REFUNDS OF PRIOR-YEAR ADVANCES REFUNDED IN THE CURRENT YEAR FROM UNEXPIRED TAFS AS OBLIGATIONS AND OUTLAYS

Effective Fiscal 2022

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**REFUNDS OF PRIOR-YEAR ADVANCES REFUNDED IN THE CURRENT YEAR FROM UNEXPIRED TAFS AS OBLIGATIONS AND OUTLAYS**

**EFFECTIVE FISCAL YEAR 2022**

**PREPARED BY:**

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

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

## **Procedure Version Log**

All modifications to this document will be tracked to maintain version history. Each modification will require an entry into the log, including the version, date of the modification, author, reviewer, and description of the changes. All updates to procedures will be subject to a review and approval process. Updates that do not change the actual process will be considered minor. Minor updates will be reflected with a new version dot number (i.e., 1.1). Updates to procedures that alter the current process will be considered major. Major revisions/changes will require a review and will be reflected with a new primary number (i.e., 2.0).

**NOTE:**This scenario follows USSGL TFM Bulletin No. 2022-10 (February 2022) and Part 2 2022 crosswalks.

**Background:**

Office of Management and Budget (OMB) Circular No. A-11 states “If you return a cash advance or other offsetting collection or special or trust fund receipts received in a prior fiscal year, you must record an obligation and an outlay in the current fiscal year.”[footnoteRef:1] In order to effectively illustrate this OMB requirement, three USSGL scenarios were developed: [1:  OMB Circular No. A-11, Section 20.10, page 38 (August 2021)] 

· **“Refunds of Prior-Year Advances Refunded in the Current Year From *Unexpired*TAFS As Obligations and Outlays”**

· “Refunds of Prior-Year Spending Authority From Offsetting Collections (Other Than Advances) Refunded in the Current Year From *Unexpired*TAFS As Obligations and Outlays” 

· “Refunds of Prior-Year Advances and other Spending Authority From Offsetting Collections Refunded in the Current Year From *Expired*TAFS As Obligations and Outlays” 

This scenario addresses the first bullet above. It displays USSGL account 425300, “Prior-Year Unfilled Customer Orders With Advance – Refunds Paid,” and transactions that meet the budgetary requirements for returning a cash advance that was received in a prior year.

**Listing of USSGL Accounts Used in This Scenario**

*** Revised USSGL account effective FY 2022       ** New USSGL account effective FY 2022**

**Scenario Assumptions:**

· The GTAS BEA Category Indicator Attribute for illustrations purposes is discretionary.

· This is a no-year TAFS or a multi-year TAFS where the period of availability is **not** about to expire.

· While this scenario illustrates transactions between federal performing and ordering entities for reimbursable activity, the ordering entity receives an appropriation.  Therefore, the transactions for the ordering entity would be considered direct activity.

· This example does not address earmarked or fiduciary funds.

· The agreement between the two entities is for more than one year.

**Year 1:**

**Preclosing Adjusted Trial Balance Period 12**

*** R beside an amount represents Reimbursable activity.                    ** D beside an amount represents Direct activity.**

**Year 1: Closing Entries:**

**Year 1: Post Closing Trial Balance**

*** R beside an amount represents Reimbursable activity.                    ** D beside an amount represents Direct activity.**

**Financial Statements:**

**Reclassified Financial Statements:**

**Note: Effective FY 2021, the Reclassified Balance Sheet is the same as the Balance Sheet. Therefore, the Reclassified Balance Sheet is not presented in this scenario.**

**Year 2:**

**Year 2: Preclosing Adjusted Trial Balance**

*** R beside an amount represents Reimbursable activity.                    ** D beside an amount represents Direct activity.**

**Year 2: Closing Entries**

**Year 2 Postclosing Trial Balance**

*** R beside an amount represents Reimbursable activity.                    ** D beside an amount represents Direct activity.**

**Year 2 Financial Statements:**

**RECLASSIFIED FINANCIAL STATEMENTS YEAR 2:**

**Note: Effective FY 2021, the Reclassified Balance Sheet is the same as the Balance Sheet. Therefore, the Reclassified Balance Sheet is not presented in this scenario.**

  Page 3 of 33                                                                               February 2022

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