# Scenario V

# Treasury-Managed Trust Fund Allocation Accounts

Treasury-managed trust funds are a unique group of accounts in that the law has designated the Secretary of Treasury to act as managing trustee for a named group of trust funds.  Fiscal Service administers this function.  Treasury-managed trust funds are comprised of an individual TAFS reported by Fiscal Service (referred to as the "corpus account"), and an individual TAFS reported by the program agency (referred to as the "agency account").

In most instances, Fiscal Service TAFS are structured as 20X8000; the "20" indicates Treasury, "X" represents the period of availability, and "8000" represents the trust fund series.  The agency TAFS are established in one of two ways: either as a separate appropriation fund symbol (i.e., 69X8123) or as a transfer appropriation symbol, which is commonly referred to as an allocation account (i.e., 75-20X8000).  Allocation accounts are symbolized by adding the receiving agency's department prefix to the original appropriation fund symbol.  In the example above, the "75" represents the U.S. Department of Health and Human Services.  The scenario that follows was developed for the *allocation-type* Treasury-managed trust funds.  Refer to Scenario VI, Trust Fund Appropriation Transfers for Specific Treasury Appropriation Fund Symbols, for transactions between specific Treasury-managed trust funds and other trust fund appropriation accounts.

In appearance, the Treasury-managed trust fund allocation accounts resemble general fund allocation accounts, but in practice there are several differences.  First, most trust funds have investment authority, while general funds typically do not.  Investment authority resides with the corpus account and is managed by Fiscal Service.  Because Fiscal Service manages the trust fund's investments in the corpus account and the agency manages the trust fund's obligations and disbursements in the allocation account, sound cash management principles must be enforced.  This is discussed in more detail below.  Second, yearend reporting requirements for the Treasury-managed trust fund allocation accounts require that any amounts receivable or payable between the corpus and agency accounts either net to zero or be eliminated.  This concept affects the SF 133, USSGL 2108, and P&F presentations, as well as agency and Governmentwide financial statement presentations.  Scenario V illustrates this theory.

The flowchart at the beginning of this section illustrates the basic framework and flow of activity within a Treasury-managed trust fund allocation account.  Receipts are recorded in the corpus account and then invested based upon the terms stipulated by statute or trust agreement.  As funds are needed by the agency account for disbursement, the program agency contacts Fiscal Service for a transfer of funds (accomplished via SF 1151).  The Fiscal Service then disinvests the funds so that the transfer may be accomplished.  The Treasury-managed trust fund allocation accounts also record nonexpenditure transfers that occur between other trust funds, as well as expenditure transfers with Federal funds.  (Refer to Scenario I, Basic Trust Fund Accounting.)

In contrast with other Federal nonexpenditure transfers, transfers between trust fund corpus accounts and agency allocation accounts require different accounting and reporting treatment.  To maintain sound cash management principles, funds remain invested until needed for disbursement to maximize interest earned.  Since Fiscal Service performs the investment function, and the program agency performs the obligation and disbursement function, a budgetary mechanism is sometimes needed to transfer the budget authority prior to actually transferring the funds.  That mechanism results in a receivable and payable transaction recorded by each entity.

Another notable concept is that the corpus TAFS consists of one or more receipt accounts (i.e., 20X8000.001, 20X8000.002) and a corresponding expenditure account (i.e., 20X8000).  Trust fund receipts are often comprised of taxes, customs duties, fines, penalties, etc., and are first credited to a trust fund receipt account.  Because the law designates the Treasury-managed trust fund receipt accounts subject to this guidance as available for expenditure, the receipts are automatically credited to the corresponding expenditure account.  There is no current requirement to have separate USSGL accounting for available trust fund receipt accounts; therefore, the following transactions combine activity of receipt and expenditure accounts.

Below are the USSGL accounts commonly used by Treasury-managed trust fund allocation accounts. 

1330Receivable for Transfers of Currently Invested Balances

2150Payable for Transfers of Currently Invested Balances

4165Allocations of Authority - Anticipated from Invested Balances

4166Allocations of Realized Authority - To Be Transferred from Invested Balances

4167Allocations of Realized Authority - Transferred from Invested Balances

5755Nonexpenditure Financing Sources - Transfers-In

5765Nonexpenditure Financing Sources - Transfers-Out

The scenario also illustrates the unique reporting requirements for budgetary and proprietary transactions.  For FACTS I (proprietary) and OMB Form and Content reporting, the agency account consolidates the data from the corpus account and reports the trust fund as a whole.  For FACTS II (primarily budgetary) reporting (SF 133, USSGL 2108, P&F), each TAFS submits its portion of the activity, and then Treasury and OMB merge the data.

**Budgetary:**

**Adjusting Entry**

**Budgetary:**

**Adjusting Entry**

**Budgetary:**

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

**Budgetary:**

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

**Budgetary:**

**Closing Entry**

**Post-closing Trial Balance**

**Budgetary:**

**Closing Entry**

**Post-closing Trial Balance**

**Proprietary:**

**Pre-closing Trial Balance**

**Closing Entry**

**Proprietary:**

**Pre-closing Trial Balance**

**Closing Entry**

**Proprietary:**

**Post-closing Trial Balance**

**Proprietary:**

**Post-closing Trial Balance**

**Proprietary:**

N/A

**Proprietary:**

**Eliminating Entry**

**FACTS I Trial Balance (Pre-closing)**

**(*Consolidated* Corpus and Agency account)**

**SF-133: Report on Budget Execution and Budgetary Resources (Year-End)**

**BUDGETARY RESOURCESCorpus Account****Agency Account**

1.Budget Authority

A.Appropriations   (4114E)  70,000         0

D.Net Transfers, Current Year Authority Realized   (4166E-B) (25,000)25,000

2.Unobligated Balance  (4166B)0          0

5.Temporarily Not Available Pursuant to Public Law (4397E-B)(45,000)

7.**Total Budgetary Resources025,000**

**STATUS OF BUDGETARY RESOURCES**

8.Obligations Incurred   (4901E-B)025,000

10.Unobligated Balances (Not Available) (4450E, 4510E)0         0

11.**Total, Status of Budgetary Resources025,000**

**RELATION OF OBLIGATIONS TO OUTLAYS**

14.Obligated Balance, Net, End of Period

D.  (4901E)025,000

15.Outlays 

A.Disbursements   (4902E)0         0

B.Collection 

**USSGL 2108: Year-End Closing Statement**

**Corpus AccountAgency Account**

Column 6Other Authorizations (1610E) 70,000         0

Column 7Reimbursements Earned (4166E)(25,000)25,000

Column 10Accounts Payable (4901E)          025,000

Column 11Unobligated Balance (4397E, 4450E, 4510E) 45,000         0

**CONSOLIDATED Schedule P - Program & Financing**

**Budgetary Resources Available for Obligation**

2200New budget authority (gross) (4114E - 4397E-B) 25,000

2395Total new obligations (-) (4901E-B)(25,000)

**New Budgetary Authority (Gross) Detail**

4027/6027Appropriation (trust fund, indefinite) (4114E) 70,000

4100Transferred to other accounts (-) (4166E-B)(25,000)

4200Transferred from other accounts (4166E-B) 25,000

6045Portion precluded from obligation (-) (4397E-B)(45,000)

6250Appropriation (total) 25,000

**Change in Unpaid Obligations**

7299Total unpaid obligations, start of year (4901B)          0

7310Total new obligations (4901E-B) 25,000

7499Total unpaid obligations, end of year (4901E) 25,000

### Memorandum Entries

9201   Total investments, start of year  (1610B)         0

9202   Total investments, end of year  (1610E)70,000

***Consolidated* Corpus/Agency Form and Content Statements**

***Consolidated* Corpus/Agency Form and Content Statements (continued)**

**Budgetary:**

**Beginning Trial Balance**

**(No Adjusting Entries)**

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

**Budgetary:**

**Beginning Trial Balance**

**(No Adjusting Entries)**

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission)**

**Budgetary:**

**Closing Entry**

**Post-closing Trial Balance:**

**Budgetary:**

**Closing Entries**

**Post-closing Trial Balance**

· none -

**Proprietary:**

**Beginning Trial Balance**

**Pre-closing Trial Balance**

**Closing Entry**

****- none -

**Post-closing Trial Balance**

**Proprietary:**

**Beginning Trial Balance**

**Pre-closing Trial Balance**

- none -

**Closing Entry**

- none -

**Post-closing Trial Balance**

· none -

**FACTS I Trial Balance (Pre-closing)**

**(*Consolidated* Corpus and Agency account)**

**Trust Fund SF-133: Report on Budget Execution and Budgetary Resources (Year-End)**

**BUDGETARY RESOURCESCorpus AccountAgency Account**

1.Budget Authority

A.Appropriations  

D.Net Transfers, Current Year Authority Realized   (4166E-B+4167E)0  0

2.Unobligated Balance (4201B + 4397B + 4901B + 4166B)0 0

5.Temporarily Not Available Pursuant to Public Law (4397E-B)0 0

7.**Total Budgetary Resources0** 0

**STATUS OF BUDGETARY RESOURCES**

8.Obligations Incurred   (4901E-B + 4902E)0 0

11.**Total, Status of Budgetary Resources0**0

**RELATION OF OBLIGATIONS TO OUTLAYS**

12.Obligated Balance, Net as of October 1 (4901B) 0       25,000

15.Outlays 

A.Disbursements   (4902E)0           25,000

B.Collections 

**USSGL 2108: Year-End Closing Statement**

**Corpus AccountAgency Account**

Column 6Other Authorizations (1610E)45,0000

Column 11Unobligated Balance (4397E)45,0000

**CONSOLIDATED Schedule P - Program & Financing**

**Budgetary Resources Available for Obligation**

2200New budget authority (gross) (4114E - 4397E-B)          0

2395Total new obligations (-) (4901E-B + 4902E-B)          0

**New Budgetary Authority (Gross) Detail**

4027/6027Appropriation (trust fund, indefinite) (4114E)          0

4100Transferred to other accounts (-) (4166E-B, 4167E)          0

4200Transferred from other accounts (4166E-B, 4167E)          0

6045Portion precluded from obligation (-) (4397E-B)(         0)

**Change in Unpaid Obligations**

7299Total unpaid obligations, start of year (4901B) 25,000

7310Total new obligations (4901E-B)(25,000)

7499Total unpaid obligations, end of year (4901E)         0

### Memorandum Entries

9201   Total investments, start of year  (1610B)70,000

9202   Total investments, end of year  (1610E)45,000

***Consolidated* Corpus/Agency Form and Content Statements**

***Consolidated* Corpus/Agency Form and Content Statements (continued)**

� This is a basic transaction to illustrate that the receipts collected by the corpus account are immediately invested.  No further investment activity is reflected in this scenario.  Refer to Scenario IV, Trust Fund Investments, as well as Section III - Accounting Transactions of TFM S2-01-02 (as updated) for more detailed guidance on trust fund investments.

� Proprietary receivable/payable transactions within Treasury-managed trust fund allocation accounts must be eliminated for agency and government-wide financial statements.  For FACTS I (proprietary) reporting, one trial balance is submitted by the Agency containing the appropriate data for both accounts. The elimination entry related to this transaction is illustrated after the Post-closing Trial Balance. 

� For activity that is not subject to apportionment, a credit to USSGL account 4620 Unobligated Funds Not Subject to Apportionment may be appropriate.  Refer to Section III - Accounting Transactions of TFM S2-01-02 (as updated) for more comprehensive transactions.

� This step may be skipped for activity that goes directly to expended authority (USSGL 49xx series).  Refer to Section III - Accounting Transactions of TFM S2-01-02 (as updated) for more comprehensive transactions.

� Many of the Treasury-managed trust fund allocation accounts have limitations on obligations.  For those that do not, follow the guidance in Scenario I, Basic Trust Fund Accounting, of this Guide.  For those that do, refer to Scenario II, Trust Fund Balances Precluded from Obligation, for a more detailed illustration.

� Keep this entry separate from the main general ledger.  This entry is necessary for accurate agency and government-wide (FACTS I) financial statement presentations.

� The corpus and agency accounts submit budget data separately via FACTS II.  SF 133 data is extracted and consolidated by OMB.

� The corpus and agency accounts submit budget data separately via FACTS II.  USSGL 2108 data is extracted and consolidated by Treasury.

� The receivable/payable amounts to be transferred (USSGL account 4166) reflected in Column 7 must net to zero when combined.

� The corpus and agency accounts submit budget data separately via FACTS II.  P&F data is extracted and consolidated by OMB.

� Line 4100 reflects the corpus account's 4166E-B payable balance to be transferred.  Line 4200 reflects the agency account's 4166E-B receivable balance to be transferred.  These amounts must match.

� The corpus and agency accounts are consolidated by the Agency in preparation of the OMB Form and Content Statements.  Any transfers between the corpus and agency accounts are eliminated.

� The corpus and agency accounts are consolidated by the Agency in preparation of the OMB Form and Content Statements.  Any transfers between the corpus and agency accounts are eliminated.

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June 2001