**Actuarial Liabilities**

**Background**

The U. S. Department of Agriculture (USDA) Federal Crop Insurance Corporation (FCIC) has material activity for estimated losses on insurance claims that are currently included in USSGL account 2690, “Other Actuarial Liabilities,” and on the USSGL Balance Sheet Crosswalk, line 27, with a footnote. In addition, the U.S. Department of the Treasury (Treasury) has material activity for Treasury D.C. Pension Funds that is included in USSGL account 2690 and on the same USSGL Balance Sheet Crosswalk line. Both activities also are included on the USSGL Reclassified Balance Sheet Crosswalk, line 6.9, with a footnote. These activities are separate from line 24, “Federal Employee and Veteran Benefits.”

The current use of USSGL crosswalk footnotes will not be programmable in the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS). Therefore, for GTAS, separate USSGL accounts are required to capture these material amounts on the proper crosswalk lines.

The estimated insurance program liabilities and Treasury’s D.C. Pension Funds are based on current conditions and are subject to significant uncertainty. The uncertainty inherent in the affecting factors (for example, for FCIC crop damage as a result of severe weather events) can result in the compensation being either greater or less than estimated. The total compensation will not be known until after the end of the fiscal year; therefore, the amount for this activity on the financial statements is based on projections.

The Office of Management and Budget Circular No. A-136 (June 10, 2009), Note 17, states: “Include all liabilities not reported elsewhere.” Neither entity reports this activity on the Balance Sheet Crosswalk, line 24, but each entity separately discloses it (as instructed by Treasury) on line 27. 

This scenario follows USSGL TFM S2 09-02 (December 2009, revised by TFM Bulletin 2010-04), fiscal 2010 crosswalks. 

USSGL Section III, Account Transactions, will be updated with the appropriate debits and credits for the proposed accounts. 

**Proposal**

This scenario proposes the creation of two USSGL accounts that will allow specific activity to be reported without the use of USSGL crosswalk footnotes also illustrates the proper transactions for estimated loss on actuarial liabilities. USSGL transactions will be modified to reflect the revised accounting for the new accounts.

**USSGL Accounts:**

**Account Number:**2660

**Account Title:**Actuarial Liabilities for Federal****Insurance and Guarantee Programs

**Normal Balance:**Credit

**Definition:**The amount recorded by administering agencies for estimated losses on Federal insurance and guarantee program claims (except social insurance and loan guarantee programs). 

**Account Number:**2670

**Account Title:**Actuarial Liabilities for****Treasury-Managed Benefit Programs 

**Normal Balance:**Credit

**Definition:**The amount recorded by the Department of the Treasury for the actuarial liabilities of future benefit payments to be paid from programs such as the D.C. Federal Pension Fund and the D.C. Judicial Retirement Fund.  

**The following USSGL accounts are used in this scenario:**

USSGL Proprietary Account Attributes Required for Reporting of Detailed Financial Information 

C = Credit

N = NonFederal

Y = Can be either Covered or Not Covered

USSGL Proprietary Crosswalks 

Note: For simplicity, an opening Trial Balance is not used in this scenario. 

**Existing USSGL transactions for actuarial liabilities will include changes for the proposed USSGL accounts.**

**Pre-closing Adjusted Trial Balance**

**Closing Entries**

**Post-closing Trial Balance**

**BALANCE SHEET**

**Assets:**

**15. Total Assets -0-**

**Liabilities:**

27. Other (2660E and 2670E)****65,000

**28. Total Liabilities65,000**

**Net Position:**

33. Cumulative Results of Operations – Other Funds (3310E)65,000

**34. Total Net Position65,000**

**35. Total Liabilities and Net Position-0-**

**RECLASSIFIED BALANCE SHEET**

**Assets:**

**4.    Total Assets-0-**

**Liabilities:**

6.8  Insurance Programs (2660E)30,000

6.9  Other Liabilities (2670E)            35,000

**8.    Total Liabilities65,000**

9.   Net Position:

9.2 Net Position – Earmarked Funds (3310B)****-0-

**10  Total Net Position-0-**

**11  Total Liabilities and Net Position**(8 + 10)**65,000**

Page 1 of 6   June 3, 2010