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

(Exchange)

(Effective Fiscal 2019)

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

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

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July 12, 2018 IRC Handout		Page 9 of 35	Custodial Collections Guidance -Exchange

**Background**

There are several assumptions being made in the compilation of this document.  One basic assumption is the definition of what constitutes a reporting entity. The reader should look to Appendix A of the Financial Report of the United States Government to find the definition for reporting entities.

This guide has been developed under the assumption that the agency looking to it for guidance has determined it has custodial activity as defined in FASAB Standard: SFFAS 7 – Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting. This scenario has not been developed nor is it intended to assist the user in determining if they have custodial activity. This document will assume the agency falls into one of two types of participant; the collecting agency or the receiving agency. The collecting agency is defined as the agency who collects the custodial collection from a non-federal and in limited instances federal entity. The receiving agency is defined as the federal or non-federal entity to whom the collecting agency transfers the custodial funds collected. This scenario does not include custodial collections on behalf of the General Fund of the U.S. Government. 

The accounting standard promulgated by FASAB delineates revenues as either exchange or nonexchange depending upon the event generating the revenue.  Exchange revenues are defined as revenues that result when goods or services are provided to the public or another government entity for a price. Nonexchange revenues are defined as those revenues arising primarily from the exercise of the Government’s power to demand payments from the public (e.g., taxes, duties, fines, and penalties). This particular document addresses transactions related to the collection of exchange revenues.

The scenario is not intended to be all inclusive of the different types of revenues and/or expenses that may be recorded.  The intent is to illustrate the main concepts through basic transactions. Refer to Section III, Accounting Transactions, for a complete listing of USSGL accounts that may be recorded.  Section III may be accessed using the following link on the USSGL Web site (http://tfm.fiscal.treasury.gov/v1/supplements/ussgl.html).

Budgetary and financial reports reflect the pertinent lines to be reported based on the main concepts illustrated.  For full presentations of the reports and line descriptions, refer to the appropriate authoritative guidance (i.e. OMB Circular A-136: Financial Reporting Requirements, OMB Circular No. A-11:  Preparing, Submitting, and Executing the Budget, Treasury Financial Manual references).

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

**Account Title:**  	Receivable from Custodian or Non-Entity Assets Receivable from a Federal Agency – Other than the General Fund of the U.S. Government

**Account Number:**	198100

**Normal Balance:**       Debit

**Definition:**In a custodial or non-entity transaction between two federal entities, there is an entity who collects on behalf of another entity, but is not entitled to retain the collections 

                                   (collecting entity or custodian) and an agency on whose behalf the collecting entity is collecting (receiving entity). This account should be used by the receiving entity to

                                   record the amount that will be transferred to them by the collecting agency. These assets are a direct offset to the collecting entity’s Custodial Liability (USSGL account 

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

*Justification: New USSGL account needed to allow proper reporting of the receivable from a custodian or non-entity assets receivable from a federal agency*

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

**Account Title:**  	Accrual of Amounts Receivable from Custodian or Non-Entity Assets Receivable from a Federal Agency - Other than the General Fund of the U.S. Government

**Account Number:**	571300

**Normal Balance:**       Credit

**Definition:**In a custodial or non-entity transaction between two federal entities, there is an entity who collects on behalf of another entity, but is not entitled to retain the collections

                                   (collecting entity or custodian) and an agency on whose behalf the collecting entity is collecting (receiving entity). This account should be used by the receiving entity to

                                   accrue the amount that will be transferred to them by the collecting agency.  This USSGL account is a direct to the collecting entity’s Accrued Collections for Others 

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

                                   in certain situations Collections for Others – Statement of Custodial Activity (USSGL account 599000).

*Justification: New USSGL account needed to allow proper reporting of the accrual related to the receivable from a custodian and non-entity assets receivable from a federal entity other than the*

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

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

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

**Account Number:**	198000

**Normal Balance:**       Debit

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

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

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

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

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

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

**Account Number:**	571200

**Normal Balance:**       Credit

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

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

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

                                    Government use only.

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

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

**Account Number:**     599700

**Normal Balance:**       Credit

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

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

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

**Attribute Additions and Updates:**

**USSGL Accounts As Reflected In Statement Crosswalks:**

****

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

**C133** To record the receivable from the collecting entity for custodial collections and non-entity assets collected on behalf of a Federal entity other than the General Fund of the U.S. Government.

**Comment:**This transaction is recorded by the federal agency that will receive the funds collected by the collecting entity. The federal agency collecting these

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

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

**Budgetary Entry**

None

**Proprietary Entry**

Debit 198100 Receivable From Custodian or Non-Entity Assets Receivable From a Federal Agency– Other than the General Fund of the U.S. Government

Credit 571300 Accrual of Amounts Receivable From Custodian or Non-Entity Assets Receivable from a Federal Entity - Other than the General Fund of the U.S. Government

*Justification: Provide TC to allow proper intragovernmental eliminations*

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

**Comment:** This transaction is recorded by the federal agency collecting the funds on behalf of the recipient agency to whom those funds will be transferred.  

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

**Budgetary Entry**

None 

**Proprietary Entry**

Debit 101000 Fund Balance With Treasury 

Credit 520000 Revenue From Services Provided

Credit 531000 Interest Revenue - Other 

Credit 531100 Interest Revenue - Investments 

Credit 531200 Interest Revenue - Loans Receivable/Uninvested Funds 

Credit 532000 Penalties and Fines Revenue 

Credit 532500 Administrative Fees Revenue 

Credit 560000 Donated Revenue - Financial Resources 

Credit 580000 Tax Revenue Collected - Not Otherwise Classified 

Credit 580100 Tax Revenue Collected - Individual 

Credit 580200 Tax Revenue Collected - Corporate 

Credit 580300 Tax Revenue Collected - Unemployment 

Credit 580400 Tax Revenue Collected - Excise 

Credit 580500 Tax Revenue Collected - Estate and Gift 

Credit 580600 Tax Revenue Collected - Customs 

Credit 590000 Other Revenue 

Credit 592300 Valuation Change in Investments - Beneficial Interest in

*Justification: Create transaction for the use in recording custodial collections.*

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

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

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

                   to another federal agency also post TC-C420  

**Budgetary Entry**

None 

**Proprietary Entry**

Debit 599100 Accrued Collections for Others - Statement of Custodial Activity 

Credit 298000 Custodial Liability

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

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

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

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

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

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

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

**Budgetary Entry**

None 

**Proprietary Entry**

Debit 131000 Accounts Receivable 

Debit 132000 Funded Employment Benefit Contributions Receivable 

Debit 134000 Interest Receivable - Not Otherwise Classified 

Debit 134100 Interest Receivable - Loans 

Debit 134200 Interest Receivable - Investments 

Debit 134300 Interest Receivable - Taxes 

Debit 136000 Penalties and Fines Receivable - Not Otherwise Classified 

Debit 136100 Penalties and Fines Receivable - Loans 

Debit 136300 Penalties and Fines Receivable - Taxes 

Debit 137000 Administrative Fees Receivable - Not Otherwise Classified 

Debit 137100 Administrative Fees Receivable - Loans 

Debit 137300 Administrative Fees Receivable - Taxes 

Debit 138100 Interest Receivable - Loans - Troubled Assets Relief Program 

Debit 138400 Interest Receivable - Foreign Currency Denominated Assets 

Credit 510000 Revenue From Goods Sold 

Credit 520000 Revenue From Services Provided 

Credit 531000 Interest Revenue - Other 

Credit 531100 Interest Revenue - Investments 

Credit 531200 Interest Revenue - Loans Receivable/Uninvested Funds 

Credit 532000 Penalties and Fines Revenue 

Credit 532500 Administrative Fees Revenue 

Credit 540000 Funded Benefit Program Revenue 

Credit 550000 Insurance and Guarantee Premium Revenue 

Credit 560000 Donated Revenue - Financial Resources 

Credit 577500 Nonbudgetary Financing Sources Transferred In 

Credit 590000 Other Revenue

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

Draft

**Illustrative Transactions:**

**Illustrative Closing Entry Transactions:**

**Illustrative Financial Statements:**