*General Fund Receipt (GFR) Account Guide*

**Section I. Background**

**A.  Definition of a General Fund Receipt (GFR) Account**

The Government Accountability Office (GAO) defines a GFR Account as:  “A receipt account credited with all collections that are not earmarked by law for another account for a specific purpose.  These collections are presented in the President’s budget as either governmental (budget) receipts or offsetting receipts.  These include taxes, customs duties, and miscellaneous receipts.”**(Government Accountability Office, A Glossary of Terms Used in the Federal Budget Process, September 2005, GAO–05-734SP)

**B.  Purpose**

This document ***proposes*** accounting and reporting guidance for various collections classified in GFR accounts.  Guidance previously issued on this topic by the Bureau of the Fiscal Service (Fiscal Service), United States Standard General Ledger (USSGL) Division, addresses collections reported on the Statement of Custodial Activity (SCA).  This proposal incorporates the concepts presented in the previous guidance and also includes new guidance for those GFR accounts that are not reported on the SCA. 

Currently, GFR account activity is not consistently reported by the collecting entities of the Federal Government.  In some circumstances, the revenue for GFR accounts is not reported in agency financial statements, nor is it reported to the Department of Treasury for the compilation of the *Financial Report of the United States Government* (FR).  These reporting deficiencies are contributing to the existing out-of balance condition in the FR.

The following scenarios illustrate accounting transactions and reporting for specific types of collections.  The focus of this guidance is on the GFR account activity. Related transactions illustrated in the scenarios such as credit reform activities are covered in more detail in the other case studies.  Refer to those case studies for questions not specifically related to GFR activity. 

This guidance also illustrates how the GFR activities are reported on the specific financial statements and, if appropriate, certain Treasury reports such as the USSGl 2108: Year-End Closing Statement.  Also, there are seven new proposed USSGL accounts and three modified USSGL accounts included in this document.  Details are provided in Section II of this document. 

This guidance is intended to improve the quality of the financial data presented in agency financial statements and in the FR.  The USSGL Division welcomes any comments or suggestions. 

**C.  Overview: Federal Account Symbols (FAS), Treasury Account Symbols (TAS), and Collections**

The Federal Account Symbols and Titles (FAST) Book, published by Treasury, lists all (FAS) available for Federal agency use.  The FAS are divided into the following classifications:

· General fund receipt accounts and general fund expenditure accounts;

· Revolving fund expenditure accounts;

· Special fund receipt accounts and special fund expenditure accounts;

· Deposit fund expenditure accounts; And

· Trust fund receipt accounts and trust fund expenditure accounts.

A collection can be classified to any of the listed accounts.  To classify a receipt, append your agency’s two digit department code to the FAS.  This combination of department code and FAS creates TAS.   For example, collections for work performed in accordance with Economy Act can be deposited into any type of expenditure account.  On the other hand, National Park Service fees are designated by law to be deposited to a special fund receipt account.  Similarly, collections for the National Endowment for the Arts Gift Fund are designated by law to be deposited to a trust fund receipt account.  Amounts collected in the course of business by the U.S. Postal Service are, by law, deposited to a revolving fund.  Amounts not belonging to the Government are, by law, classified to deposit fund accounts.  As you can see, a specific law determines how the collections in the preceding examples are classified in a TAS.

Absent specific legislation, collections should be classified to a **General Fund Receipt TAS**.  Title 31, United States Code (USC) , chapter 33, section 3302(b) establishes this concept by stating:  “Except as provided in section 3718(b) of this title, an official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any charge or claim.”  Also, Title 31, USC, chapter 33, section 3302(e) states that “an official or agent of the Government having custody or possession of public money shall keep an accurate entry of each amount of public money received, transferred, and paid.”

D. **GFR Account Categories in the FAST Book**

The “Types of Collections and Relevant FASAB References” column was included in the table to assist users in providing background information.  The users should note that the types of collections and limited paragraph references listed on the chart are suggestions and they should not be solely relied upon.  Each entity should perform its own research to determine the appropriate category for its collection.  

**E.  GFR Account Reporting Responsibility**

Within each GFR account category listed in the FAST Book there are unique FAS to identify specific activity.  After selecting the proper TAS, the reporting entity should append its 2-digit department code to the beginning of the TAS for classifying the receipt to Treasury.  A collecting entity typically reports all GFR TAS beginning with its 2-digit agency department code within its entity financial statements.  

**F.  Identifying and Reporting Custodial Collections**

This guidance uses the word “custodial” as it relates to the Statement of Custodial Activity.  The Statement of Custodial Activity was intended for those entities whose primary mission is collecting taxes and other revenues, particularly sovereign revenues that are intended to finance the entire Government’s operations, or at least the programs of other entities, rather than their own activities.  Organizations that collect custodial revenues that are incidental to their primary mission do not need to report the collections and disposition of these revenues in a separate statement.  The disclosure of the sources and amounts of the collections and the amounts distributed to others could be disclosed in accompanying footnotes.  

*Nonexchange Revenue*

Entities that collect nonexchange revenue for the General Fund and other entities should not recognize the revenue as theirs, but instead they need to account and report for that revenue in accordance with provisions of Statement of Federal Financial Accounting Concept No. 2 above and Statement of Federal Financial Accounting Standard No. 7 (paragraphs 48-63).

*Exchange Revenue*

The collection of exchange revenue is generally reported on the Statement of Net Cost but under exceptional circumstances, an entity may recognize virtually no costs (either during the current period or during past periods) in connection with earning revenue that it collects.  In such cases:

45.1. The collecting entity should not offset its gross costs by such exchange revenue in determining its net cost of operations. If such exchange revenue is retained by the entity, it should be recognized as a financing source in determining the entity’s operating results. If, instead, such revenue is collected on behalf of other entities (including the U.S. Government as a whole), the entity that collects the revenue should account for that revenue as a custodial activity, i.e., an amount collected for others. 

45.2. If the collecting entity transfers the exchange revenue to other entities, similar recognition by other entities is appropriate.  

a. If the other entities to which the revenue is transferred also recognize virtually no costs in connection with the Government earning the revenue, the amounts transferred to them should not offset their gross cost in determining their net cost of operations but rather should be recognized as a financing source in determining their operating results. 

b. If the other entities to which the revenue is transferred do recognize costs in connection with the Government earning the revenue, the amounts transferred to them should offset their gross cost in determining their net cost of operations.

45.3. Because the revenue is exchange revenue regardless of whether related costs are recognized, it should be recognized and measured under the exchange revenue standards.

Agencies may request guidance from FASAB if determining the propriety of preparing a Statement of Custodial Activity or if a note disclosure for a given collection is an issue that cannot otherwise be resolved. 

**G. FLOWCHART - GFR COLLECTIONS TO COLLECTING AGENCY’S FINANCIAL STATEMENTS**

****

**H. Chart - Impact on Collecting Entity’s Financial Statements by Various Types of Collections**

**I.  USSGL Accounts Used in the GFR Account Guide**

The following USSGL accounts used in this Guide are from June 2007 TFM (TFM Release S2-07-02)

# IIA. Proposed New Accounts for GFR Activity

**Account Title**:Liability for Non-Entity Assets Not Reported on the Statement of Custodial Activity

**Account Number**:2985

**Normal Balance**:Credit

**Definition**:  The amount of non-entity assets held in a General Fund receipt account or other Treasury Account Symbol for transfer to other entities. This account excludes amounts defined in FASAB SFFAS No. 7, paragraphs 45 and 49. For amounts collected or to be collected on behalf of the General Fund of the Treasury, that are not reported on the Statement of Custodial Activity or in a custodial footnote, use FACTS I attribute domain values Federal “F” and transaction partner “99.” This USSGL account is included on the USSGL crosswalk for the Balance Sheet, but it is not included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote.

***Justification: This account is one of three USSGL accounts proposed to segregate the accounting for collections for others not reported on the Statement of Custodial Activity (SCA) or custodial footnote (CF) from those that are reported on the SCA or CF. The other two accounts are contra-revenue accounts to offset accrued revenue and collected revenue.***

**Account Title**:Nonbudgetary Financing Sources Transferred In

**Account Number**:5775

**Normal Balance**:Credit

**Definition**:  The amount of financing sources transferred in or to be transferred in to an account such as a General Fund receipt account or a clearing account. The transfer has no budgetary impact. This USSGL account is on the USSGL crosswalk for the Statement of Changes in Net Position, but it is not included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote.

***Justification: To record fund balance transferred in without affecting the budget.***

**Account Title**:Nonbudgetary Financing Sources Transferred Out

**Account Number**:5776

**Normal Balance**:Debit 

**Definition**:  The amount of financing sources transferred out or to be transferred out to an account such as a General Fund receipt account or a clearing account. The transfer has no budgetary impact. This USSGL account is on the USSGL crosswalk for the Statement of Changes in Net Position, but it is not included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote.

***Justification: To record fund balance transferred out without affecting the budget.***

**Account Title**:Adjustment to Financing Sources - Downward Reestimate

**Account Number**:5791

**Normal Balance:**Debit 

**Definition**:  The amount of adjustment to financing sources for a downward reestimate of subsidy expense. Record as a debit in the credit reform program account to offset the adjustment to subsidy expense and as a credit for an equal amount in the credit reform financing account to adjust the loan guarantee liability or direct loan allowance for subsidy. The original subsidy expense is recorded in the program fund therefore; both the program and financing funds are adjusted to reflect the downward reestimate of subsidy.  

***Justification: To record an adjustment of downward reestimate of subsidy expense and loan guarantee liability without affecting the fund balance and the budget balance.***

**Account Title**:Seigniorage

**Account Number**:5795

**Normal Balance**:Credit

**Definition**:  This amount represents the increase in the net position of the Federal Government for the face value of newly minted coins less the cost of production, which includes the cost of metal, manufacturing, and transportation. Seigniorage results from the sovereign power of the Government to directly create money and, although it is not an inflow of resources from the public, it does increase the Government’s net position in the same manner as an inflow of resources. It is not demanded, earned, or donated; therefore, it is recognized as a financing source rather than revenue. An example is coins delivered to a Federal Reserve Bank in return for deposits. The account is used only by the United States Mint.   

***Justification: To record seigniorage in a General Fund receipt account.***

**Account Title**:Offset to Non-Entity Collections - Statement of Changes in Net Position 

**Account Number**:5993

**Normal Balance:**Debit

**Definition**:  The offset to amounts collected for another entity. For amounts collected on behalf of the General Fund of the Treasury, use FACTS I attribute domain values Federal “F” and transaction partner “99.” For all other amounts, use the appropriate attribute domain value. This USSGL account is included on the USSGL crosswalk for the Statement of Changes in Net Position, but it is not included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote. 

***Justification: This account is one of three USSGL accounts proposed to segregate the accounting for collections for others not reported on the Statement of Custodial Activity (SCA) or custodial footnote (CF) from those that are reported on the SCA or CF. The other two accounts include a liability to offset the non-entity assets and a contra-revenue to offset the accrued revenue.***

**Account Title**:Offset to Non-Entity Accrued Collections - Statement of Changes in Net

Position 

**Account Number**:5994

**Normal Balance:**Debit

**Definition**:  The offset to amounts to be collected for another entity. For amounts to be collected on behalf of the General Fund of the Treasury, use FACTS I attribute domain values Federal “F” and transaction partner “99.” For all other amounts, use the appropriate attribute domain value. This USSGL account is included on the USSGL crosswalk for the Statement of Changes in Net Position, but it is not included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote. 

***Justification: This account is one of three USSGL accounts proposed to segregate the accounting for collections for others not reported on the Statement of Custodial Activity (SCA) or custodial footnote (CF) from those that are reported on the SCA or CF. The other two accounts include a liability to offset the non-entity assets and a contra-revenue to offset the collected revenue.***

**IIB. Proposed Changes to the Current USSGL Accounts for General Fund Receipt Activity**

**Account Title**:Custodial Liability

**Account Number**:2980

**Normal Balance**:Credit

**Definition**:  The amount of custodial revenue **(as defined by FASAB SFFAS No. 7, paragraphs 45 and 49)** yet to be transferred to another entity. **For amounts collected or to be collected on behalf of the General Fund of the Treasury use FACTS I attribute domain values Federal “F” and transaction partner “99.” For all other amounts, use the appropriate attribute domain value. This USSGL account is included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote.**

***Justification: To make the definition more specific so that the preparer will know that this account is used only for activity related to preparing the Statement of Custodial Activity or  a custodial footnote.***

**Current Account Title**:Collections for Others

**Proposed Account Title:Collections for Others - Statement of Custodial Activity**

**Account Number**:5990

**Normal Balance**:Debit

**Definition**:  ~~Amounts~~**Custodial revenue**collected by a reporting entity ~~on behalf of~~**for** another entity.  For amounts collected on behalf of the General Fund of the Treasury, use FACTS I attribute domain values Federal “F” and transaction partner “99.”  For all other amounts, use the appropriate FACTS I attribute domain values. **This USSGL account is included on the USSGL crosswalk for the Statement of Custodial Activity or in the custodial footnote.**

***Justification: To make the definition more specific so that the preparer will know that this account is used only for activity related to preparing the Statement of Custodial Activity or in the custodial footnote.***

**Current Account Title**:  Accrued Collections for Others 

**Proposed Account Title: Accrued Collections for Others – Statement of Custodial Activity**

**Account Number**: 5991

**Normal Balance**: Debit

**Definition**:  ~~Amounts~~**Custodial revenue**to be collected by a reporting entity ~~on behalf of~~**for** another entity. For amounts to be collected on behalf of the General Fund of the Treasury, use FACTS I attribute domain values Federal**“F” and transaction partner “99.”  For all other amounts, use the appropriate FACTS I attribute domain values. **This USSGL account is included on the USSGL crosswalk for Statement of Custodial Activity or in the custodial footnote.**

***Justification: To make the definition more specific so that the preparer will know that this account is used only for activity related to preparing the Statement of Custodial Activity or in the custodial footnote.***

**IIC.****USSGL Crosswalk for GFR Related Accounts - Current and Proposed**

Custodial Statement

Collections

*This scenario addresses collections of nonexchange tax revenue that are reported on the Statement of Custodial Activity.  Refer to SFFAS No. 7, paragraphs 49, 176, 245, 281, and 353, and SFFAC No. 2, Entity and Display.*

**Year 1 – 1st Quarter**

**GFR Account Preclosing Trial Balance**

**CONSOLIDATED BALANCE SHEET**

**As of 1st Quarter, December 31, Year 1**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)1,000

      6. Total intragovernmental

15. Total assets                                                                        1,000

**Liabilities:**

      Intragovernmental:

19. Other  (2980E)1,000   

28. Total liabilities                                                                 1,000

**Net Position:**

33.****Cumulative results of operations – other funds(3310B, 5800E, 5990E)0

34. Total net position0____

35. Total liabilities and net position1,000

**Year 1 – 4th Quarter**

**Year 1- Preclosing Trial Balance**

**Year 1 - Preclosing Adjusting Entry**

**Year 1 -  Preclosing Adjusted Trial Balance**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 1**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)0

      6. Total intragovernmental

Assets with Public

     10.  Taxes receivable, net (1325E, 1329E)1,800

15. Total assets                                                                        1,800

**Liabilities:**

      Intragovernmental:

19. Other (2980E)1,800   

27. Other                        0____      

28. Total liabilities                                                                 1,800

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5800E, 5801E, 5809E, 5990E, 5991E)0

34. Total net position0____

35. Total liabilities and net position1,800

# STATEMENT OF CUSTODIAL ACTIVITY

**For the Year ended September 30, Year 1**

Revenue Activity:

  Sources of Cash Collections:

1. Individual Income and FICA/SECA Taxes (5800E)7,000

  8. Total Cash Collections (CALC 1...7)7,000

  9. Accrual Adjustments (5801E, 5809E)1,800

10.  Total Custodial Revenue  (CALC 8+10)8,800

Disposition of Collections

  11. Transferred to Others (by Recipient) (5990E)7,000

  12. (Increase)/Decrease in Amounts Yet to be Transferred (5991E)1,800

  13. Refunds and Other Payments        0

  14.  Retained by the Reporting Entity        0

  15.  Net Custodial Activity (CALC +10-11-12-13-14)     0   

OMB Circular No. A-136, Financial Reporting Requirements, Section II.4.10.40 – Note 40 Custodial Revenues states:

“Organizations collecting immaterial custodial revenues that are incidental to their primary mission may disclose the sources and amounts of the collections and the amounts distributed to others in accompanying footnotes rather than on the face of the statement.”  Also, see SFFAC No. 2, Entity and Display, paragraph 103.

##### Note:  The Statement of Net Cost, Statement of Financing, Statement of Changes in Net Position, and the Budget Program and Financing Schedule are not applicable in this scenario.

**CLOSING ENTRIES:**

**Post-Closing Trial Balance**

*This scenario addresses collections of nonexchange fines and penalties revenue that are reported on the Statement of Custodial Activity.  Refer to SFFAS No. 7, paragraphs 2, 5, 30, 49, 54, 61, 173, 260, and 262, and SFFAC No. 2, Entity and Display.*

**Year 1 – 1st Quarter**

**GFR Account Preclosing Trial Balance**

**CONSOLIDATED BALANCE SHEET**

**As of 1st Quarter, December 31, Year 1**

**Assets:**

######       Intragovernmental:

      6. Total intragovernmental

    Asset with Public

    9.  Accounts Receivable (1360E)700    

15. Total assets                                                                        700

**Liabilities:**

      Intragovernmental:

19. Other (2980E)700   

28. Total liabilities                                                                 700

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5320E, 5991E)0

34. Total net position0____

35. Total liabilities and net position700

**Year 1 – 4th Quarter**

**Year 1- Preclosing Trial Balance**

**Year 1- Preclosing Adjusting Entry**

**Year 1- Preclosing Adjusted Trial Balance**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 1**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)0

      6. Total intragovernmental

Assets with Public

     9.  Accounts receivable, net (1360E, 1369E)0

15. Total assets                                                                        0

**Liabilities:**

      Intragovernmental:

19. Other (2980E)0   

27. Other                        0____      

28. Total liabilities                                                                 0

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5320E, 5329E, 5990E, 5991E)0

34. Total net position0____

35. Total liabilities and net position0

# STATEMENT OF CUSTODIAL ACTIVITY

**For the Year ended September 30, Year 1**

Revenue Activity:

  Sources of Cash Collections:

7. Miscellaneous  (5320E, 5329E)600

  8. Total Cash Collections (CALC 1..7)600

  9. Accrual Adjustments (1360E-B, 1369E-B)0__

10.  Total Custodial Revenue  (CALC 8+10)600

Disposition of Collections

  11. Transferred to Others (by Recipient) (5990E)600

  12. (Increase)/Decrease in Amounts Yet to be Transferred (5991E)0

  13. Refunds and Other Payments0

  14.  Retained by the Reporting Entity0__

  15.  Net Custodial Activity (CALC +10-11-12-13-14)     0   

OMB Circular No. A-136, Financial Reporting Requirements, Section II.4.10.40 – Note 40 Custodial Revenues states:

“Organizations collecting immaterial custodial revenues that are incidental to their primary mission may disclose the sources and amounts of the collections and the amounts distributed to others in accompanying footnotes rather than on the face of the statement.”  Also, see SFFAC No. 2, Entity and Display, paragraph 103.

##### Note:  The Statement of Net Cost, Statement of Financing, Statement of Changes in Net Position, and the Budget Program and Financing Schedule are not applicable in this scenario.

**Closing Entires:**

**Post-Closing Trial Balance**

**Non-Custodial Statement Collections for Others**

*There are entities that collect exchange revenue with related costs where the collections are not retained by the collecting entity.  In these cases, the entity should record the exchange revenue in its entity financial statements as usual. However, it should also reflect the disposition of the financing source on the Statement of Changes in Net Position.  The example we have used for exchange revenue with related costs is the passport fees collected by the State Department.  The State Department collects passport fees, which are not retained by the Department but are deposited directly to a General Fund receipt account.  The passport fee is retained by the Federal Government and is generally not refundable whether the passport is issued or not.*

**Year 1 – 1st Quarter**

**STATEMENT OF BUDGETARY RESOURCES**

**For the 1st Quarter ended December 31, Year 1**

## BUDGETARY RESOURCES 

  1.  Unobligated balance, brought forward, Oct 1,      0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

A1.   Appropriations (4119E)450

**7. Total Budgetary Resources 450**

## STATUS OF BUDGETARY RESOURCES

##### 8. Obligations incurred, direct (4902E)      100

9. Unobligated balance, currently available (4610E)350      

**11. Total Status of Budgetary Resources450**

## CHANGE IN OBLIGATED BALANCE

##### 12. Obligated balance, net, beginning of period 0

##### 13. Obligations incurred100

14. Less: Gross outlays100

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period 0

**NET OF OUTLAYS**

19. Outlays 

A. Gross outlays (4902E)100

D. Net outlays100

**CONSOLIDATED BALANCE SHEET**

**As of 1st Quarter, December 31, Year 1**

**Assets**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)470

      6. Total intragovernmental470

    15. Total assets                                                                        470

**Liabilities**

      Intragovernmental:

19. Other (2985E)120

28. Total liabilities                                                                 120

**Net Position:**

31.  Unexpended appropriation – other funds (3100B, 3101E, 3107E) 350

33.****Cumulative results of operations – other funds (3310B, 5200E, 5700E, 5993E, 6100E)    0

34. Total net position350

35. Total Liabilities and Net Position  470

**CONSOLIDATED STATEMENT OF NET COST**

**For the 1st Quarter ended December 31, Year 1**

**Program Costs:**

Program A:

     1.   Gross Costs (6100E)100

     3.  Net Program Costs                                               0

4.   Cost not assigned to programs                                                      0

5.   Less:  Earned revenues not attributed to programs (5200E)                     120   

6.   Net cost of operations                                                         (20)

**Year 1 – 4th Quarter**

**Year 1 – 4th Quarter Preclosing Trial Balance**

**Preclosing Adjusting entry**

**Year 1 – 4th Quarter Preclosing Adjusted Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the Year ended September 30, Year 1**

## BUDGETARY RESOURCES 

  1.  Unobligated balance, brought forward, Oct 1   0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

A1.   Appropriations (4119E)450

  4. Nonexpenditure transfers, net, anticipated and actual

**7. Total Budgetary Resources 450**

## STATUS OF BUDGETARY RESOURCES

##### 8. Obligations incurred, direct (4902E)      300

9. Unobligated balance, currently available (4610E)150      

10. Unobligated balance not available

**11. Total Status of Budgetary Resources450**

## CHANGE IN OBLIGATED BALANCE

##### 12. Obligated balance, net, beginning of period 0

13. Obligations incurred300

14. Less: Gross outlays300

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period  

**NET OF OUTLAYS**

19. Outlays 

A. Gross outlays (4902E)300

D. Net outlays300

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 1**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)150

      6. Total intragovernmental150

    15. Total Assets                                                                        150

**Liabilities:**

      Intragovernmental:

19. Other  (2985E)0

28. Total liabilities                                                        0

**Net Position:**

31.  Unexpended appropriation – other funds (3100B, 3101E, 3107E)    150

33.****Cumulative results of operations – other funds (3310B, 5200E, 5700E, 5993E, 6100E)       0

34. Total net position150

35. Total liabilities and net position   150

**CONSOLIDATED STATEMENT OF NET COST**

**For the Year ended September 30, Year 1**

**Program Costs:**

Program A:

    1.   Gross costs (6100E)300

    3.  Net program costs                                               0

4.   Cost not assigned to programs                                                           0

5.   Less:  Earned revenues not attributed to programs (5200E)              370

6.   Net cost of operations                                                         (70)

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the Year ended September 30, Year 1**

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the Year ended September 30, Year 1**

# COMBINED STATEMENT OF FINANCING

**For the year ended September 30, Year 1**

**Resources Used to Finance Activities**

**Budgetary Resources Obligated:**

1.   Obligations incurred (4801 E-B/ 4902 E / 4901 E-B)300

4.   Less: offsetting receipts (5900E)____ 

5.   Net obligations (1..4) 300

7.   Transferred in/out w/o reimbursement 

9.   Other (5993E, 5994E)(370)

10.  Net other resources used to finance activities (6 . .9)(370)

11. Total Resources Used to Finance Activities (5+10)  (70)

**Resources Used to Finance Items not Part of the Net Cost of Operations:**

15. Resources that finance the acquisition of assets     

16. Other resources or adjustments to net obligated

      resources net do not affect net cost of operations (5993E, 5994E)  (370)

17. Total resources used to finance items

not part of the net cost of operations (12..16)(370)

18. Total resources used to finance the 

net cost of operations (11-17)     300

**Components of the Net Cost of Operations That Will Not Require**

**Or Generate Resources in the Current Period:**

22.  Increases in exchange revenue receivable from the public0

27.  Other (5200)(370)~~~~

29.  Total Components of the net cost of operations 

that will not require or generate resources in the current period(370)

30.  Net cost of operations (18+29)  (70)

**Closing Entries:**

**Post-Closing Trial Balance**

*Canceled Appropriation*

*Agencies must close appropriation accounts available for obligation during a definite period on September 30th of the fifth fiscal year after the account's obligational availability ends. Cancel any remaining balances (whether obligated or unobligated) in the account. Collections received after an account has been closed are deposited in miscellaneous receipts account 3200, "Collection of Receivables from Canceled Accounts."  For detailed scenarios on canceled authority, see the “Accounting for Expired and Cancelled Authority for Other Than Special and Trust Funds Scenario, Year 6” under the approved scenarios on the USSGL Web site at **https://www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl_home.htm.***

**Beginning Trial Balance – Canceled Account**

**Year 6**

**Year 6 - Preclosing Adjusted Trial Balance**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 6**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)0

3.  Accounts receivable (1310E)120

      6. Total intragovernmental0

15. Total assets                                                                        120

**Liabilities:**

      Intragovernmental:

19. Other (2985E)120   

27. Other                        0__

28. Total liabilities                                                                 120

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5900E, 5994E)0

34. Total net position0

35. Total liabilities and net position 120

**CONSOLIDATED STATEMENT OF NET COST**

**For the year ended September 30, Year 6**

**Program Costs:**

Program A:

1.  Gross costs                                                    0

3.  Net program costs                                                      0

4.   Cost not assigned to programs                                                             0

5.   Less:  Earned revenues not attributed to programs

(5900E: Canceled account Dr 120, GFR account Cr 120)                         0 

6.   Net cost of operations                                                                    0

# CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION

**For the Year Ended September 30, Year 6**

# CPMBINED STATEMENT OF FINANCING

**For the year ended September 30, Year 6**

**Resources Used to Finance Activities**

**Budgetary Resources Obligated:**

1.   Obligations incurred (4801 E-B/ 4902 E / 4901 E-B)  0

3.   Obligations net of offsetting collections and recoveries (CALC 1-2)  0

5.   Net obligations (CALC 3-4) (0)

**Other Resources:**

9.   Other (5994E) (120)

10.  Net other resources used to finance activities CALC (6..9)(120)

***11. Total resources used to finance activities CALC (5+10)*** (120)

**Resources Used to Finance Items not Part of the Net Cost of Operations:**

16. Other resources or adjustments to net obligated resources that do not affect net cost of operations (5994E)(120)

***17. Total resources used to finance items not part of the net cost of operations CALC (12..16)***(120)

***18. Total resources used to finance the net cost of operations CALC (11-17)***0

**Components of the Net Cost of Operations that will not Require**

**or Generate Resources in the Current Period:**

24.  Total components of Net Cost of Operations that will require or generate resources in future periods CALC (19..23)******0******

**Components not Requiring or Generating Resources:**

27.  Other (5900)(0)

28. Total components of Net Cost of Operations that will not require or generate resources CALC (25..27) 0

29.  Total components of net cost of operations that will not require or generate resources in the current period CALC (24+28)0

30. Net cost of operations CALC (18+29)(0)

**STATEMENT OF BUDGETARY RESOURCES**

**For the year ended September 30, Year 6**

## BUDGETARY RESOURCES: 

  1.  Unobligated balance, brought forward, Oct 1,0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

A.   Appropriation 

D.  Spending authority from offsetting collection (4251E-B)0 

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available

  6. Permanently not available    0        

**7. Total Budgetary Resources 0**

## STATUS OF BUDGETARY RESOURCES:

##### 8. Obligations incurred, direct 

9. Unobligated balance      

10. Unobligated balance not available (4650)0

**11. Total Status of Budgetary Resources**

## CHANGE IN OBLIGATED BALANCE:

##### 12. Obligated balance, Net 

13. Obligations incurred

14. Less: Gross outlays

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period 0

**NET OF OUTLAYS:**

19. Outlays: 0

A. Gross outlays

D. Net outlays0

**BUDGET PROGRAM AND FINANCING**

**(P&F) Schedule Prior-Year Actual Column**

##### OBLIGATIONS BY PROGRAM ACTIVITY

###### 1000 Total new obligations0       

**BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION**

2140 Unobligated balance carried forward, start of year0 

2200 New budget authority (gross) (+) (CALC, sum 4000..6962)

2395 Total new obligations (-) (CALC, same as line 1000, w/ opposite sign)          

2440 Unobligated balance carried forward, end of year0     

##### NEW BUDGET AUTHORITY (GROSS), DETAIL

4000 Appropriation (+)  

4300 Appropriation (total) (CALC, sum of 4000-4200)

5800 Spending authority from offsetting collections (cash)

5890 Spending authority from offsetting collections (total) (CALC, sum 5800-5862)  

##### CHANGE IN OBLIGATED BALANCES

7240 Obligated balance, start of year (+)  

7310 Total new obligations (+) (CALC, same as line 1000)0 

7320 Total outlays (gross) (-)      

7440 Obligated balance, end of year (+)0          

**OUTLAYS (GROSS), DETAIL**

8690 Outlays from new discretionary authority (+)                 

*OFFSETS*

8840 Non-Federal sources 

8890 Total offsetting collections (cash)

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net) (+) (sum 2200 – (8800..8845), 8895, 8896)0  

9000 Outlays (net) (+) (sum (8690..8698) – (8800..8845))0 

**Closing Entries:**

**Year 6, Post-closing Trial Balance**

**Year 7 – 1st Quarter**

**Year 7 - Preclosing Trial Balance**

**CONSLIDATED BALANCE SHEET**

**As of 1st Quarter, December 30, Year 7**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)50

3.  Accounts receivable (1310E)70

      6. Total intragovernmental120

    15. Total assets                                                                        120

**Liabilities:**

      Intragovernmental:

19. Other (2985E)120   

27. Other                        0_

28. Total liabilities                                                                 120

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5993E, 5994E)0_

34. Total net position0

35. Total liabilities and net position 120

**CONSOLIDATED STATEMENT OF NET COST**

**For the 1st Quarter ended December 31, Year 7**

**Program Costs:**

Program A:

1.  Gross costs                                                    0

3.  Net program costs                                                      0

4.   Cost not assigned to programs                                                             0

5.   Less:  Earned revenues not attributed to programs                         0  

6.   Net cost of operations                                                                    0

**Year 7 – 4th Quarter**

**Year 7 - Preclosing Trial Balance**

**Year 7 -  Preclosing Adjusting Entry**

**Year 7 -****Preclosing Adjusted Trial Balance**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 7**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)0

      6. Total intragovernmental0

    15. Total assets                                                                        0

**Liabilities:**

      Intragovernmental:

19. Other  (2985E)0   

27. Other                        0

28. Total liabilities                                                                 0

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5993E, 5994E)0

34. Total net position0

35. Total liabilities and net position 0

**CONSOLIDATED STATEMENT OF NET COST**

**For the year ended September 30, Year 7**

**Program Costs:**

Program A:

1.  Gross costs                                                    0

3.  Net program costs                                                      0

4.   Cost not assigned to programs                                                             0

5.   Less:  Earned revenues not attributed to programs                         0 

6.   Net cost of operations                                                                      0

**Consolidated Statement of Changes in Net Position**

**For the Year Ended September 30, Year 7**

# COMBINED STATEMENT OF FINANCING

**For the year ended September 30, Year 7**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

5.   Net obligations (CALC 3-4) (0)

**Other Resources:**

7.   Transfers in/out without reimbursement (0)

9.    Other (5993E, 5994E)(0)

10.  Net other resources used to finance activities CALC (6..9)(0)

***11. Total resources used to finance activities CALC (5+10)*** (0)

**Resources Used to Finance Items not Part of the Net Cost of Operations:**

16. Other resources or adjustments to net obligated resources that do not affect net cost of operations (5993E, 5994E)(0)

***17. Total resources used to finance items not part of the net cost of operations CALC (12..16)***(0)

***18. Total resources used to finance the net cost of operations CALC (11-17)***0

**Components of the Net Cost of Operations that will not Require**

**or Generate Resources in the Current Period:**

24.  Total components of Net Cost of Operations that will require or generate resources in future periods CALC (19..23)******0******

**Components not Requiring or Generating Resources:**

27.  Other0

28. Total components of Net Cost of Operations that will not require or generate resources CALC (25..27) 0

29.  Total components of net cost of operations that will not require or generate resources in the current period CALC (24+28)0

30. Net Cost of Operations CALC (18+29)0

**Closing Entries:**

**Post-Closing Trial Balance**

*Disposition of Personal Property*

*Agencies can use the proceeds from the disposal of personal property to acquire a replacement property within a prescribed time limit (the year the property is disposed plus one subsequent year). If an acquisition of the replacement property does not occur within the prescribed time, the proceeds must be transferred to a GFR account.*

If agencies have authority from legislation to keep proceeds for more than the prescribed period, then this scenario may not be applicable. The purpose of this section is to show how sales proceeds are collected into a GFR account.  For more details on proceeds from disposition of personal property, refer to the “Disposition of Personal Property” guidance on the USSGL Web site**.**

**NOTE**: In reality proceeds are deposited directly into an agency’s budget clearing account F3845, “Proceeds of Sales, Personal Property,” when personal property is disposed.  However, for reporting purposes, the money will appear as if it’s coming into the program fund first and is then transferred to the budget clearing account.  The accounting entries are illustrated this way so that the asset (property) is properly removed from the program fund. 

Currently clearing accounts only record assets and liabilities.  But, in this case when the fund balance is “transferred out“ from a program fund to a clearing account the matching “transferred in” account will not be recorded in the General Fund receipt account until the clearing account disburses the fund balance in a subsequent year. For example, a program fund will record “transferred out” in one year but the matching “transferred in” will not be recorded in the General Fund receipt account until the following year. Therefore, the Issues Resolution Committee (IRC) decided that it would be cleaner to record a matching transferred in/out pair when the proceeds is transferred from program account to the clearing account and also when the fund balance is transferred from clearing account to the GFR account in the subsequent period.  This process will cause F3845 to have a net position, because the proceeds transferred in to the clearing account is generally not used or returned to the GFR account within the same accounting period.**Having a net position in a budget clearing account, F3845, is an exception, and should not be normal practice for most clearing accounts.**

**Beginning Trial Balance**

**Year 2 – 1st Quarter**

**Preclosing Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the 1st Quarter Ended December 31, Year 2**

**For Program Fund**

## Budgetary Resources:

  1.  Unobligated balance, brought forward, Oct. 1:0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

3A.  Appropriations 

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available pursuant to Public Law

  6. Permanently not available  ___

**7. Total Budgetary Resources 0__**

## Status of Budgetary Resources:

##### 8. Obligations incurred: 

##### 8A. Direct0          

9. Unobligated balance      

10. Unobligated balance not available___

**11. Total Status of Budgetary Resources**0__

## Change in Obligated Balance:

##### 12. Obligated balance, net 

13. Obligations incurred net

14. Less: Gross outlays

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period0

**Net Outlays:**

19. Net Outlays: 

19A. Gross outlays0

19C. Distributed offsetting receipts 

19D. Net outlays0

**CONSOLIDATED BALANCE SHEET**

**As of 1st Quarter, December 31, Year 2**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)300

6.  Total intragovernmental0

13. General property, plant, and equipment, net (1750E,1759E)        520

15. Total Assets                                                                        820

**Liabilities:**

      Intragovernmental

19. Other (2985E)300

28. Total liabilities                                                                 300

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5775E, 5776E, 5993E, 7110E, 7210E)520

34. Total net position520

35. Total liabilities and net position  820

**CONSOLIDATED STATEMENT OF NET COST**

**For the 1st Quarter Ended December 31, Year 2**

**Program Costs:**

Program A:

1.  Gross costs           0

3.  Net program costs           0

4.   Cost not assigned to programs                                                  0

5.   Less:  Earned revenues not attributed to programs (7110E)                      100 

6.   Net cost of operations                                                                (100)

**Year 2 – 4th Quarter**

**Year 2 - Preclosing Trial Balance**

**Year 2 -  Preclosing Adjusting Entry**

**Year 2 - Preclosing Adjusted Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the Year Ended September 30, Year 2**

**For Program Fund**

## Budgetary Resources:

  1.  Unobligated balance, brought forward, Oct. 1:0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

3A.  Appropriations  

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available pursuant to Public Law

  6. Permanently not available  ___

**7. Total Budgetary Resources 0__**

## Status of Budgetary Resources:

##### 8. Obligations incurred: 

##### 8A. Direct0          

9. Unobligated balance:      

10. Unobligated balance not available___

**11. Total Status of Budgetary Resources**0__

## Change in Obligated Balance:

##### 12. Obligated balance, net 

13. Obligations incurred net

14. Less: Gross outlays

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period0

**Net Outlays:**

19. Net Outlays: 

19A. Gross outlays0

19C. Distributed offsetting receipts 

19D. Net outlays0

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 2**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)0

6.  Total intragovernmental0

13. General property, plant, and equipment, net (1730E,1739E)        0

15. Total ASSETS                                                                        0

**Liabilities:**

      Intragovernmental

19. Other 0   

27. Other                         0

28. Total liabilities                                                                 0

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5775E, 5776E, 5993E, 7110E, 7210E)0

34. Total net position0

35. Total liabilities and net position                 0

**CONSOLIDATED STATEMENT OF NET COST**

**For the Year Ended September 30, Year 2**

**Program Costs:**

Program A:

1.  Gross costs (7210E)                                                 120

2.  Earned Revenue (7110E)        100

3.  Net program costs         20

4.   Cost not assigned to programs                                                  0

5.   Less:  Earned revenues not attributed to programs                          0   

6.   Net cost of operations                                                                   20

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the year ended September 30, Year 2**

# COMBINED STATEMENT OF FINANCING

**For the Year Ended September 30, Year 2**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

1.   Obligations incurred0

5.   Net obligations CALC (3-4)0

**Other Resources**

7.   Transfers in/out without reimbursement (5775E, 5776E)0 

9.   Other (5993E)(700)

10. Net other resources used to finance activities CALC (6..9)(700)

*11. Total resources used to finance activities CALC (5+10)**(700)*

**Resources Used to Finance Items not Part of the Net Cost of Operations**

12. Changes in budgetary resources obligated for goods, services and benefits ordered but not yet provided0

16. Other resources or adjustments to net obligated resources that do not affect net cost of operations (5775E, 5776E, 5993E)(700)

*17. Total resources used to finance items not part of the net cost of operations CALC (12..16)(7*00)**

*18.  Total resources used to finance the net cost of operations CALC (11-17)*0     

**Components of the Net Cost of Operations that will not Require or Generate Resources in the Current Period:**

**Components Requiring or Generating Resources in Future Periods:**

24.  Total components of Net Cost of Operations that will require or generate resources in future periods CALC (19..23)0

**Components not Requiring or Generating Resources:**

26.  Revaluation of assets or liabilities (7210, 7110)20

28. Total components of Net Cost of Operations that will not require or generate resources CALC (25..27)20

29. Total components of net cost of operations that will not require or generate resources in the current period CALC (24+28)20

30. Net Cost of Operations CALC (18+29)20 

**Closing Entries:**

**Year 2 - Post-Closing Trial Balance**

*The goal of this section is to record in a loan program the movement of excess subsidy from the financing fund to a General Fund receipt account.  The Credit Reform transactions illustrated in this scenario are limited. For detailed Credit Reform transactions, refer to the Credit Reform Case Studies at **www.USSGL.treas.gov/ussgl/creditreform.***

*Downward Reestimate of Subsidy*

*If more subsidy money was collected than is necessary to fund future net cash outflows, the financing fund must relinquish the excess subsidy amount.  The financing fund must transfer the excess subsidy amount, with interest, to a designated GFR account.*

**Year 1 – Quarter 1**

**Year 1 -  Preclosing Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the 1st Quarter Ended December 31, Year 1**

## Budgetary Resources: 

  1.  Unobligated balance, brought forward, Oct. 1:0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

3A1.   Appropriation (4115E)900

3D1.  Spending authority from offsetting collections (4271E)200 

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available pursuant to Public Law

  6. Permanently not available            

**7. Total Budgetary Resources 1,100**

## Status of Budgetary Resources:

##### 8. Obligations incurred:

##### 8A. Direct (4902E)                     350

9. Unobligated balance (currently available 4610E)750      

10. Unobligated balance not available_________

**11. Total status of budgetary resources**1,100

## Change in Obligated Balance:

##### 12. Obligated balance, net 0

13. Obligations incurred net (4902E)350

14. Less: Gross outlays (4902E)350

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period (4801E/4901E) 0

**NET OUTLAYS**

19.  Net Outlays: 

19A. Gross outlays (4902E)350

19D. Net outlays350

**CONSOLIDATED BALANCE SHEET**

**As of 1st Quarter December 31, Year 1**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)750

6. Total intragovernmental750

Assets with Public:

9.Accounts receivable, net0

11. Direct loan and loan guarantees, net (1340E,1350E, 1399E)150

15. Total assets                                                                        900

**Liabilities:**

Intragovernmental:

19. Other (2985E)10

Liabilities with Public:

22.  Loan guarantee liability (2180E)190

28.  Total Liabilities200   

**Net Position:**

31.  Unexpended appropriations – other funds (3100B, 3101E, 3107E)    700

33.****Cumulative results of operations – other funds (3310B, 5700E, 5775E, 5766E, 5791E

5994E, 6100E, 6199E, 6800E)  0

34. Total net position700

35. Total liabilities and net position900

**CONSOLIDATED STATEMENT OF NET COST**

**For the 1st Quarter Ended December 31, Year 1**

**Program costs:**

Program A:

1.  Gross costs (6100E, 6800E)                                                   190

3.  Net program costs                                           190

4.   Cost not assigned to programs                                                  0

5.   Less:  Earned revenues not attributed to programs              0__     

6.   Net cost of operations                                    190

**Year 1 – 4th Quarter, Yearend Reporting**

**Year 1 -  Preclosing Trial Balance**

**Year 1, Preclosing Adjusting Entry**

**Year 1 - Preclosing Adjusted Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the Year Ended, September 30, Year1**

## Budgetary Resources: 

  1.  Unobligated balance, brought forward, Oct. 1:0

  2.  Recoveries of prior-year unpaid obligations

  3.  Budget authority

3A.   Appropriation (4115E)900

3D.  Spending authority from offsetting collections (4271E)500 

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available pursuant to Public Law

  6. Permanently not available            

**7. Total Budgetary Resources 1,400**

## Status of Budgetary Resources:

##### 8. Obligations incurred:

##### 8A. Direct (4902E)                     870

9. Unobligated balance (currently available 4610E)530      

10. Unobligated balance not available_________

**11. Total status of budgetary resources**1,400

## Change in Obligated Balance:

##### 12. Obligated balance, net 0

13. Obligations incurred net870

14. Less: Gross outlays870

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period (4801E/4901E) 0

**NET OUTLAYS**

19.  Net Outlays: 

19A. Gross outlays (4902E)870

19D. Net outlays870

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 1**

**Assets:**

######       Intragovernmental:

1.  Fund balance with Treasury (1010E)530

6. Total intragovernmental530

Assets with Public:

9.Accounts receivable, net0

11. Direct loan and loan guarantees, net (1340E,1350E,1399E)400

15. Total assets                                                                        930

**Liabilities:**

Intragovernmental:

19. Other (2985E)90

Liabilities with Public:

22.  Loan guarantee liability (2180E)440

28.  Total Liabilities530

**Net Position:**

31.  Unexpended appropriations – other funds (3100B, 3101E, 3107E)    400

33.****Cumulative results of operations – other funds (3310B, 5700E, 5775E, 5766E, 5791E

5994E, 6100E, 6199E, 6800E)  0

34. Total net position400

35. Total liabilities and net position930

**USSGL 2108: YEAREND CLOSING STATEMENT**

**YEAR 1**

Program FundFinancing Fund

Column 5   (1010E)400130

Column 9   (4801E)

Column 11 (4610E)400130

Total-0-  - 0 -

**CONSOLIDATED STATEMENT OF NET COST**

**For the Year Ended September 30, Year 1**

**Program costs:**

Program A:

1.  Gross costs (6100E, 6800E)                                                   410

3.  Net program costs                                           410

4.   Cost not assigned to programs                                                  0

5.   Less:  Earned revenues not attributed to programs              0__     

6.   Net cost of operations                                    410

]**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the Year Ended September 30, Year  1**

# COMBINED STATEMENT OF FINANCING

**For the Year Ended September 30, Year 1**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

1.   Obligations incurred (4801 E-B/ 4902 E / 4901 E-B)870

2.   Less:  Spending authority from offsetting collections and recoveries (4271E)500

3.  Obligations net of offsetting collections and recoveries CALC (1-2)370

4.  Less: Offsetting receipts    0

5.  Net obligations (CALC 3-4)

370

**Other Resources**

7.  Transfers in/out without reimbursement (5775E, 5776E) (0)

9.  Other (5791E, 5994E)(90)

10.  Net other resources used to finance activities CALC (6..9)(90)

*11. Total resources used to finance activities CALC (5+10)280***

**Resources Used to Finance Items not Part of the Net Cost of Operations**

13. Resources that fund expenses recognized in prior periods (6800E)90 

14. Budgetary offsetting collections and receipts that do not affect net cost of operations

      14a. Credit program collections which increase liabilities for loan guarantees or allowances for subsidy (4271E)(500)

       14b. Other0

15. Resources that finance the acquisition of assets (4902E for FF)370   

16. Other resources or adjustments to net obligated resources that do not affect net cost of operations (5775E, 5776E, 5791E, 5994E)(90)

*17. Total resources used to finance items not part of the net cost of operations CALC (12..16)*(130)

*18.  Total resources used to finance the net cost of operations CALC (11-17)410*

**Components of the Net Cost of Operations that will not Require or Generate Resources in the Current Period:**

**Components Requiring or Generating Resources in Future Periods:**

24.  Total components of Net Cost of Operations that will require or generate resources in future periods CALC (19..23)0______

**Components not Requiring or Generating Resources:**

28. Total components of Net Cost of Operations that will not require or generate resources CALC (25..27)0______

29. Total components of net cost of operations that will not require or generate resources in the current period CALC (24+28)0______

30.  Net Cost of Operations  CALC (18+29)410      

**BUDGET PROGRAM AND FINANCING**

**(P&F) SCHEDULE PRIOR-YEAR ACTUAL COLUMN**

**For Year 1 Reporting**

##### Obligations by program activity:

###### 1000 Total new obligations (+) (4801E-B/4902E/4901E-B)      870

**Budgetary resources available for obligation:**

2140 Unobligated balance carried forward, start of year (4201B)0

2200 New budget authority (gross) (+) (sum 4000..6962)        1,400

2440 Unobligated balance carried forward, end of year0    

##### New budget authority (gross), detail:

4000 Appropriation (+) (4119E, 4115E)  900 

5800 Spending authority from Offsetting Collections (4271)500

##### Change in obligated balances:

7240 Obligated balance, start of year (+) 0

7310 Total new obligations (unexpired) (+) (same as line 1000)       870

7320 Total outlays (gross) (-) (unexpired and expired) (4902E) (870)

7440 Obligated balance, end of year (+) (4801E/4901E)      0    

##### Outlays (gross), detail (unexpired and expired):

8690 Outlays from new discretionary authority (+) (4902E)870               

**Offsets:**

8800 Federal sources (-4271E)(500)

8890 Total offsetting collections (cash)(500)

### Net budget authority and outlays:

8900 Budget authority (net) (+) (sum 2200 – (8800..8845), 8895, 8896) 500

9000 Outlays (net) (+) (sum (8690..8698) – (8800..8845)) 370

Note:  Assume this is a discretionary program.

**Closing Entries:**

**Year 1- Post-closing Trial Balance**

**Year 2 - Yearend**

**Year 2 - Preclosing Trial Balance**

**Year 2 - Preclosing Adjusting entry**

**Year 2 - Preclosing Adjusted Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the Year Ended September 30, Year 2**

## Budgetary Resources: 

  1.  Unobligated balance, brought forward, Oct. 1: (4201B)530

  2.  Recoveries of prior year unpaid obligations

  3.  Budget authority

3A. Appropriation (4119E)

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available pursuant to Public Law

  6. Permanently not available            

**7. Total Budgetary Resources**530___

## Status of Budgetary Resources:

##### 8. Obligations incurred

##### 8A. Direct (4902E)                    90

9. Unobligated balance (currently available 4610E)0

10. Unobligated Balance not available (4450E)440__

**11. Total status of budgetary resources**530___

## Change in Obligated Balance:

##### 12. Obligated BALANCE, NET 0

13. Obligations incurred net (4902E)90

14. Less: Gross outlays (4902E)90

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period0 

**Net Outlays:**

19. Net Outlays 

19A. Gross outlays (4902E)90

19D. Net outlays 90

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 2**

**Assets:**

######       Intragovernmental

1.  Fund balance with Treasury (1010E)440

6. Total Intragovernmental

Assets with Public

9.  Accounts receivable, net 

11. Direct loan and loan guarantees, net (1340E, 1350E, 1399E)400

15. Total assets                                                                        840

**Liabilities:**

  Intragovernmental

19. Other (2985E)    0

Liabilities with Public:

22.  Loan guarantee liability (2180E)440

27.  Other 0__

 28. Total liabilities440

**Net Position:**

31.  Unexpended appropriations – other funds (3100E)    400

33.****Cumulative results of operations – other funds (3310B, 5993E, 5994E, 6199E, 6800E)0

34.  Total net position0

35. Total liabilities and net position  840

**USSGL 2108: YEAREND CLOSING STATEMENT**

**YEAR 2**

**Program FundFinancing Fund**

### Column 5   (1010E)400 dr40

Column 9   (4801E)    0 cr

Column 11 (4450E, 4610E)400 cr40

Total         0  0

**CONSOLIDATED STATEMENT OF NET COST**

**For the Year Ended September 30, Year 2**

**Program Costs:**

Program A:

1.   Gross costs (6199E, 6800E)                                                  

3.   Net program costs                                           0

4.   Cost not assigned to programs                                                  0

5.   Less:  Earned revenues not attributed to programs              

6.   Net cost of operations                                        0

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the Year Ended September 30, Year 2**

# COMBINED STATEMENT OF FINANCING

**For the Year Ended September 30, Year 2**

**Resources Used to Finance Activities**

**Budgetary Resources Obligated:**

1.   Obligations incurred (4902 E)90

2.   Less:  Spending authority from offsetting collections and recoveries (4271E)0_

3.  Obligations net of offsetting collections and recoveries CALC (1-2)90

4.  Less: Offsetting receipts0_

5.  Net obligations (CALC 3-4)90

**Other Resources:**

7.  Transfers in/out without reimbursement 0

9.  Other (5993E, 5994E)0

10.  Net other resources used to finance activities CALC (6..9)0_

*11. Total resources used to finance activities CALC (5+10)*90

**Resources Used to Finance Items not Part of the Net Cost of Operations:**

16. Other resources or adjustments to net obligated resources that do not affect net cost of operations (5993E, 5994E)0

*17. Total resources used to finance items not part of the net cost of operations CALC (12..16)*0

*18.  Total resources used to finance the net cost of operations CALC (11-17)*90

**Components of the Net Cost of Operations that will not Require or Generate Resources in the Current Period:**

**Components Requiring or Generating Resources in Future Periods:**

21.  Upward/Downward reestimates of credit subsidy expense (6199E)(90)

24.  Total components of Net Cost of Operations that will require or generate resources in future periods CALC (19..23)(90)

**Components not Requiring or Generating Resources:**

25.  Depreciation and amortization          0

28. Total components of Net Cost of Operations that will not require or generate resources CALC (25..27)0

29. Total components of net cost of operations that will not require or generate resources in the current period CALC (24+28)(90)

30. Net Cost of Operations CALC (18+29)  0

**BUDGET PROGRAM AND FINANCING**

**(P&F) SCHEDULE PRIOR-YEAR ACTUAL COLUMN**

**For Year 2 Reporting**

##### Obligations by program activity:

###### 1000 Total new obligations (+) (4801E-B/4902E / 4901E-B)       90

**Budgetary resources available for obligation:**

2140 Unobligated balance carried forward, start of year (4201B) 530

2200 New budget authority (gross) (+) (sum 4000..6962)          0

2440 Unobligated balance carried forward, end of year (4450)440   

##### New budget authority (gross), detail:

4000 Appropriation (+) (4119E)0    

##### Change in obligated balances:

7240 Obligated balance, start of year (+) 0 

7310 Total new obligations (unexpired) (+) (same as line 1000)       90

7320 Total outlays (gross) (-) (unexpired and expired) (4902E)(90)       

7440 Obligated balance, end of year (+) (4801E/4901E)           0

##### Outlays (gross), detail (unexpired and expired):

8690 Outlays from new discretionary authority (+) (4902E)    90             

### Net budget authority and outlays:

8900 Budget authority (net) (+) (sum 2200 – (8800..8845), 8895, 8896)  0

9000 Outlays (net) (+) (sum (8690..8698) – (8800..8845))90  

Note:  Assume this is a discretionary program.

**Closing Entries:**

**Year 2, Post-Closing Trial Balance**

*SFFAS No. 7, paragraph 305. “Seigniorage.--Seigniorage is the face value of newly minted coins less the cost of production (which includes the cost of the metal, manufacturing, and transportation). It results from the sovereign power of the Government to directly create money and, although not an inflow of resources from the public, does increase the Government's net position in the same manner as an inflow of resources. Because it is not demanded, earned, or donated, it is an other financing source rather than revenue. It should be recognized as an other financing source when coins are delivered to the Federal Reserve Banks in return for deposits.”*

Beginning Balance

**Year 2 – 1st Quarter**

**1st Quarter - Preclosing Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the 1st Quarter Ended December 31, Year 2**

(Program fund) 

## Budgetary  Resources: 

  1.  Unobligated balance, brought forward, Oct 1 (4201B)   800

  2.  Recoveries of prior year unpaid obligations

  3.  Budget authority

3D.  Spending authority from offsetting collections (4266E)   700

3D3  Anticipated for rest of the year without advance (4060E)1,000

  4. Nonexpenditure transfers, net, anticipated and actual

  5. Temporarily not available pursuant to Public Law

  6. Permanently not available   

**7. Total Budgetary Resources 2,500**

## Status of Budgetary Resources:

##### 8. Obligations incurred

##### 8A. Direct (4801E-B/4902E/ 4901 E-B)                         700

9. Unobligated balance (4610E, 4590E)      1,800

10. Unobligated balance not available0

**11. Total Status of Budgetary Resources**2,500

## Change in Obligated Balance:

##### 12. Obligated balance, net 0

13. Obligations incurred, net (4902E)700

14. Less: Gross outlays (4902E)700

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period   0

**Net Outlays:**

19. Net Outlays: 

19A. Gross outlays (4902E)700

19B. Offsetting collections (4266)700

19C. Less: Distributed offsetting receipts0

19D. Net outlays0

**CONSOLIDATED BALANCE SHEET**

**As of December 31, Year 2**

**Assets:**

######       Intragovernmental

1.  Fund balance with Treasury (1010E)1,000

      6. Total intragovernmental1,000

15. Total assets                                                                       1,000

**Liabilities:**

      Intragovernmental:

19. Other (2985E)200

28. Total liabilities                                                                 200

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5100E, 5795E, 5993E, 6100E, 6500E, 6610E)800

34. Total net position800

35. Total liabilities and net position  1,000

**CONSOLIDATED STATEMENT OF NET COST**

**For the 1st Quarter ended December 31, Year 2**

**Program costs:**

Program A:

1. Gross costs (6100, 6500,6610)                                                   700

2.  Less: Earned revenue (5100)700

3.  Net program costs                                                     0

4.   Cost not assigned to programs  0

5.   Less:  Earned revenues not attributed to programs                   0    

6.   Net cost of operations 0

**Year 2 – 4th Quarter**

**Year 2 - Preclosing Trial Balance**

**Year 2 - Preclosing Adjusting Entry**

**Year 2 - Preclosing Adjusted Trial Balance**

**STATEMENT OF BUDGETARY RESOURCES**

**For the Year Ended September 30, Year 2**

(Program fund) 

## Budgetary  Resources: 

  1.  Unobligated balance, brought forward, Oct 1 (4201B)  800

  2.  Recoveries of prior year unpaid obligations

  3.  Budget authority

3D.  Spending authority from offsetting collections (4266E)1,500

**7. Total Budgetary Resources 2,300**

## Status of Budgetary Resources:

##### 8. Obligations incurred

##### 8A. Direct (4801E-B/4902E/ 4901 E-B)                       1,500

9. Unobligated balance (4610E)         800

10. Unobligated balance not available  0__

**11. Total Status of Budgetary Resources**2,300

## Change in Obligated Balance:

##### 12. Obligated balance, net 0

13. Obligations incurred, net (4902E)1,500

14. Less: Gross outlays (4902E)1,500

15. Obligated balance transferred, net

16. Less: Recoveries of prior year unpaid obligations, actual

17. Change in uncollected customer payments from Federal sources

18. Obligated balance, net, end of period   0

**Net Outlays:**

19. Net Outlays: 

19A. Gross outlays (4902E)1,500

19B. Offsetting receipts (4266E)1,500

19C. Less: Distributed offsetting receipts0___

19D. Net outlays0

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 2**

**Assets:**

######       Intragovernmental

1.  Fund balance with Treasury (1010E)800

      6. Total intragovernmental800

15. Total assets                                                                        800

**Liabilities:**

      Intragovernmental:

19. Other (2985E)    0

28. Total liabilities                                                                     0

**Net Position:**

33.****Cumulative results of operations – other funds (3310B, 5100E, 5795E, 5993E, 6100E, 6500E, 6610E)800

34. Total net position    0

35. Total liabilities and net position  800

**USSGL 2108: YEAREND CLOSING STATEMENT**

**YEAR  2**

**(Program Account)**

### Column 5   (1010E)800

Column 9   (4801E)

Column 11 (4450E, 4610E)                     800

Total                      0

**CONSOLIDATED STATEMENT OF NET COST**

**For the Year Ended September 30, Year 2**

**Program costs:**

Program A:

1. Gross costs (6100E, 6500E, 6610E)                                                   1,500

2.  Less: Earned revenue (5100E)1,500

3.  Net program costs                                                          0

4.   Cost not assigned to programs       0

5.   Less:  Earned revenues not attributed to programs                        0    

6.   Net cost of operations       0___

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

**For the Year Ended September 30, Year 2**

# COMBINED STATEMENT OF FINANCING

**For the Year Ended September 30, Year 2**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

1.   Obligations incurred (4902 E) 1,500

2.   Less: Spending authority from offsetting collections and recoveries (4266E)1,500

3.   Obligations net of offsetting collections and recoveries (CALC 1-2)0

4.   Less: Offsetting receipts0

5.   Net obligations (CALC 3-4) 0

**Other Resources:**

7.   Transfers in/out without reimbursement  0

9.   Other (5993E , 5795E)0

*11. Total resources used to finance activities (CALC 5+10)* 0

**Resources Used to Finance Items Not Part of the Net Cost of Operations:**

12. Change in budgetary resources obligated for goods, services, and benefits ordered but not yet provided (4801 E-B)0

15. Resources that finance the acquisition of assets (8803E)    300

16. Other resources or adjustments to net obligated resources that do not affect net cost of operations (5993E, 5795E)0

*17. Total resources used to finance items not part of the net cost of operations (CALC 12..16)*300  

*18. Total resources used to finance the net cost of operations (CALC 11-17)*    (300)

**Components of the Net Cost of Operations that will not Require**

**or Generate Resources in the Current Period:**

**Components Requiring or Generating Resources in Future Periods:**

19.  Increase in annual leave liability0

23.  Other 0

24.  Total components of Net Cost of Operations that will require or generate resources in future periods (CALC 19..23)0

**Components Not Requiring or Generating Resources:**

25.  Depreciation and amortization          0

27.  Other (6500E, 6610E)300_

28. Total components of the Net Cost of Operations that will not require or generate resources (CALC 25..27) 0

29.  Total components of the net cost of operations that will not require or generate resources in the current period (CALC 24+28)0

30.  Net Cost of Operations (CALC 18+29)      0          

##### BUDGET PROGRAM AND FINANCING

**(P&F) SCHEDULE PRIOR-YEAR ACTUAL COLUMN**

**For the Year Ended September 30, Year 2**

(Program Fund)

##### OBLIGATIONS BY PROGRAM ACTIVITY

###### 1000 Total new obligations (+) (4801E-B/4902E / 4901E-B)1,500       

**BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION**

2140 Unobligated balance carried forward, start of year (+4201B)800 

2200 New budget authority (gross) (+) (CALC, sum 4000..6962)

2395 Total new obligations (-) (CALC, same as line 1000, w/ opposite sign)(1,500)          

2440 Unobligated balance carried forward, end of year (+4450, +4610)800     

##### NEW BUDGET AUTHORITY (GROSS), DETAIL

4000 Appropriation (+) (4119E)0  

4300 Appropriation (total) (CALC, sum of 4000-4200)0

5800 Spending authority from offsetting collections (cash) (+4266E)1,500

5890 Spending authority from offsetting collections (total) (CALC, sum 5800-5862)1,500  

##### CHANGE IN OBLIGATED BALANCES

7240 Obligated balance, start of year (+)  

7310 Total new obligations (unexpired) (+) (CALC, same as line 1000)1,500        

7320 Total outlays (gross) (unexpired and expired) (-) (4902E)(1,500)      

7440 Obligated balance, end of year (+) (4801E/4901E)0           

##### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (+) (4902E)1,500                 

*OFFSETS*

8840 Offsetting collections from non-Federal sources (-4266E)(1,500)

8890 Total offsetting collections (cash)(1,500)

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net) (+) (sum 2200 – (8800..8845), 8895, 8896)  

9000 Outlays (net) (+) (sum (8690..8698) – (8800..8845))(1,500)

**Closing Entries:**

**Post - Closing Trial Balance**

**Appendix A**

**Miscellaneous Receipt Law**

Subtitle III, Chapter 33, Subchapter I, Section 3302

**(a)** Except as provided by another law, an official or agent of the United States Government having custody or possession of public money shall keep the money safe without— 

**(1)** lending the money; 

**(2)** using the money; 

**(3)** depositing the money in a bank; and 

**(4)** exchanging the money for other amounts. 

**(b)** Except as provided in section 3718(b)[1] of this title, an official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any charge or claim. 

**(c)**

**(1)** A person having custody or possession of public money, including a disbursing official having public money not for current expenditure, shall deposit the money without delay in the Treasury or with a depositary designated by the Secretary of the Treasury under law. Except as provided in paragraph (2), money required to be deposited pursuant to this subsection shall be deposited not later than the third day after the custodian receives the money. The Secretary or a depositary receiving a deposit shall issue duplicate receipts for the money deposited. The original receipt is for the Secretary and the duplicate is for the custodian. 

**(2)** The Secretary of the Treasury may by regulation prescribe that a person having custody or possession of money required by this subsection to be deposited shall deposit such money during a period of time that is greater or lesser than the period of time specified by the second sentence of paragraph (1). 

**(d)** An official or agent not complying with subsection (b) of this section may be removed from office. The official or agent may be required to forfeit to the Government any part of the money held by the official or agent and to which the official or agent may be entitled. 

**(e)** An official or agent of the Government having custody or possession of public money shall keep an accurate entry of each amount of public money received, transferred, and paid. 

**(f)** When authorized by the Secretary, an official or agent of the Government having custody or possession of public money, or performing other fiscal agent services, may be allowed necessary expenses to collect, keep, transfer, and pay out public money and to perform those services. However, money appropriated for those expenses may not be used to employ or pay officers and employees of the Government. 

**Appendix B**

**Relevant Citations from the Federal Accounting Standards Advisory Board (FASAB) Standards and Other Sources**

***Accounting for Revenue and Other Financing Sources, SFFAS No. 7***

Accounting standards:

2. Revenue is an inflow of resources that the Government demands, earns, or receives by donation. Revenue comes from two sources: exchange transactions and nonexchange transactions. Exchange revenues arise when a Government entity provides goods and services to the public or to another Government entity for a price. Another term for "exchange revenue" is "earned revenue." Nonexchange revenues arise primarily from exercise of the Government's power to demand payments from the public (e.g., taxes, duties, fines, and penalties) but also include donations. The term "revenue" does not encompass all financing sources of Government reporting entities, such as most of the appropriations they receive. These other sources of financing do, however, provide resource inflows to Government reporting entities, so this Statement includes accounting standards for them.

5. Nonexchange revenues include income taxes, excise taxes, duties, fines, penalties, and other inflows of resources arising from the Government's power to demand payments, as well as voluntary donations. Nonexchange revenue is recognized when a reporting entity establishes a specifically identifiable, legally enforceable claim to cash or other assets. It is recognized to the extent that the collection is probable (i.e., more likely than not) and the amount is measurable (i.e., reasonably estimable)

18. The concept of matching costs and revenue has little relevance in government except where there is an exchange transaction. An exchange transaction occurs when one party sacrifices value and receives a valuable good or service in return. The operations of an entity engaged in exchange transactions produce the revenue earned as well as the associated cost incurred. Therefore, financial accounting should relate the revenue to the cost for these transactions. The net effect--the gross cost minus the revenue, or the net cost--generally determines the extent to which taxpayers bear the cost of the operations.

30. These standards determine how a Government reporting entity should account for inflows of resources from revenue and other financing sources in its general purpose financial reports. Revenue is an inflow of resources that the Government demands, earns, or receives by donation. Revenue comes from two sources: exchange transactions and nonexchange transactions. Exchange revenues arise when a Government entity provides goods and services to the public or to another Government entity for a price. Another term for "exchange revenue" is "earned revenue." Nonexchange revenues arise primarily from exercise of the Government’s power to demand payments from the public, such as taxes, duties, fines, and penalties. Nonexchange revenue also includes donations.

43. Exchange revenue should be recognized in determining the net cost of operations of the reporting entity during the period. The exchange revenue should be recognized regardless of whether the entity retains the revenue for its own use or transfers it to other entities. Gross and net cost should be calculated as appropriate to determine the costs of outputs and the total net cost of operations of the reporting entity. The components of the net cost calculation should separately include the gross cost of providing goods or services that earned exchange revenue, less the exchange revenue earned, and the resulting difference. The components of net cost should also include separately the gross cost of providing goods, services, benefit payments, or grants that did not earn exchange revenue.

45. Under exceptional circumstances, [. . .], an entity recognizes virtually no costs (either during the current period or during past periods) in connection with earning revenue that it collects.

45.1. The collecting entity should not offset its gross costs by such exchange revenue in determining its net cost of operations. If such exchange revenue is retained by the entity, it should be recognized as a financing source in determining the entity’s operating results. If, instead, such revenue is collected on behalf of other entities (including the U.S. Government as a whole), the entity that collects the revenue should account for that revenue as a custodial activity, i.e., an amount collected for others.

48. Nonexchange revenues are inflows of resources that the Government demands or receives by donation. Such revenue should be recognized when a specifically identifiable, legally enforceable claim to resources arises, to the extent that collection is probable (more likely than not) and the amount is reasonably estimable. Nonexchange revenue should be **measured**by the collecting entities, but should be **recognized**by the entities legally entitled to the revenue (the recipient entities). Paragraphs 49 through 63 describe the application of this general standard.

49. **Revenue measured by the collecting entities.**

Taxes and duties also should be measured on the cash basis, and the cash basis amount(s) should be shown in conjunction with the accrual amounts recognized. The source and disposition of revenue from taxes, duties (which are a type of tax), and related fines, penalties and interest should be measured by the collecting entities in a manner that enables reporting of (1) cash collections, refunds, and the "accrual adjustment" necessary to determine the total revenue and (2) cash or cash equivalents transferred to each of the recipient entities and the revenue amounts to be recognized by each of them. The collecting entities function in a custodial capacity with respect to revenue transferred or transferable to the recipient entities. The collecting entities should not recognize such revenue, but should account for and report upon the above mentioned custodial activities. The entities that collect taxes and duties may change the general standard (para. 48) to accrue amounts now required to be presented as supplementary information paragraphs 67.1 and 67.2) and make other changes that would result in a fuller and more complete application of accrual accounting.

70. Financing sources, other than exchange and nonexchange revenues, that provide inflows of resources that increase results of operations during the reporting period include appropriations used, transfers of assets from other Government entities, and financing imputed with respect to any cost subsidies.8 Financing outflows may result from transfers of the reporting entity’s assets to other Government entities or from exchange revenues earned by the entity but required to be transferred to the General Fund or another Government entity. Unexpended appropriations are recognized separately in determining net position but are not financing sources until used.

Basis of Conclusion:

137. As a general rule, exchange revenue transferred to others must be offset against the collecting entity's gross cost to determine its net cost of operations. Exchange revenue reduces the net cost of operations incurred by the entity in producing outputs, regardless of whether the entity keeps the exchange revenue for its own use or transfers it to another operating entity or the General Fund. Likewise, exchange revenue reduces the net cost of the entity’s operations to the taxpayer regardless of its disposition. Therefore, all exchange revenue related to the cost of operations must be deducted from gross cost to determine the net cost of operations for the entity.

138. Any exchange revenue that is transferred to others, however, does not affect the collecting entity's net position. Therefore, as required by the standards for other financing sources, such exchange revenue is recognized as a transfer-out in calculating the entity's operating results.

176. Collecting entities, e.g., the Internal Revenue Service and the Customs Service, collect cash and administer the assessment processes that provide the basis for adjusting those collections to an accrual basis. They, therefore, have measurement and reporting responsibilities for these inflows of resources. They also, at the direction of the Treasury Department, account for the disposition of these inflows to recipient entities. The Treasury determines the amounts payable to the recipient entities and, in conjunction with the collecting entities, makes the actual cash payments, or issues special Treasury securities, as necessary, to fund the amounts transferred. Because the recipient entities are designated by law to receive the inflows and make ultimate disposition of the funds, they, rather than the collecting entities, must recognize the inflows as revenues in order to provide financial statements which are meaningful to users.

245. Tax receipts are generally collected from the public by the IRS (Internal Revenue Service) and, to a lesser extent, by the Customs Service and other entities acting as agents for the recipient entities rather than on their own behalf. The collecting entity receives the cash and then transfers it to the General Fund, trust fund, or special fund on whose behalf it was collected. The amount so collected should be accounted for as a custodial activity by the collecting entity. The tax is recognized as nonexchange revenue by the entity that is legally entitled to the amount. This would be a trust fund or special fund in the case of an earmarked (i.e., dedicated) tax. If collected on behalf of the Government as a whole, it would be recognized in the Government-wide consolidated financial statements. 

281. xe "Interest on delinquent taxes and other receivables that arise "PRIVATE Interest on delinquent taxes and other receivables that arise as the result of custodial operationstc  \l 4 "Interest on delinquent taxes and other receivables that arise as the result of custodial operations".--Receivables that arise as the result of custodial operations are custodial (or non-entity) assets, held by the IRS or another entity as an agent for the Government as a whole rather than on its own behalf (e.g., IRS tax receivables on which the delinquent taxpayer must pay interest). The interest is exchange revenue, because each party receives and sacrifices something of value, but it is not related to the costs incurred by the collecting entity. The interest is accounted for as a custodial activity by the collecting entity. If transferred to the General Fund, the interest is recognized as exchange revenue in the Government-wide consolidated financial statements because it is related to the government's cost of borrowing; if transferred to another entity, it is recognized as nonexchange revenue by the entity that receives the transfer.

305. xe "Seigniorage"PRIVATE Seignioragetc  \l 4 "Seigniorage".--Seigniorage is the face value of newly minted coins less the cost of production (which includes the cost of the metal, manufacturing, and transportation). It results from the sovereign power of the Government to directly create money and, although not an inflow of resources from the public, does increase the Government's net position in the same manner as an inflow of resources. Because it is not demanded, earned, or donated, it is other financing source rather than revenue. It should be recognized as an other financing source when coins are delivered to the Federal Reserve Banks in return for deposits.

353. xe "Disposition of revenue to other entities\: custodial transfers"PRIVATE Disposition of revenue to other entities: custodial transferstc  \l 4 "Disposition of revenue to other entities\: custodial transfers".--Revenue, primarily nonexchange revenue, may be collected by an entity acting on behalf of the General Fund or another entity within the Government on whose behalf it was collected. The collecting entity accounts for the disposition of revenue as part of its custodial activity. These custodial transfers, by definition, do not affect the collecting entity’s net cost of operations or operating results, nor are they part of the reconciliation between its obligations and net cost of operations. (The receiving entity recognizes the revenue as nonexchange or exchange revenue, depending on its nature, according to the applicable revenue standards.)

***Revenue Implementation Guide dated June 1996, paragraph 57****.*

The collection of exchange revenue is not a custodial activity, as a general rule, because exchange revenue should be deducted from gross cost in the Statement of Net Cost for the purpose of determining the net cost of operations.  SFFAS no. 7 requires this accounting for exchange revenue regardless of whether the entity retains the exchange revenue for its own use or transfers it to others. 

***Selected Assets and Liabilities Standard, SFFAS No. 1***

Recommended Standards:

25.   ENTITY ASSETS are those assets which the reporting entity has authority to use in its operations. "Non-Entity assets" are those assets that are held by an entity but are not available to the entity. An example of non-entity assets are customs duty receivables that the Customs Service collects for the U.S. government but has no authority to spend. A similar example is federal income tax receivable that the Internal Revenue Service collects for the U.S. government.

26.  Both entity assets and non-entity assets under an entity's custody or management should be reported in the entity's financial statements. Non-Entity assets reported in an entity's financial statements should be segregated from entity assets. An amount equal to non-entity assets should be recognized as a liability (due to Treasury or other entities) in the entity's financial statements.  

29.  NON-ENTITY CASH - Non-Entity cash is cash that a federal entity collects and holds on behalf of the U.S. government or other entities. In some circumstances, the entity deposits cash in its accounts in a fiduciary capacity for the U.S. Treasury or other entities. Non-Entity cash should be reported separately from entity cash. 

43.  ENTITY VS. NON-ENTITY RECEIVABLES - Receivables should be distinguished between entity receivables and non-entity receivables. "Entity receivables" are amounts that a federal entity claims for payment from other federal or nonfederal entities and that the federal entity is authorized by law to include in its obligational authority or to offset its expenditures and liabilities upon collection. [Footnote 4] Non-Entity receivables are amounts that the entity collects on behalf of the U.S. government or other entities, and the entity is not authorized to spend.

***Entity and Display SFFAC No. 2,***

101 “A separate statement of custodial activities would be appropriate for those entities whose primary mission is collecting taxes or other revenues, particularly sovereign revenues that are intended to finance the entire Government's operations, or at least the programs of other entities, rather than their own activities. The revenues should be characterized by those agencies as custodial revenues. The statement should display the sources and amounts of the collections of custodial revenues, any increases or decreases in amounts collectible but not collected, the disposition of the collections through transfers to other entities, the amounts retained by the collecting entity, and any increase or decrease in the amounts to be transferred.” 

103 “Organizations that collect custodial revenues that are incidental to their primary mission do not need to report the collections and disposition of these revenues in a separate statement. The disclosure of the sources and amounts of the collections and the amounts distributed to others could be disclosed in accompanying footnotes.”

***Accounting for Fiduciary Activities.  SFFAS No. 31_,***

35. This standard also amends paragraphs 84 and 102 of SFFAC 2, *Entity and Display*, as follows:

 [102] Custodial collections do not include deposit funds, i.e., amounts held temporarily by the government (e.g., bidders’ earnest money or guarantees for performance) or amounts held by the Government as an agent for others, (e.g., state income taxes withheld from Federal employees’ salaries that are to be transferred to the states.)**.**~~Both of t~~**T**hese types of collections ~~can be considered assets and liabilities until they are returned to the depositor or forwarded to the organization entitled to the funds~~**should be reported in accordance with the provisions of SFFAS 31, *Accounting for Fiduciary Activities***.

***OMB Circular No. A-136, Financial Reporting Requirements***

Section 8 Statement of Custodial Activity

8.1 General 

The Statement of Custodial Activity is required for entities that collect nonexchange revenue for the General Fund of the Treasury, a trust fund, or other recipient entities. In addition, the Statement of Custodial Activity is required for selected exchange revenues specified in SFFAS 7, including oil and gas revenues. The collecting entities do not recognize as revenue those collections that have been or should be transferred to others as revenues. Rather, they shall account for sources and disposition of the collections as custodial activities on the Statement of Custodial Activity. 

An exception to requiring preparation of the Statement of Custodial Activity is made when collecting entities have custodial collections that are immaterial and incidental to their primary mission. In these cases, the sources and disposition of the collections may be disclosed in accompanying footnotes.

No

Yes

Yes

No

No

Custodial Revenue

Yes

No

Yes

Yes

Does the collecting agency have costs related to generating the revenue?

Is the custodial

revenue material?

Agency Revenue

Statement of Changes in Net Position

Balance Sheet

Not Revenue

Balance Sheet

Footnote Disclosure

Statement of Custodial Activity

Balance Sheet

Statement of Net 

Cost

Statement of Changes in Net Position

Is the GFR collection revenue?

Is the GFR collection exchange revenue?

Balance Sheet

Scenarios:

5- Proceeds from disposition of assets (Transferred-In)

6-Downward reestimate (Transferred-In)

7-Seigniorage

Scenarios:

3 – Exchange Revenue

4 – Receivables from Canceled Authority

Scenarios:

1 & 2 – Non-exchange Revenue

Custodial Revenue

� See FAS 2467–Reimbursement by Postal Service for Unemployment Benefits,  and FAS 2480—Tariff Filing Fees, Department of Transportation

� See SFFAC No. 2, paragraph 101.

� SFFAC No. 2, paragraph 103.

� See SFFAS No. 7, paragraph 45.

� Contact FASAB for guidance on classifying these types of collections. 

� Although USSGL account 1010 is deposited in the General Fund of the Treasury, the collecting agency still has to carry the balances of USSGL accounts 1010 and 2985 on its quarterly Balance Sheet.  Treasury’s STAR system does not sweep USSGL account 1010 until the year end. The agency should make a note of this as a reconciling item.  

� Nonexchange revenue collected from outside of the government for the benefit of the General Fund of the Treasury is recorded as “N” revenue.  The “N” designates the source of the revenue.  Once the funds become part of the General Fund of the Treasury (see Proposed Treasury Central General Ledger column), the source is no longer relevant and all dispositions and offsets are considered “F”.

� Nonexchange revenue collected from outside of the Government for the benefit of the General Fund of the Treasury is recorded as “N” revenue.  The “N” designates the source of the revenue.  Once the funds become part of the General Fund of the Treasury (see Proposed Treasury Central General Ledger column), the source is no longer relevant and all dispositions and offsets are considered “F”. 

� There will be a timing difference between when agencies record this adjusting entry and  when Treasury sweeps the fund balance in the GFR account at the end of a fiscal year.

� There will be a timing difference between when agencies record this adjusting entry and  when Treasury sweeps the fund balance in the GFR account at the end of a fiscal year.

� Although USSGL account 1010 is deposited in the General Fund of the Treasury, the collecting agency still has to carry the balances of USSGL account 1010 and 2985 on its quarterly Balance Sheet.  Treasury’s STAR system does not sweep USSGL account 1010 until the yearend. The agency should make a note of this as a reconciling item.  

� There will be a timing difference between when this adjusting entry is made by the agencies and when Treasury sweeps fund balance in the GFR account at the end of a fiscal year.

� Add to line 27, Statement of Financing for exchange revenue collected in the general fund receipt account that is not reported as a distributed offsetting receipt.

� Note the entries for recording a canceled receivable is considered an adjusting entry.

� Add to line 27 of the Statement of Financing, exchange revenue collected in the General Fund receipt account that is not reported as a distributed offsetting receipt.

� Although USSGL account 1010 is deposited in the General Fund of the Treasury, the collecting agency still has to carry the balances of USSGL account 1010 and 2985 on its quarterly Balance Sheet.  Treasury’s STAR system does not sweep USSGL account 1010 until the yearend. The agency should make a note of this as a reconciling item.

� There will be a timing difference between when this adjusting entry is made by the agencies and when Treasury sweeps fund balance in the GFR account at the end of a fiscal year.

� See GAO Title VII, Chapter 5, pgs 7.5-8.  If the sales proceeds are received before an obligation for replacement property has been incurred, but an administrative determination has been made and documented that such proceeds will be used as an appropriation reimbursement to apply against an obligation which will be incurred within the prescribed time limit, the proceeds should be credited to the appropriate budget clearing account.  If the sales proceeds are not available for obligation or are not to be applied to replacement purchases, the proceeds will be deposited in the Treasury as miscellaneous receipts of the General Fund.

See CFR 41, Chapter 101, Section 101-46.304, (a) For a sale of property before the purchase of replacement property, (1) the proceeds of such sales will be credited to the agency’s account 2) The proceeds of such sales will be available for obligation for the acquisition of similar replacement items of personal property during the fiscal year in which the sale is made and for one fiscal year thereafter. 3) Proceeds of sales related to personal property for which an obligation for replacement has not been incurred during the period of availability following the date of sale, or sales proceeds, which for other reasons an agency elects not to apply to replacement costs, shall be deposited to miscellaneous receipts account.  4) If it is determined at the time of collection that sales proceeds will not be applied to replacement acquisitions, the deposit should be made directly to the miscellaneous receipts account.  (b) For the sale of property after the purchase of replacement property, the proceeds may be deposited as a direct reimbursement credit to the appropriation previously charged for the replacement of similar items of personal property.

� Partner code FXX for USSGL accounts 5775 and 5776 in this scenario should be the collecting agency’s 2-digit agency code. 

� Although USSGL account 1010 is deposited in the General Fund of the Treasury, the collecting agency still has to carry the balances of USSGL account 1010 and 2985 on its quarterly Balance Sheet.  Treasury’s STAR system does not sweep USSGL account 1010 until the yearend. The agency should make a note of this as a reconciling item.

� Partner code FXX for USSGL accounts 5775 and 5776 in this scenario should be the collecting agency’s 2-digit agency code. 

� There will be a timing difference between when this adjusting entry is made by the agencies and when Treasury sweeps fund balance in the GFR account at the end of a fiscal year.

� The new adjustment to financing account was created to adjust the expense and loan guarantee liability for downward reestimate of subsidy expense without impacting the fund balance and the budget balance.  The transfer pair was considered but it was not used since no actual transfer of fund balance was taking place between the funds.  The fund balance remained in the financing fund.  Some of the transactions illustrated in this scenario will impact credit reform case studies and as a result some changes to the credit reform case studies will be made.  

� Partner code FXX for USSGL accounts 5775 and 5776 in this scenario should be the collecting agency’s 2-digit agency code. 

� The new adjustment to financing account was created to adjust the expense and loan guarantee liability for downward reestimate of subsidy expense without impacting the fund balance and the budget balance.  The transfer pair was considered but it was not used since no actual transfer of fund balance was taking place between the funds.  The fund balance remained in the financing fund.  Some of the transactions illustrated in this scenario will impact credit reform case studies and as a result some changes to the credit reform case studies will be made.  

� Partner code FXX for USSGL accounts 5775 and 5776 in this scenario should be the collecting agency’s 2-digit agency code. 

� There will be a timing difference between when this adjusting entry is made by the agencies and when Treasury sweeps fund balance in the GFR account at the end of a fiscal year.

� U.S. Mint Public Enterprise Fund

� Although USSGL account 1010 is deposited in the General Fund of the Treasury, the collecting agency still has to carry the balances of USSGL account 1010 and 2985 on its quarterly Balance Sheet.  Treasury’s STAR system does not sweep USSGL account 1010 until the yearend. The agency should make a note of this as a reconciling item.

� Both Seigniorage –20 0610 and 20X4159 are not classified as distributed receipts in the FAST Book.

� United States Mint Public Enterprise Fund

� There will be a timing difference between when this adjusting entry is made by the agencies and when Treasury sweeps fund balance in the GFR account at the end of a fiscal year.

� Both Seigniorage –20  0610 and 20x4159 are not classified as distributed receipts in the FAST Book.

� See OMB Circular No. A-11, “Basic Budget Laws, What laws govern the budget execution process when funds are actually spent.”

� Basis of conclusion is not an authoritative guidance.

� On April 2002, FASAB published “Implementation Guide to Statement of Financing in Statement of Federal Financial Accounting Standards 7,  

Accounting for Revenue and Other Financing Sources: Detailed Information on the Statement of Financing”

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