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**ACCOUNTING FOR INDEFINITE CONTRACT AUTHORITY**

**EFFECTIVE FISCAL YEAR 2025**

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**Prepared By:**

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**TABLE OF CONTENTS**

Background5

Accounting and Reporting Requirements7

Attribute Additions and Updates8

Listing of USSGL Accounts Used in This Scenario9

Scenario Assumptions10

Year 1 – Accounting for Indefinite Contract Authority13

Apportionment and Distribution/Receipt of Current-Year Indefinite Contract Authority15

Anticipated Resources17

Carried Forward – Prior Year Unobligated Balances18

Beginning Balances – Non-Supply Activity19

Beginning Balances –Supply Management25

Contract Authority and Reimbursable Agreements – Inventory29

Contract Authority and Reimbursable Agreements – Construction of a Building, Structure, or Linear Structure37

Contract Authority and Reimbursable Agreements – Miscellaneous Costs43

Contract Authority and Reimbursable Agreements – Operating Materials and Supplies45

Contract Authority and Reimbursable Agreements – Capitalized Equipment48

Year End Pre-Closing Entries51

Year 1 Pre-Closing Unadjusted Trial Balance52

Year End Closing Entries54

External Financial Reporting58

Reclassified Financial Statements67

Year 2 – Accounting for Indefinite Contract Authority69

Beginning Balances Carried Forward – Prior Year Unobligated Balances71

Apportionment and Distribution/Receipt of Current-Year Indefinite Contract Authority72

Receipt of Anticipated Resources with an Approved Apportionment74

Receipt of Anticipated Resources Used to Substitute Contract Authority74

Downward Adjustment of a Prior-Year Undelivered Order – Obligations, Unpaid77

Upward Adjustment of a Prior-Year Undelivered Order – Obligations, Unpaid78

Price Adjustment Increase of a Prior-Year Contract Authority Line Item79

Downward Adjustment of a Prior-Year Undelivered Order – Obligations, Unpaid (Substituted with a Reimbursable Agreement)81

Downward Adjustment of a Prior-Year Delivered Order – Obligations, Unpaid (Substituted with a Reimbursable Agreement)82

Upward Adjustment for Price Adjustment Increase on an Invoice84

Receipt of Reimbursable Agreement to Substitute Indefinite Contract Authority87

Receipt of Invoice for CN2100000189

Reimbursable Agreement – Federal Customer Order without an Advance90

Inventory Issued Against Reimbursable Agreement – Without Advance92

Inventory Issued Against Reimbursable Agreement – Without Advance93

Collection of Receivable against Reimbursable Agreement94

Confirmed Disbursements95

Return Remaining Balance of Advance Received in Prior Fiscal Year on Reimbursable Agreement97

Treatment for Receipt of Multiple Reimbursable Agreements of Prior FY98

Receipt of Invoice for Construction-in-Progress100

Year End Pre-Closing Entries102

Year 2 Pre-Closing Unadjusted Trial Balance103

Year End Closing Entries105

Year 2 Post-Closing Adjusted Trial Balance109

External Financial Reporting110

Reclassified Financial Statements118

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# Background

As defined in OMB Circular No. A-11, *Preparation, Submission, and Execution of the Budget,* Contract Authority is a type of budget authority that permits you to incur obligations in advance of an appropriation, offsetting collections, or receipts to make outlays to liquidate the obligations. Typically, the Congress provides contract authority in an authorizing statute to allow you to incur obligations in anticipation of the collection of receipts or offsetting collections that will be used to liquidate the obligations.

Contract Authority is apportioned budget authority which can be legally obligated. Contract Authority, however, is not funded and is apportioned and allocated without a supporting Treasury cash balance.  Consequently, Contract Authority must always be replaced or liquidated by subsequent or other budgetary resources with cash.   Contract authority authorizes obligations but not outlays (OMB Circular A-11, Section 20.4(b)).

Accounting and reporting policy for Contract Authority is derived from several premises that are encompassed by statutory authority, the Office of Management and Budget (OMB) apportionment process, and the Department’s Annual Operating Budget (AOB) processes for the Defense Working Capital Fund (DWCF).  Specifically:

· Contract Authority derives its authority, including its temporary nature, from statutory authority (Title 10, U. S. Code, § 2208 and 2210).  § 2208 authorizes the procurement of capital assets “in advance of available funding;” while § 2210 authorizes the incurring of obligations.

· Mandatory spending means spending controlled by laws other than appropriations acts (OMB Circular A-11, Section 20.3).  As the authority is coming from 10 USC 2208 and 2210 this makes contract authority mandatory.

· Per OMB Circular A-11, Section 83.5 obligations not financed from offsetting collections are direct. 

· The availability of Contract Authority as a temporary budget resource which must be replaced or liquidated is formally disseminated within DoD in accordance with OMB approved SF132, “Apportionment and Reapportionment Schedules,” and OUSD(C) approved AOBs.” 

· Customer orders are discretionary as provided in the appropriations act (OMB Circular A-11, Section 20.3)

· OMB Circular A-11, Section 81.2 “As a general rule, for offsetting collections from Federal sources, you should classify any spending authority from collections the offsetting collections from which they are derived, and the associated outlays as mandatory or discretionary based on the activities for which the offsetting collections are spent in the receiving accounts.  This means the classification will have the same classification as the funding provided for similar activities being carried out by the account.  For offsetting collections from non-Federal sources (i.e. user fees) amounts should be classified as mandatory if the legislative language that creates the collection is in the authorization legislation or discretionary if the legislative language is in the appropriations act.

· Per OMB Circular A-11, Section 83.5, obligations financed from offsetting collections received in return for goods or services provided are reimbursable.

· Contract Authority is apportioned to the Working Capital Fund Capital Programs and the Supply Management Operating Programs for the current fiscal year of the Apportionment only, as DoD’s Contract Authority is indefinite; and unobligated balances (derived from Contract Authority) must be zero at year-end. 

# Accounting and Reporting Requirements

The statutory and budgetary premises, the required accounting relationships established for budgetary accounts encompassed by the U.S. Standard General Ledger (USSGL), and the required structure of the SF 133 “Report on Budget Execution and Budgetary Resources” establish specific accounting and reporting requirements for Contract Authority.  Specifically: 

· Apportioned and allocated Contract Authority is recorded as a budgetary resource in accordance with the dollar amounts apportioned and allotted; and is accounted for within the “budgetary resources” category of USSGL accounts on Lines 1100 - 1850 of the SF 133 Report on Budget Execution and Budgetary.  

· Status of budgetary resources, including those derived from Contract Authority, are also categorized in terms of availability, e.g., available for obligation, obligated, etc. Status of budgetary resources, which are accounted for within the “budgetary status” category of the USSGL accounts on Lines 2190 – 2500 of the SF 133. 

· In accordance with the limitations noted above, “spending authority from offsetting collections,” replace Contract Authority when they become available.  For the DWCF, the requirement to replace Contract Authority is based on receipt of customer orders. 

· Contract Authority apportioned but not obligated must be withdrawn at the end of that fiscal year. 

· Substitution or liquidation of Contract Authority is based on signed reimbursable agreements (with or without advances), etc., It is a “substitution or liquidation” of Contract Authority with other budgetary resources, e.g., funded orders.  

· Substitution or liquidation of Contract Authority by orders and other resources is directed for both Capital Authority and Operating Authority. The Capital Investment Recovery factor included in WCF billing rates is used to replace Capital Program Contract Authority.  For non-Supply Management activities, capital collections will reduce the balance that will be carried forward from one fiscal year to the next on Line 1000, “unobligated balance brought forward,” of the SF 133 because of the impact to USSGL  413900 – Contract Authority Carried Forward.  

· Budgetary Resources derived from Indefinite Contract Authority are carried forward to subsequent fiscal years to the extent that they have been obligated but not liquidated by offsetting collections.  

Policies and accounting and reporting requirements stated herein are not mitigated by the fact that Contract Authority is initially unfunded.  Components and financial managers are required to manage and monitor Contract Authority in accordance with AOB allocations as stated.  In instances where AOB activity level execution of Contract Authority is significantly different than budget estimates and anticipated collections for specific business areas, financial managers must make appropriate decisions to reallocate financial resources or revise future billing rates.****

# General Ledger Account Attribute Requirements

      NOTE:  Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F 

            *** While not referenced at the transaction level within this scenario, the Disaster Emergency Fund Code (DEFC) attribute is required with all budgetary general ledger accounts 

# Listing of USSGL Accounts Used in This Scenario

# Scenario Assumptions

· This scenario displays transactions for Contract Authority substituted by Spending Authority from Offsetting Collections.

· This scenario is limited to the accounting treatment for indefinite contract authority.  

· Contract Authority is substituted as customer orders are accepted 

· Customer orders without advance (Federal)

· DoD WCFs do NOT have the exception to accept customer orders from Non-Federal entities without an advance

· Customer orders with advance (Non-Federal)

· Balances of obligated contract authority not liquidated are carried forward to the subsequent year.   

· The indefinite contract authority carried forward will be substituted and eventually liquidated by new offsetting collections in the subsequent year(s).

# Year 1 – Accounting for Indefinite Contract Authority

For presentation purposes, not all attributes are represented in the scenario.  However, they are still required.  This scenario keys in on BEA Category and Reimbursable Flag as they have to be self-balancing.  For PYA, all activity is X (Not an adjustment to prior-year reporting).

# Apportionment and Distribution/Receipt of Current-Year Indefinite Contract Authority

Comment: The following transactions (1-4a) are posted at the Office of the Secretary of Defense (OSD) level (97x4930.000).

Comment: The following transaction (4b) is posted at the component (subaccount 97x4930.00X) level.

**NOTE:  All subsequent transactions in this accounting scenario are posted at the 097x4930.00X level unless otherwise stated.**

# Anticipated Resources

Comments: In the following transactions, $140 million in reimbursable authority is anticipated, of which $21.5 million will be used for substitution of contract authority.  The remaining $117.5 million will be processed as normal reimbursable agreements.

# Carried Forward – Prior Year Unobligated Balances

Comments: Prior Year Adjustment (PYA) = X for unobligated balances carried forward

   NOTE: GL account 451000 is not posted at the WCF subaccount level. This transaction reflects the combination of TFM TCs A116 and A120 to post the net effect of the combined TCs.  The year-end closing of account 461000 into account 445000 and the subsequent reopening of the apportioned balance in account 461000 carried forward at the beginning of the subsequent year (see TC #6 and #69) are the only times in which account 445000 may be posted within the WCF component (subaccount 097x4930.00X) level

# Beginning Balances – Non-Supply Activity

Comments: Transactions 7 – 13 are relevant for the issuance and replacement of Account 152100, Inventory Purchased for Resale.  Prior Year Adjustment (PYA) = X for beginning balances.  

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Apportionment Category B Code will come from apportionment. 

   NOTE: Apportionment Category B and Code carried forward from transaction #10, to record the Undelivered Orders-Obligations, Unpaid. Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Apportionment Category B and Code carried forward from transaction #11, to record the Delivered Orders-Obligations, Paid. Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

**Comments: Transactions 14 – 17 are associated with the beginning balances in accounts 151100 and 422100 (BEA = Discretionary, and Reimbursable Indicator = Reimbursable).  Prior Year Adjustment (PYA) = X for beginning balances.**

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Beginning Balances –Supply Management

**Comments: Transactions 18 - 22 are associated with the beginning balance in account 480100 (BEA = Mandatory, and Reimbursable Indicator = Direct).  Prior Year Adjustment (PYA) = X for beginning balances.**

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: GL account 451000 is not posted at the WCF subaccount level.  Apportionment Category B Code will come from apportionment.  Prior-Year Adjustment = X

   NOTE: Apportionment Category B Code will come from apportionment. Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Contract Authority and Reimbursable Agreements – Inventory

Comments: The following transactions are applicable to contract authority and reimbursable agreements for the purchase of inventory. The following transaction includes three commitments against contract authority for the requisition of inventory.

		Commitment #1 for $12,000,000

		Commitment #2 for $5,000,000

		Commitment #3 for $2,000,000

NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X.

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: In most cases the F/N will be Non-Federal (N). However, advances may also be Federal (F) so this option needs to be built into the system requirements.

   NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X. 

   NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X. Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F  

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F  

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F  

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F  

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Contract Authority and Reimbursable Agreements – Construction of a Building, Structure, or Linear Structure

Comments: The following transactions are applicable to contract authority and reimbursable agreements for the construction of a building, structure, or linear structure.

   NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X.

NOTE:  The following two transaction sets (37a and 37b) must be posted concurrently to prevent a negative balance in account 461000

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE:  $2M current year portion of $4M for Construction-in-Progress (contract obligated in transaction 36) and $500K for purchase of equipment (contract obligated in transaction 50)

   NOTE: If account 610000 (Operating Expenses/Program Costs) is debited first, then also post TC D514 to reclassify the operating expense to Construction-in-Progress. Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required where Federal/Non-Federal Indicator = F.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE:  In most cases the F/N will be Non-Federal (N). However, advances may also be Federal (F) so this option needs to be built into the system requirements.

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Contract Authority and Reimbursable Agreements – Miscellaneous Costs

   NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Contract Authority and Reimbursable Agreements – Operating Materials and Supplies

   NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Contract Authority and Reimbursable Agreements – Capitalized Equipment

Comments: The following transactions are applicable to contract authority and reimbursable agreements for equipment recorded as a capital asset.

   NOTE: Apportionment Category B Code will come from apportionment. Prior Year Adjustment (PYA) = X.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Year End Pre-Closing Entries

# Year 1 Pre-Closing Unadjusted Trial Balance

**NOTE:  BEA Category, Reimbursable Flag, and DEFC attribute reconciliations are required to be self-balancing**

# Year End Closing Entries

   	  NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   	NOTE: The year-end closing of account 461000 into account 445000 and the subsequent reopening of the apportioned balance in account 461000 carried forward at the beginning of the subsequent year (see TC #69) are the only times in which account 445000 may be posted within the WCF component (subaccount 097x4930.00X) level

   	  NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

Year 1 Post-Closing Adjusted Trial Balance

**NOTE:  BEA Category, Reimbursable Flag, and DEFC attribute reconciliations are required to be self-balancing**

# External Financial Reporting

# Reclassified Financial Statements

**Reclassified Balance Sheet**

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**Reclassified Net Cost**

**Reclassified Statement of Changes in Net Position**

# Year 2 – Accounting for Indefinite Contract Authority 

**NOTE: Refer to Year 1 Post-Closing Trial Balance for Year 2 Beginning Trial Balances**

# Beginning Balances Carried Forward – Prior Year Unobligated Balances

Comments: Prior Year Adjustment (PYA) = X for unobligated balances carried forward.  The following transaction 69 is posted at the component (subaccount 97x4930.00X) level.

NOTE: GL account 451000 is not posted at the WCF subaccount level. This transaction reflects the combination of TFM TCs A116 and A120 to post the net effect of the combined TCs.  The year-end closing of account 461000 into account 445000 and the subsequent reopening of the apportioned balance in account 461000 carried forward at the beginning of the subsequent year (see TC #69) are the only times in which account 445000 may be posted within the WCF component (subaccount 097x4930.00X) level.

# Apportionment and Distribution/Receipt of Current-Year Indefinite Contract Authority

Comment: The following transactions (70 – 73a) are posted at the Office of the Secretary of Defense (OSD) level (97x4930.000).

Comment: The following transaction (73b) is posted at the component (subaccount 97x4930.00X) level.

**NOTE:  All subsequent transactions in this accounting scenario are posted at the 097x4930.00X level unless otherwise stated.**

# Receipt of Anticipated Resources with an Approved Apportionment

# Receipt of Anticipated Resources Used to Substitute Contract Authority

# Downward Adjustment of a Prior-Year Undelivered Order – Obligations, Unpaid

# Upward Adjustment of a Prior-Year Undelivered Order – Obligations, Unpaid

Comments: An upward adjustment is made to CLIN 201 for CN21000002 for $500,000.  CN***02 is still using Contract Authority.  NOTE: Because DoD Contract Authority is indefinite, upward adjustments go against current year Contract Authority.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Price Adjustment Increase of a Prior-Year Contract Authority Line Item

Comments: There is an increase price adjustment of $100,000 to CLIN 201 for CN21000002.  NOTE: This obligation was previously substituted with a reimbursable agreement (RA2100009) in Year 1.  This is posted as a modification of the reimbursable agreement. 

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/ Non-Federal Indicator = F

# Downward Adjustment of a Prior-Year Undelivered Order – Obligations, Unpaid (Substituted with a Reimbursable Agreement)

Comments: Received notification from vendor that CLIN 302 will come in under by $5,000 for CN21000001.  This contract started out under Contract Authority; however, it was substituted with a reimbursable agreement (RA21000009) in Year 1.  

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

**NOTE:  DoD has submitted a request to Treasury Fiscal Service to add account 461000 to USSGL TC D103**

# Downward Adjustment of a Prior-Year Delivered Order – Obligations, Unpaid (Substituted with a Reimbursable Agreement)

Comments: Actual transportation costs came in under the estimate previously invoiced.  Vendor modified the invoice and reduced the amount by $300.  The obligation was substituted with a reimbursable agreement in Year 1.  Customer has already been billed and monies collected.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Upward Adjustment for Price Adjustment Increase on an Invoice

Comments: There is an increase price adjustment of $10,000 to CLIN 102.  NOTE: This obligation was previously substituted with a reimbursable agreement (RA2100009) in Year 1. First step is to work with customer to modify the agreement for the price increase. Once this is completed, will need to modify the contract. 

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Receipt of Reimbursable Agreement to Substitute Indefinite Contract Authority

Comments: Record receipt of a reimbursable agreement (RA***33) from DoD/Military Department. This agreement is used to substitute indefinite contract authority tied to CN21000001.  Reclassification required of BEA Category Code and the Reimbursable Indicator on the obligation from mandatory/direct to discretionary/reimbursable.

# Receipt of Invoice for CN21000001 

Comments: Record receipt a new invoice for CN21000001 in the amount of $9,095,000.

# Reimbursable Agreement – Federal Customer Order without an Advance

Comments: A reimbursable agreement (RA212300543) is received from a federal customer without advance, aligned to order/contract number CN21000001.  This agreement is used to substitute contract authority.  Per OMB Circular A-11, this requires a reclassification of the BEA Category Code and the Direct/Reimbursable indicator on the obligation from mandatory/direct to discretionary/reimbursable.

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Inventory Issued Against Reimbursable Agreement – Without Advance

Comments: Record inventory issued against RA2100009 and RA2200033.

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Inventory Issued Against Reimbursable Agreement – Without Advance

Comments: Record inventory issued against RA2300543.

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Collection of Receivable against Reimbursable Agreement 

Comment: Record collection of receivable against RA2100009 for goods provided.

   	  NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

Comment: Record collection of receivable against RA2300543 for goods provided.

   	  NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Confirmed Disbursements 

# Return Remaining Balance of Advance Received in Prior Fiscal Year on Reimbursable Agreement

Comments: It has been determined that the remaining balance in account 422200 for services has been provided.   Therefore, the WCF must return the remaining balance of $528,125 (see Prior-Year End Post Closing Adjusted Trial Balance) to the ordering fund and record an obligation and outlay. OMB requires the use of object class 440.

NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Treatment for Receipt of Multiple Reimbursable Agreements of Prior FY

Comments: Received multiple reimbursable agreements for the remaining portion of construction-in-progress from last year (TC A706).  Will also need to reclassify the obligation for the purchase of equipment and construction in progress from mandatory/direct to discretionary/reimbursable.  

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

# Receipt of Invoice for Construction-in-Progress

Comment: Received invoice for construction in progress.

   NOTE:  If you debit 610000 Operating Expenses/Program Costs first, you will need to also post TC D514 to reclassify the expense to Construction-in-Progress. Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

   NOTE: Federal/Non-Federal attribute is driven by vendor (Federal or commercial customer). Trading Partner and Trading Partner Main Account are required data elements where Federal/Non-Federal Indicator = F

****

# Year End Pre-Closing Entries

# Year 2 Pre-Closing Unadjusted Trial Balance

**NOTE:  BEA Category, Reimbursable Flag, and DEFC attributes reconciliations are required to be self-balancing**

# Year End Closing Entries

# Year 2 Post-Closing Adjusted Trial Balance

NOTE:  BEA Category, Reimbursable Flag, and DEFC attribute reconciliations are required to be self-balancing 

# External Financial Reporting

# Reclassified Financial Statements

**Reclassified Balance Sheet**

Version 1.0  ****12 of 119						                       August 2022

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