**GENERAL FUND RECEIPT (GFR) ACCOUNT GUIDE**

**Effective Fiscal 2020**

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**GENERAL FUND RECEIPT ACCOUNT (GFR) GUIDE**

**EFFECTIVE FISCAL YEAR 2020**

**PREPARED BY:**

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

**U.S. DEPARTMENT OF THE TREASURY**

ContentsBackground	4Definition of a General Fund Receipt (GFR) Account	4Purpose	4Federal Account Symbols (FAS), Treasury Account Symbols (TAS), and Collections	4GFR Account Categories in the FAST Book	5GFR Account Reporting Responsibility	8Identifying and Reporting Custodial Collections	8FLOWCHART - GFR COLLECTIONS TO COLLECTING AGENCY’S FINANCIAL STATEMENTS	11Chart - Impact on Collecting Entity’s Financial Statements by Various Types of Collections	12Listing of USSGL Accounts Used in This Scenario	13Scenario 1: Custodial Statement Collections: Collection of Nonexchange Revenue: Taxes – Individual and Not Otherwise Classified	16Scenario 2: Custodial Statement Collections: Collection of Nonexchange Revenue – Fines and Penalties	34Scenario 3: Non-Custodial Statement Collections: Collection of Exchange Revenue with Related Costs	47

## **Background**

## **Definition of a General Fund Receipt (GFR) Account**

The Government Accountability Office (GAO) defines a GFR Account as: “A receipt account credited with all collections that are not earmarked by law for another account for a specific purpose.  These collections are presented in the President’s budget as either governmental (budget) receipts or offsetting receipts.  These include taxes, customs duties, and miscellaneous receipts.”**(Government Accountability Office, A Glossary of Terms Used in the Federal Budget Process, September 2005, GAO–05-734SP)

## **Purpose**

This guidance proposes accounting and reporting guidance for various collections classified in GFR accounts.  The following scenarios illustrate accounting transactions and reporting for specific types of collections.  The focus of this guidance is on the GFR account activity.  Related transactions illustrated in the scenarios such as credit reform activities are covered in more detail in the other case studies.  Refer to those case studies for questions not specifically related to GFR activity.  

## **Federal Account Symbols (FAS), Treasury Account Symbols (TAS), and Collections**

The Federal Account Symbols and Titles (FAST) Book, published by Treasury, lists all FAS available for Federal agency use.  A collection can be classified to any of the listed accounts.  To classify a receipt, append your agency’s two digit department code to the FAS.  This combination of department code and FAS creates TAS.  For example, collections for work performed in accordance with Economy Act can be deposited into any type of expenditure account.  On the other hand, National Park Service fees are designated by law to be deposited to a special fund receipt account.  Similarly, collections for the National Endowment for the Arts Gift Fund are designated by law to be deposited to a trust fund receipt account.  Amounts collected in the course of business by the U.S. Postal Service are, by law, deposited to a revolving fund.  Amounts not belonging to the Government are, by law, classified to deposit fund accounts.  As you can see, a specific law determines how the collections in the preceding examples are classified in a TAS.

Absent specific legislation, collections should be classified to a **General Fund Receipt TAS**.  Title 31, United States Code (USC), chapter 33, section 3302(b) establishes this concept by stating: “Except as provided in section 3718 (b) of this title, an official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any change or claim.”  Also, Title 31, USC, chapter 33, section 3302(e) states that “an official or agent of the Government having custody or possession of public money shall keep an accurate entry of each amount of public money received, transferred, and paid.”

## **GFR Account Categories in the FAST Book**

The “Types of Collections and Relevant FASAB References” column was included in the table to assist users in providing background information.  The users should note that the types of collections and limited paragraph references listed on the chart are suggestions and they should not be solely relied on.  Each entity should perform its own research to determine the appropriate category for its collection.

## **GFR Account Reporting Responsibility**

Within each GFR account category listed in the FAST Book there are unique FAS to identify specific activity.  After selecting the proper TAS, the reporting entity should append its 3-digit agency identifier code to the beginning of the TAS for classifying the receipt to Treasury.  A collecting entity typically reports all GFR TAS beginning with its 3-digit agency identifier code within its entity financial statements.

## **Identifying and Reporting Custodial Collections**

This guidance uses the word “custodial” as it relates to the Statement of Custodial Activity.  The Statement of Custodial Activity was intended for those entities whose primary mission is collecting taxes or other revenues, particularly sovereign revenues that are intended to finance the entire Government’s operations, or at least the programs of other entities, rather than their own activities[footnoteRef:2].  Organizations that collect custodial revenues that are incidental to their primary mission do not need to report the collections and disposition of these revenues in a separate statement.  The disclosure of the sources and amounts of the collections and the amounts distributed to others could be disclosed in accompanying footnotes[footnoteRef:3].   [2:  See SFFAC No. 2, paragraph 101.]  [3:  SFFAC No. 2, paragraph 103.] 

**Nonexchange Revenue**

Entities that collect nonexchange revenue for the General Fund and other entities should not recognize the revenue as theirs, but instead they need to account and report for that revenue in accordance with provisions of Statement of Federal Financial Accounting Concept No. 2 above and Statement of Federal Financial Accounting Standard No. 7 (paragraphs 48-63).

**Exchange Revenue**

The collection of exchange revenue is generally reported on the Statement of Net Cost but under exceptional circumstances, an entity may recognize virtually no costs (either during the current period or during past periods) in connection with earning revenue that it collects.  In such cases:

45.1. The collecting entity should not offset its gross costs by such exchange revenue in determining its net cost of operations. If such exchange revenue is retained by the entity, it should be recognized as a financing source in determining the entity’s operating results. If, instead, such revenue is collected on behalf of other entities (including the U.S. Government as a whole), the entity that collects the revenue should account for that revenue as a custodial activity, i.e., an amount collected for others. 

45.2. If the collecting entity transfers the exchange revenue to other entities, similar recognition by other entities is appropriate.  

a. If the other entities to which the revenue is transferred also recognize virtually no costs in connection with the Government earning the revenue, the amounts transferred to them should not offset their gross cost in determining their net cost of operations but rather should be recognized as a financing source in determining their operating results. 

b. If the other entities to which the revenue is transferred do recognize costs in connection with the Government earning the revenue, the amounts transferred to them should offset their gross cost in determining their net cost of operations.

45.3. Because the revenue is exchange revenue regardless of whether related costs are recognized, it should be recognized and measured under the exchange revenue standards.[footnoteRef:4] [4:  See SFFAS No. 7, paragraph 45.] 

Agencies may request guidance from FASAB if determining the propriety of preparing a Statement of Custodial Activity or if a note disclosure for a given collection is an issue that cannot otherwise be resolved. 

## **FLOWCHART - GFR COLLECTIONS TO COLLECTING AGENCY’S FINANCIAL STATEMENTS**

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No

Yes

Yes

No

No

**Custodial Revenue**

Yes

No

Yes

Yes

Does the collecting agency have costs related to generating the revenue?

Is the custodial

revenue material?

**Agency Revenue**

Statement of Changes in Net Position

Balance Sheet

**Not Revenue**

Balance Sheet

Footnote Disclosure

Statement of Custodial Activity

Balance Sheet

Statement of Net 

Cost

Statement of Changes in Net Position

Is the GFR collection revenue?

Is the GFR collection exchange revenue?

Balance Sheet

Scenarios:

5 – Proceeds from disposition of assets (Transferred-In)

6 – Downward reestimate (Transferred-In)

7 - Seigniorage

Scenarios:

3 – Exchange Revenue

4 – Receivables from Canceled Authority

Scenarios: 1 Nonexchange Revenue

                    2 Nonexchange Revenue

1 & 2 – Non-exchange Revenue

## **Chart - Impact on Collecting Entity’s Financial Statements by Various Types of Collections**

## 

## **Listing of USSGL Accounts Used in This Scenario**

## **Scenario 1: Custodial Statement Collections: Collection of Nonexchange Revenue: Taxes – Individual and Not Otherwise Classified**

This scenario addresses collections of nonexchange tax revenue that are reported on the Statement of Custodial Activity.  Refer to SFFAS No. 7, paragraphs 49, 176, 245, 281, and 353 and SFFAC No. 2, Entity and Display. 

**NOTE: The IRS has data limitations and cannot separately post, by tax class, penalties and fines receivables and revenue from taxes receivables and tax collections.  FASAB’s SFFAS 7 paragraph 185 recognizes IRS systems limitations.**

Also Post:

**GFR Account Preclosing Trial Balance**

**Reclassified Financial Statements:**

**Year 1 – 4th Quarter**

Also Post:

Also Post:

Also Post:

**Preclosing Trial Balance – Year 1**

**Year 1 – Preclosing Adjusting Entry**

**Preclosing Adjusted Trial Balance – End of Year 1**

**Financial Statements**

OMB Circular No. A-136, Financial Reporting Requirements, Section II.3.8.35 – Note 35 Incidental Custodial Collections states: “Organizations collecting immaterial custodial revenues that are incidental to their primary mission may disclose the sources and amounts of the collections and the amounts distributed to others in accompanying notes rather than on the face of the statement.” Also, see SFFAC No. 2, Entity and Display, paragraph 103.

**Note:****The Statement of Net Cost, Statement of Changes in Net Position, Statement of Budgetary Resources, and the SF 133 & Schedule P are not applicable to this scenario.**

**Reclassified Financial Statements**

**Note:****The Reclassified Statement of Net Cost is not applicable to this scenario.**

**Closing Entries**

**Post-Closing Trial Balance**

## 

## **Scenario 2: Custodial Statement Collections: Collection of Nonexchange Revenue – Fines and Penalties**

This assumption addresses collections of nonexchange fines and penalties revenue that are reported on the Statement of Custodial Activity.  Refer to SFFAS No. 7, paragraphs 2, 5, 30, 49, 54, 61, 173, 260, and 262, and SFFAC No. 2, Entity and Display.

**NOTE: The IRS has data limitations and cannot separately post, by tax class, penalties and fines receivables and revenue from taxes receivables and tax collections.  FASAB’s SFFAS 7 paragraph 185 recognizes IRS systems limitations.**

Also Post:

**GFR Account Preclosing Trial Balance**

**Year 1 – 4th Quarter**

Also Post:

**Year 1 Preclosing Trial Balance**

**Preclosing Adjusting Entry**

**Year 1 Preclosing Adjusted Trial Balance**

OMB Circular No. A-136, Financial Reporting Requirements, Section II.3.8.35 – Note 35 Incidental Custodial Collections states: “Organizations collecting immaterial custodial revenues that are incidental to their primary mission may disclose the sources and amounts of the collections and the amounts distributed to others in accompanying notes rather than on the face of the statement.” Also, see SFFAC No. 2, Entity and Display, paragraph 103.

**Note:****The Statement of Net Cost, Statement of Changes in Net Position, Statement of Budgetary Resources, and the SF 133 & Schedule P are not applicable to this scenario.**

**Reclassified Financial Statements**

**Note:****The Reclassified Statement of Net Cost is not applicable to this scenario.**

**Closing Entries**

**Year 1 Post-Closing Trial Balance**

## 

## 

## 

## 

## 

## 

## 

## 

## 

## 

## **Scenario 3: Non-Custodial Statement Collections: Collection of Exchange Revenue with Related Costs**

There are entities that collect exchange revenue with related costs where the collections are not retained by the collecting entity.  In these cases, the entity should record the exchange revenue in its entity financial statements as usual.  However, it should also reflect the disposition of the financing source on the Statement of Changes in Net Position.  The example we have used for exchange revenue with related costs is the passport fees collected by the State Department.  The State Department collects passport fees, which are not retained by the Department but are deposited directly to the General Fund Receipt Account.  The passport fee is retained by the Federal Government and is generally not refundable whether the passport is issued or not.  

**NOTE: Scenario 3 is for agencies who collect exchange revenue with related cost but who have no legal authority to retain/use the collection (hence would submit the collection to the GF), nonetheless they have to report the exchange revenue in their Statement of Net Cost (SNC) not the Statement of Custodial Activity (SCA) to offset the collection cost they incurred.  The General Fund Expenditure TAS has been included to demonstrate this relationship.**

**Year 1 Quarter 1**

Also Post:

**Year 1 – 1st Quarter Preclosing Trial Balance**

**Financial Statements:**

**Year 1 – 4th Quarter**

Also Post:

**Year 1 4th Quarter Preclosing Trial Balance**

**Preclosing Adjusting Entry**

**Year 1 4th Quarter Preclosing Adjusted Trial Balance**

**Financial Statements:**

**Reclassified Financial Statements**

**Closing Entries**

**Post-Closing Trial Balance**

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                                                                                                         Page 20 of 205                                                           IRC Handout April 23, 2020                                                                               

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