****

**REFUNDS OF PRIOR-YEAR ADVANCES AND OTHER SPENDING AUTHORITY FROM OFFSETTING COLLECTIONS REFUNDED IN THE CURRENT YEAR FROM EXPIRED 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.

REFUNDS OF PRIOR-YEAR ADVANCES AND OTHER SPENDING AUTHORITY FROM OFFSETTING COLLECTIONS

REFUNDED IN THE CURRENT YEAR FROM EXPIRED TAFS AS OBLIGATIONS AND OUTLAYS

Effective Fiscal 2022

Page 2 of 2                                                                               February 2022

**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] [1:  OMB Circular No. A-11, Section 20.10, page 38 (August 2021)] 

In order to effectively illustrate this OMB requirement, three USSGL scenarios were developed:

· “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 **third**bullet above. The purpose is to illustrate (1) a straight-forward refund of prior-year offsetting collections, as well as (2) returning a cash advance from a prior-year offset by obligations, both of which are refunded in a TAFS that has expired.

**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 either an annual-year TAS or the last unexpired year of a multi-year TAS.  In either case, the Year 1 period of availability is expiring, and the Year 2 period of availability is expired.

· While this scenario illustrates transactions between performing and ordering entities (both federal and non-federal) for reimbursable activity, the transactions also show non-reimbursable activity with a non-federal entity.

· This scenario does not address earmarked or fiduciary funds.

· This scenario does not address special or trust funds. To return receipt of an advance in a special or trust fund in the current year, record TC D438.  To return receipt of an advance in a special or trust fund in the prior year, record TC D436.  

· If establishing a new TAFS in a performing agency for reimbursable agreements only, performing agency should request a cash advance. Refer to section 20.10.[footnoteRef:2] [2:  OMB Circular No. A-11, Section 130.9, page 474 (August 2021)] 

**Year 1 Preclosing Entry:**

**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.**

**Year 1 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: The TAS is now expired.**

**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 Post Closing Trial Balance**

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

**Year 2 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.**

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