary Entry 

DR 4700 Commitments 500 

CR 4801 Undelivered Orders Obligations – Unpaid 500 

TC 

B204 

6. To record the delivery of goods and accrue a liability for current and prior year 

obligations (prior year - $1,000). 

YEAR 2 

Budgetary Entry 

DR 4801 Undelivered Orders Obligations – Unpaid 1,500 

CR 4901 Delivered Orders – Obligations, Unpaid 1,500 

Proprietary Entry 

DR 6100 Operating Expenses 1,500 

CR 2110 Accounts Payable 1,500 

DR 3107 Unexpended Appropriations Used 1,500 

CR 5700 Expended Appropriations 1,500 

TC 

B302 

B134 

7. Payment schedule certified and confirmed. 

YEAR 2 

Budgetary Entry 

DR 4901 Delivered Orders – Obligations – Unpaid 1,500 

CR 4902 Delivered Orders- Obligations, Paid. 1,500 

Proprietary Entry 

DR 2110 Accounts Payable 1,500 

CR 1010 Fund Balance with Treasury 1,500 

TC 

B110 

Page 4 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

Pre-Closing Trial Balance 

YEAR 2 

YEAR 2 Debit Credit 

Budgetary 

4119 

4112 

4700 

4902 

Total 

Proprietary 

1010 

3101 

3107 

5700 

6100 

Total 

4,000 

1,000 

0 

5,000 

3,500 

1,500 

1,500 

6,500 

3,500 

1,500 

5,000 

5,000 

1,500 

0 

6,500 

Closing Entry 

1. To record the closing of revenue, expense and other financing source accounts to 

cumulative results of operations. 

Budgetary Entry 

None 

Proprietary Entry 

DR 3310 Cumulative Results of Operations 1,500 

CR 6100 Operating Expense 1,500 

DR 5700 Expended Appropriations 1,500 

CR 3310 Cumulative Results of Operations 1,500 

TC 

F228 

2. To record the consolidation of actual net-funded resources. 

Budgetary Entry 

DR 4201 Total Actual Resources Collected 5,000 

CR 4112 Liquidation of Deficiency - Appropriations 1,000 

CR 4119 Other Appropriations Realized 4,000 

TC 

F204 

Page 5 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

3. To record the closing of Expended Authority - Paid. 

Budgetary Entry 

DR 4902 Delivered Orders – Obligations, Paid 1,500 

CR 4201 Total Actual Resources Collected 1,500 

TC 

F214 

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

Budgetary Entry 

None 

Proprietary Entry 

DR 3101 Unexpended Appropriations – Appropriations Received 5,000 

CR 3100 Unexpended Appropriations Cumulative 3,500 

CR 3107 Unexpended Appropriations Used 1,500 

TC 

F233 

5. To record closing of unobligated balances to unapportioned authority for unexpired 

multi-year funds. 

Budgetary Entry 

DR 4700 Commitments 3,500 

CR 4450 Unapportioned Authority 3,500 

Proprietary Entry 

None 

TC 

F210 

Post – Closing Trial Balance 

YEAR 2 

YEAR 2 Debit Credit 

Budgetary 

4201 

4450 

Total 

Proprietary 

1010 

3100 

Total 

3,500 

0 

3,500 

3,500 

0 

3,500 

3,500 

3,500 

3,500 

3,500 

Page 6 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

SF133: REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/

SBR: STATEMENT OF BUDGETARY RESOURCES

(YEAR-END) 

YEAR 2 

BUDGETARY RESOURCES 

1. Budget authority 

A. Appropriations received (4112E + 4119E) 

2. Unobligated balance: 

A. Beginning of the period (4201B+4801B) 

7. Total budgetary resources 

STATUS OF BUDGETARY RESOURCES 

8. Obligations incurred: 

A. Direct (4801+4902(E-B)) 8 

9. Unobligated Balance: 

A. Apportioned (4700E) 9 

11. Total status of budgetary resources 

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS 

12. Obligated balance, net, beginning of period (4801E-B) 

15. Outlays: 

A. Disbursements (4902E) 

8

 8A1 on crosswalk 

9

 9A1 on crosswalk 

5,000 

(1,000) 

4,000 

500 

3,500 

4,000 

1,000 

1,500 

Page 7 of 8 5/23/02 

Presented by: Melinda Pope 
Appropriation to Liquidate a Deficiency 

Scenario 

BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR-YEAR 

ACTUAL COLUMN FOR YEAR 2 REPORTING 

OBLIGATIONS BY PROGRAM ACTIVITY 

1000 Total new obligations (4801+4902 (E-B)) 500 

BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION 

2200 New budget authority (gross)

2395 Total new obligations

2440 Unobligated balance available, end of year (4700E)

NEW BUDGET AUTHORITY (GROSS), DETAIL 

4000 Appropriation (4112E+4119E)

4048 Portion applied to liquidate deficiency (4112E)

4300 Appropriation (total discretionary) 

CHANGE IN OBLIGATED BALANCE 

7240 Obligated balance, start of year (4801E)

7310 Total new obligations

7320 Total outlays (gross)

OUTLAYS (GROSS), DETAIL 

8690 Outlays from new discretionary authority (4902E - new) 

8693 Outlays from discretionary authority (4902E – bal) 

NET BUDGET AUTHORITY AND OUTLAYS 

8900 Budget authority (net) 

9000 Outlays (net) 

4,000 

(500) 

3,500 

5,000 

(1,000) 

4,000 

1,000 

500 

(1,500) 

500 

1,000 

4,000 

1,500 

Page 8 of 8 5/23/02 

Presented by: Melinda Pope