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

**Accounting**

**for**

**Transfer of Authority**

**with**

**Obligations**

**Presentation to the**

**Standard General Ledger Board**

**February 13, 1997, Updated 12/99**

In the original scenario SGL account 4201 was used to offset 4831 and 4832 when

 obligated balances were transferred.  After this scenario was approved, it was

 detemined that SGL account 4201 should not be used when obligated balances are

 transferred. A new SGL account, 4195 Transfer of Obligated Balances, was

 established to be used with 4831 and 4832 when obligated balances are transferred.

  This updated scenario reflects the use of 4195. References to section 3 of the SGL

 TFM are also included in this update.  

**TRANSFER OF AUTHORITY WITH UNDELIVERED ORDERS**

In this scenario, funds are transferred from one Treasury symbol to another Treasury symbol.  Such transfers are usually authorized by specific legislation.  Both the transferring appropriation and the receiving appropriation are assumed to be annual, multi year, or no year.  **The main intent is to illustrate a transfer of appropriation authority in which the authority has been obligated by the transferring appropriation.**  The role of the receiving appropriation is to assume the undelivered orders along with the funding to liquidate the orders.

Transactions are not provided beyond the transfer year. For illustrative purposes, the transfer is assumed to occur subsequent to the first year of the appropriation.   Also, for annual or multi year appropriations, the transfer is assumed to occur prior to the cancellation of the appropriation.  Also for illustrative purposes, all unexpended appropriation authority has been obligated in the amount of $500.

The transferring agency reports the transfer activity on the SF-133, and at the end of the fiscal year reports applicable data on the USSGL-2108 and FACTS, and prepares audited financial statements.  The transferring appropriation ceases budgetary and proprietary responsibility once the transfer of funds has been accomplished.  However, the transferring agency will continue to report an SF-133 through the end of the fiscal year in which the transfer occurred unless circumstances or instructions indicate otherwise.

PROPOSED NEW ACCOUNTS

**Account Title:**Unexpended Obligations, Transferred - Unpaid

**Account Number:** 4831

**Normal Balance:**  Either

**Definition:**  The amount of goods and services ordered and obligated in one appropriation and transferred to or from another approrpiation, which have not been actively or constructively received and for which amounts have not been prepaid or advanced at the time of transfer.  Also includes the amount of unexpended obligations for awarded grants, program subsidies, direct and guaranteed loan program costs, undisbursed loans and claims, and similar transactions for which an advance or prepayments has not been made.  In the FACTS II data base, the normal balance assigned to this account is Acredit@.

**Account Title:**Unexpended Obligations, Transferred - Paid

**Account Number:** 4832

**Normal Balance:**  Either

**Definition:**  The amount of goods and services ordered and obligated in one appropriation and transferred to or from another appropriation, which have not been actively or constructively received but have been prepaid or advanced at the time of transfer.  Also includes the amount of unexpended obligations for awarded grants, program subsidies, direct and guaranteed loan program costs, undisbursed loans and claims, and similar transactions for which an advance or prepayments has not been made.  In the FACTS II data base, the normal balance assigned to this account is Acredit@.

**Unexpended Obligations, Transferred - Unpaid**

For illustration purposes, the receiving appropriation has no other source of funding besides the transfer of the authority already obligated.  The receiving agency reports the transfer activity on the SF-133 as well as subsequent activity and at the end of the fiscal year reports applicable data on the USSGL-2108 and FACTS, and prepares audited financial statements with applicable data.

1. The following is the trial balance of the transferring and receiving appropriations prior to transfer of authority.

Transferring AgencyReceiving Agency

2. To record the actual transfer of $500 in authority and obligations from a prior unexpired budget year.  The 1151 is prepared and processed.

3. The receiving appropriation liquidates $100 of the undelivered orders that were transferred.

4. No other activity occurred during the fiscal year.  A trial balance prior to closing is as follows:

Transferring AgencyReceiving Agency

5.  SF 133

Relation of Obligations to Outlays

Calculation for line 15:

+800

-3a,b,dNANA

-4aNANA

+12500NA

+/-13********-500500

-(-14aNANA

  -14bNANA

  +14c********0-(400)

  +14d)NANA

 Outlays0100

******Change Xwalk to include**

13. **4831E**-500500

14c.**4831E**-500500

6.TFS 2108

TransferringReceiving

7. Closing entries are as follows:

8.  A trial balance subsequent to closing is as follows:

Transferring AgencyReceiving Agency

**Unexpended Obligations, Transferred - Paid**

1. The following is the trial balance of the transferring and receiving appropriations prior to transfer of authority.

Transferring AgencyReceiving Agency

2. To record the actual transfer of $500 in authority and obligations from a prior unexpired budget year.

3. The receiving appropriation liquidates $100 of the undelivered orders that were transferred.

4. No other activity occurred during the fiscal year.  A trial balance prior to closing is as follows:

Transferring AgencyReceiving Agency

5. SF 133

Relation of Obligations to Outlays

Calculation for line 15:

+800

-3a,b,dNANA

-4aNANA

+12NANA

+/-13NANA

-(-14aNANA

  -14bNANA

  +14cNANA

  +14d)NANA

 Outlays00

6. TFS 2108

7. Closing entries are as follows:

8.  A trial balance subsequent to closing is as follows:

Transferring AgencyReceiving Agency

**Effective on October 1, 1997Accounting for Transfer of Authority with Obligations  Page 2**