Custodial Activity Collected on Behalf of a Federal Entity Other than the General Fund of the U.S. Government 

(Exchange)

(Effective Fiscal 2019)

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

**U.S. DEPARTMENT OF THE TREASURY**

**IRC Handout December 5, 2017**

26

IRC Handout December 5, 2017		Page 2 of 32

**Background**

This scenario has been developed to provide accounting and reporting guidance to Federal Agencies responsible for receiving and distributing funds defined as custodial collections to another Federal Agency other than the General Fund of the U.S. Government (General Fund). It has also intended to provide guidance to those Agencies who are the recipient agency with legal authority to use the custodial collections.  A custodial collection is defined as any collection from either a federal or nonfederal source for which the collecting agency does not have legal authority to spend and must transfer to another federal or non-federal entity that does have the legal authority to spend the funds.  

The scenario is not intended to be 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, for a complete listing of USSGL accounts that may be recorded.  Section III may be accessed using the following link on the  USSGL Web site (http://tfm.fiscal.treasury.gov/v1/supplements/ussgl.html).

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 Circular A-136: Financial Reporting Requirements, OMB Circular No. A-11:  Preparing, Submitting, and Executing the Budget, Treasury Financial Manual references).

The reader of this scenario will find references to the collecting agency and the receiving agency. The collecting agency is the agency that receives the custodial collection but does not have the budgetary authority to spend the collection. The receiving agency is the agency that the custodial collection is transferred to and has the legal authority to the custodial collection as a resource.

**New USSGL Accounts (Effective FY 2019)**

**Account Title:**  	Asset for Agency’s Custodial and Non-Entity Liabilities – Other than the General Fund of the U.S. Government

**Account Number:**	198100

**Normal Balance:**       Debit

**Definition:**The total amount of non-entity custodial assets for collections, or amounts to be collected, by Federal agencies on behalf of 

                                    another Federal agency other than the General Fund of the U.S. Government. These assets are a direct offset to the collecting entity’s Custodial Liability

                                    (USSGL account 298000) and Liability for Non-Entity Assets Not Reported on the Statement of Custodial Liability (USSGL account 298500). This 

                                    account does not close at yearend.

*Justification: New USSGL account needed to allow proper reporting of the receipt of custodial collections and non-entity accruals by a Federal entity on behalf of a Federal entity*

*other than the General Fund of the U. S. Government.*

**Account Title:**  	Accrual of Agency Amount to Be Collected – Custodial and Non-Entity - Other than the General Fund of the U.S. Government

**Account Number:**	571300

**Normal Balance:**       Credit

**Definition:**The accrued amount of Non-Entity, custodial collections, and custodial revenues to be collected by a reporting entity on behalf of another Federal Agency other

                                    than the General Fund of the U.S. Government. This account corresponds to the collecting entity’s Accrued Collections for Others Statement of Custodial Activity 

                                    (USSGL account 599100), Offset to  Non-Entity Accrued Collections Statement of Changes in Net Position (USSGL account 599400), and in certain situations, 

Collections for Others – Statement of Custodial Activity (USSGL Account 599000).

*Justification: New USSGL account needed to allow proper reporting by the receiving agency of accrued custodial and non-entity amounts on behalf of a Federal entity other than the*

*General Fund of the U. S. Government.*

**Updated USSGL Accounts (Effective FY 2019)**

**Account Title:**  	Asset for Agency’s Custodial and Non-Entity Liabilities – General Fund of the U.S. Government

**Account Number:**	198000

**Normal Balance:**       Debit

**Definition:**The total amount of non-entity custodial assets for collections, or amounts to be collected, by Federal agencies on behalf of the General Fund of the U.S. Government.

                                    This amount will be reduced, at yearend, by the amount of associated Fund Balance With Treasury that is transferred~~(swept)~~. These assets are a direct offset to the 

                                    collecting entity's Custodial Liability (USSGL account 298000) and Liability for Non-Entity Assets Not Reported on the Statement of Custodial Liability (USSGL

                                    account 298500). This account is for the General Fund of the U.S. Government use only. This account does not close at yearend. 

*Justification: Update the USSGL account title to distinguish its use for reporting the collection of custodial activity on behalf of the General Fund of the U.S. Government only.*

**Account Title:**  	Accrual of Agency Amount to Be Collected – Custodial and Non-Entity  - General Fund of the U.S. Government

**Account Number:**	571200

**Normal Balance:**       Credit

**Definition:**The accrued amount of non-entity, custodial collections and custodial revenues to be collected by a reporting entity on behalf of  the General Fund of the U.S. 

                                    Government. This account corresponds to the Federal reporting entity's Accrual Collections for Others Statement of Custodial Activity (USSGL account 599100)

                                    and Offset to Non-Entity Accrued Collections Statement of Changes in Net Position (USSGL account 599400). This account is for the General Fund of the U.S. 

                                    Government use only.

*Justification: Update the USSGL account title to distinguish its use for reporting the collection of custodial activity on behalf of the General Fund of the U.S. Government only.*

**Account Title:**           Financing Sources Transferred In From Custodial Statement Collections

**Account Number:**     599700

**Normal Balance:**       Credit

**Definition:**                 The amount of financing sources transferred in to a Treasury Account Symbol (TAS) from collections previously recorded on the Statement of Custodial Activity. 

                                    Unless specifically identified by the Bureau of the Fiscal Service in conjunction with OMB, this transfer creates a budgetary resource in the receiving TAS

*Justification: Update the USSGL account definition to allow this type of collection to not have a budgetary effect if specifically identified by Fiscal Service.*

**Attribute Additions and Updates:**

**New Transaction Codes (Effective FY 2019)**

**C133** To record the receivable for custodial collections on behalf of a Federal entity other than the General Fund of the U.S. Government.

**Comment:**This transaction is recorded by the federal agency who will become the recipient with authority to use the funds collected. The federal agency collecting these

                    funds should  record TC-C142 to establish the payable for the custodial collections on behalf of another federal agency

**Reference:**Custodial Activity Collected on Behalf of a Federal Entity Other than the General Fund of the U.S. Government (Exchange)

**Budgetary Entry**

None

**Proprietary Entry**

Debit 198100 Asset for Agency’s Custodial and Non-Entity Liabilities – Other than the General Fund of the U.S. Government

Credit 571300 Accrual of Agency Amount to be Collected - Custodial and Non-Entity Other than the General Fund of the U.S. Government

*Justification: Provide TC to allow proper intragovernmental eliminations*

**C135**To record the collection of non-Federal revenue reported on the Statement of Custodial Activity or on the custodial footnote that is deposited into a Clearing Account. 

**Comment:** This transaction is recorded by the federal agency collecting the funds on behalf of the recipient agency with authority to use the collected funds.  

**Reference:**Custodial Activity Collected on Behalf of a Federal Entity Other than the General Fund of the U.S. Government (Exchange) 

**Budgetary Entry**

None 

**Proprietary Entry**

Debit 101000 Fund Balance With Treasury 

Credit 520000 Revenue From Services Provided

Credit 531000 Interest Revenue - Other 

Credit 531100 Interest Revenue - Investments 

Credit 531200 Interest Revenue - Loans Receivable/Uninvested Funds 

Credit 532000 Penalties and Fines Revenue 

Credit 532500 Administrative Fees Revenue 

Credit 560000 Donated Revenue - Financial Resources 

Credit 580000 Tax Revenue Collected - Not Otherwise Classified 

Credit 580100 Tax Revenue Collected - Individual 

Credit 580200 Tax Revenue Collected - Corporate 

Credit 580300 Tax Revenue Collected - Unemployment 

Credit 580400 Tax Revenue Collected - Excise 

Credit 580500 Tax Revenue Collected - Estate and Gift 

Credit 580600 Tax Revenue Collected - Customs 

Credit 590000 Other Revenue 

Credit 592300 Valuation Change in Investments - Beneficial Interest in

*Justification: Create transaction for the use of custodial revenues deposited into a clearing account.*

**Updated Transaction Codes (Effective FY 2019)**

**C404**To record contra-revenue in the amount of revenue accrued and establish a custodial liability. 

**Comment:**~~Also post USSGL TC-C402.~~ For custodial collections on behalf of the General Fund receipt account post USSGL TC-C402. For custodial collections for transfer

                   to another federal agency also post TC-C420  

**Budgetary Entry**

None 

**Proprietary Entry**

Debit 599100 Accrued Collections for Others - Statement of Custodial Activity 

Credit 298000 Custodial Liability

*Justification: Update Comment section to provide clarification of other transaction codes to be used by users in specific situations.*

**C420**To record accrued revenue or other financing sources without budgetary impact. 

**Comment:**Receivables from non-Federal sources are not budgetary resources until collected. This transaction should be used if you have a receivable recorded from a transaction 

                   with nonfiduciary deposit funds. For receivables reported in a clearing account for non-Federal custodial collections, also post USSGL TC-C404. For Federal and

                   non-Federal receivables reported in a General Fund receipt account, also post USSGL TC-C405. See USSGL TC-F124 for the preclosing adjusting entry recorded at yearend. 

**Reference:**OMB Circular No. A-11, the Budget totals exclude amounts from deposit fund transactions because the funds are not owned by the Government. Therefore, the budget 

                   records transactions between deposit funds and budgetary accounts as transactions with public. Other USSGL Guidance: Accounting and Reporting Exchange Stabilization Fund 

**Budgetary Entry**

None 

**Proprietary Entry**

Debit 131000 Accounts Receivable 

Debit 132000 Funded Employment Benefit Contributions Receivable 

Debit 134000 Interest Receivable - Not Otherwise Classified 

Debit 134100 Interest Receivable - Loans 

Debit 134200 Interest Receivable - Investments 

Debit 134300 Interest Receivable - Taxes 

Debit 136000 Penalties and Fines Receivable - Not Otherwise Classified 

Debit 136100 Penalties and Fines Receivable - Loans 

Debit 136300 Penalties and Fines Receivable - Taxes 

Debit 137000 Administrative Fees Receivable - Not Otherwise Classified 

Debit 137100 Administrative Fees Receivable - Loans 

Debit 137300 Administrative Fees Receivable - Taxes 

Debit 138100 Interest Receivable - Loans - Troubled Assets Relief Program 

Debit 138400 Interest Receivable - Foreign Currency Denominated Assets 

Credit 510000 Revenue From Goods Sold 

Credit 520000 Revenue From Services Provided 

Credit 531000 Interest Revenue - Other 

Credit 531100 Interest Revenue - Investments 

Credit 531200 Interest Revenue - Loans Receivable/Uninvested Funds 

Credit 532000 Penalties and Fines Revenue 

Credit 532500 Administrative Fees Revenue 

Credit 540000 Funded Benefit Program Revenue 

Credit 550000 Insurance and Guarantee Premium Revenue 

Credit 560000 Donated Revenue - Financial Resources 

Credit 577500 Nonbudgetary Financing Sources Transferred In 

Credit 590000 Other Revenue

*Justification: Update Comment section to provide clarification of other transaction codes to be used by users in specific situations.*

**Illustrative Transactions:**

**Illustrative Closing Entry Transactions:**

**Illustrative Financial Statements:**