**Nonexpenditure Transfers**

**General Fund TAFS to a Revolving Fund TAFS**

**(Transfer of Unexpended Appropriations and Transfer of Revenue)**

**This scenario follows FY 2006 crosswalks (fiscal 2005 P& F), as published in TFM S2-06-01**

# Background

Nonexpenditure transactions are defined as transactions that do not represent payments for goods and services, but serve only to adjust amounts available in accounts.  They include transfers of appropriations (based on appropriation warrants), which increase or decrease appropriation amounts between appropriation and fund accounts as a result of legislation.  These transfers must be authorized by law and are accomplished via SF 1151: Nonexpenditure Transfer (NET) Authorization.

Nonexpenditure transfers must occur within the same fund group.  That is, any transfer that occurs between funds within the Federal fund group (i.e. transfers between general, special and revolving funds) is to be classified as nonexpenditure.  Likewise, any transfer between two trust funds is to be classified as nonexpenditure.

There are four main groups of nonexpenditure transfers.  These groups are:

· Appropriation Transfers

· Balance Transfers

· Reappropriation Transfers, and

· Capital Transfers.

Treasury Financial Manual (TFM) Volume 1, Part 2, Chapter 2000, Appendix 3 as amended by TFM Bulletin 2006-03 provides specific information about the transfer types and the associated USSGL accounts.   This information can be found on the Fiscal Service website at the following address:  http://tfm.fiscal.treasury.gov/v1.html

For nonexpenditure transfers of budget authority between Treasury Appropriation Fund Symbols (TAFS), the "Transfer From" entity will determine the source of funds being transferred and record a proprietary USSGL account that designates the funding as being derived from either: 

· Unexpended appropriations from general fund resources not earmarked by law for a specific purpose - USSGL account 3103, “Unexpended Appropriations - Transfers-Out,” or 

· Financing sources that impact cumulative results of operations - USSGL account 5765, “Nonexpenditure Financing Sources - Transfers Out.”

The "Transfer To" entity must use a propriety USSGL account that corresponds to the proprietary USSGL account used by the "Transfer From" entity.  USSGL account 3102, “Unexpended Appropriations - Transfers-In” corresponds to USSGL account 3103.  USSGL account 5755, “Nonexpenditure Financing Sources - Transfers In” corresponds to USSGL account 5765. Failure of both entities to record the matching proprietary USSGL account category (3102/3103 or 5755/5765) will result in agency-wide and/or Government-wide elimination discrepancies.

There may be mixed funding in a single TAFS.  The net position of a TAFS may be a mix of:

· Unexpended appropriations derived from general fund resources not earmarked by law for a specific purpose, and

· Financing sources such as Economy Act revenue, which impact cumulative results of operations.

# Overview

The following concepts apply:

· **All activity between the two TAFS represented is independent except for the NET transfer activity.  Related activity is presented in shaded text.**

· The transferring agency and receiving agency have legislative authority to make and accept the subject transfers.

· The scenario is not all inclusive of the different types of revenues and/or expenses that may be recorded.  The intent is to illustrate the main concepts through basic transactions.  Refer to Section III, Accounting Transactions, of TFM S2-06-01 (as updated) for a complete listing of USSGL accounts that may be recorded.  Section III is located on the USSGL Web site (https://www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl_home.htm). 

· Budgetary and financial reports reflect the pertinent lines to be reported based on the main concepts illustrated.  For full presentations of the reports and line descriptions, refer to the appropriate authoritative guidance (i.e. OMB Circular A-136: Financial Reporting Requirements, OMB Circular No. A-11:  Preparing, Submitting, and Executing the Budget, Treasury Financial Manual references).

· The Treasury Appropriation Symbols in this scenario are for example only.  These symbols were not valid symbols found in the Federal Account Symbols and Titles (FAST) book dated September 2005.

· This scenario does not display information specific to Earmarked Funds as defined by FASAB.

· The Budget Enforcement Act category for the programs in this scenario is presumed to be discretionary.

· All obligations in a Revolving Fund are considered reimbursable. Refer to OMB Circular A-11, Section 83.5.

**USSGL Accounts Used in Scenario**

**General Fund (60X1250)**

# Revolving Fund (12X4251)

**General Fund (60X1250)**

# Revolving Fund (12X4251)

The GWA NET application comment field is available for agencies to input the proper proprietary USSGL transfer account.  Refer to TFM Bulletin 2006-03 for guidance at http://tfm.fiscal.treasury.gov/v1.html

The GWA NET application comment field is available for agencies to input the proper proprietary USSGL transfer account.  Refer to TFM Bulletin 2006-03 for guidance at http://tfm.fiscal.treasury.gov/v1.html

� TFM Vol. I Part 2 - Chapter 2000

� As defined in the Analytical Perspectives of the Budget of the U.S. Government, Chapter 15.

� TFM Supplement, Section III

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