**Trust Fund and Special Fund Nonexpenditure “Non-Allocation” Transfers of Invested Balances**

**Effective Fiscal 2004 (Available for Early Implementation 4th Quarter 2003)**

# Background

Nonexpenditure transactions are defined as transactions that do not represent payments for goods and services, but serve only to adjust amounts available in accounts.  They include transfers of appropriations (based on appropriation warrants), which increase or decrease appropriation amounts between appropriation and fund accounts as a result of legislation.  These transfers must be authorized by law and are accomplished via SF 1151: Nonexpenditure Transfer Authorization.

Nonexpenditure transfers must occur within the same fund group.  That is, any transfer that occurs between funds within the Federal fund group (i.e. transfers between general, special and revolving funds) is to be classified as nonexpenditure.  Likewise, any transfer between two trust funds is to be classified as nonexpenditure.

There are several types of nonexpenditure transfers: appropriation transfers, allocation transfers, capital transfers, etc.  This proposal pertains to “appropriation transfers” only, where the funds are transferred from one Treasury Appropriation Fund Symbol (TAFS) to another (i.e. 20X8111 to 20X8222).  Furthermore, this proposal is limited to transfers between two trust funds, transfers between two special funds, or transfers between a special fund and another Federal fund, **where investment authority is involved**.

Many trust and special funds have investment authority.  And in certain circumstances, trust/special funds are established in such a way that the investment authority resides within one TAFS, but the authority to obligate and disburse resides within another TAFS.  In order to maintain sound cash management principles, the funds must remain invested until needed for disbursement to maximize the interest earned.  Since the investment function resides within one TAFS, and the obligation and disbursement function resides within another TAFS, a budgetary mechanism may be needed to transfer the budget authority prior to transferring the funds.  This may be in order to cover obligations, or as a result of an amount specified in an agency's appropriation or authorization act.

In USSGL terms, this means that budgetary receivable/payable accounts are needed to correspond with the existing proprietary receivable/payable accounts (1330/2150).  Therefore, USSGL accounts 4171 and 4172 have been established.  Furthermore, USSGL 4173 has been established to reflect the accomplished nonexpenditure transfers that reduce 4171 and 4172.  USSGL 4173 is distinguished from USSGL 4170 “Transfers – Current-Year Authority” in that 4173 reflects a TAFS_Status of “U/E” (“Unexpired/Expired”).

Since this proposal pertains to “appropriation” transfers only, why are 4171/4172/4173 entitled “non-allocation” transfers?  In accordance with TFM Bulletin No. 2003-07, agencies are directed to process nonexpenditure transfers using the NET application within the Governmentwide Accounting (GWA) System.  Agencies are required to select the appropriate transfer type in order to process.  The four transfer types available are Appropriation Transfer, Balance Transfer, Reappropriation Transfer, and Capital Transfer.  Attachment 1 of the TFM Bulletin provides guidance for selecting the appropriate transfer type.  USSGL 4173 falls under “Appropriation Transfer” for unexpired TAFS and “Balance Transfer” for expired TAFS.  Therefore, entitling 4173 “Appropriation Transfers” would be misleading.

**Flowcharts**

Refer to pages 25-27 for illustrative examples of TAFS subject to this guidance.****

**Proposed New USSGL Account (effective Fiscal 2004, available for early implementation Fiscal 2003):**

**Account Title**:Non-Allocation Transfers of Invested Balances - Transferred

**Account Number**:4173

**Normal Balance**:Either

**Definition**: The amount of nonexpenditure transfers of invested balances accomplished via SF 1151: Nonexpenditure Transfer Authorization that reduce previously established USSGL 4171, “Non-Allocation Transfers of Invested Balances - Receivable” or 4172, “Non-Allocation Transfers of Invested Balances - Payable.”  FACTS II normal balance assigned to this account is “debit.”

**Proposed Modification to Existing USSGL Accounts:**

**Account Title**:Transfers - Current-Year Authority 

**Account Number**:4170

**Normal Balance**:Either - In the FACTS II database, the normal balance assigned to this account is "debit."

**Proposed New Definition**: The amount of realized nonexpenditure transfers between two Treasury Appropriation Fund Symbols (TAFS) during the fiscal year of current-year unobligated authority.  This amount includes transfers of unobligated balances that result from legislation that changes the purpose for which the balances are available for obligation.  ~~This amount also includes transfers of amounts from invested balances that reduce previously established USSGL 4171, “Transfers – Current-Year Authority – Receivable” or 4172, “Transfers – Current-Year Authority – Payable.”~~**This amount excludes transfers of amounts from invested balances.**  FACTS II normal balance assigned to this account is “debit.”

**Proposed New Account Title**:~~Transfers – Current-Year Authority - Receivable~~**Non-Allocation Transfers of Invested Balances - Receivable**

**Account Number**:4171

**Normal Balance**:Either

**Definition**:   The amount to be transferred-in of unrealized nonexpenditure ~~appropriation~~ transfers **of invested balances, excluding allocation transfers,** between two trust funds or two Federal funds (as defined by OMB), where there is investment authority involved.  For cash management purposes, the funds remain invested until needed for disbursement.  (This occurs prior to the request for SF 1151: Nonexpenditure Transfer Authorization, and is only permissible under specific circumstances.) FACTS II normal balance assigned to this account is “debit.”

**Proposed New Account Title:**~~Transfers – Current-Year Authority – Payable~~**Non-Allocation Transfers of Invested Balances - Payable**

**Account Number**:4172

**Normal Balance**:Either

**Definition**: The amount to be transferred-out of unrealized nonexpenditure ~~appropriation~~ transfers **of invested balances, excluding allocation transfers,** between two trust funds or two Federal funds (as defined by OMB), where there is investment authority involved.  For cash management purposes, the funds remain invested until needed for disbursement.  (This occurs prior to the request for SF 1151: Nonexpenditure Transfer Authorization, and is only permissible under specific circumstances.) FACTS II normal balance assigned to this account is “credit.”

# Impact on USSGL Crosswalks

# Scenario Guidelines

The following concepts apply:

· The scenario is not all inclusive of the different types of revenues and/or expenses that may be recorded.  The intent is to illustrate the main concepts through basic transactions.  Refer to Section III, Accounting Transactions, of TFM S2-03-02 (as updated) for a complete listing of USSGL accounts that may be recorded.  Section III is located on the USSGL Web site (http://tfm.fiscal.treasury.gov/v1/supplements/ussgl.html). 

· Trust and special funds may or may not be subject to apportionment.  Apportionments may apply to all or a portion of a Treasury Appropriation Fund Symbol.  Refer to Section III, Accounting Transactions, of TFM S2-03-02 (as updated) for a complete listing of transactions.

· Budgetary and financial reports reflect the pertinent lines to be reported based on the main concepts illustrated.  For full presentations of the reports and line descriptions, refer to the appropriate authoritative guidance (i.e. OMB Bulletin 97-01: Form and Content of Agency Financial Statements, OMB Circular No. A-11:  Preparing, Submitting, and Executing the Budget, Treasury Financial Manual references).

Year 1

# Trust Fund A (60X8000)Trust Fund B (60X8123)

Year 1

**Trust Fund A (60X8000)Trust Fund B (60X8123)**

Year 1

## Trust Fund A (60X8000)Trust Fund B (60X8123)

Year 1

## Trust Fund A (60X8000)Trust Fund B (60X8123)

# Year 1

## Trust Fund A (60X8000)

**Budgetary:**

**Adjusting Entry**

N/A

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

# Trust Fund B (60X8123)

**Budgetary:**

**Adjusting Entry**

**To record adjustments for anticipated resources not realized.  (TC F112)**

4590Apportionments Unavailable – Anticipated

Resources25,000

****4160Anticipated Transfers – CY Authority25,000

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

Year 1

**Trust Fund A (60X8000)**

**Budgetary:**

### Closing Entry

**Post-closing Trial Balance**

**Trust Fund B (60X8123)**

**Budgetary:**

**Closing Entry**

N/A

**Post-closing Trial Balance**

Year 1

**Trust Fund A (60X8000)**

**Proprietary:**

**Pre-closing Trial Balance**

**Closing Entry**

**Post-closing Trial Balance**

**Trust Fund B (60X8123)**

**Proprietary:**

**Pre-closing Trial Balance**

**Closing Entry**

**Post-closing Trial Balance**

Year 1

**Trust Fund A (60X8000)**

**Trust Fund B (60X8123)**

Year 1

**Trust Fund A (60X8000)**

**Trust Fund B (60X8123)**

Year 1

**Trust Fund A (60X8000)**

# OMB Form and Content Statements

**Trust Fund B (60X8123)**

# OMB Form and Content Statements

# Year 1

**Trust Fund A (60X8000)**

# OMB Form and Content Statements (continued)

**Trust Fund B (60X8123)**

# OMB Form and Content Statements (continued)

Year 1

**Trust Fund A (60X8000)**

# OMB Form and Content Statements (continued)

**Trust Fund B (60X8123)**

# OMB Form and Content Statements (continued)

# Year 2

**Trust Fund A (60X8000)Trust Fund B (60X8123)**

# Year 2

## Trust Fund A (60X8000) 

**Budgetary:**

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

# Trust Fund B (60X8123)

**Budgetary:**

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

Year 2

**Trust Fund A (60X8000)**

**Budgetary:**

### Closing Entry

**Post-closing Trial Balance**

**Trust Fund B (60X8123)**

**Budgetary:**

**Closing Entries**

**Post-closing Trial Balance**

N/A

Year 2

**Trust Fund A (60X8000)**

**Proprietary:**

**Pre-closing Trial Balance**

**Closing Entry**

N/A

**Post-closing Trial Balance**

**Trust Fund B (60X8123)**

**Proprietary:**

**Pre-closing Trial Balance**

N/A

**Closing Entry**

N/A

**Post-closing Trial Balance**

N/A

Year 2

**Trust Fund A (60X8000)**

**Trust Fund B (60X8123)**

Year 2

**Trust Fund A (60X8000)**

**Trust Fund B (60X8123)**

Year 2

**Trust Fund A (60X8000)**

# OMB Form and Content Statements 

**Trust Fund B (60X8123)**

# OMB Form and Content Statements 

Year 2

**Trust Fund A (60X8000)**

**OMB Form and Content Statements****(continued)**

**Trust Fund B (60X8123)**

**OMB Form and Content Statements****(continued)**

# Year 2

**Trust Fund A (60X8000)**

**OMB Form and Content Statements****(continued)**

**Trust Fund B (60X8123)**

**OMB Form and Content Statements****(continued)**

**Illustrative Flow Chart**

**Aquatic Resources Trust Fund and Related TAFS**

The following flow chart illustrates flows between the Aquatic Resources Trust Fund (Treasury-Managed Trust Fund) and related TAFS subject to this guidance.  The list is not intended to be all inclusive, and it in no way depicts all of the activity that occurs among the listed TAFS.  All flows represent SF 1151 Nonexpenditure Transfers.

**Illustrative Flow Chart**

**Railroad Retirement Board**

The following flow chart illustrates examples of Railroad Retirement Board TAFS subject to this guidance.  The list is not intended to be all inclusive, and it in no way depicts all of the activity that occurs among the listed TAFS.  All flows represent SF 1151 Nonexpenditure Transfers.

**Illustrative Flow Chart**

**Department of Energy**

The following flow chart illustrates examples of Department of Energy TAFS subject to this guidance.  The list is not intended to be all inclusive, and it in no way depicts all of the activity that occurs among the listed TAFS.  All flows represent SF 1151 Nonexpenditure Transfers.

Invested TAFS

20X8147	Aquatic Resources Trust Fund

Existing USSGL Accounts

4126	Amounts Appropriated From Specific Treasury-Managed Trust Fund TAFS - Receivable

4127	Amounts Appropriated From Specific Treasury-Managed Trust Fund TAFS - Payable

4128	Amounts Appropriated From Specific Treasury-Managed Trust Fund TAFS – Transfers-In

4129	Amounts Appropriated From Specific Treasury-Managed Trust Fund TAFS – Transfers-Out

96X8333	Coastal Wetlands Restoration Trust Fund

		(Corps of Engineers)

69X8149	Boat Safety Account (Coast Guard)

14X8151	Sport Fish Restoration Account (Department of Interior)

Proposed New/Modified USSGL Accounts

4171	Non-Allocation Transfers of Invested Balances - Receivable	

4172	Non-Allocation Transfers of Invested Balances - Payable	

4173	Non-Allocation Transfers of Invested Balances - Transferred

Invested TAFS

60X8010	Social Security Equivalent Benefit Account

60X8011	Railroad Retirement Account

Proposed New/Modified USSGL Accounts

4171	Non-Allocation Transfers of Invested Balances - Receivable	

4172	Non-Allocation Transfers of Invested Balances - Payable 

4173	Non-Allocation Transfers of Invested Balances - Transferred

60-8018		Limitation on the Office of Inspector General (fiscal year)

60-8237		Limitation on Administration (fiscal year)

Invested TAFS

89X5231	Uranium Enrichment Decontamination and Decommissioning Fund

89X0315	Uranium Facilities Maintenance and Remediation

Proposed New/Modified USSGL Accounts

4171	Non-Allocation Transfers of Invested Balances - Receivable

4172	Non-Allocation Transfers of Invested Balances - Payable

4173 	Non-Allocation Transfers of Invested Balances - Transferred

� TFM Vol. I Part 2 - Chapter 2000

� As defined in the Analytical Perspectives of the Budget of the U.S. Government, Chapter 15.

� USSGL TFM S2-03-02 (as updated), USSGL Account Attributes Required for FACTS II Reporting of Detailed Financial Information

�This scenario illustrates activities between “Trust Fund A” and “Trust Fund B” for illustrative purposes only.  The same concept also applies to transfers between two special funds and transfers between a special fund and another Federal fund, where investment authority is involved.

� The transactions in this scenario combine the activity of the receipt and expenditure accounts.  The receipt-expenditure account relationship among trust funds is described in more detail in the Federal Trust Fund Accounting Guide.

� Trust and special funds may or may not be subject to apportionment.  Refer to Section III - Accounting Transactions of TFM S2-03-02 (as updated) for more comprehensive transactions.

� For illustrative purposes, assume Trust Fund A has the authority to invest.  This is a basic transaction to illustrate that the receipts collected are immediately invested.  No further investment activity is reflected in this scenario.  Refer to Scenario IV, Trust Fund Investments, of the Federal Trust Fund Accounting Guide as well as Section III - Accounting Transactions of TFM S2-03-02 (as updated) for more detailed guidance on investments.

� The USSGL entries for budgetary fund control and obligations for trust funds are the same as those published in TFM S2-03-02 (as updated).  For purposes of illustration, only the final results are shown here.

� This step may be skipped for activity that goes directly to expended authority (USSGL 49xx series).

� For illustrative purposes, assume budget authority is classified as mandatory.  For proper reporting of discretionary budget authority, refer to OMB Circular No. A-11.

� For illustrative purposes, assume budget authority is classified as mandatory.  For proper reporting of discretionary budget authority, refer to OMB Circular No. A-11.

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~~September 2002~~ Revised September 2003