**United States Government Standard General LedgerPosition/Policy Statement**

PRESENTATION TO THE

STANDARD GENERAL LEDGER BOARD

SGL IMPACT

FASAB STANDARD

ACCOUNTING FOR REVENUE

AND

OTHER FINANCING SOURCES

FEBRUARY 13,1997

IRC REVENUE SUBCOMMITTEE

Tony Morales (Financial Management Service)

Gwen Ferrell (Financial Management Service)

Judy Yuran (Financial Management Service)

Steve Creeger (Financial Management Service)

Dave Mielke (National Aeronautics and Space Admin)

Eileen Parlow (Department of Education)

Veronica Kitchen (Housing and Urban Development)

Damon Sutton (Health and Human Services)

Sheila Zukor (Department of the Treasury)

Bob Reiley (U.S. Customs Service)

Greg James (Department of Labor) 

Mark Brey (Internal Revenue Service)

Presented by:

Financial Management Service

Tony Morales

Gwen Ferrell

Phone no. (202) 874-3832

Fax no. (202) 874-7232

TABLE OF CONTENTS

**SECTION I**

**Detailed Description of Changes**

Summary.4

Proposed New SGL Accounts (Subsection I)5

Proposed Deletion of Current SGL Accounts (II)7

Proposed Attributes (III)8

Proposed Changes to Existing SGL Accounts (IV)11

**SECTION II**

Revenue Case Study12

Statement of Custodial Activity29

Statement of Net Cost31

Statement of Changes in Net Position32

Balance Sheet33

Statement of Budgetary Resources34

Statement of Financing35

**SECTION III**

Proposed New Accounts and Definitions37

Current Account Titles and/or

Definitions to be Changed42

**SECTION I**

**SUMMARY**

**Proposed New SGL Accounts: (Subsection I)**

2980Custodial Liability

5109Contra Revenue for Goods Sold

5209Contra Revenue for Services Provided

5310Interest Revenue

5319Contra Revenue for Interest

5320Penalties and Fines Revenue

5329Contra Revenue for Penalties and Fines

5409Contra Revenue for Benefit Program Revenue 

5509Contra Revenue for Insurance and Guarantee Premium Revenue

5609Contra Revenue for Donations

5720Financing Sources Transferred-In without Reimbursement

5730Financing Sources Transferred-Out without Reimbursement

5780Imputed Financing Sources

5809Contra Revenue for Taxes

5890Tax Revenue Refunds

5909Contra Revenue for Other Revenue

**Proposed Deletion of Current SGL Accounts: (Subsection II)**

3200Invested Capital (summary account)

3210Capital Investments

3220Transfers-in from Others without Reimbursement

3230Transfers-out to Others without Reimbursement

3300Results of Operations

3320Net Results of Operations

3400Donations and Other Items

3500Deferred Liquidating Cash Authority

3501Future Funding Requirements

5300Interest and Penalties Revenue (replaced by proposed

accounts 5310 and 5320)

**Proposed Changes in the Title and/or Definition of**

**Current SGL Accounts: (Subsection IV)**

3100Unexpended Appropriations

5700Appropriations Used

5990Collections for Others

**I.Proposed New SGL Accounts:**

a.A Contra revenue account is used to report a reduction in revenue when realization is not probable (less likely than not). It includes returns allowances and price redeterminations but not bad debt expense which is only associated with  exchange revenue. (&41 and &126-131).  A provision to increase or decrease the allowance will result in an adjustment of nonexchange revenue, rather than a bad debt expense (&56).

**5109Contra Revenue for Goods Sold**

**5209Contra Revenue for Services Provided**

**5319Contra Revenue for Interest**

**5329Contra Revenue for Penalties and Fines**

**5409Contra Revenue for Benefit Program Revenue**

**5509Contra Revenue for Insurance and Guarantee Premium Revenue**

**5609Contra Revenue for Donations**

**5809Contra Revenue for Taxes**

**5909Contra Revenue for Other Revenue**

b.The collecting entity accounts for the disposition of revenue as part of its custodial activity.  The receiving entity recognizes the revenue. (&353)

**2980Custodial Liability**

c.Account 5300 will be replaced by two separate accounts.  Interest Revenue, which is exchange and nonexchange and Penalties Revenue, which is nonexchange by definition. (&260,&272,&306,&307)

**5310Interest Revenue**

**5320Penalties and Fines Revenue**

**I.Proposed New SGL Accounts (continued):**

d.The receiving entity shall recognize a transfer-in as an additional financing source in the results of operation.  Conversely, the transferring agency shall recognize a decrease in its results of operations. (&220,&221,&74)

**5720Financing Sources Transferred-In Without Reimbursement**

**5730Financing Sources Transferred-Out Without Reimbursement**

**Note:**Current accounts 3220 "Transfers-in from Others without Reimbursement" and 3230 "Transfers-out to Others without Reimbursement" are replaced.

e.To the extent that other standards require that costs not on the entity's books be imputed to the entity, the standards for other financing sources require recognition of the corresponding imputed financing.  An imputed financing source should be recognized equal to the imputed cost.  This offsets any effect of imputed cost on net results of operations for the period. (&8,&73)

**5780Imputed Financing Sources**

f.Cash refunds should be based on repayments of taxes and duties during the period. (&51 Paid) Amounts payable for refunds should be recognized when measurable and legally payable under established processes of the collecting entities. (&57 Unpaid)

**5890Tax Revenue Refunds**

**II.Proposed Deletion of current SGL accounts:**

a.Under the old federal accounting standards, the focus was on matching all of an entity's financing with incurred expenses to report "net results of operations" which generally was not useful in evaluating performance.  The new focus is on costs --both gross and net-- which are useful in evaluating performance on many levels (&17).  Reporting entities will no longer be required to recognize appropriations used nor accrue appropriations before they become available, thus eliminating invested capital and future financing sources in equity (&217,&218).  Transfers-in and transfers-out are necessary to show transfers of revenue (&220).  Donations are recognized as revenue (&222).  Costs that are not yet covered by budgetary resources are permanent "differences" until they are financed (warrant rec'd) (&223).

**3200**Invested Capital - Summary Account

**3210**Capital Investments

**3220**Transfers-in from Others without Reimbursement

**3230**Transfers-out to Others without Reimbursement

**3300**Results of Operations - Summary Account

**3320**Net Results of Operations

**3400**Donations and Other Items

**3500**Deferred Liquidating Cash Authority

**3501**Future Funding Requirements

The equity accounts below will be eliminated by reclassifying balances in deleted accounts to 3310 Cumulative Results of Operation.  For example:

**3210**Capital Investments

**3220** Transfers-in from Oth w/o Reimb

**3320** Net Results of Operations (Dr or Cr)

**3400** Donations and Other Items

**3501** Future Funding Requirements

**3230**Transfers-Out to Oth w/o Reimb

**3310**Cum Results Of Oper (Dr. or Cr.)

**II.Proposed Deletion of current SGL accounts (continued):**

b.This account will be replaced by two separate accounts. To keep the numbering consistent in the SGL ("00" normally a summary account), this number will be deleted and replaced by 5310 "Interest Revenue" and 5320 "Penalties and Fines Revenue".

**5300Interest and Penalties Revenue**

**DETAILED DESCRIPTION OF CHANGES**

**III.Proposed Attributes:**

a.SGL accounts 5900 "Other Revenue" and 5909 "Contra Revenue for Other Revenue" need to be split with attributes for exchange and nonexchange.(&63)

5900Other Revenue - **Exchange/Nonexchange**

5909Contra Revenue for Other Revenue -**Exchange/Nonexchange**

The following accounts are **Exchange** by definition:

5100Revenue from Goods Sold

5109Contra Revenue for Goods Sold

5200Revenue from Services Provided

5209Contra Revenue for Services Provided

5400Benefit Program Revenue

5409Contra Revenue for Bene Prog Revenue

5500Insurance and Guarantee Premium Revenue

5509Contra Revenue for Insur/Guar Prem Revenue

**III.Proposed Attributes (continued):**

The following accounts are **Nonexchange** by definition:

5320Penalties and Fines Revenue

5329Contra Revenue for Penalties and Fines

5600Donated Revenue

5609Contra Revenue for Donated Revenue

5720Financing Sources Transferred In Without Reimbursement

5730Financing Sources Transferred Out Without Reimbursement

5800Tax Revenue

5809Contra Revenue for Tax Revenue

5890Tax Revenue Refunded

b.Account 5310 needs to be split into exchange and nonexchange.  Interest is typically exchange except when interest on treasury securities is collected by non-revolving trust fund and special funds. (&260,&272,&306,&307)

5310Interest Revenue - **Exchange/Nonexchange**

5319Contra Revenue for Interest Revenue -**Exchange/Nonexchange**

**III.Proposed Attributes (continued):**

c.Revenue shall be measured on the basis of the revenue collected or earned less refunds or accrual adjustments. (&49-52)  The following accounts need to be split between collected and receivable amounts and between amounts payable and those that are paid.

5100Revenue from Goods Sold - **Receivable/Collected**

5200Revenue from Services Provided - **Rec/Coll**

5300Interest Revenue - **Rec/Coll**

5310Penalties and Fines Revenue - **Rec/Coll**

5500Insur and Guarantee Prem Revenue - **Rec/Coll**

5600Donated Revenue - **Rec/Coll**

5800Tax Revenues - **Rec/Coll**

5890Tax Revenue Refunds - **Paid/Unpaid**

5900Other Revenue - **Rec/Coll**

5990Collections for Others - **Paid/Unpaid**

Note:The proposal for attributes **"rec/coll"** was considered by the Revenue Subcommittee and the attributes were, initially, part of the presentation made to the IRC (10/31/96).  However, upon further review of the reporting requirements, which do not include the need for FMS to collect this information through FACTS, the attributes are no longer being proposed as additions to the USSGL.  For informational purposes, the attributes are still present in this proposal to highlight  that agencies which report on Custodial Activity will be required to measure their collection activities.

**IV.Proposed Changes to Existing SGL Accounts:**

a.Appropriations that have been made available for apportionment but have not been used are recognized as "unexpended appropriations" in the entity's capital. (&332)

**3100**  From:  Appropriated Capital

 To:    **Unexpended Appropriations**

b.Interest is typically exchange except when interest on treasury securities is collected by non-revolving trust fund and special funds.  Penalties are typically non-exchange and therefore must be split from the current account title and definition. (&260,&272,&306,&307)

**5300**  From:  Interest and Penalties Revenue

 To:   **5310 Interest Revenue**

**5320 Penalties and Fines Revenue**

c.Appropriations are accounted for as a financing source when used and recognized as "appropriations used" in determining net results of operations. (&7,&71,&72,&214)

**5700**  From:  Appropriated Capital Used

 To:    **Appropriations Used**

d.The title of account 5990 should not include the word revenue because this is not revenue of the collecting entity.  The word "contra" is being deleted because it is not consistent with the use of contra revenue accounts in this proposal.  By nature this is still a contra account, i.e., normal debit balance.

**5990**  From: Contra Revenue - Collected for Others

 To:   **Collections for Others**

**SECTION II**

The following case study is presented to demonstrate the use of new or revised U.S. Standard General Ledger accounts being proposed to the U.S. Standard General Ledger Board for inclusion for Fiscal Years beginning after September 30, 1997.  The case study, in no way, purports to represent the transactions of a specific agency of the U.S. Government.  The transactions contained within this case study are illustrative in nature and are not to be taken as formal guidance for any specific account type.

Furthermore, the sample reports presented after the case study are included to demonstrate, only as examples, how the new or revised accounts would be reported on Form & Content reports mandated by OMB Circular 97-01 (Form & Content), dated October 16, 1996.  We have chosen to use the formats of statements as shown in Form & Content with one exception.  On the Statement of Custodial Activity, two alternatives are presented; the second Statement of Custodial Activity is formatted in a way preferred by the U.S. Customs Service and the Internal Revenue Service.

The use of sample formats from Form & Content does not preclude an agency from using their judgement consistent with OMB guidance.  As a reminder, OMB has authority to specify the form and content of agency financial statements.  Form & Content specifically states that:

AThese formats and instructions provide a framework within which individual agencies have the flexibility to provide information useful to the Congress, agency managers, and the public.  The formats and instructions provide guidance for meeting the requirements contained in the SFFASs.@

Therefore, the use of the sample formats from OMB Form & Content is not intended to demonstrate that these formats are the only way for agencies to prepare their financial statements.

Additionally, the case study makes use of the following attributes to demonstrate the potential need for collection of data:

R = Receivable

C = Collected

U = Unpaid

P = Paid

These attributes were considered by the Revenue Subcommittee and were, initially, part of the presentation made to the Issues Resolution Committee.  However, upon further review of the reporting requirements, which do not currently include the need for FMS to collect this information through FACTS, the attributes are no longer being proposed as additions to the U.S. SGL.  However, an agency may use some other data elements to achieve that which is demonstrated by the use of attributes in this proposal.  

In spite of these facts, the attributes are still present in this proposal to highlight the fact that agencies that report on Custodial Activity will be required to measure their collection activities:

A...in a manner that enables reporting of (1) cash collections, refunds, and the Aaccrual adjustment@ necessary to determine the total revenue and (2) cash or cash equivalents transferred to each of the recipient entities and the revenue amounts to be recognized by each of them.@

Accordingly, the Subcommittee members felt that it was necessary to indicate, in some way, that some vehicle for the collection of this information be acknowledged in the proposal to facilitate reporting on the Statement of Custodial Activity.

Transactions

Collecting

Agency

(Direct Funds)

Custodial Activity

Collecting

Agency Totals

Refunds/

Drawbacks

Duties

Collected

1.The collecting agency received an appropriation and estimated reimbursements (from Federal Agencies) for the Fiscal Year which were fully apportioned and allotted. Warrant was issued.

Budgetary entry

**4119**  Other Appropriations Realized

**4210**  Anticipated Reimbursements and Other Income 

**4610**  Allotments Realized Resources

**4590**  Apportionments - Unavailable

Proprietary entry

**1010**  Fund Balance With Treasury

**3100  *Unexpended Appropriations***

3000

 500

3000

 500

3000

3000

None

None

None

None

3000

 500

3000

 500

3500

3500

2.The collecting agency estimated accruals payable for prior year tax collections.

Budgetary entry

None 

Proprietary entry

**6330**  Other Interest Expense - **(Custodial)**

**5890U Tax Revenue Refunds - Unpaid**

**2110**  Accounts Payable

None

None

  50

 500

         550

None

None

None

  50

 500

          550

3.The collecting agency receives a Permanent/Indefinite Appropriation to pay refunds.

Budgetary entry

**4119**  Other Appropriations Realized

**4610**  Allotments - Realized Resources

Proprietary entry

**1010**  Fund Balance With Treasury

**3100*Unexpended Appropriations***

None

None

 550 

         550

550

         550

None

None

 550

          550

 550

          550

4.The collecting agency pays refunds on taxes. (see transaction #2)

Budgetary entry

**4610**  Allotments - Realized Resources

**4902**  Expended Authority - Paid

Proprietary entry

**5890P****Tax Revenue Refunds - Paid**

**5890U****Tax Revenue Refunds - Unpaid**

**2110**  Accounts Payable

**1010**  Fund Balance with Treasury

       - & -

**3100*****Unexpended Appropriations***

**5700*****Appropriations Used***

None

None

 550

         550

 500

         500

 550

         550

 550

         550

None

None

 550

         550

 500

         500

 550

         550

 550

         550 

5.The collecting agency collected taxes, duties, and interest on behalf of Treasury.

Budgetary entry

None

Proprietary entries

**1010**  Fund Balance With Treasury

**5800C****Tax Revenue- Collected**

**5310C****Interest Revenue - Collected**

                 - & -

***5990U Collections for Others - Unpaid***

**2980****Custodial Liability**

None

None

None

None

None

15100

15000

  100

    - & -

15100

15100

None

15100

15000

  100

     - & -

15100

15100

6.The collecting agency placed an order for supplies, services and equipment.

Budgetary entry

**4610**  Allotments - Realized Resources

**4801**  Undelivered Orders - Unpaid

Proprietary entry

None

300

300

None

None

None

None

None

300

300

None

7.The collecting agency recorded receipt of supplies, services and equipment.

Budgetary entry

**4801**  Undelivered Orders - Unpaid

**4901**  Expended Authority - Unpaid

Proprietary entries

**1750**  Equipment

**6100**  Operating/Program Expense - Nonexchange

**2110**  Accounts Payable

                  - & -

**3100*****Unexpended Appropriations***

**5700*****Appropriations Used***

 300

  300

 125

 175

  300

 300

  300

None

None

None

None

 300

300

 125

 175

300

 300

300 

8.The collecting agency recorded payroll for the FY.

Budgetary entry

**4610**  Allotments Available

**4901**  Expended Authority - Unpaid

Proprietary entry

**6100**  Operating/Program Expense - Nonexchange

**6100**  Operating/Program Expense - Exchange

**2210**  Accrued Funded Payroll

                   - & -

**3100*****Unexpended Appropriations***

**5700*****Appropriations Used***

900

    900

800

100

  900

900

  900

None

None

None

None

 900

900

 800

 100

900

 900

900

9.The collecting agency recorded payments for payroll, supplies, etc.

Budgetary entry

**4901** Expend Authority - Unpaid

**4902**  Expend Authority - Paid

Proprietary entries

**2110**  Accounts Payable

**2210**  Accrued Funded Payroll

**1010**  Fund Balance With Treasury

1200

         1200

 300

 900

         1200 

None

None

None

None

1200

         1200

 300

 900

         1200

10.The collecting agency signs reimbursement agreement.

Budgetary entry

**4220**  Unfilled Customer Orders

**4210**  Anticipated Reimbursements

- & -

**4590**Apportionments - Unavailable

**4610**Allotments - Realized Resources

Proprietary entry

None

 250

 250

 250

 250

None

None

None

None

None

 250

 250

 250

 250

None

11.The collecting agency recorded obligations that will be reimbursed.

Budgetary entry

**4610** Allotments Available

**4801** Undelivered Orders - Unpaid

Proprietary entry

None     

 250

  250

None

None

None

None

None

 250

250

None

12.The collecting agency recorded expenses and earnings for reimbursable services.

Budgetary entries

**4801** Undelivered Orders - Unpaid

**4901**  Expended Authority - Unpaid

                   - & -

**4251**  Reimbursement & Other Income Earned - Rec

**4220** Unfilled Customer Orders

Proprietary entries

**1310**  Accounts Receivable

**5200**  Rev from Services Provided

- & -

**6100**  Operating/Program Expense - Exchange

**2110** Accounts Payable

 250

  250

 250

          250

 250

  250

 250

  250

None

None

None

None 

 250

250

 250

250

250

250

250

250

13.The collecting agency recorded user fees/penalties collected for the year which are not available for agency use.

Budgetary entry

None

Proprietary entries

**1010**  Fund Balance With Treasury

**5900C Other Rev - Nonexchange -Coll**

**5320C****Penalties and Fines Rev -Coll**

***5990U******Collections for Others - Unpaid***

**2980****Custodial Liability**

None

None

None

None

None

1200

         200

 1000

1200

 1200

None

1200

 200

        1000

1200

1200

14.The collecting agency received capital equipment transferred to them from another agency.

Budgetary entry

None

Proprietary entry

**1750**  Equipment

**5720****Financing Sources Transferred-In  Without Reimbursement**

None

 800

   800

None

None

None

None

None

 800

 800

15.The collecting agency transferred equipment to another agency.

Budgetary entry

None

Proprietary entry

**5730Financing Sources Transferred-Out Without Reimbursement**

**1750**  Equipment

None

 800

   800

None

None

None

None

None

 800

 800

16.Record depreciation expense for the year.

Budgetary entry

None

Proprietary entry

**6100**  Operating and program expense - Nonexchange

**1759**  Accumulated depreciation

None

  55

            55 

None

None

None

None

None

  55

  55

17.Tax revenue of $1000 and Other Revenue of $100 to be collected were accrued and an amount of uncollectible accounts receivable was estimated (Tax: $60 & Other Revenue: $10).  This entry could be combined.

Budgetary entry

None

Proprietary entries

**1310**Accounts Receivable

**5800R****Tax Revenues - Receivable**

**5900R****Other Revenue - Nonexch - Rec**

                   - & -

***5990U Collections for Others - Unpaid***

**2980****Custodial Liability**

To record the estimated uncollectible revenue:

Budgetary entry

None

Proprietary entries

**2980****Custodial Liability**

***5990U Collections for Others-Unpaid***

                   - & -

**5909****Contra Revenue for Other Revenue**

**5809****Contra Revenue for Taxes**

**1319**  Allowance for Loss on Accts Receivable

None

None

None

None

None

None

None

None

None

1100

 1000

  100

1100

 1100

None

  70

          70

  10

  60

   70

None

1100

1000

 100

1100

1100

None

  70

           70

  10

  60

    70

18.The collecting agency collected payments for reimbursable activity on accounts receivable. (receivable recorded in trans. #12)

Budgetary entry

**4252** Reimbursements & Other Income - Collected

**4251** Reimbursements & Other Inc. -Rec

Proprietary entry

**1010** Fund Balance With Treasury

**1310**  Accounts Receivable

250

   250

 250

   250

None

None

None

None

250

 250

 250

 250

19.$75.00 of other revenue accrued in transaction #17 was collected.

Budgetary entry

None

Proprietary entries

**1010**  Fund Balance With Treasury

**1310**  Accounts Receivable

                     - & -

**5900R****Other Revenue - (Nonexch) Rec**

**5900C****Other Rev - (Nonexch) Coll**

None

None

None

None

None

  75

          75

  75 

          75

None

  75

           75

  75 

           75

20.The collecting agency recorded year end entry to show funds transferred to Treasury for the year.

Budgetary entry

None

Proprietary entry

**2980****Custodial Liability**

**1010**  Fund Balance With Treasury

- & -

***5990P Collections for Others - Paid***

***5990U Collections for Others-Unpaid***

None

None

None

None

None

16300

16300

16300

16300

None

16300

16300

16300

16300

21.The annual unfunded leave liability was accrued.

Budgetary entry

None

Proprietary entries

**6100**  Operating/Prog expense - Exchange

**6100**  Operating/Prog expense - Nonexchange

**2220**  Annual Leave Liability

None

   5

  25

            30

None

None

None

None

None

   5

  25 

        30

22.The Collecting Agency was notified by OPM of its full cost of pension expense and was billed for part of it.  The rest was recorded as imputed cost/revenue.

Budgetary entry

**4610**  Allotments - Realized Resources

**4901**  Expended Authority - Unpaid

Proprietary entries

**6100**  Operating/Prog Expenses - Nonexchange*

**2110**  Accounts Payable

**5780  Imputed Financing Sources**

- & -

**3100*****Unexpended Appropriations***

**5700  *Appropriations Used***

100

100

120

100

 20

100

100

None

None

None

None

None

None

100

100

120

100

 20

100

100

* The expenses recorded in account 6100 - Operating/Program Expenses should be allocated between Exchange and Nonexchange.  In this transaction, they are designated ANonexchange@ so that it does not become overly complex.

Preclosing Trial Balance

Budgetary

**4119**Other Appropriations Realized

**4210**Anticipated Reimbursements & Other Income

**4252**Reimbursements & Other Inc Earned-Coll=d

**4590**Apportionments - Unavailable

**4610**Allotments - Realized Resources

**4901**Expended Authority - Unpaid

**4902**Expended Authority - Paid

Proprietary

**1010**Fund Balance With Treasury

**1310**Accounts Receivable

**1319**Allowance for Loss on Accts Rec

**1750**Equipment

**1759**Accumulated Depreciation on Equipment

**2110**Accounts Payable

**2220**Accrued Unfunded Liabilities - Unfunded

**2980****Custodial Liability**

**3100*****Unexpended Appropriations***

**5200**Revenue from Serv Provided

**5310C****Interest Revenue (Collected)**

**5320C****Penalties and Fines Revenue (Coll)**

**5700*****Appropriations Used***

**5720****Revenue Sources Transferred - In**

**5730****Revenue Sources Transferred - Out**

**5780Imputed Financing Sources**

**5800CTax Revenue (Collected)**

**5800RTax Revenue (Receivable)**

**5809Contra Revenue for Taxes**

**5890PTax Revenue Refunds (Paid)**

**5900COther Revenue (Collected)**

**5900ROther Revenue (Receivable)**

**5909Contra Revenue for Other Revenue**

***5990UCollections For Others - Unpaid***

***5990PCollections For Others - Paid***

**6100**Operating/Program Expenses - Unfunded

**6100**Operating/Program Expenses

**6330**Other Interest Expenses

3000

 250

 250

 250

1700

 350

1200

35003500

(4119=4210+4252+4590+4610+4901+

4902)

2050

   0

   0

 125

  55

 350

  30

   0

1700

 250

   0

   0

1300

 800

 800

  20

   0

   0

   0

   0

   0

   0

   0

   0

   0

  30

1500

   0

45054505

550

  0

  0

  0

  0

  0

550

550550

(4119=4902)

  0

  0

  0

  0

  0

  0

  0

  0

  0

  0

  0

  0

550

  0

  0

  0

  0

  0

  0

500

  0

  0

  0

  0

  0

  0

  0

 50

550550

0

0

0

0

0

0

0

   75

 1025

   70

    0

    0

    0

    0

 1030

    0

    0

  100

 1000

    0

    0

    0

    0

15000

 1000

   60

    0

  275

   25

   10

 1030

16300

    0

    0

    0    0

1850018500

 3550

  250

  250

  250

 1700

  350

 1750

 4050 4050

(4119=4210+4252+4590+4610+4901+

4902)

 2125

 1025

   70

  125

   55

  350

   30

 1030

 1700

  250

  100

 1000

 1850

  800

  800

   20

15000

 1000

   60

  500

  275

   25

   10

 1030

16300

   30

 1500

   50

2355523555

Closing Entries:

Budgetary entries

**4201** Total Actual Resources - Collected

**4119** Other Appropriations Realized

**4252** Reimbursements & Other Inc Earned-Collectd

       - & -

**4590** Apportionments - Unavailable

**4610** Allotments - Realized Resources

**4210** Anticipated Reimbursements & Other Income

**4650** Allotments - Expired Authority

       - & -

**4902** Expended Authority - Paid

**4201** Total Actual Resources - Collected

Proprietary entries

**5200**  Rev from Services Provided)

**5310C Interest Revenue (Collected)**

**5320C Penalties & Fines Rev (Collected**)

**5700*****Appropriations Used***

**5720****Revenue Sources Transferred In**

**5780  Imputed Financing Sources**

**5800C Tax Revenues (Collected)**

**5800R Tax Revenues (Receivable)**

**5900C Other Revenue (Collected)**

**5900R Other Revenue (Receivable)**

**5730   Revenue Sources Transferred out**

**5809   Contra Revenue for Taxes**

**5890P  Tax Revenue Refunds (Paid)**

**5909   Contra Revenue for Other Revenue**

***5990U  Collections for Others-Unpaid***

***5990P  Collections for Others-Paid***

**3310** Cumulative Results of Operations

- & -

**3310** Cumulative Results of Operations

**6100** Operating/Program Expenses - Unfunded

**6100** Operating/Program Expenses

**6330** Other Interest Expenses

3250

3000

 250

 250

1700

 250

1700

1200

1200

 250

   0

   0

1300

 800

  20

   0

   0

   0

   0

 800

   0

   0

   0

   0

   0

1570

1530

  30

1500

   0

550

550

  0

  0

  0

  0

  0

550

550

  0

  0

  0

550

  0

  0

  0

  0

  0

  0

  0

  0

500

  0

  0

  0

 50

 50

  0

  0

 50

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

  100

 1000

    0

    0

    0

15000

 1000

  275

   25

    0

   60

    0

   10

 1030

16300

    0

    0

    0

    0

    0

 3800

 3550

  250

  250

 1700

  250

 1700

 1750

 1750

  250

  100

 1000

 1850

  800

   20

15000

 1000

  275

   25

  800

   60

  500

   10

 1030

16300

 1620

 1580

   30

 1500

   50

Post Closing Trial Balance

Budgetary

**4201** Total Actual Resources - Collected

**4650** Allotments - Expired Authority

**4901** Expended Authority - Unpaid

Proprietary

**1010** Fund Balance With Treasury

**1310** Taxes Receivable

**1319** Allowance for Loss on Accounts Receivable

**1750** Equipment

**1759** Accumulated Depreciation on Equipment

**2110** Accounts Payable

**2220** Annual Leave Liability

**2980****Custodial Liability**

**3100*****Unexpended Appropriations***

**3310** Cumulative Results of Operations

2050

1700

 350

20502050

(4201=4650+4901)

2050

   0

   0

 125

  55

 350

  30

   0

1700

  40

21752175

0

0

0

00

0

0

0

0

0

0

0

0

0

0

00

   0

   0

   0

   0   0

  75

1025

  70

   0

   0

   0

   0

1030

   0

   0

11001100

2050

1700

 350

20502050

(4201=4650+4901)

2125

1025

  70

 125

  55

 350

  30

1030

1700

  40

32753275

STATEMENT OF CUSTODIAL ACTIVITY

(Form & Content sample format)

**Sources of Collections:**

Cash collections:

Interest(5310)100

Penalties and Fines (5320)1,000

Tax Revenue  [5800-5809-(1310[E-B] related to 5800)+

(1319[E-B]related to 5800)]15,000

Other Revenue [5900-5909-(1310[E-B] related to 5900)+

 (1319[E-B]related to 5900)]275

Less: Refunds and other payments    (5890 + 6330)  -550

Net Collections15,825

Accrual Adjustment [1310(E-B) related to custodial

 revenues + 1319 (E-B) related to custodial revenues]   955

Total Revenues16,780

**Disposition of Collections:**

Transferred to Others:(net of refunds & other payments)

Transferred to Treasury 

[5990 -(5890P + 6330 Custodial) - 2980 (E-B)]15,750

Increase (decrease) in amounts to be transferred

[2980(E-B)]1,030

Retained by Entity     0

Total disposition of revenue16,780

**Net Custodial Activity** - 0 -

STATEMENT OF CUSTODIAL ACTIVITY

(Treasury - IRS/Customs alternative)

**Sources of Collections:**

Cash collections:

Interest(5310)100

Penalties and Fines (5320)1,000

Tax Revenue [5800-5809-(1310[E-B] related to 5800)+

(1319[E-B] related to 5800)]15,000

Other Revenue [5900-5909-(1310[E-B] related to 5900)+

(1319[E-B] related to 5900)]275

Less: Refunds & other pmts   (5890 + 6330)  -550

Net Collections15,825

Accrual Adjustment [1310(E-B) related to custodial

revenues + 1319 (E-B) related to custodial revenues]   955

Total Revenues16,780

**Disposition of Collections:**

Transferred to Others:

Transferred to Treasury   [5990 - 2980 (E-B)]16,300

Increase (decrease) in amounts to be

 transferred [2980(E-B)]1,030

Retained by Entity     0

Total Transfers Accounted For17,330

Less: Appropriations for refunds and other

 payments   (5890 + 6330)  -550

Total disposition of revenue16,780

**Net Custodial Activity** - 0 -

STATEMENT OF NET COST

**COSTS:**

Crosscutting Programs

Program A:

Intragovernmental

Salaries and Benefits (6100)

Other Expenses (6100)

$ 105

  250

With the public

0

Total

  355

Less Earned Revenue (5200)

 -250

**Net Program Costs**

  105

Other Programs (Note XX)

Program B: (etc.)

0

**Cost not assigned to programs**(6100)

1,175

Less earned revenues not attributed to programs

0

**DEFERRED MAINTENANCE (Note X)**

**NET COST OF OPERATIONS**

$ 1,280

STATEMENT OF CHANGES IN NET POSITION

Net Cost of Operations (-)

1,280

Financing Sources (other than exchange revenues):

Appropriations Used(5700)

Imputed Financing(5780)

Financing Sources Transferred In(5720)

Financing Sources Transferred Out(5730)

1,300

20

-800

   800

Net Results of Operations 

40

Prior Period Adjustments(7400)

     0

Net Change in Cumulative Results of Operations

40

Increase (Decrease) in Unexpended Appropriations (3100 E-B)

1,700

Change in Net Position

1,740

Net Position - Beginning of Period

[3100 (B) + 3310 (B)]

     0

Net Position - End of Period

[Also = 3100 (E) + 3310 (E)]

1,740

BALANCE SHEET

**ASSETS**

**Entity Assets:**

Intragovernmental

Fund Balance with Treasury  (1010)$ 2,050

Governmental

Equipment      (1750 - 1759)     70

Total Entity Assets  2,120

**Non-Entity Assets:**

Intragovernmental

Fund Balance with Treasury  (1010)     75

Governmental

Accounts Receivable   (1310 - 1319)    955

Total Non-entity Assets  1,030

**TOTAL ASSETS**$ 3,150

**LIABILITIES**

**Liabilities Covered by Budgetary Resources:**

Intragovernmental liabilities:

Accounts Payable  (2110)$   350

Ttl liab covered by budg resourc.    350

**Liabilities not Covered by Budgetary Resources:**

Intragovernmental

Annual Leave Liability(2220)     30

Custodial Liability(2980)  1,030

Ttl liab not covered by budg res.  1,060

Total Liabilities  1,410

NET POSITION

Unexpended Appropriations  (3100)$ 1,700

Cum. Results of Operations(3310)     40

Total Net Position  1,740

**TOTAL LIABILITIES AND NET POSITION**$ 3,150

STATEMENT OF BUDGETARY RESOURCES

**Budgetary Resources:**

Budget authority [4119(E)]$ 3,550

Spending authority from offsetting

collections [4252(E)]    250

Total budgetary resources$ 3,800

**Status of Budgetary Resources:**

Obligations incurred[4901(E-B)+4902(E)]$ 2,100

Unobligated balances-available [4610(E)]  1,700

Total, status of budgetary resources$ 3,800

**Outlays:**

Obligations incurred [4901(E-B)+4902(E)]$ 2,100

Less:

Spending authority from offsetting

collections and adjustments [4252(E)]    250

Obligated balance net - beginning of

period      0

Obligated balance transferred, net      0

Less: obligated balance, net - end of

period [4901(E)]    350

Total outlays  1,500

STATEMENT OF FINANCING

**Obligations and Nonbudgetary Resources:**

Obligations incurred [4901 (E-B) + 4902(E)]$ 2,100

Less: Spending authority for offsetting

collections and adjustments  [4252(E)]   -250

Donations not in the entity's budget      0

Financing imputed for cost subsidies [5780(E)]     20

Transfers-in (out) [5720 (E) - 5730(E)]      0

Exchange revenue not in the entity's

budget   0

Other: (Refunds of Tax Revenues and other payments)

(5890+6330)   -550

Total Obligations as adjusted, and

nonbudgetary resources$ 1,320

**Resources That Do Not Fund Net Cost of Operations:**

Change in amount of goods, services, and

benefits ordered but not yet received or

provided      0

Costs capitalized on the balance sheet [1750(E-B)]   -125

Total resources that do not fund net cost of operations   -125

**Costs That Do Not Require Resources:**

Depreciation and amortization [6100 - Depreciation]     55

Total costs that do not require resources     55

**Financing Sources Yet to be Provided:**

Increases in Unused Annual Leave & Actuarial Liability 

[2220 (E-B) If Net Increase]     30

**Net Cost of Operations**  1,280

**SECTION III**

**Account Title:**Custodial Liability

**Account Number:**2980

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**The amount of custodial revenue yet to be transferred to another Federal entity.

**Account Title:**Contra Revenue for Goods Sold

**Account Number:**5109

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for goods sold when collection of amounts of revenue accrued is not expected.  Amounts recorded are based on adjustments, returns, allowances, price redeterminations, and refunds other than taxes where revenue is earned, but does not include credit losses.

**Account Title:**Contra Revenue for Services Provided

**Account Number:**5209

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for services provided when collection of amounts of revenue accrued is not expected.  Amounts recorded are based on abatements, adjustments, returns, allowances, price redeterminations, and refunds other than taxes where revenue is earned, but does not include credit losses.

**Account Title:**Interest Revenue

**Account Number:**5310

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**Revenue earned from interest.  The amount is exchange revenue by definition with one exception - Interest on Treasury securities held by trust funds and special funds (except trust revolving funds).

**Account Title:**Contra Revenue for Interest

**Account Number:**5319

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for interest accrued when realization is not expected.  Amounts recorded are based on adjustments, returns, allowances, or price re-determinations.

**Account Title:**Penalties and Fines Revenue

**Account Number:**5320

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**Nonexchange revenue earned from penalties and fines.

**Account Title:**Contra Revenue for Penalties and Fines

**Account Number:**5329

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for penalties and fines when realization is not expected.  Amounts recorded are based on adjustments, returns, allowances, or price re-determinations.  Credit losses on penalties and fines revenue are also recorded in this account.

**Account Title:**Contra Revenue for Benefit Program Revenue

**Account Number:**5409

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for a benefit program based on adjustments as stipulated by law and does not include credit losses.

**Account Title:**Contra Revenue for Insurance and Guarantee Premium Revenue

**Account Number:**5509

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for an insurance and guarantee premium based on adjustments stipulated by law and does not include credit losses.

**Account Title**:Contra Revenue for Donations

**Account Number:**5609

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for donations returned.

**Account Title:**Financing Sources Transferred In Without Reimbursement

**Account Number:**5720

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**The amount determined to increase the financing source of a reporting entity which occurs as a result of an asset being transferred in.  The amount of the asset is recorded at book value of the transferring entity.

**Account Title:**Financing Sources Transferred Out Without Reimbursement

**Account Number:**5730

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount determined to decrease the financing source of a reporting entity which occurs as a result of an asset being transferred out.  The amount of the asset is recorded at book value as of the transfer date.

**Account Title:**Imputed Financing Sources

**Account Number:**5780

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**This account is used by the receiving entity to record the portion of cost incurred by the providing entity for goods and services received at less than full cost. This account is used to record financing sources (as opposed to revenues earned for provision of goods and services) not provided for in other accounts.

**Account Title:**Contra Revenue for Taxes

**Account Number:**5809

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue for taxes when realization is not expected. Amounts recorded are based on abatements, adjustments, returns, allowances, and credit losses.

**Account Title:**Tax Revenue Refunds

**Account Number:**5890

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount of tax revenue refunds that are payable or have been paid.

**Account Title:**Contra Revenue for Other Revenue

**Account Number:**5909

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**The amount reflecting a reduction in revenue received (but not otherwise classified above) when realization is not expected.  Amounts recorded are based on adjustments, returns, allowances, price redetermination, and refunds other than taxes where revenue is earned.  Credit losses on other nonexchange revenue are also recorded in this account.

**Account Title:**~~Appropriated Capital~~ Unexpended Appropriations

**Account Number:**3100

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**Amounts appropriated by Congress which have not been expended.

**Account Title:**Appropriations~~ed~~~~Capital~~ Used

**Account Number:**5700

**Normal Balance:**Credit

**Type of Account:**Posting

**Definition:**The amount of current period expended appropriations. 

~~This account is a financing source to be matched against current period expenses funded by appropriations.  This includes expenses funded by prior-year appropriations, such as (1) depreciation of fixed assets and consumption of inventory related to prior-year purchases of fixed assets and inventory, (2) accrued and actual losses on inventory writedowns, and (3) bad debt expenses related to capitalized long-term loans receivable and related interest.~~

**Account Title:**~~Contra~~~~Revenue~~ Collect~~ed~~ions for Others

**Account Number:**5990

**Normal Balance:**Debit

**Type of Account:**Posting

**Definition:**Amounts collected by a reporting entity on behalf of another Federal entity.  ~~This account is used in conjunction with revenue accrued by an agency when amounts collected must be deposited to Treasury.  It is used to establish a corresponding liability to Treasury and is reported as a deduction from revenue on the agency's operating statement.~~

�OMB Bulletin No. 97-01, Formats and Instructions for the Form and Content of Agency Financial Statements.  Dated October 16, 1996, page 1, Introduction and Summary.

�SFFAS #7 Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, paragraph 49.

**Effective October 1, 1997FASAB Standard Implementation  for Revenue (SFFAS #7)    Page 1**