Actuarial Liabilities 

 Page 1 of 6 June 3, 2010 

Background 

The U. S. Department of Agriculture (USDA) Federal Crop Insurance Corporation (FCIC) has 

material activity for estimated losses on insurance claims that are currently included in USSGL 

account 2690, “Other Actuarial Liabilities,” and on the USSGL Balance Sheet Crosswalk, line 

27, with a footnote. In addition, the U.S. Department of the Treasury (Treasury) has material 

activity for Treasury D.C. Pension Funds that is included in USSGL account 2690 and on the 

same USSGL Balance Sheet Crosswalk line. Both activities also are included on the USSGL 

Reclassified Balance Sheet Crosswalk, line 6.9, with a footnote. These activities are separate 

from line 24, “Federal Employee and Veteran Benefits.” 

The current use of USSGL crosswalk footnotes will not be programmable in the 

Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS). Therefore, 

for GTAS, separate USSGL accounts are required to capture these material amounts on the 

proper crosswalk lines. 

The estimated insurance program liabilities and Treasury’s D.C. Pension Funds are based on 

current conditions and are subject to significant uncertainty. The uncertainty inherent in the 

affecting factors (for example, for FCIC crop damage as a result of severe weather events) can 

result in the compensation being either greater or less than estimated. The total compensation 

will not be known until after the end of the fiscal year; therefore, the amount for this activity on 

the financial statements is based on projections. 

The Office of Management and Budget Circular No. A-136 (June 10, 2009), Note 17, states: 

“Include all liabilities not reported elsewhere.” Neither entity reports this activity on the Balance 

Sheet Crosswalk, line 24, but each entity separately discloses it (as instructed by Treasury) on 

line 27. 

This scenario follows USSGL TFM S2 09-02 (December 2009, revised by TFM Bulletin 2010-

04), fiscal 2010 crosswalks. 

USSGL Section III, Account Transactions, will be updated with the appropriate debits and 

credits for the proposed accounts. 

Proposal 

This scenario proposes the creation of two USSGL accounts that will allow specific activity to be 

reported without the use of USSGL crosswalk footnotes also illustrates the proper transactions 

for estimated loss on actuarial liabilities. USSGL transactions will be modified to reflect the 

revised accounting for the new accounts. 
 Actuarial Liabilities 

 Page 2 of 6 June 3, 2010 

USSGL Accounts:

Account Number: 2660 

Account Title: Actuarial Liabilities for Federal Insurance and Guarantee Programs

Normal Balance: Credit 

Definition: The amount recorded by administering agencies for estimated losses on Federal 

insurance and guarantee program claims (except social insurance and loan guarantee programs). 

Account Number: 2670 

Account Title: Actuarial Liabilities for Treasury-Managed Benefit Programs 

Normal Balance: Credit 

Definition: The amount recorded by the Department of the Treasury for the actuarial 

liabilities of future benefit payments to be paid from programs such as the D.C. Federal Pension 

Fund and the D.C. Judicial Retirement Fund. 

The following USSGL accounts are used in this scenario: 

Account 

Number Account Name 

 

Budgetary 

None 

 

Proprietary 

 

2660 Actuarial Liabilities for Federal Insurance and Guarantee Programs 

2670 Actuarial Liabilities for Treasury-Managed Benefit Programs 

3310 Cumulative Results of Operations 

6800 Future Funded Expenses 

7600 Changes in Actuarial Liability 
 Actuarial Liabilities 

 Page 3 of 6 June 3, 2010 

USSGL Proprietary Account Attributes Required for Reporting of Detailed Financial Information 

No. Title Norm 

Bal 

Fed/ 

NonFed 

Trading 

Partner 

Exch/ 

NonE

Bud Subf 

2660 Actuarial Liabilities for Federal 

Insurance and Guarantee Programs 

C N 

2670 Actuarial Liabilities for TreasuryManaged Benefit Programs C N 

No. Title Cust/ 

NonC 

Entity/ 

NonE 

Cov/ 

NotC 

Program Bud 

Impact 

2660 Actuarial Liabilities for Federal 

Insurance and Guarantee Programs 

 Y 

2670 Actuarial Liabilities for TreasuryManaged Benefit Programs  Y 

C = Credit 

N = NonFederal 

Y = Can be either Covered or Not Covered 

USSGL Proprietary Crosswalks 

USSGL Proprietary Crosswalks 

USSGL 

Account 

Number 

USSGL 

Account 

Title 

Balance 

Sheet 

Statemt 

of 

Net Cost 

Statement of 

Changes in 

Net Pos 

Statement of 

Custodial 

Activity 

Reclassified 

Balance Sheet 

Reclassified 

Statement of 

Net Cost 

Reclassified 

Statement of 

Net Pos 

2660 Actuarial 

Liabilities for 

Federal 

Insurance and 

Guarantee 

Programs 

Line 

27 

N/A N/A N/A Line 6.8 N/A N/A 

2670 Actuarial 

Liabilities for 

TreasuryManaged 

Benefit 

Programs 

Line 

27 

N/A N/A N/A Line 6.9 N/A N/A 
 Actuarial Liabilities 

 Page 4 of 6 June 3, 2010 

Note: For simplicity, an opening Trial Balance is not used in this scenario. 

Existing USSGL transactions for actuarial liabilities will include changes for the proposed 

USSGL accounts. 

1. A Federal Government agency records a liability for costs to be funded in the future. 

 DR CR TC 

Budgetary Entry

None 

Proprietary Entry

6800 Future Funded Expenses 

 2660 Actuarial Liabilities for Federal Insurance and 

 Guarantee Programs 

2670 Actuarial Liabilities for Treasury-Managed 

 Benefit Programs 

50,000

20,000 

30,000 

B420 

2. The agency records an increase in actuarial liabilities for insurance programs. (Reverse 

this transaction for decreases in actuarial liabilities for insurance programs). 

 DR CR TC 

Budgetary Entry

None 

Proprietary Entry

7600 Changes in Actuarial Liability 

 2660 Actuarial Liabilities for Federal Insurance and 

 Guarantee Programs 

10,000

10,000 

B426 

3. The agency records an increase in actuarial liabilities for benefit plans. (Reverse this 

transaction for decreases in actuarial liabilities for benefit plans).

 DR CR TC 

Budgetary Entry

None 

Proprietary Entry

7600 Changes in Actuarial Liability 

2670 Actuarial Liabilities for Treasury-Managed 

 Benefit Programs 

5,000

5,000 

B426 
 Actuarial Liabilities 

 Page 5 of 6 June 3, 2010 

Pre-closing Adjusted Trial Balance 

 Debit Credit 

Budgetary 

None 

Total -0- -0- 

Proprietary 

2660 30,000 

2670 35,000 

6800 50,000 

7600 15,000 

Total 65,000 65,000 

Closing Entries 

1. Close the increase in actuarial liabilities into cumulative results of operations. See 

USSGL TC F338 for a decrease in actuarial liabilities. 

 DR CR TC 

Budgetary Entry

None 

Proprietary Entry

3310 Cumulative Results of Operations 

 7600 Changes in Actuarial Liability 

15,000

15,000 

F340

2. Close the future funded expense to cumulative results of operations. 

 DR CR TC 

Budgetary Entry

None 

Proprietary Entry

3310 Cumulative Results of Operations 

 6800 Future Funded Expenses 

50,000

50,000 

F336
 Actuarial Liabilities 

 Page 6 of 6 June 3, 2010 

Post-closing Trial Balance 

USSGL Account Debit Credit 

Budgetary 

None 

Total -0- -0- 

Proprietary 

2660 30,000 

2670 35,000 

3310 65,000 

6800 -0- -0- 

7600 -0- -0- 

Total 65,000 65,000 

BALANCE SHEET 

Assets: 

15. Total Assets -0- 

Liabilities: 

27. Other (2660E and 2670E) 65,000 

28. Total Liabilities 65,000 

Net Position: 

33. Cumulative Results of Operations – Other Funds (3310E) 65,000 

34. Total Net Position 65,000 

35. Total Liabilities and Net Position -0- 

RECLASSIFIED BALANCE SHEET 

Assets: 

4. Total Assets -0- 

Liabilities: 

6.8 Insurance Programs (2660E) 30,000 

6.9 Other Liabilities (2670E) 35,000 

8. Total Liabilities 65,000 

9. Net Position: 

9.2 Net Position – Earmarked Funds (3310B) -0-

10 Total Net Position -0- 

11 Total Liabilities and Net Position (8 + 10) 65,000