**Accounting for Early Cancellation of the Entire Appropriation**

**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**

**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 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.

**Beginning Trial Balance – Year X**

**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. 

**Preclosing Adjusted Trial Balance – Year X**

**Closing Entries – Year X**

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

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.

**Postclosing Trial Balance**

**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**

**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**

**Statement of Net Cost – Year X**

**Statement of Changes in Net Position – Year X**

�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.

2 of 8 Revised from May 11, 2007                                  May 2011