Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 1 of 8 Released: December, 2004

This scenario displays transactions for contract authority substituted by offsetting collections. Under 

certain circumstances, OMB allows contract authority to be substituted by unfilled customer orders before 

the orders are earned and collected. 

In this scenario, an agency has new contract authority. Contract authority is substituted as undelivered 

orders are accepted. Contract authority is then liquidated as the reimbursements are earned and collected. 

Any balance of obligated contract authority not offset by orders or by receivables is carried forward to the 

next year. The contract authority carried forward will be substituted and eventually liquidated by new 

offsetting collections. 

The following accounts will be used in this scenario. Refer to the U.S. Government Standard General 

Ledger (USSGL) for accounts, account descriptions, accounting transactions and crosswalks to reports 

(https://www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl_home.htm). In addition, each transaction in the 

scenario is coded with transaction numbers that are identified in Section III of the USSGL. 

STANDARD GENERAL LEDGER ACCOUNTS ILLUSTRATED

Budgetary Accounts

Resource Accounts

4032 Estimated Indefinite Contract Authority 

4131 Current Year Contract Authority Realized 

4132 Substitution of Contract Authority

4133 Decreases to Indefinite Contract Authority

4135 Contract Authority Liquidated

4139 Contract Authority Carried Forward

4201 Total Actual Resources Collected

4221 Unfilled Customer Orders without Advance

4222 Unfilled Customer Orders with Advance

4251 Reimbursements and Other Income – Receivable

4252 Reimbursements and Other Income – Collected

Status of Resource Accounts

4450 Unapportioned Authority

4510 Apportionments

4610 Allotments – Realized Resources

4801 Undelivered Orders – Obligations, Unpaid

4901 Delivered Orders – Obligations, Unpaid

4902 Delivered Orders – Obligations, Paid

Proprietary Accounts

Assets

1010 Fund Balance with Treasury

1310 Accounts Receivable

Liabilities

2110 Accounts Payable

2310 Advances from Others

Net Position

3310 Cumulative Results of Operations

Revenue

5200 Revenue from Services Provided

Expenses

6100 Operating Expenses/Program Cost

1. To record the enactment of public law for new contract authority.

DR CR TC

Budgetary Entry

4032 Estimated Indefinite Contract Authority

4450 Unapportioned Authority

Proprietary Entry

No entry.

1,000

1,000 A176
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 2 of 8 Released: December, 2004

2. To record the OMB approved apportionment request on SF-132 for contract authority.

DR CR TC

Budgetary Entry

4450 Unapportioned Authority

 4510 Apportionments

Proprietary Entry

No entry.

700

700 A116

3. To record an allotment of a part of the apportioned authority.

DR CR TC

Budgetary Entry

4510 Apportionments

 4610 Allotments – Realized Resources

Proprietary Entry

No entry.

600

600 A120

4a. To record an unpaid obligation of authority previously allotted.

DR CR TC

Budgetary Entry

4610 Allotments – Realized Resources

 4801 Undelivered Orders – Obligations, Unpaid

Proprietary Entry

No entry.

600

600 B204

4b. To realize current-year contract authority.

DR CR TC

Budgetary Entry

4131 Current-Year Contract Authority Realized

 4032 Estimated Indefinite Contract Authority

Proprietary Entry

No entry.

600

600 A168

5. To record unfilled customer orders with advance and without advance (spending authority from 

offsetting collections) and replace contract authority previously realized with this spending 

authority from offsetting collections.

DR CR TC

Budgetary Entry

4221 Unfilled Customer Orders without Advance

4222 Unfilled Customer Orders with Advance

 4132 Substitution of Contract Authority

Proprietary Entry

1010 Fund Balance With Treasury

 2310 Advances from Others

400

150

150

550

150

A303
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 3 of 8 Released: December, 2004

6. To record the delivery of goods or services and accrue a liability.

DR CR TC

Budgetary Entry

4801 Undelivered Orders – Obligations, Unpaid

 4901 Delivered Orders, Obligations, Unpaid

Proprietary Entry

6100 Operating Expenses/Program Costs

 2110 Accounts Payable

500

500

500

500

B302

7. To record revenue earned in the performing agency for goods or services performed on 

reimbursable orders without an advance.

DR CR TC

Budgetary Entry

4251 Reimbursements & Other Income Earned – Receivable

 4221 Unfilled Customer Orders without advance

Proprietary Entry

1310 Accounts Receivable

 5200 Revenue from Services Provided

250

250

250

250

A310

8a. To record receipt of payment from federal customers.

DR CR TC

Budgetary Entry

4252 Reimbursements and Other Income Earned - Collected

 4251 Reimbursements & Other Income Earned – Rec.

Proprietary Entry

1010 Fund Balance With Treasury

 1310 Accounts Receivable

250

250

250

250

C186

8b. To record revenue earned in the performing agency for goods or services performed on a 

reimbursable order with an advance.

DR CR TC

Budgetary Entry

4252 Reimbursements and Other Income Earned - Collected

 4222 Unfilled Customer Orders with Advance

Proprietary Entry

2310 Advances from Others

 5200 Revenue from Services Provided

150

150

150

150

A306

8c. To record the liquidation of contract authority for unfilled customer orders that are earned and 

collected. 

DR CR TC

Budgetary Entry

4132 Substitution of Contract Authority

 4135 Contract Authority Liquidated

Proprietary Entry

No entry.

400

400 A187
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 4 of 8 Released: December, 2004

9. To record a valid disbursement.

DR CR TC

Budgetary Entry

4901 Delivered Orders – Obligations, Unpaid

 4902 Delivered Orders – Obligations, Paid

Proprietary Entry

2110 Accounts Payable

 1010 Fund Balance With Treasury

375

375

375

375

B110

Adjusting Entries

10. To reduce unobligated estimated contract authority to zero at year-end.

DR CR TC

Budgetary Entry

4450 Unapportioned Authority

4510 Apportionments

 4032 Estimated Indefinite Contract Authority

Proprietary Entry

No entry.

300

100

400 F112

PRE-CLOSING ADJUSTED TRIAL BALANCE

DR CR

BUDGETARY

4032 Estimated Indefinite Contract Authority

4131 Current-Year Contract Authority Realized

4132 Substitution of Contract Authority 

4133 Decreases to Indefinite Contract Authority

4135 Contract Authority Liquidated

4221 Unfilled Customer Orders Without Advance

4222 Unfilled Customer Orders With Advance

4251 Reimbursements & Other Income Earned – Receivable

4252 Reimbursements & Other Inc Earned – Collected

4450 Unapportioned Authority

4510 Apportionments 

4610 Allotments - Realized Resources

4801 Undelivered Orders – Obligations, Unpaid

4901 Delivered Orders – Obligations, Unpaid

4902 Delivered Orders – Obligations, Paid

TOTALS

PROPRIETARY

1010 Fund Balance With Treasury

1310 Accounts Receivable

2110 Accounts Payable

2310 Advances from Others

5200 Revenue from Services Provided

6100 Operating Expenses/Program Costs

TOTALS

600

150

400

____

1,150

25

0

500

525

0

150

0

400

0

0

0

0

0

100

125

375

1,150

125

0

400

___

525
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 5 of 8 Released: December, 2004

CLOSING ENTRIES

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

DR CR TC

Budgetary Entry

4201 Total Actual Resources – Collected

4252 Reimbursements & Other Income – Collected

Proprietary Entry

No entry.

400

400 F204

12. To record the closing of fiscal year contract authority.

DR CR TC

Budgetary Entry

4132 Substitution of Contract Authority

4135 Contract Authority Liquidated

4139 Contract Authority Carried Forward

 4131 Contract Authority Realized

Proprietary Entry

No entry.

150

400

50

600 F206

13. To record the closing of paid delivered orders to total actual resources.

DR CR TC

Budgetary Entry

4902 Expended Authority – Paid

 4201 Total Actual Resources – Collected

Proprietary Entry

No entry.

375

375 F214

14. To record the closing of revenue and expense accounts to cumulative results of operations

DR CR TC

Budgetary Entry

No entry.

Proprietary Entry

5200 Revenue from Services Provided

3310 Cumulative Results of Operations

 6100 Operating Expenses/Program Costs

400

100

500

F228
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 6 of 8 Released: December, 2004

POST-CLOSING ADJUSTED TRIAL BALANCE

DR CR

BUDGETARY

4139 Contract Authority Carried Over

4201 Total Actual Resources – Collected

4221 Unfilled Customer Orders Without Advance

4801 Undelivered Orders – Obligations, Unpaid

4901 Delivered Orders – Obligations, Unpaid

TOTALS

PROPRIETARY

1010 Fund Balance With Treasury

2110 Accounts Payable

3310 Cumulative Results of Operations

TOTALS

50

25

150

____

225

25

100

125

100

125

225

125

___

125

USSGL-2108 (Record type 7 – Contract authority .941) Main 

C.A.

Col. 2 Pre-closing balance- Treasury Supplied 25

Col. 3 New contract authority (4131E) 600

Col. 4 Appropriations to Liquidate 

Col. 5 Write-offs, Restorations or Adjustments (4132E + 4135E) 25 550 

Col. 6 Balance of Unfunded Contract Authority (Col. 2 + Col 3- Col. 4) 50

Col. 8 Unfilled Customer Orders (4221E) 150 

Col. 9 Undelivered Orders and Contracts (4801E) 100

Col. 10 Accounts Payable and Other Liabilities (4901E) 125 
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 7 of 8 Released: December, 2004

SF-133 and Statement of Budgetary Resources

Budgetary Resources

1C. Current year Contract Authority (4131E) 600

3A. Spending Authority from Offsetting Collections

 1. Collected (4252E) 400

3B. Change in Unfilled Customer Orders 

 2. Without Advances (4221E) 150 

6D. Other Authority Withdrawn (4132E + 4135E) (550)

7. Total Budgetary Resources 600

Status of Budgetary Resources

8. Obligations Incurred (4801E-B+4901E-B + 4902E) 600

9. Unobligated Balance 0

10. Unobligated Balance Not Available (4450E) 0 

11. Total Status of Budgetary Resources 600

Relation of Obligations to Outlays

12. Obligated Balance, net as of October 1 0

14A. Accounts Receivable (0)

14B. Unfilled Customer orders without advance (4221E) (150) 

14C. Undelivered orders (4801E) 100

14D. Accounts Payable (4901E) 125

15. Outlays

A. Disbursements (4902E) 375

B. Collections (4252E) (400)

17. Net Outlays (25)

Statement of Net Cost

1. Intragovernmental Gross Costs (6100E) 0

2. Less: Intragovernmental Earned Revenues (5200E) (400)

3. Intragovernmental Net Costs (400) 

4. Gross Costs with the Public (6100E,) 500

5. Less: Earned Revenues From the Public 0

6. Net Costs with the Public 500

7. Total Net Costs 100

10. Net Cost of Operations 100 

Statement of Changes in Net Position

Cumulative Results of Operations

1. Beginning Balance 0

17. Net Cost of Operations 100 

18 Net Position End (100) 

Statement of Financing

1. Obligations Incurred (4801E-B+4901E-B, 4902E) 600

2. Less: Spending Authority from Offsetting Collections and Recoveries

 (4252E+4222E-B+4221E-B) (550)

3.. Total obligations Net of Offsetting Collections and Recoveries 50

11. Total Resources Used to Finance Activities (calc) 50

12. Total resources Used to Fund Item Not Part of the Net Cost of Operations 

 (4801E-B+4222E-B+4221E-B) 50

30 Net Cost of Operations 100
Contract Authority 

Substituted And Liquidated by Offsetting Collections

Page 8 of 8 Released: December, 2004

BUDGET PROGRAM AND FINANCING SCHEDULE – ACTUALS

 For the year ended September 30, 20xx

 

OBLIGATIONS BY PROGRAM ACTIVITY

1000 Total New Obligations (4801E, 4901E, 4902E) 600

BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION:

2140 Unobligated balance, carried fwd, SOY 0

2200 New Budget Authority (gross) (sum of lines 4000 to 6962) 600

2395 Total New Obligations (Same as line 1000, opposite sign) (600)

2440 Unobligated Balance, carried forward, EOY 0

NEW BUDGET AUTHORITY (GROSS), DETAIL:

 Mandatory:

6610 Contract Authority (4131E) 600

 Discretionary:

6800 Offsetting Collections (cash) (+) (4252E) 400

6810 Change in uncollected customer payments from Federal Sources (4221E) 150

6890 Spending authority from offsetting collections (total discretionary) 550 

 Mandatory:

6949 Portion applied to liquidate contract authority (4132E)(4135E) (550)

 

7000 Total New Budget Authority (gross) (sum 4000...6990) 600

CHANGE IN OBLIGATED BALANCES:

7240 Obligated balance, SOY 0

7310 Total New Obligations (line 1000) 600

7320 Total Outlays (gross) (4902E) (375)

7400 Change in uncollected customer payments for Federal Sources (unexpired) (150)

7440 Obligated balance (EOY) (4801+4901E-4221E) 75

OUTLAYS (GROSS), DETAIL:

8697 Outlays from new mandatory authority (4902E) 375

OFFSETS:

 Against gross budget authority and outlays:

8800 Federal Sources (4252E) (400)

 Against gross budget authority only:

8895 Change in uncollected payments from Federal sources (calc 6810+6910) (150)

NEW BUDGET AUTHORITY AND OUTLAYS:

8900 Net Budget Auth (lines 2200 – (8800 thru 8896) 50

9000 Outlays (net) (lines 8690...8698 minus 8800...8845) (25)