AUTHORITY TEMPORARILY PRECLUDED FROM OBLIGATION

EFFECTIVE FY 2023

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**AUTHORITY TEMPORARILY PRECLUDED FROM OBLIGATION**

**EFFECTIVE FISCAL 2023**

**PREPARED BY:**

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

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

**Contents**

**Version Control**

**Background**

This scenario was developed to illustrate the proper recording of unobligated balances that are subject to limitation.  It **pertains only** to Treasury Appropriation Fund Symbols (TAFS) whose receipts are immediately appropriated but precluded from obligation at year-end by a provision of law, such as a benefit formula or limitation.  For example, the following funds fall within this category: Federal Old Age and Survivors Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund, and Unemployment Trust Fund.  These funds must match budget authority with obligations.

Reporting guidelines stipulate that the year-end SF 133 Report on Budget Execution must tie with the Budget Program and Financing Schedule (Schedule P) in the Budget Appendix of the U.S. Government. Furthermore, there is a relationship that exists between the Special and Trust Fund Receipts Schedule (Schedule N) and the Schedule P. The year-end SF 133, Schedule P, and Schedule N all reflect that the amount of current year receipts less obligations equal the amount precluded from obligation. Therefore, there are no beginning or ending available unobligated balances reported at year-end. 

This scenario will discuss the following types of Authority Temporarily Precluded From Obligation:

I. Example where budget authority is derived from special or trust fund receipts 

II. Example where budget authority is derived from offsetting collections

**Part 1 Budget Authority Derived From Special or Trust Fund Receipts**

**Listing of USSGL Accounts Used in This Scenario (Part 1):**

**Part 1 Budget Authority Derived From Special or Trust Fund Receipt Accounts**

**Year 1:**

**Scenario Assumptions:**

· This scenario illustrates a trust non-revolving fund expenditure account, where the account is apportioned, and unobligated receipts are to be classified at year-end as temporarily not available for obligation pursuant to enacted public law.

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**Pre-Closing Entry**

**Year 1 Pre-Closing Trial Balance**

**NOTE**: Financial Statements are not presented in this scenario.  Historically crosswalks have been updated often, thus potentially causing confusion if the most current version of the crosswalk is not included, despite the background, transactions, and trial balances being accurate.  Please reach out to the USSGL team at The Bureau of the Fiscal Service if you have questions on financial statement presentation.

**Year 1 Closing Entries:**

**Year 1 Post-Closing Trial Balance**

**Part 1 Year 2:**

**Year 2 Pre-Closing Trial Balance**

**Year 2 Closing Entries:**

**Year 2 Post-Closing Trial Balance**

**Part 2 Budget Authority Derived From Spending Authority From Offsetting Collections:**

**Listing of USSGL Accounts Used in This Scenario (Part 2):**

**Part 2 Budget Authority Derived From Spending Authority From Offsetting Collections**

**Year 1:**

**Scenario Assumptions:**

· This scenario illustrates a general fund account, where any unobligated spending authority from offsetting collections is to be classified at year-end as temporarily not available for obligation pursuant to enacted public law. While the collections could be classified as direct or reimbursable, this scenario reflects collections as reimbursable.

· This scenario illustrates a no-year account.

**Pre-Closing Entry**

**Year 1 Pre-Closing and Post-Closing Trial Balance**

**NOTE:**Financial Statements are not presented in this scenario.  Historically crosswalks have been updated often, thus potentially causing confusion if the most current version of the crosswalk is not included, despite the background, transactions, and trial balances being accurate.  Please reach out to the USSGL team at The Bureau of the Fiscal Service if you have questions on financial statement presentation.

**Year 2 Assumptions:**

· The general fund account has no spending authority from offsetting collections in Year 2.  However, they need to incur an obligation for $75 using offsetting collections. Therefore, spending authority from offsetting collections temporarily precluded from obligation in Year 1 will need to be made available to obligate the funds.

**Year 2 Pre-Closing Trial Balance**

**Year 2 Closing Entries:**

**Year 2 Post-Closing Trial Balance**

Page 1 of 79                                                                                   July 2023

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