***Appropriation to Liquidate a Deficiency***

***Scenario***

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****

***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.*

***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)2,000

7. **Total budgetary resources**2,000

## STATUS OF BUDGETARY RESOURCES

8. Obligations incurred:

A. Direct (4801E+4902E)3,000

9. Unobligated balance:

A. Apportioned (4610E)(1,000)

11. **Total status of budgetary resources**2,000

### RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

14. Obligated balance, net, end of period:

C. Undelivered orders (4801E)1,000

15. Outlays:

A. Disbursements (4902E)2,000

**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)2,000

2395 Total new obligations(3,000)

2397 Deficiency (4610E)1,000

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

4000 Appropriation (4119E)2,000

##### CHANGE IN OBLIGATED BALANCES

7310 Total new obligations3,000

7320 Total outlays (gross) (4902E)(2,000)

7440 Obligated balance, end of year (4801E)1,000

##### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (4902E)2,000

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net)2,000

9000 Outlays (net)2,000

**MEMORANDUM (NON-ADD) ENTRIES**

9190 Unpaid obligation, end of year:  Deficiency (4610E)1,000

**Beginning Trial Balance**

**YEAR 2**

### YEAR 2

### Debit

**Credit**

****

#### Budgetary

4450

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                                       4,000

CR  4510  Apportionments                                                     4,000

TC A116

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

**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

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

**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)5,000

2. Unobligated balance:

A. Beginning of the period (4201B+4801B)(1,000)

7. **Total budgetary resources**4,000

## STATUS OF BUDGETARY RESOURCES

8. Obligations incurred:

A. Direct  (4801+4902(E-B))500

9. Unobligated Balance:  

A. Apportioned (4700E)3,500

11. **Total status of budgetary resources**4,000

**RELATIONSHIP OF OBLIGATIONS TO OUTLAYS**

12. Obligated balance, net, beginning of period (4801E-B)1,000

15. Outlays:

A. Disbursements (4902E)1,500

**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)4,000

2395 Total new obligations(500)

2440 Unobligated balance available, end of year (4700E)3,500

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

4000 Appropriation (4112E+4119E)5,000

4048 Portion applied to liquidate deficiency (4112E)(1,000)

4300 Appropriation (total discretionary) 4,000

##### CHANGE IN OBLIGATED BALANCE

7240 Obligated balance, start of year (4801E)1,000

7310 Total new obligations500

7320 Total outlays (gross)(1,500)

### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (4902E - *new*)  500

8693 Outlays from discretionary authority (4902E – *bal*)1,000

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net)4,000

9000 Outlays (net)1,500

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

� 8A1 on crosswalk

� 9A1 on crosswalk

� Obligated more than apportioned

� 14C on crosswalk

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

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

� 8A1 on crosswalk

� 9A1 on crosswalk

Page 3 of 85/23/02

*Presented by:  Melinda Pope*