REFUNDS OF PRIOR-YEAR SPENDING AUTHORITY FROM OFFSETTING COLLECTIONS (OTHER THAN ADVANCES) REFUNDED IN THE CURRENT YEAR FROM UNEXPIRED TAFS AS OBLIGATIONS AND OUTLAYS

Effective Fiscal 2022

****

**REFUNDS OF PRIOR-YEAR SPENDING AUTHORITY FROM OFFSETTING COLLECTIONS (OTHER THAN ADVANCES) REFUNDED IN THE CURRENT YEAR FROM UNEXPIRED TAFS AS OBLIGATIONS AND OUTLAYS**

**EFFECTIVE FISCAL YEAR 2022**

**PREPARED BY:**

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

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

## **Procedure Version Log**

All modifications to this document will be tracked to maintain version history. Each modification will require an entry into the log, including the version, date of the modification, author, reviewer, and description of the changes. All updates to procedures will be subject to a review and approval process. Updates that do not change the actual process will be considered minor. Minor updates will be reflected with a new version dot number (i.e., 1.1). Updates to procedures that alter the current process will be considered major. Major revisions/changes will require a review and will be reflected with a new primary number (i.e., 2.0).

**NOTE:**This scenario follows USSGL TFM Bulletin No. 2022-10 (February 2022) and Part 2 2022 crosswalks.

REFUNDS OF PRIOR-YEAR SPENDING AUTHORITY FROM OFFSETTING COLLECTION (OTHER THAN ADVANCES) REFUNDED IN THE CURRENT YEAR FROM UNEXPIRED TAFS AS OBLIGATIONS AND OUTLAYS

Effective Fiscal 2022

**Background:**

Office of Management and Budget (OMB) Circular No. A-11 states “If you return a cash advance or other offsetting collection or special or trust fund receipts received in a prior fiscal year, you must record an obligation and an outlay in the current fiscal year.”[footnoteRef:1] [1:  OMB Circular No. A-11, Section 20.10, page 38 (August 2021)] 

In order to effectively illustrate this OMB requirement, three USSGL scenarios were developed:

· “Refunds of Prior-Year Advances Refunded in the Current Year From *Unexpired*TAFS As Obligations and Outlays” 

· **“Refunds of Prior-Year Spending Authority From Offsetting Collections (Other Than Advances) Refunded in the Current Year From *Unexpired*TAFS As Obligations and Outlays”**

· “Refunds of Prior-Year Advances and other Spending Authority From Offsetting Collections Refunded in the Current Year From *Expired*TAFS As Obligations and Outlays” 

   This scenario addresses the second bullet above. 

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

*** Revised USSGL Account effective FY 2022**

**** New USSGL Account effective FY 2022**

**Scenario Assumptions:**

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

· This is a no-year TAFS or a multi-year TAFS where the period of availability is **not** about to expire.

· This example does not address earmarked or fiduciary funds.

· This assumes that you have an enacted law permitting agency to credit offsetting collections to your expenditure account.  This activity is recorded as direct, not reimbursable.  

· Agency #1 and #2 are federal agencies.  Agency #1 is either a general fund, revolving non-trust fund or special fund expenditure fund.  Agency #2 is a trust fund.

· Agency #3 is a non-federal agency.

**Year 1 Preclosing Entry:**

**Preclosing Adjusted Trial Balance Year 1:**

**Year 1 Closing Entries:**

**Post-Closing Trial Balance Year 1**

**Financial Statements:**

**Reclassified Financial Statements:**

**Note: Effective FY 2021, the Reclassified Balance Sheet is the same as the Balance Sheet. Therefore, the Reclassified Balance Sheet is not presented in this scenario.**

**Year 2:**

**Pre-Closing Adjusted Trial Balance Year 2**

**Year 2 Closing Entries:**

**Post-Closing Trial Balance Year 2**

**Year 2 Financial Statements:**

**Reclassified Financial Statements:**

**Note: Effective FY 2021, the Reclassified Balance Sheet is the same as the Balance Sheet. Therefore, the Reclassified Balance Sheet is not presented in this scenario.**

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