GUIDE FOR BASIC ACCOUNTING AND REPORTING

ACCOUNTING FOR EARLY CONCELLATION OF THE ENTIRE 

APPROPRIATION

PREPARED BY:

UNITED STATES STANDARD GENERAL LEDGER DIVISION

ACCOUNTING SYSTEMS AND STANDARDS DIRECTORATE

GOVERNMENTWIDE ACCOUNTING

BUREAU OF THE FISCAL SERVICE

U.S. DEPARTMENT OF TREASURY
Accounting for Early Cancellation of the Entire Appropriation

2 of 8 Revised from May 11, 2007 

May 2011

Version 

Number

Date Description of Change Effective

USSGL 

TFM

1.0 5/11/2007 Original S2-06-02

2.0 01/30/2010 Updated account numbers, account titles, 

crosswalks, and formatting.

S2-10-01
Accounting for Early Cancellation of the Entire Appropriation

3 of 8 Revised from May 11, 2007 

May 2011

Background

This scenario illustrates an early cancellation in a no-year Treasury Appropriation Fund 

Symbol (TAFS). 

Per Office of Management and Budget (OMB) Circular No. A-11, Section 130.14, dated July

2010):

“Legitimately incurred obligations that have not been disbursed (i.e. paid) at the time a TAFS 

is canceled cannot be paid from the canceled obligated or unobligated balances of the 

canceled TAFS.

After a TAFS is canceled, any obligations or adjustments to obligations that would have been 

properly chargeable to that TAFS may be disbursed from an unexpired TAFS that is 

available for obligation for the same purpose as the closed TAFS....”

Per the Treasury Financial Manual (TFM) Volume I, Yearend Closing Bulletin

(http://tfm.fiscal.treasury.gov/v1/bull.html):

“If an agency must liquidate obligations after an account has been closed, it may use up to 1 

percent of its current appropriation by reporting a SOT [Statement of Transactions] for the 

current TAFS using the 46 subclass. OMB provides guidance in OMB Circular No. A-11, 

Section 130.14, on liquidating obligations after an account has been closed. Agencies deposit 

collections received after an account has been closed in miscellaneous receipts account 3200, 

“Collections of Receivables From Canceled Accounts.”

This scenario uses USSGL TFM S2 10-02 (Part 2, Fiscal 2011 Reporting).

Listing of USSGL Accounts Used in This Scenario

Account Number Account Name

Budgetary

4201 Total Actual Resources – Collected

4351 Partial or Early Cancellation of Authority With a U.S. Treasury Warrant 

4450 Unapportioned Authority

Proprietary

1010 Fund Balance With Treasury

3100 Unexpended Appropriations – Cumulative

3106 Unexpended Appropriations – Adjustments

Memorandum

8101 Partial or Early Cancellation of Authority

8102 Offset for Partial or Early Cancellation of Authority

Comment [d1]: Suggest deleting this since 

these accounts and changes are currently in the 

USSGL TFM and are listed below in the 

Accounts Used in This Scenario section.
Accounting for Early Cancellation of the Entire Appropriation

4 of 8 Revised from May 11, 2007 

May 2011

Account Definitions

Account Title: Partial or Early Cancellation of Authority With a U.S. Treasury 

Warrant

Account Number: 4351

Normal Balance: Credit

Definition: The amount of annual, multi-year, or no-year appropriation authority that is 

canceled early by administrative action in a definite account, or by early cancellation of the 

entire appropriation. The cancellation will be accomplished with a U.S. Treasury Warrant

Account Title: Partial Authority Cancellation

Proposed Title: Partial or Early Cancellation of Authority

Account Number: 8101

Normal Balance: Credit

Definition: The amount of authority canceled and recorded in USSGL account 4351 “Partial 

or Early Cancellation of Authority With a U.S. Treasury Warrant.” This account will be 

maintained as a tracking mechanism for the Antideficiency Act. Antideficiency Act 

provisions continue to apply to canceled Treasury Appropriation Fund Symbols (TAFS) and 

to partially canceled authority in TAFS that are otherwise still valid, such as partial 

cancellation of authority in a no-year TAFS. The balance in USSGL account 4351, “Partial 

or Early Cancellation of Authority With a U.S. Treasury Warrant” is reclassified into this 

account in a closing entry.

Account Title: Offset for Partial Authority Cancellation

Proposed Title: Offset for Partial or Early Cancellation of Authority

Account Number: 8102

Normal Balance: Debit

Definition: To offset activity recorded in USSGL account 8101, Partial or Early Cancellation 

of Authority,” This account will be maintained as a tracking mechanism for the 

Antideficiency Act. Antideficiency Act provisions continue to apply to canceled Treasury 

Appropriation Fund Symbols (TAFS) and to partially canceled authority in TAFS that are 

otherwise still valid, such as partial cancellation of authority in a no-year TAFS.
Accounting for Early Cancellation of the Entire Appropriation

5 of 8 Revised from May 11, 2007 

May 2011

Beginning Trial Balance – Year X

USSGL Debit Credit

Budgetary

4201 Total Actual Resources – Collected 1,000

4450 Unapportioned Authority 0 1,000

Total 1,000 1,000

Proprietary

1010 Fund Balance With Treasury 1,000

3100 Unexpended Appropriations – Cumulative 0 1,000

Total 1,000 1,000

Illustrative Transactions

There is no activity during the year and the entire fund is canceled early by administrative 

action. 

1. To record the early cancellation. Note: The entire fund is canceled early, and the agency 

will request Treasury to process a warrant to return the fund balance. USSGL account 4351, 

“Partial or Early Cancellation of Authority With a U.S. Treasury Warrant,” will not 

crosswalk to the USSGL 2108: Yearend Closing Statement. 

USSGL Debit Credit TC

Budgetary

4450 Unapportioned Authority

4351 Partial or Early Cancellation of Authority 

With a U.S. Treasury Warrant

Proprietary

3106 Unexpended Appropriations – Adjustments

1010 Fund Balance With Treasury

1,000

1,000

1,000

1,000

F122

Preclosing Adjusted Trial Balance – Year X

Program A

USSGL Debit Credit

Budgetary

4201 Total Actual Resources Collected 1,000

4351 Partial or Early Cancellation of Authority

 With a U.S. Treasury Warrant 0 1,000

Total 1,000 1,000

Proprietary

1010 Fund Balance With Treasury 0

3100 Unexpended Appropriations – Cumulative 0 1,000

3106 Unexpended Appropriations – Adjustments 1,000

Total 1,000 1,000
Accounting for Early Cancellation of the Entire Appropriation

6 of 8 Revised from May 11, 2007 

May 2011

Closing Entries – Year X

C1. To record closing of fiscal-year activity to unexpended appropriations.

USSGL

Program A

Debit Credit TC

Budgetary

None

Proprietary

3100 Unexpended Appropriations – Cumulative

 3106 Unexpended Appropriations – Adjustments 

1,000

1,000

F342

C2. To reclassify canceled authority to memorandum accounts. Note: Only a TAFS with a 

balance in USSGL account 4351 should use USSGL accounts 8101 and 8102.

USSGL Debit Credit TC

Budgetary

4351 Partial or Early Cancellation of Authority

With a U.S. Treasury Warrant

 4201 Total Actual Resources – Collected 

Proprietary

None

Memorandum

8102 Offset for Partial or Early Cancellation of Authority

 8101 Partial or Early Cancellation of Authority 

1,000

1,000

1,000

1,000

F390

F301

Postclosing Trial Balance 

USSGL Debit Credit

Budgetary

None

Proprietary

None

Memorandum 

8101 Partial or Early Cancellation of Authority 1,000

8102 Offset for Partial or Early Cancellation of 

Authority 1,000 0

Total 1,000 1,000
Accounting for Early Cancellation of the Entire Appropriation

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May 2011

External Reports

SF 133: Report on Budget Execution and Budgetary Resources and 

Budget Program and Financing (P&F) Schedule Prior-Year Actual Column – Year X

BUDGETARY RESOURCES SF 133 P&F

Unobligated balance:

1000 Unobligated Balance Brought Forward, 

 October 1 (+or-) (4201B)

1,000 1,000

Adjustments to unobligated balance:

1029 Other balances withdrawn (-) (4351E) (1,000) (1,000)

1910 Total budgetary resources 0 N/A

1930 Total budgetary resources available N/A 0

STATUS OF BUDGETARY RESOURCES

2500 Total budgetary resources 0 N/A

CHANGE IN OBLIGATED BALANCES 0 0

BUDGET AUTHORITY AND OUTLAYS, NET 0 0

USSGL 2108: Yearend Closing Statement - Year X

*This amount has been reduced by the amount of the canceled unobligated balances that were processed via 

Treasury Warrant.

Statement of Budgetary Resources

Balance Sheet – Year X

Net position:

31. Unexpended Appropriations – Other

 Funds (3100B, 3106E) 0

35. Total Liabilities and Net Position 0

Column 2. Preclosing Unexpended Balance –

 Treasury Supplied 0*

BUDGETARY RESOURCES

1. Unobligated balance; start of year 

 (4201B) 1,000

6. Permanently not available (4351E) (1,000)

7. Total budgetary resources 0

STATUS OF BUDGETARY RESOURCES

11. Total status of budgetary resources 0

CHANGE IN OBLIGATED BALANCES 0

NET OUTLAYS 0
Accounting for Early Cancellation of the Entire Appropriation

8 of 8 Revised from May 11, 2007 

May 2011

Statement of Net Cost – Year X

No amounts to report

Statement of Changes in Net Position – Year X

Earmarked 

Funds

All Other 

Funds

Unexpended Appropriations:

18. Beginning Balances (3100B) 1,000

20. Beginning Balances, as Adjusted 1,000

Budgetary Financing Sources:

23. Other Adjustments (Rescissions, 

 etc.) (3106E) (1,000)

25. Total Budgetary Financing Sources 

 (21..24) (1,000)

26. Total Unexpended Appropriations

 (20+25) 0

27. Net Position (17+26) 0