Capital Transfers

#### CAPITAL TRANSFERS 

#### (EFFECTIVE FOR FY 2013)

Note: This guidance does not include special and non-revolving trust fund receipts returned to the General Fund of the U.S. Treasury for permanent reduction.

**PREPARED BY:**

**UNITED STATES STANDARD GENERAL LEDGER DIVISION**

**ACCOUNTING SYSTEMS AND STANDARDS DIRECTORATE**

**GOVERNMENTWIDE ACCOUNTING**

**BUREAU OF THE FISCAL SERVICE**

**U.S. DEPARTMENT OF TREASURY**

**SECTION NUMBER AND****TOPICPage No.**

1.  Definition of a Capital Transfer  4 

2.  Processing and Recording a Capital Transfer with Treasury and OMB  4

3. Discussion of OMB Presentation of Capital Transfers and Debt 

     Repayment Using the USSGL Budgetary Accounts  5

4.  USSGL Modified Accounts Presented for FY 2013  6

5.  Financial Statement Presentation of Liabilities  7

 Associated with Appropriations to Revolving Funds (Capital 

 Investments)

6. List of USSGL accounts used in the scenario9

7. USSGL Section V Crosswalks for presented accounts10

Section I. Capital Transfer Scenario – Return of Capital Investments via a Capital 

Transfer to a General Fund Receipt Account from a No-Year, Non-Credit Revolving 

Fund11 - 43

# Section II. Capital Transfer Scenario – Return of Excess Amounts (Unobligated 

# Balance) via a Capital Transfer to a General Fund Receipt Account from a 

# Liquidating Fund (Pre-Credit Reform)44 - 54

# Appendix 1

Background information on Capital Transfer and Debt Repayments55

## 1. Definition of a Capital Transfer

TFM Volume 1, Part 2, Chapter 2000, subsection 2030.20 states:

“Transfers to General Fund Receipts (previously titled “Capital Transfers”) - These transfers are credits to miscellaneous receipts. The credits repay the Government’s investment in or distribute the earnings of a revolving fund. These transfers also include special and nonrevolving trust fund receipts returned to the General Fund of the U.S. Treasury for permanent reduction. Agencies must use their two-digit department regular code in front of the miscellaneous receipt TAS for all transfers back to the General Fund of the U.S. Treasury.” 

## 2. Processing and Recording a Capital Transfer with Treasury and OMB

**Treasury transaction:**

Fund managers must use the Governmentwide Accounting (GWA) System ATM Nonexpenditure Transfer (NET) Application at **http://www.gwa.fms.treas.gov** to process their NET transactions. 

Initiate the NET as early in the month as possible to ensure that each agency involved on the transaction can process their transaction accordingly during the same accounting period.

Valid TAFS miscellaneous receipt accounts are in the following categories: 

1.1610 Category – Government-owned enterprise accounts

a.1613 Dividends on capital stock

b.1614 Other earnings from business operations and intragovernmental revolving funds

2.2810 Repayment of Capital Investment accounts

a.2813 Repayment of capital stock

b.2814 Other repayments of investments and recoveries

For more information on the processing and recording of capital transfers, please refer to TFM Volume 1, Part 2, Chapter 2000, subsection 2030.20

## 3. Discussion of OMB Presentation of Capital Transfers and Debt Repayment Using the USSGL Budgetary Accounts

OMB Circular No. A-11 dated July 2012 requires that agencies report capital transfers on the following lines of the SF 132, the SF 133 and the P&F: 

Line 1022 Capital transfer of unobligated balances to general fund

*Discretionary:*

Line 1720 Capital transfer of spending authority from offsetting collections to general fund

*Mandatory:*

Line 1820 Capital transfer of spending authority from offsetting collections to general fund

As a result, there will be no reporting differences between the three OMB documents.  The capital transfers are now segregated from redemption of debt and are segregated by the type of resource being used to fund the transfer.

The P&F does not report anticipated amounts.  However, for SF132 and SF133 reporting, the OMB does not require segregation of the anticipated capital transfer amounts from the anticipated repayment of debt.  Therefore, USSGL account 4047, “Anticipated Transfers to the General Fund of the Treasury – Current Year Authority,” is adequate to report on the following lines of the SF-132 and 

SF-133:

1042 Anticipated capital transfers and redemption of debt (unobligated balances)(-)

*Discretionary:*

1742 Anticipated capital transfers and redemption of debt (spending authority from offsetting collections) (-)

*Mandatory:*

1842 Anticipated capital transfers and redemption of debt (spending authority from offsetting collections) (-)

## 4. USSGL Modified Accounts Presented for FY 2013

**Account Title:** Contingent Liability for Capital Transfers

**Account Number:** 2923**Normal Balance:** Credit

**Definition:** The amount recognized as a result of past events where a capital transfer to a General Fund Receipt Account is probable and measurable. This account offsets USSGL account  1923, “Contingent Receivable for Capital Transfers.” This account does not close at yearend.

***Justification: To reference the offset to USSGL account 1923 as the account definition for USSGL 1923 does.***

**Account Title:**  Liability for Capital Transfers 

**Account Number:**2970~~~~**Normal Balance:** Credit

**Definition:** The amount to be transferred to  a General Fund Receipt Account. This includes excess amounts in liquidating funds. This account does not close at yearend.  

***Justification: To be more consistent with the other USSGL capital transfer account titles and definitions.***

**Account Title:**Financing Sources To Be Transferred Out - Contingent Liability****

**Account Number:**5792**Normal Balance:**Debit 

**Definition:**The amount of future financing sources that****will be transferred out as a capital transfer to **~~the~~** a General Fund Receipt Account**.** This account should be recorded as a debit when a contingent liability is recorded. A contingent liability related to a capital transfer should not be associated with a cost but, instead, should be associated with a future nonexpenditure capital transfer to a General Fund Receipt Account. Transactions using this account will not have a budgetary impact. 

***Justification: For consistency with the use of a General Fund Receipt Account.***

**5. Financial Statement Presentation of Liabilities Associated with Appropriations to Revolving Funds (Capital Investments)**

The following excerpts are from SFFAS No. 5 – *Accounting for Liabilities of the Federal Government*.

Executive Summary (d) “... - Contingencies – A contingency is an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. Contingent future outflows or other sacrifices of resources as a result of past transactions or events may be recognized, may be disclosed, or may not be reported at all depending on the circumstances. Contingencies should be recognized as a liability when a past transaction or event has occurred, a future outflow or other sacrifice of resources is probable, and the related future outflow or sacrifice of resources is measurable. A contingent liability should be disclosed if any of the conditions for liability recognition are not met and there is a reasonable possibility that a loss or an additional may have been incurred. Disclosure should include the nature of the contingency and an estimate of the possible liability, an estimate of the range of the possible liability, or a statement that such an estimate cannot be made.

Paragraph 35 “A contingency is an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an entity. The uncertainty will ultimately be resolved when one or more future events occur or fail to occur. Resolution of the uncertainty may confirm a gain (i.e., acquisition of an asset or reduction of a liability) or a loss (i.e., loss or impairment of an asset or the incurrence of a liability).

Paragraph 36 “... When a loss contingency (i.e., contingent liability) exists, the likelihood that the future event or events will confirm the loss or the incurrence of a liability can range from probable to remote. The probability classifications are as follows:

· Probable: The future confirming event or events are more likely than not to occur.

· Reasonably possible: The chance of the future confirming event or events occurring is more than remote but less than probable.

· Remote: the chance of the future event or events occurring is slight.”

Paragraph 38 “A contingent liability should be recognized when all of these three conditions are met...

· A past event or exchange transaction has occurred...

· A future outflow or other sacrifice of resources is probable...

· The future outflow or sacrifice of resources is measurable...”

Paragraph 40 “A contingent liability should be disclosed if any of the conditions for liability recognition are not met and there is at least a reasonable possibility that a loss or an additional loss may have been incurred...”

Paragraph 42 “...contingencies classified as remote need not be reported in general purpose federal financial reports...”

***ALWAYS REVIEW SFFAS NO. 5 TO APPLY IT TO EACH FUND’S PARTICULAR CIRCUMSTANCES;  THIS IS GENERAL GUIDANCE AND WILL NOT NECESSARILY APPLY TO A SPECIFIC FUND.***

**Relationships between SFFAS No. 5 and a revolving fund that received appropriated funds that must be repaid if the revolving fund meets criteria specified in related statutes.**

Agencies should record a contingent liability or disclose contingent loss in the notes to the financial statement once appropriate criteria are met. For the purpose of illustration, this guide recognized and reported contingent liability related to the capital investment.

1. Contingent loss note disclosure or recording a contingent liability is required in the financial reporting for the year the appropriation is made to the revolving fund and should be reported in subsequent years prior to anticipating a capital transfer. 

· Contingent loss disclosure assumes:

There is a reasonable possibility that the fund is expected at some point in the future to be financially able to repay (through capital transfer) the appropriation (capital investment).  

· Contingent liability assumes:

· A past event (the appropriation) occurred and the caveat existed that under certain conditions it would be repaid. 

· The amount to be repaid is known. 

· A future outflow of resources is probable. The fund is expected at some point in the future to be financially able to repay (through capital transfer) the appropriation (capital investment). 

2. Reclassify “Contingent Liability” to a “Liability for Capital Transfers to the General Fund of the Treasury” in the financial reports only in the year when funds are expected to be sufficient to actually repay the appropriation or a portion of the appropriation by capital transfer. The amount reported in a “Liability for Capital Transfers to the General Fund of the Treasury” should be only the amount expected to be actually transferred in a current year. Remaining unpaid portions of the appropriation should continue to be reported as a contingent liability or as a contingent loss disclosure.

***Review each fund's circumstances independently and in accordance with SFFAS No. 5.***

**6. List of USSGL accounts used in Section I and Section II of the scenario**

###### BUDGETARY

4060 Anticipated Collections From Non-Federal Sources

4047 Anticipated Transfers to the General Fund of the Treasury, Current-Year Authority

4119 Other Appropriations Realized

4151 Actual Capital Transfers to the General Fund of the Treasury, Current-Year Authority

4201 Total Actual Resources – Collected

4252 Reimbursements and Other Income Earned – Collected

4262 Actual Collections of Loan Principal

4263 Actual Collections of Loan Interest

4450 Unapportioned Authority

4590 Apportionments – Anticipated Resources – Programs Subject to Apportionment

4610 Allotments – Realized Resources

4901 Delivered Orders – Obligations, Unpaid 

## 4902 Delivered Orders – Obligations, Paid

###### PROPRIETARY

1010 Fund Balance with Treasury

1341 Interest Receivable – Loans

1350 Loans Receivable

1511N Operating Materials and Supplies Held for Use

1750N Equipment

1759N Accumulated Depreciation on Equipment

1923(FXX) Contingent Receivable for Capital Transfers 

2110 Accounts Payable

2923(FXX) Contingent Liabilities for Capital Transfers

2970(FXX) Liability for Capital Transfers

2985(F99) Liability for Non-Entity Assets Not reported on the Statement of Custodial Activity

3100 Unexpended Appropriations, Cumulative

3101 Unexpended Appropriations – Appropriations Received

3107 Unexpended Appropriations – Used

3310 Cumulative Results of Operations

5200 Revenue from Services Provided

5310(FXX) Interest Revenue - Other    

5700 Expended Appropriations

5756(F99) Nonexpenditure Financing Sources – Transfers-In – Capital Transfers

5766(F0XX) Nonexpenditure Financing Sources Transfers-Out- Capital Transfers

5792(F0XX) Financing Sources to be Transferred-Out  – Contingent Liability

5993(F99) Offset to Non-Entity Collections – Statement of Changes in Net Position

5994(F99) Offset to Non-Entity Accrued Collections- Statement of Changes in Net Position  

6100 Operating Expenses/Program Costs

6330(FXX) Other Interest Expenses

6710 Depreciation, Amortization, and Depletion

6790 Other Expenses Not Requiring Budgetary Resources

**7. USSGL Section V Crosswalks for Accounts Presented for FY 2013**

USSGL Proprietary Account Attributes Required for Reporting of Detailed Financial Information 

USSGL Proprietary Crosswalks 

# Section I.

# Capital Transfer Scenario - 

# Return of Capital Investment via Capital Transfers to a General Fund Receipt Account from a No-Year, Non-Credit Revolving Fund

# This scenario addresses capital transfers from a no-year non-credit revolving fund TAFS to a General Fund Receipt Account in the 161000 and 281000 TAFS series.

# Specific transactions for capital transfers by liquidating accounts are presented in section II of this scenario. 

## YEAR 1

Note: A beginning trial balance is not applicable in this scenario.

**PRE-CLOSING ADJUSTING ENTRIES**

# PRE-CLOSING ADJUSTED TRIAL BALANCE

# YEAR 1

**Working Paper for Consolidation, Year 1**

**CLOSING ENTRIES FOR END OF YEAR 1**

# POST-CLOSING TRIAL BALANCE

# YEAR 1

**COMBINED**

**STATEMENT OF BUDGETARY EXECUTIONS AND  BUDGETARY RESOURCES (SF-133)**

**AND PROGRAM & FINANCING SCHEDULE (P&F)**

**YEAR 1**

## SCHEDULE OF BUDGETARY RESOURCES SF-133P&F

Budget Authority

Appropriations:

1100 Appropriation (4119E) 10,00010,000

1160      Appropriation (total)  10,00010,000

Spending Authority from offsetting collections (disc):

1700Spending authority from offsetting collections (4252E)   2,100  2,100

1750 ****Spending authority from offsetting collections (total)   12,10012,100

1910Total budgetary resources (Calc. lines 1160 and 1750)12,100   N/A

1930       Total budgetary resources available (Calc. lines 1160 and 1750)   N/A12,100

**STATUS OF BUDGETARY RESOURCES**

Obligation Incurred:

Direct:

2001Category A, by quarter (4901E-B, 4902E)11,400   N/A

Unobligated Balance 

Apportioned:

2201Available in the current period  (4610E)     700   N/A

2500Total Budgetary Resources (Calc. lines 2001-2403.  Also equals line 1910)12,100   N/A

**CHANGE IN OBLIGATED BALANCE**

Unpaid obligations:

3000   Unpaid obligations, brought forward, October 1

3010Obligation incurred, unexpired accounts  (4901E-B, 4902E)11,400             11,400

3020Outlays (gross) (-) (4902E) (9,400)               (9,400)

Obligated Balance, end of year (net): 

3050Unpaid Obligations, end of the year  (4901E)   2,000                 2,000

3200 Obligated Balance, end of year (Calc. detailed lines 3000-3081)  2,000                 2,000

**BUDGET AUTHORITY AND OUTLAYS, NET**

4000 Budget authority, gross (sum of lines 1100-1152, 1170-1174, 1300-1330, 1500-1531, 

and 1700-1742.  Also equals sum of lines 1160, 1180, 1340, 1540 and 1750)

              (Lines 1100 through 1139, 1170 through 1174, 1300 through 1320, 1500 through 1522, 

              and 1700 through 1728 (P&F)12,100            12,100

4010Outlays from new Discretionary Authority (4902E)  9,400                 9,400

4020 Total outlays, gross (calc, lines 4010-4011)                 9,400                9,400

Offset against gross budget authority and outlays (disc):

Offsetting collections (collected) from:

4033 Non Federal sources (-) (disc) (4252E)  2,100                2,100

4040       Offsets against gross budget authority and outlays (total) (-)   2,100             2,100

4070 Budget authority, net (dis) (Line 4000 plus the amounts on lines 4030 through 

4034 and on lines 4050, 4051 and 4053 (SF 133).  Line 4000 plus the amounts on 

lines 4030 through 4034 and on lines 4050 and 4052 (P&F)10,000               10,000

4080 Outlays, net (dis) (lines 4010-4011 offset by 4030-4034)  7,300              7,300

###### USSGL 2108 Year-End Closing Statement

###### YEAR 1

Column 2 (1010E)2,700

(Calc. col. 2-8)**2,700**

Column 10 (4901E)2,000

Column 11 (4610E)      700

(Calc. col. 9-11)**2,700**

###### BALANCE SHEET

**YEAR 1**

**Assets (Note 2)**

Intragovernmental

1. Fund Balance with Treasury (Note 3) (1010E)  2,700

**Assets With the Public**

12. Inventory and Related Property, Net (Note 9) (1511E)                   50

13. General Property, Plant and Equipment, Net (Note 10) (1750E, 1759E)              5,400

**15. Total Assets (Cal. Line 6-14)****8,150**

**Liabilities (Note 13)**

**Intragovernmental**

17. Accounts Payable (2110E)  2,000

19. Other (Notes 15, 16 and 17) (2985E)10,000

Total Liabilities12,000

**Net Position**

31. Unexpended Appropriation – Other Funds (3100E)      500

33. Cumulative Results of Operations-Other Funds (3310E)    (4,350)

34. Total Net Position(Cal. Line 30-33)  3,850

**35. Total Liabilities and Net Position (Cal. Line 28-34)  8,150**

**STATEMENT OF NET COST**

**YEAR 1**

Gross Program Costs

Program A:

1.  Gross Cost (Note 22) (6100E, 6710E, 6790E)5,950

2.  Less: earned revenue (5200E)    2,100

3.  Net program costs (Calc. line 1 minus line 2) 3,850 

6.  Costs Not Assigned to Programs

5.  Less: earned revenues not attributable to programs

6.  Net cost of operations (Calc. lines 5 and 6 minus 7) 3,850

**STATEMENT OF CHANGES IN NET POSITION**

###### YEAR 1

**Cumulative Results of Operations**

1. Beginning Balance

2. Adjustments

3. Beginning Balances, as Adjusted          0

**Budgetary Financing Sources**

4. Other Adjustments (Recissions, etc.) (+/-)

5. Appropriations Used (5700E)   9,500

6. Nonexchange Revenue

7. Donations and Forfeitures of Cash and Cash Equivalents

8. Transfers In/Out Without Reimbursements (+/-)          0

9. Other

**Other Financing Sources (Non Exchange):**

10. Donated Revenue – Nonfinancial Resources

11. Transfers In/Out Without Reimbursements (+/-)

12. Imputed Financing

13. Other (+/-) (5994E)(10,000)

14. Total Financing Sources     (500)

15. Net Cost of Operations (+/-)    3,850

16. Net Change (Calc. lines 14 minus 15) ( 4,350)

17. Cumulative Results of Operations (Calc. lines 3 and 16) ( 4,350)

**Unexpended Appropriations**

18. Beginning Balances          0

19. Adjustments (+/-)          0

20. Beginning Balance, as Adjusted          0

**Budgetary Financing Sources**

21. Appropriations Received (3101E) 10,000

22. Appropriations Transferred In/Out (+/-)

23. Other Adjustments (Recissions, etc.) (+/-)

24. Appropriations Used (3107E)   9,500

25. Total Budgetary Financing Sources (Calc. lines 21 through 24)      500

26. Total Unexpended Appropriations (Calc. lines 20 and 25)      500

27. Net Position (Note 5) (Calc. lines 17 and 26    (3,850)

# YEAR 2

# PRE-CLOSING TRIAL BALANCE

# YEAR 2

**PRE-CLOSING ADJUSTING ENTRIES**

# PRE-CLOSING ADJUSTED TRIAL BALANCE

# YEAR 2

**Working Paper for Consolidation, Year 2**

**CLOSING ENTRIES FOR END OF YEAR 2**

**POST-CLOSING TRIAL BALANCE**

**YEAR 2**

**COMBINED**

**STATEMENT OF BUDGETARY EXECUTIONS AND BUDGETARY RESOURCES (SF-133)**

**AND PROGRAM & FINANCING SCHEDULE (P&F)**

**YEAR 2**

## SCHEDULE OF BUDGETARY RESOURCES SF-133P&F

Budget Authority

Unobligated balance:  

1000Unobligated balance brought forward, October 1 (4201B+4901B)     700    700

Spending authority from offsetting collections (disc):

1700Collected (4252E)15,00015,000

Adjustments :

1720Capital transfers of spending authority from offsetting 

collections to general fund (4151E)    (675)  (675)

1910Total budgetary resources (Equals the sum of combined total of unobligated 

balances, budget authority, and line 1901 [Lines 1000 through 1042, 1100 through 1152, 1170 through 1174, 1200 through 1252, 1270 through 1273, 1300 through 1330, 1400 through 1430, 1500 through 1531, 1600 through 1631, 1700 through 1742, 1800 through 1842, and 1901 (SF 133)].)15,025  N/A

1930Total budgetary resources available (Equals the sum of combined total of unobligated balances, budget authority, and line 1901 [Lines 1000 through 1031, 1100 through 1139, 1170 through 1174, 1200 through 1239, 1270 through 1273, 1300 through 1320, 1400 through 1420, 1500 through 1522, 1600 through1622, 1700 through 1728, 1800 through 1827, and 1901 (P&F)].**N/A15,025**

**STATUS OF BUDGETARY RESOURCES**

Obligation Incurred:

Direct:

2001Category A, by quarter (4901E-B, 4902E)13,075    N/A

Unobligated Balance 

Apportioned:

2201Available in current period  (4610E)  1,950    N/A

2500Total Budgetary Resources (Calc. lines 2001-2403.  Also equals line 1910)15,025    N/A

**CHANGE IN OBLIGATED BALANCE**

Unpaid obligations:

3000Unpaid obliations brought forward, October 1 (4901B)   2,000  2,000

3010Obligation incurred, unexpired accounts (4901E-B, 4902E) 13,07513,075

3020Outlays (gross) (-) 4902E)  (15,075)

Obliated Balance , end of year (net): 

3050Unpaid obligations, end of the year  (4901E)          0        0

3200 Obligated balance, end of year (Equals the sum of detailed lines 3000, 3001, 

              3010, 3011, 3020, 3030, 3031, 3040, 3041, 3060, 3061, 3070, 3071, 3080, and 3081.  

              Also equals the sum of lines 3050 and 3090.)         0                         0

**BUDGET AUTHORITY AND OUTLAYS, NET**

4000 Budget authority, gross (Equals the sum of discretionary budget authority[Lines 1100 through 1152, 1170 through 1174, 1300 through 1330, 1500 through 1531, and 1700 through 1742 (SF 133).  Lines 1100 through 1139, 1170 through 1174, 1300 through 1320, 1500 through 1522, and 1700 through 1728 (P&F)].14,32514,325

4010Outlays from new discretionary authority (4902E)15,07515,075

4020 Total outlays, gross (calc, lines 4010-4011)**15,07515,075**

Offset against gross budget authority and outlays (disc):

Offsetting collections (collected) from:

**COMBINED**

**STATEMENT OF BUDGETARY EXECUTIONS AND BUDGETARY RESOURCES (SF-133)**

**AND PROGRAM & FINANCING SCHEDULE (P&F) (Continued)**

**YEAR 2**

**SF-133****P&F**

4033 Non Federal sources (-) (disc) (4252E) 15,00015,000

4070 Budget authority, net (dis) Equals the total new budget authority (gross) on line 4000 plus the amounts on lines 4030 through 4034 and on lines 4050, 

               4051 and 4053 (SF 133).  Line 4000 plus the amounts on lines 4030 through 4034 and on lines 4050 and 4052 (P&F).      (675)  (675)

4080 Outlays, net (dis) (lines 4010-4011 offset by 4030-4034)**75     75**

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

###### YEAR 2

Column 2 (1010E)1,950

(Calc. col. 2-8)**1,950**

Column 11 (4610E)1,950

(Calc. col. 9-11)**1,950**

###### BALANCE SHEET

**YEAR 2**

**Assets (Note 2)**

Intragovernmental

1. Fund Balance with Treasury (Note 3)(1010E)1,950

**Assets With the Public**

12. Inventory and Related Property, Net (Note 9) (1511E)       100

13. General Property, Plant, and Equipment, (Net) (Note 10) 

      (1750E+1759E)            5,250

**15. Total Assets (Calc. lines 6-14)7,300**

**Liabilities (Note 13)**

**Intragovernmental**

17. Accounts Payable (2110E)       0

**Liabilities With the Public**

27. Other (Notes 15, 16 and 17) (2985E)9,325

 Total Liabilities9,325

**Net Position**

31. Unexpended Appropriation – Other Funds (3100E)        0

33. Cumulative Results of Operations-Other Funds (3310E)           (2,025)

34. Total Net Position(Calc. lines 30-33)           (2,025)

**35. Total Liabilities and Net Position (Calc. lines 28-34)7,300**

**STATEMENT OF NET COST**

**YEAR 2**

Gross Program Costs

Program A:

1. Gross Cost (Note 22) (6100E, 6710E, 6790E)  13,100

2. Less: earned revenue (5200E)              15,000

3. Net Program Costs(Calc. line 1 minus 2)  (1,900)

4. Costs Not Assigned to Programs

5. Less Earned Revenues Not Attributable to Programs

6. Net Cost of Operations (Calc. lines 5 and 6 minus 7)  (1,900)

##### STATEMENT OF CHANGES IN NET POSITION

###### YEAR 2

**Cumulative Results of Operations**

1. Beginning Balance(3310B)(4,350)

2. Adjustments

3. Beginning Balances, as Adjusted(4,350)

**Budgetary Financing Sources**

4. Other Adjustments (Recissions, etc.) (+/-)

5. Appropriations Used (5700E)    500

6. Nonexchange Revenue

7. Donations and Forfeitures of Cash and Cash Equivalents

8. Transfers In/Out Without Reimbursements (5766E)   (675)

9. Other

**Other Financing Sources:**

10. Donated Revenue – Nonfinancial Resources

11. Transfers In/Out Without Reimbursements (+/-) (5792E)     675

12. Imputed Financing

13. Other (+/-) (5993E, 5994E)    (75)

14. Total Financing Sources    425

15. Net Cost of Operations (+/-)(1,900)

16. Net Change (Calc. lines 14 minus 15)  2,325

**17. Cumulative Results of Operations (Calc. Lines 3 and 16)           (2,025)**

**Unexpended Appropriations**

18. Beginning Balance  500

19. Adjustments (+/-)      0

20. Beginning Balance, as adjusted  500

**Budgetary Financing Sources**

21. Appropriations Received (3101E)                  0

22. Appropriations Transferred in/out

23. Other Adjustments (Recissions, etc.) (+/-)

24. Appropriations Used (3107E) (500)

25. Total Budgetary Financing Sources (Calc lines 21 through 24) (500)

26. Total Unexpended Appropriations (Calc lines 20 and 25)      0

**27. Net Position (Note 5) (Calc. lines 17 and 26)          (2,025)**

#### Section II.

**Capital Transfer Scenario –**

**Return of Capital Investments via a Capital Transfer to a General**

**Fund Receipt Account from a No-Year, Non-Credit Revolving Fund.**

The goal of this section is to record in a liquidating account the movement of any remaining unobligated balances at yearend to a General Fund Receipt Account.   Agencies are required to report both the liquidating account and the General Fund Receipt Account. The Pre-Credit Reform transactions illustrated in this scenario are limited. For more detailed Pre-Credit Reform accounting and reporting instructions, refer to the Credit Reform Case Study “Federal Credit Program Basic Accounting and Reporting Guide for Direct Loan and Loan Guarantee Programs Without Collateral (Pre-Credit Reform)” at www.fiscal.treasury.gov/fsreports/ref/ussgl/creditreform/casestud.htm.

**BEGINNING TRIAL BALANCES**

**ASSUMPTIONS:**

1. Transactions are presented over a 1-year period with a single direct loan obligated prior to October 1, 1991, funded by a no-year authority from offsetting collections.

2. During the year, the agency expects to receive $1,000 in collections. 

3. The agency expects to make $275 in disbursements.

4. The agency expects to return $725 to Treasury, computed as follows: 

Beginning balance of cash             $       0

 Anticipated cash receipts               1,000

Anticipated cash disbursements                  (275)

Expected cash balance at yearend             $   725

Anticipated cash to be returned to Treasury $   725

**ILLUSTRATIVE TRANSACTIONS**

**ILLUSTRATIVE TRANSACTIONS CONTINUED**

**PRE-CLOSING ADJUSTING ENTRIES**

# PRE-CLOSING ADJUSTED TRIAL BALANCE

**WORKING PAPER FOR CONSOLIDATION**

# CLOSING ENTRIES

# CLOSING ENTRIES CONTINUED

# POST CLOSING TRIAL BALANCE

# Budgetary Statements (Not applicable to the GFRA)

**SF133: Report on Budget Execution and  Budgetary Resources and**

**Schedule P: Program & Financing (P&F), Prior Year Actual Column**

**Year XX**

# Statement of Budgetary Resources

# Year XX

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

**(No amounts to report for the liquidating account and not applicable to the GFRA)**

# Balance Sheet

# Year XX

# Assets With the Public

# 11. Direct Loans and Loan 

#       Gaurantees, Net (1341E, 1350E)                 2,550         

# 15. Total Assets                                   2,550         

# Liabilities

# Intragovernmental

# 20. Total Intragovernmental     0                                      

# Net Position

# 33. Cumulative Results of Operations – 

#       Other Funds (3310E, 5993E, 6100E)           2,550                                  

# 34. Total Net Position                                              2,550

# 35. Total Liabilities and Net Position                   2,550

# Statement of Net Cost

# Year XX

# Gross Program Costs:

# 1. Gross costs (Note 22) (6100E)                           275

# 3. Net program costs  (Calc. line 1.)                       275

# 8. Net cost of operations  (Calc. line 3.)                 275

# Statement of Changes in Net Position

# Year XX

# Cumulative Results of Operations:

# 1. Beginning Balances (3310B)                3,650

# 3. Beginning Balances, as adjusted         3,650

# Other Financing Sources (Non-Exchange):

# 13. Other (+/-) (5993E)           (825)

# 14. Total Financing Sources (Calc. line 13)                       (825)

# 15. Net Cost of Operations                                                      275

# 16. Net Change (Calc. sum of 14 minus 15)                    (1,100)

# 17. Cumulative Results of Operations  

#       (Calc. line 3 and 16)                                    2,550

# Unexpended Appropriations:   

# 26. Total Unexpended Appropriations   0

# Budgetary Financing Sources;

# 27. Net Position (Calc. line 17 and 26)          2,550  

**Appendix 1 - Background information on Capital Transfer and Debt Repayments**

## Discussion of OMB Presentation of Capital Transfers and Repayment of Debt using the USSGL Budgetary Accounts

There are two major differences between the SF 133 reporting and the P&F reporting. First, the P&F requires that capital transfers be segregated from redemption of debt, whereas the SF 133 does not have this requirement. Second, the P&F requires that capital transfers and redemption of debt be further segregated by the type of resource being used to fund the transfer, but the SF 133 does not have this additional requirement. Herein lies the problem with the existing USSGL account 4147 prior to fiscal 2002, which recorded actual transfer data. The USSGL account 4147, “Actual Repayments of Debt, Prior-Year Balances,” is not segregated between capital transfers and redemption of debt. In addition, USSGL account 4147 cannot be sufficiently segregated using the existing FACTS II USSGL attributes to separate the transfer source between current year and prior year. In addition, the FACTS II USSGL attributes assigned for Authority Type should be used to separate the various types of current-year authority, and the FACTS II USSGL attributes assigned for BEA Category should be used to separate mandatory and discretionary authority.

# 

� Transfer to general fund receipt accounts includes these four miscellaneous receipts accounts; 

3230 Special and Trust Fund Proprietary Receipts Returned to the General Fund of the U.S. Treasury; 

3231 Special and Trust Fund Governmental Receipts Returned to the General Fund of the U.S. Treasury; 

3232 Special and Trust Fund Intrafund Receipts Returned to the General Fund of the U.S. Treasury

3233 Special and Trust Fund Offsetting Governmental Receipts Returned to General Fund of the U.S. Treasury

 However, these accounts are not the traditional capital transfer accounts where capital investment is returned to the General Fund Receipt Accounts.  They are used to move the funds from a special and trust expenditure account to the General Fund Receipt Account using the capital transfer mechanism.  As a result, the four miscellaneous receipt TAS’s listed above will not be part of this capital transfer guidance.

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Revised from June 3, 2010

May 3, 2012