Accounting Scenarios EPL Fund

4/16/2021

1

BACKGROUND

Section 4001 of the American Rescue Plan Act of 2021 (Public Law 117-2), enacted on March 11, 2021, established a new category of paid leave for selected Federal employees.  Eligibility for the leave is based on certain COVID-19-related qualifying circumstances. This emergency paid leave is funded by a $570 million Emergency Federal Employee Leave Fund (Fund) and administered by OPM.  Amounts in the Fund shall be available for reimbursement to an agency for the use of paid leave under this section by any covered employee of the agency who is unable to work because of certain COVID-19-related qualifying circumstances.  Each agency with covered employees using emergency paid leave must submit to OPM a request for reimbursement from the Fund. 

OMB/Treasury has established a unique Treasury Account Fund Symbol (TAFS) under OPM agency identification code (024-2021/2022-0806). 

ACCOUNTING SCENARIOS FOR THE REIMBURSEMENT TRANSACTIONS

Agency’s request for reimbursement should be based on disbursements to eligible employees.  The two scenarios below relate to the timing of the reimbursements affecting TAFSs. In this presentation, additional entries related to Budgetary Resources (e.g., appropriation, spending authority from offsetting collections, etc.) of the requesting agency, and the Status for Budgetary Resources (e.g., apportionments, allotments) of OPM and the requesting agency are not shown.

PURPOSE

To present proposed guidance on the accounting for the emergency paid leave reimbursement activity by OPM and the agencies seeking reimbursements from the Fund.

SCENARIO 1 – Current year activity, including agencies’ reimbursement requests submitted, approved and paid for emergency paid leave disbursed in FY 2021. 

a. To record the payroll payment (Paid Leave) by the requesting agency.  Also record TC B234 for direct appropriations.

SCENARIO 2 – Subsequent year (FY 2022) activity, including agencies’ reimbursement requests submitted and/or approved in FY 2021 or FY 2022 but paid to the requesting agency for emergency paid leave disbursed in FY 2022. 
| Requesting Agency        | DR | CR |
|--------------------------|----|----|
| TC: B102                 |    |    |
| Budgetary Entry          |    |    |
| 461000 Allotment         | 50 |    |
| 490200 Del. Orders-Ob Pd |    | 50 |
|                          |    |    |
| Proprietary Entry        |    |    |
| 610000 Operating Exp.    | 50 |    |
| 101000 Fund Bal W/Treas  |    | 50 |
| OPM                       | DR | CR |
|---------------------------|----|----|
| TC: B107                  |    |    |
| Budgetary Entry           |    |    |
| 461000 Allotment          | 50 |    |
| 490200 Del. Orders- Ob Pd |    | 50 |
|                           |    |    |
| Proprietary Entry         |    |    |
| 610000 Operating Exp.     | 50 |    |
| 101000 Fund Bal W/Treas   |    | 50 |

b. To record a disbursement out of the Fund to reimburse requesting agency 
| TC: B234                  |    |    |
|---------------------------|----|----|
| Budgetary Entry           |    |    |
| N/A                       |    |    |
| Proprietary Entry         |    |    |
| 310710 Unexp. App. Used   | 50 |    |
| 570010 Exp Appr – Disb.   |    | 50 |
| Requesting Agency         | DR | CR |
|---------------------------|----|----|
| TC: C134                  |    |    |
| Budgetary Entry           |    |    |
| 490200 Del. Orders- Ob Pd | 50 |    |
| 461000 Allotment          |    | 50 |
|                           |    |    |
| Proprietary Entry         |    |    |
| 101000 Fund Bal W/Treas   | 50 |    |
| 610000 Operating Exp      |    | 50 |
| Requesting Agency                                  | DR | CR |
|----------------------------------------------------|----|----|
| TC: C132                                           |    |    |
| Budgetary Entry                                    |    |    |
| 497200 Downward Adj. of Prior Yr Pd Del. Orders    | 50 |    |
| 445000 Unapp. Auth. Or    465000 Allot. Exp. Auth. |    | 50 |
|                                                    |    |    |
| Proprietary Entry                                  |    |    |
| 101000 Fund Bal W/Treas                            | 50 |    |
| 610000 Operating Exp                               |    | 50 |

c. To record the reimbursement entry as refunds collected to paid obligations.  Also, reverse TC B234 for direct appropriations.

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