****

**APPROPRIATED TRUST NON-REVOLVING OR SPECIAL FUND RECEIPTS DERIVED FROM “UNAVAILABLE” AND “AVAILABLE” TRUST OR SPECIAL FUND RECEIPT ACCOUNTS**

**PREPARED BY:**

**GENERAL LEDGER AND ADVISORY BRANCH**

**BUREAU OF THE FISCAL SERVICE**

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

**NOTE:**This scenario follows USSGL TFM Bulletin No 2018-08 (August 2018) and Part 2 Fiscal 2019 crosswalks.****

**APPROPRIATED TRUST NON-REVOLVING OR SPECIAL FUND RECEIPTS “UNAVAILABLE” AND “AVAILABLE”**

**Effective Fiscal 2019**

Page 3 of 37                                                                                 November 2018

**Background:**

As discussed and defined in the Analytical Perspectives of the President’s Budget, agency activities are grouped into two major categories – Federal funds and trust funds.  Federal funds are comprised of several fund types, including special funds.  Special funds “consist of receipt accounts for Federal fund receipts that laws have designated for specific purposes and the associated appropriation accounts for the expenditure of those receipts.”  Trust funds, which are outside of the Federal funds category, account for the “receipt and expenditure of monies by the Government for carrying out specific purposes and programs in accordance with the terms of a statute that designates the fund as a trust fund ... or for carrying out the stipulations of a trust where the Government itself is the beneficiary ...”[footnoteRef:1] [1:  Analytical Perspectives, Budget of the United States Government, Fiscal Year 2018, Budget Concepts, Page 76 -77] 

Furthermore, as defined in the Treasury Financial Manual (TFM), and as outlined below, each trust non-revolving or special fund receipt account is designated as either “available” or “unavailable” for expenditure.  Amounts deposited to **available** receipt accounts are available for expenditure without further action, and are therefore moved immediately to the corresponding expenditure account.  This immediate action is sometimes referred to as an “invisible warrant.”  Once the amounts are in the expenditure account, they may then be invested if the legislation prescribes.  Note however, that in some instances, use is restricted to investment only or is precluded by a limitation or benefit formula.[footnoteRef:2]  USSGL account 411400, “Appropriated Receipts Derived from Available Trust or Special Fund Receipts,” is used to record these types of transactions.  In contrast, amounts credited to **unavailable** receipt accounts retain the balances until legislation is enacted which allows an agency to obligate and expend those balances.  The balances will then be appropriated, via Treasury warrant, from the unavailable receipt account to the corresponding expenditure account.  USSGL account 411300, “Appropriated Receipts Derived from Unavailable Trust or Special Fund Receipts,” is used to record these types of transactions. [2:  I TFM Part 2, Chapter 1500, Section 1525.20 (July 3, 2017)] 

The following are partial excerpts of non-revolving receipt accounts from I TFM Part 2, Chapter 1500 (dated July 3, 2017), which define and describe trust and special fund receipt accounts, and their designation as “available” or “unavailable.”

**1520.15 – Special Fund Receipt Accounts**

[Fiscal Service credits special fund receipt accounts with receipts from specific sources collected by law for specific purposes.  At the point of collection, these receipts either are available immediately or unavailable for expenditures depending upon statutory requirements...]

**1520.20 – Trust Fund Receipt Accounts**

[Fiscal Service credits trust fund receipt accounts with receipts generated by the terms of a trust agreement or statute that designates a fund as a trust fund.  At the point of collection, these receipts either are available immediately or unavailable for expenditure depending upon statutory requirements, the terms of the trust agreement, and/or other provisions of law ...]

**1525.20 – Available Receipts**

[Available receipts are special or trust fund receipts that, pursuant to law, are available as appropriations to a single agency for expenditure without further congressional action.  In some fund accounts, use is restricted to investment only or is precluded by a limitation or benefit formula.  An available receipt account carries the same symbolization as its corresponding expenditure account except that an “X” is inserted in the expenditure account to indicate the period of availability of such funds for obligation.  However, in special circumstances involving dedicated collections for current year obligations and expenditures, these funds are placed in an unavailable receipt account until Fiscal Service prepares a warrant to move the funds to a current fiscal year expenditure account...]

**1525.30 – Unavailable Receipts[footnoteRef:3]** [3:  This scenario involves trust non-revolving and special fund receipt accounts.  Unavailable receipts could be general fund, special fund or trust non-revolving fund receipts.  In addition to the classification as unavailable, trust non-revolving fund and special fund receipts are also classified as unappropriated.] 

[Unavailable receipts are receipts that, at the time of collection, are not appropriated and not immediately available for expenditure.  This is because:

· Congress limited the amount available for expenditure; OR

· Agencies cleared amounts credited to receipt accounts, in whole or in part, before taking appropriation warrant action.

Unappropriated receipts held in special and trust fund receipt accounts are unavailable for expenditure until appropriated pursuant to specific legislative provisions.  Unappropriated receipts sometimes are invested.  In these circumstances, Treasury designates the fund as “available only for investment.”]

**1520.50 – Special Fund Expenditure Accounts**

Fiscal Service establishes special fund expenditure accounts to record amounts appropriated from special fund receipts.  Agencies may expend these receipts for special programs according to specific provisions of law.

**1520.55 – Trust Fund Expenditure Accounts[footnoteRef:4]** [4:  This is referring to a trust non-revolving expenditure account.] 

Fiscal Service establishes trust fund expenditure accounts to record amounts appropriated from trust fund receipts.  Agencies may expend these receipts for specific purposes or programs according to the terms of a trust agreement or statute.

**Listing of USSGL Account Used in This Scenario:**

Attachment A

Appropriated Trust Non-Revolving or Special Fund Receipts

Derived from “Unavailable” Trust or Special Fund Receipt Accounts

**Attachment A: Appropriated Trust Non-Revolving or Special Fund Receipts Derived from “Unavailable” Trust or Special Fund Receipt Accounts.**

**Scenario Assumptions:**

· The GTAS BEA Category Indicator Attribute for illustration purposes is mandatory.

· This scenario addresses a special fund expenditure account.  The same logic applies to a trust non-revolving expenditure account.

· This is a no year TAS.

**Beginning Trial Balance:**

****

**Preclosing Adjusted Trial Balance[footnoteRef:8]:** [8:  NOTE: Separate trial balances for the receipt and expenditure accounts are submitted to the Department of the Treasury, via GTAS.] 

**Closing Entries:**

**Post-Closing Trial Balance:**

**Financial Statements:**

**Reclassified Financial Statements:**

Attachment B

Appropriated Trust Non-Revolving or Special Fund Receipts

Derived from “Available” Trust or Special Fund Receipt Accounts

**Attachment B: Appropriated Trust Non-Revolving or Special Fund Receipts Derived from “Available” Trust or Special Fund Receipt Accounts.**

**Scenario Assumptions:**

· The GTAS BEA Category Indicator Attribute for illustration purposes is mandatory.

· The fund is a trust non-revolving expenditure account.

· This is a no year TAS.

**Beginning Trial Balance:**

*  NOTE: “Available” trust non-revolving or special fund receipt accounts never carry a beginning balance.  Receipts that are deposited/credited during the year to available trust non-revolving or special fund receipt accounts are automatically appropriated (a.k.a. “invisible warrant”) to the corresponding trust non-revolving or special fund expenditure account.  There is no ‘document’ processed that moves the fund balance.

Therefore, all accounting entries that follow are illustrated in the trust non-revolving fund expenditure account.  Funds with investment authority are immediately available for investment.  Budget authority is either available or unavailable for obligation   pursuant to the enacted public law.

Furthermore, only one adjusted trial balance, that of the expenditure account Treasury Appropriation Fund Symbols (TAFS), is submitted to the Department of the Treasury, via the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS).  This is based on the amount in Central Accounting Reporting Systems (CARS) reflected in the GWA Expenditure Account TAS.

**Preclosing Adjusted Trial Balance:**

**Closing Entries:**

**Post-Closing Trial Balance:**

**Financial Statements:**

**Reclassified Financial Statements:**

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