***Spending Authority from Offsetting Collections***

***Applied to Liquidate a Deficiency***

***Scenario***

****

****

***Spending authority from offsetting collections applied to liquidate a deficiency****occurs when spending authority from offsetting collections is made available to liquidate obligations in excess of budgetary resources.  The spending authority from offsetting collections would be derived from other income earned and collection to date during the current fiscal year and would exclude reimbursable activity and unfilled customer orders.   Include the amount to liquidate the deficiency on line 3A1 of the Report on Budget Execution and Budgetary Resources (SF 133) and the Statement of Budgetary Resources (SBR).  This should cover the deficiency (reflected as a negative unobligated balance carried forward on line 2A of the SF 133 and SBR).  Normally, there are no excess amounts because it is requested after the deficiency is known.*

***At year-end, it was determined that a deficiency of $1,000 existed.  The SF 133/SBR and the Budget Program and Financing Schedule at year-end are as follows:***

**SF133:  REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/**

**SBR:  STATEMENT OF BUDGETARY RESOURCES**

**(YEAR-END)**

# YEAR 1

## BUDGETARY RESOURCES 

1. Budget authority

A. Appropriations received (4119E)2,000

7. **Total budgetary resources**2,000

## STATUS OF BUDGETARY RESOURCES

8. Obligations incurred:

A. Direct (4801E+4902E)3,000

9. Unobligated balance:

A. Apportioned (4610E)(1,000)

11. **Total status of budgetary resources**2,000

### RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

14. Obligated balance, net, end of period:

C. Undelivered orders (4801E)1,000

15. Outlays:

A. Disbursements (4902E)2,000

**BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR-YEAR ACTUAL COLUMN FOR YEAR 1 REPORTING**

##### OBLIGATIONS BY PROGRAM ACTIVITY

1000 Total new obligations (4801E+4902E)3,000

##### BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION

2200 New budget authority (gross)2,000

2395 Total new obligations(3,000)

2397 Deficiency (4610E)1,000

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

4000 Appropriation (4119E)2,000

##### CHANGE IN OBLIGATED BALANCES

7310 Total new obligations3,000

7320 Total outlays (gross) (4902E)(2,000)

7440 Obligated balance, end of year (4801E)1,000

##### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (4902E)2,000

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net)2,000

9000 Outlays (net)2,000

**MEMORANDUM (NON-ADD) ENTRIES**

9190 Unpaid obligation, end of year:  Deficiency1,000

**Beginning Trial Balance**

**YEAR 2**

### YEAR 2

### Debit

**Credit**

****

#### Budgetary

4450

4801

#### Total

#### Proprietary

1010

3100

#### Total

1,000

       0

1,000

1,000

1,000

1,000

1,000

1,000

       0

1,000

###### Year 2

Anticipated collections of $2,000 from federal sources.  The Office of Management and Budget has approved using $1,000 of the collections to liquidate the deficiency.

1. To record anticipated collections other than refunds.

# YEAR 2

**Budgetary Entry**

DR  4070  Anticipated Collections from Federal Sources       2,000

CR  4450  Unapportioned Authority                                       2,000

TC A140

2. To record anticipated resources apportioned but not available for use until they are realized.  

# YEAR 2

**Budgetary Entry**

DR  4450  Unapportioned Authority                                       2,000

CR  4590  Apportionments Unavailable –                     Anticipated Resources                                                2,000

TC A118

3. To record the receipt of previously anticipated collections.

# YEAR 2

**Budgetary Entry**

DR  4277  Other Actual Collections – Federal                        2,000

CR  4070  Anticipated Collections from Federal Sources                   2,000

## Proprietary Entry

DR  1010  Fund Balance With Treasury                                   2,000

5900  Other Revenue                                                              2,000

TC C109

4. To record the realization of previously anticipated and apportioned authority.

# YEAR 2

**Budgetary Entry**

DR  4590  Apportionments Unavailable –                     Anticipated Resources                                                  2,000

CR  4510  Apportionments                                                     2,000

TC A122

5. To reclassify collections to liquidate prior-year deficiency.

# YEAR 2

**Budgetary Entry**

DR  4212  Liquidation of Deficiency – Offsetting Collections              1,000

CR  4277  Other Actual Collections – Federal                       1,000

TC C110

6. To record an adjustment to unapportioned authority to liquidate deficiency.

# YEAR 2

**Budgetary Entry**

DR  4510  Apportionments                                                        1,000

CR  4450  Unapportioned Authority                                       1,000

TC A116

7. To record allotment of authority. 

# YEAR 2

**Budgetary Entry**

DR  4510  Apportionments                                                       1,000

CR  4610  Allotments – Realized Resources                         1,000

TC A120

8. The Budget Office approved purchase request for goods/services.  (Commitment)

# YEAR 2

**Budgetary Entry**

DR  4610  Allotments – Realized Resources                         1,000

CR  4700  Commitments                                                        1,000

TC B202

9. To record current-year undelivered orders without an advance.

# YEAR 2

**Budgetary Entry**

DR  4700  Commitments                                                              500

CR  4801  Undelivered Orders Obligations – Unpaid               500

TC B204

10. To record the delivery of goods and accrue a liability for current and prior year obligations (prior year - $1,000).

# YEAR 2

**Budgetary Entry**

DR  4801  Undelivered Orders Obligations – Unpaid               1,500

CR  4901  Delivered Orders – Obligations, Unpaid               1,500

## Proprietary Entry

DR  6100  Operating Expenses                                                  1,500

CR  2110  Accounts Payable                                                  1,500

TC B302

11. Payment schedule certified and confirmed.

# YEAR 2

**Budgetary Entry**

DR  4901  Delivered Orders – Obligations – Unpaid                1,500

CR  4902 Delivered Orders- Obligations, Paid.                     1,500

## Proprietary Entry

DR  2110  Accounts Payable                                                     1,500

CR  1010 Fund Balance with Treasury                                   1,500

TC B110

**Pre-Closing Trial Balance**

**YEAR 2**

### YEAR 2

### Debit

**Credit**

****

#### Budgetary

4212

4277

4700

4902

#### Total

#### Proprietary

1010

5900

6100

#### Total

1,000

1,000

       0

2,000

   500

1,500

2,000

   500

1,500

2,000

2,000

       0

2,000

###### Closing Entry

1. To record the consolidation of actual net-funded resources.

**Budgetary Entry**

DR  4201  Total  Actual Resources Collected                           2,000

CR  4212  Liquidation of Deficiency -                      Offsetting Collections                                                       1,000

CR  4277 Other Actual Collections – Federal                            1,000

## Proprietary Entry

**None**

TC F204

2. To record the closing of Expended Authority - Paid.

**Budgetary Entry**

DR  4902  Delivered Orders – Obligations, Paid                     1,500

CR  4201  Total Actual Resources Collected                         1,500

TC F214

3. To record closing of revenue, expense and other financing source accounts to cumulative results of operations..

**Budgetary Entry**

#### None

## Proprietary Entry

DR  3310  Cumulative Results of Operations                         1,500

CR  6100  Operating Expense                                                 1,500

DR  5900  Other Revenue                                                          2,000

CR  3310  Cumulative Results of Operations                      2,000

TC F228

4. To record the closing of unobligated balances to unapportioned authority for unexpended multi-year funds.  

# YEAR 2

**Budgetary Entry**

DR  4700  Commitments                                                             500

CR  4450  Unapportioned Authority                                          500

## Proprietary Entry

#### None

TC F210

**Post – Closing Trial Balance**

**YEAR 2**

### YEAR 2

### Debit

**Credit**

****

#### Budgetary

#### 4201

4450

#### Total

#### Proprietary

1010

3310

#### Total

500

    0

500

500

       0

500

500

500

500

500

**SF133:  REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/**

**SBR:  STATEMENT OF BUDGETARY RESOURCES**

**(YEAR-END)**

# YEAR 2

## BUDGETARY RESOURCES 

2. Unobligated balance:

A. Beginning of the period (4201+4801 (E-B))(1,000)

3. Spending authority from offsetting collections:

A. Earned

1. Collected (4212E + 4277E)2,000

7. **Total budgetary resources**1,000

## STATUS OF BUDGETARY RESOURCES

8. Obligations incurred:

A. Direct (4801+4902(E-B))500

9. Unobligated Balance:  

A. Apportioned (4700E)    500

11. **Total status of budgetary resources**1,000

**RELATIONSHIP OF OBLIGATIONS TO OUTLAYS**

12. Obligated balance, net, beginning of period (4801(E-B))1,000

15. Outlays

A. Disbursements (4902E)1,500

B. Collections (4212E + 4277E)2,000

**FMS 2108 Year-end Closing Statement**

**YEAR 2**

### Column 5   (1010E)500

Column 11 (4700E)500

Total    0

**Department/Agency/Reporting Entity**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, Year 2**

**(in dollars/thousands/millions)**

**Assets (Note 2)**

###### Intragovernmental:

1. Fund Balance with Treasury (Note 3) (1010)500

6. Total Intragovernmental500

15. Total Assets500

**Liabilities (Note 12)**

27. Total Liabilities0

28. Commitments and contingencies (Note 16)

**Net position:**

29. Unexpended appropriations (Note 20) (3100)       0

30. Cumulative Results of Operations (3310)500

31. Total net position500

32. Total liabilities and net position500

# Department/Agency/Reporting Entity

**CONSOLIDATED STATEMENT OF NET COST**

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

**(in dollars/thousands/millions)**

**Program Costs:**

Program A:

1. Intragovernmental gross costs (6100E)1,500

3. Intragovernmental net costs1,500

Total net costs1,500

7. Net Cost of Operations1,500

**Department/Agency/Reporting Entity**

**CONSOLIDATED STATEMENT OF CHANGES IN NET POSITION**

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

**(in dollars/thousands/millions)**

Cumulative Results  Unexpended

of OperationsAppropriations

**Budgetary Financing Sources:**

8. Non-exchange Revenue (5900E)02,000

**Other Financing Sources:**

16. Total Financing Sources 02,000

17. Net Cost of Operations       01,500

Ending Balances   500

# Department/Agency/Reporting Entity

**COMBINED STATEMENT OF FINANCING**

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

**(in dollars/thousands/millions)**

**Resources Used to Finance Activities:**

**Budgetary Resources Obligated**

1. Obligations incurred (4801 (E-B)+ 4902E)  500

2. Less: Spending Authority from Offsetting Collections and Recoveries (4212E+ 4277E)2,000

3. Obligations Net of Offsetting CollectionsRecoveries (1-2)1,500

5. Net Obligations (3-4)1,500

11. Total Resources Used to Finance Activities (5+10)1,500

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

17. Total Resources Used to Finance Items

Not Part of the Net Cost of Operations (12..16)       0

18. Total Resources Used to Finance the 

Net Cost of Operations (11-17)       0

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

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

29. Total Components of the Net Cost of Operations 

That Will Not Require Or Generate Resources in 

the Current Period       0

30. Net Cost of Operations (18+29)1,500

**BUDGET PROGRAM AND FINANCING (P&F) SCHEDULE PRIOR-YEAR ACTUAL COLUMN FOR YEAR 1 REPORTING**

##### OBLIGATIONS BY PROGRAM ACTIVITY

1000 Total new obligations (4801+4902 (E-B))500

##### BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION

2200 New budget authority (gross)1,000

2395 Total new obligations (500)

2440 Unobligated balance carried forward, end of year (4700E)500

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

SPENDING AUTHORITY FROM OFFSETTING COLLECTIONS

6800 Offsetting collections (cash) (4212E+4277E)2,000

6833 Portion applied to liquidate deficiencies (4212E)(1,000)

6890 Spending authority from offsetting collections (total discretionary)1,000

##### CHANGE IN OBLIGATED BALANCE

7240 Obligated balance, start of year (4801E)1,000

7310 Total new obligations500

7320 Total outlays (gross)(1,500)

### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (4902E *new*)500

8693 Outlays from discretionary balances (4902E *bal)*1,000

8700 Total Outlays (gross)1,500

**OFFSETS**

8800 Federal sources (4212E+4277)2,000

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net)(1,000)

9000 Outlays (net)(500)

� 8A1 on crosswalk

� 9A1 on crosswalk; allotted more than apportioned

� Obligated more than apportioned.

� Closed USSGL 4610, Allotments – Realized to USSGL 4450, Unapportioned Authority at year-end

� This collection account is used in this entry (and others) for illustrative purposes only.  Other collection accounts can also be used which are included in transaction C110 (and other respective transactions).

� 8A1 on crosswalk

� 9A1 on crosswalk

� Use FACTS II attribute - Trans. Partner F – Federal.  

Offsets to liquidate the deficiency can come from three sources.  Federal sources (Trans. Partner – F; line 8800, Non-Federal sources (Trans. Partner – X; line 8840) or Offsetting governmental collections from non-Federal sources (Trans. Partner – E; line 8845).

Page 12 of 125/23/02

*Presented by :  Melinda Pope*