**Trust or Special Fund Refunds and Recoveries of Prior-Year Obligations**

**Effective Fiscal 2003 (Available for Early Implementation 4th Quarter 2002)**

**Background**

The accounting for **refunds** collected by Federal trust funds or special funds may be different than that of refunds collected by general funds and revolving funds.  When a general or revolving fund collects a refund of funds that were obligated in a previous year, and the appropriation against which the obligation was incurred remains available for new obligations, the refund is to be recorded as an offsetting collection.  Any remaining unobligated balances will carry forward to the next year as unobligated balances brought forward, available for obligation.  When a trust or special fund collects a refund of funds that were obligated in a previous year, the refund is also to be recorded as an offsetting collection.  However, the collection **may or may not** be available for obligation.  In most cases, the collections are available for obligation.

If the collection is available for obligation, any remaining unobligated balances will carry forward to the next year as unobligated balances brought forward, available for obligation.  If the collection is **unavailable** for obligation, however, the authority is to be temporarily precluded from obligation.  At year-end, the amounts are then reclassified as either 1) unavailable for obligation, or 2) temporarily precluded from obligation, depending upon the nature of the trust or special fund.  In either case, the unobligated balances remain unavailable for obligation.  The funds collected will (generally) remain within the trust or special fund, regardless of whether the collection is available or unavailable for obligation.

Furthermore, the same concept applies to **recoveries** of prior-year obligations.  Recoveries of amounts that were obligated in a previous year are to be reported the same way regardless of fund type (i.e. general fund, trust fund, special fund).  If the recovery is in a trust or special fund, however, it **may or may not** be available for obligation.

In most cases, recoveries are available for obligation, and would be treated the same as general and revolving funds.  If the recovery is **unavailable** for obligation, however, the authority is to be temporarily precluded from obligation.  At year-end, the amounts are to be reclassified as either 1) unavailable for obligation, or 2) temporarily precluded from obligation, depending upon the nature of the trust or special fund.  In either case, the unobligated balances remain unavailable for obligation.  

In order to illustrate this concept, the scenario is divided into two sections.  EACH SECTION IS INDEPENDENT OF THE OTHER.

**New USSGL Account (Refer to SECTION II)**

**Account Title**:Special and Trust Fund Refunds and Recoveries Temporarily Precluded from Obligation

**Account Number**:4399

**Normal Balance**:Credit

**Definition**:  The amount of authority in a trust or special Treasury Appropriation Fund Symbol (TAFS) that is temporarily precluded from obligation as of a result of a refund collected or recovery of a prior-year obligation that is unavailable for obligation.  Use only with OMB approval.  This account closes at yearend.

**Justification**:  A USSGL account was needed that crosswalks to SF 133: Report on Budget Execution and Budgetary Resources, line 5: Temporarily Not Available Pursuant to Public Law and P&F, line 2398: Unobligated Balance Expiring or Withdrawn.  Fund Balance is to remain in the trust or special fund.

# Impact on USSGL Crosswalks

**SECTION I: Year 1**

###### Special Fund 14X5123 - Available for Investment and Obligation

**SECTION I: Year 1**

### Special Fund 14X5123 - Available for Investment and Obligation

**Budgetary Closing Entries, Trial Balances**

**Proprietary Closing Entries, Trial Balances**

**SECTION I: Year 1**

### Special Fund 14X5123 - Available for Investment and Obligation

**SECTION I: Year 1**

### Special Fund 14X5123 - Available for Investment and Obligation

**SECTION I: Year 1**

### Special Fund 14X5123 - Available for Investment and Obligation

**OMB Form and Content Statements**

**SECTION I: Year 1**

### Special Fund 14X5123 - Available for Investment and Obligation

**OMB Form and Content Statements (continued)**

**SECTION I: Year 2**

### Special Fund 14X5123 - Available for Investment and Obligation

**SECTION I: Year 2**

###### Special Fund 14X5123 - Available for Investment and Obligation

**Budgetary Closing Entries, Trial Balances**

**Proprietary Closing Entries, Trial Balances**

**SECTION I: Year 2**

###### Special Fund 14X5123 - Available for Investment and Obligation

**SECTION I: Year 2**

**Special Fund 14X5123 - Available for Investment and Obligation**

**SECTION I: Year 2**

### Special Fund 14X5123 - Available for Investment and Obligation

**OMB Form and Content Statements**

**SECTION I: Year 2**

### Special Fund 14X5123 - Available for Investment and Obligation

**OMB Form and Content Statements (continued)**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**Budgetary Closing Entries, Trial Balances**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**Proprietary Closing Entries, Trial Balances**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**OMB Form and Content Statements**

**SECTION II: Year A**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**OMB Form and Content Statements (continued)**

**SECTION II: Year B**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**SECTION II: Year B**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**Budgetary Closing Entries, Trial Balances**

**Proprietary Closing Entries, Trial Balances**

**SECTION II: Year B**

###### Special Fund 14X5321 - Available for Investment and Unavailable for Obligation

**SECTION II: Year B**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**SECTION II: Year B**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**OMB Form and Content Statements**

**SECTION II: Year B**

**Special Fund 14X5321 - Available for Investment and Unavailable for Obligation**

**OMB Form and Content Statements**

� OMB Circular No. A-11 (2002), Section 20-35

� It is extremely rare that both USSGL 4394 and 4397 will be recorded within the same TAFS.  It is shown in this scenario for illustrative purposes ONLY.  Note that use of USSGL 4399 requires prior OMB approval.

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Revised May 2003 to include "recoveries” ~~September 2002~~