CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

1 of 16 August 2006

Effective Date

The effective date for new USSGL accounts 4356, “Cancellation of Appropriation from Invested Balances,” and 4357, “Cancellation of Appropriated Amounts 

Receivable From Invested Special or Trust Funds,” is fiscal 2007, with early implementation available for fiscal 2006.

Overview

This scenario illustrates the accounting for cancellations of available trust or special fund Treasury Appropriation Fund Symbols (TAFS) that have an investment 

relationship with another TAFS. A good example is that of Treasury-Managed Trust Funds (TMTF). Treasury-Managed Trust Funds maintain “corpus” 

accounts that primarily collect and invest earmarked receipts on behalf of another trust fund recipient entity. Those recipient trust fund entities are responsible

for running the programs of that entity. In most cases, the TMTF TAFS maintains a payable on the books and the receiving TAFS maintains a receivable on the 

books, representing authority that resides with the receiving TAFS, however, the invested fund balance remains with the TMTF until the receiving TAFS is ready 

to disburse. Although fund balance is not to be transferred until needed for disbursement, the receiving TAFS may, on occasion, have a minimal residual balance 

remaining in USSGL 1010 “Fund Balance With Treasury.” Therefore, two new USSGL accounts are needed to accommodate this activity.

USSGL 4356, “Cancellation of Appropriation from Invested Balances,” is needed to account for the cancellation of unobligated balances in the receiving 

TAFS represented by fund balance (i.e. USSGL 1010 “Fund Balance With Treasury”). The movement of fund balance from the receiving TAFS back to the 

invested TAFS is accomplished via SF 1151: Nonexpenditure Transfer Authorization.

USSGL 4357, “Cancellation of Appropriated Amounts Receivable From Invested Special or Trust Funds,” is needed to account for the cancellation of 

unobligated balances in the receiving TAFS represented by a receivable in the receiving TAFS and a payable in the invested TAFS. There is NO movement of 

fund balance with this activity.

This scenario follows USSGL TFM S2-06-02a, fiscal 2007 crosswalks (2006 P&F crosswalk). The proposed new USSGL accounts are bolded throughout the 

scenario. The scenario is illustrative in nature and does not reflect all types of trust or special fund activity. Refer to USSGL TFM S2-06-02a for a complete 

listing of valid USSGL transactions.
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

2 of 16 August 2006

New USSGL Accounts

(Effective Fiscal 2007, Available for Early Implementation Fiscal 2006)

Account Title: Cancellation of Appropriation From Invested Balances

Account Number: 4356

Normal Balance: Credit

Definition: The amount of appropriated receipts in a trust or special fund expenditure account that is cancelled and returned to the originating invested trust or 

special fund from which the amount was originally derived. The amounts are to be returned via SF 1151: Nonexpenditure Transfer Authorization.

Account Title: Cancellation of Appropriated Amounts Receivable From Invested Trust or Special Funds

Account Number: 4357

Normal Balance: Credit

Definition: The amount of appropriated receipts in a trust or special fund expenditure account, represented as a receivable from an invested trust or special fund, 

that is cancelled. There is no movement of fund balance.

Account

Movement of Fund 

Balance Treasury Action SF 133 USSGL 2108 P&F

4356

From Expenditure

TAFS back to Invested 

Expenditure TAFS SF 1151 Line 6A n/a

Line 2398 (unexpired only),

Line 2441

4357 n/a n/a Line 6A Column 11

Line 2398 (unexpired only),

Line 2441
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

3 of 16 August 2006

The following USSGL accounts are used in this scenario:

Account 

Number Account Name

Budgetary

4123 Amounts Appropriated From Invested TAFS Reclassified – Receivable – Temporary Reduction/Cancellation

4124 Amounts Appropriated From Invested Fund TAFS Reclassified – Payable – Temporary Reduction/Cancellation

4126 Amounts Appropriated From Specific Invested TAFS – Receivable

4127 Amounts Appropriated From Specific Invested TAFS – Payable

4129 Amounts Appropriated From Specific Invested TAFS – Transfers-Out

4201 Total Actual Resources – Collected

4356 Cancellation of Appropriation From Invested Balances

4357 Cancellation of Appropriated Amounts Receivable From Invested Trust or Special Funds

4384 Temporary Reduction/Cancellation Returned by Appropriation

4394 Receipts Unavailable for Obligation Upon Collection

4650 Allotments - Expired Authority

Proprietary

1010 Fund Balance With Treasury

1330 Receivable for Transfers of Currently Invested Balances

1610 Investments in U.S. Treasury Securities Issued by the Bureau of the Fiscal Service

2150 Payable for Transfers of Currently Invested Balances

3310 Cumulative Results of Operations

5755 Nonexpenditure Financing Sources - Transfers-In

5765 Nonexpenditure Financing Sources - Transfers-Out
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

4 of 16 August 2006

USSGL Scenario

5th Expired Year (2006)

Beginning Trial Balances

Invested/Transferring TAFS

(20X8001) DR CR

Receiving TAFS

(69 FY 8123) DR CR

BUDGETARY

4127

4201

4394

PROPRIETARY

1610

2150

3310

100,000

100,000

20,000

80,000

20,000

80,000

BUDGETARY

4126

4201

4650

PROPRIETARY

1010

1330

3310

20,000

2,000

2,000

20,000

22,000

22,000
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

5 of 16 August 2006

5th Expired Year (2006)

It is the end of the 5th expired year. The Receiving TAFS must 1) return all remaining fund balance to the Transferring account, and must 2) cancel all remaining 

authority and balances.

1. To record the cancellation of unobligated expired balances represented by fund balance. This transfer is accomplished via SF 1151: Nonexpenditure Transfer 

Authorization. Transactions of this nature are reflected by the Receiving TAFS as a “cancellation” on the SF 133 and P&F, and as a “return of fund balance” on 

the USSGL 2108.

1. The Receiving TAFS must cancel the expired balances, and return the associated fund balance back to the originating Transferring TAFS. 

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

Budgetary Entry

4129 Amounts Appropriated From 

Invested TAFS – Transfers-Out

4394 Receipts Unavailable 

for Obligation Upon 

Collection

Proprietary Entry

1010 Fund Balance With Treasury

5755 Nonexpenditure 

Financing Sources -

Transfers-In

2,000

2,000

2,000

2,000

A531

Proposed

New

Budgetary Entry

4650 Allotments - Expired Authority

4356 Cancellation of 

Appropriation From 

Invested Balances

Proprietary Entry

5765 Nonexpenditure Financing Sources -

Transfers-Out

1010 Fund Balance With Treasury

2,000

2,000

2,000

2,000

F121
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

6 of 16 August 2006

2. To record the cancellation of unobligated expired balances represented by receivables/payables.

2A. First, record the cancellation of the unobligated expired balances represented by receivables/payables.

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

N/A

Budgetary Entry

4650 Allotments – Expired Authority

4357 Cancellation of 

Appropriated Amounts 

Receivable From Invested 

Trust or Special Funds

20,000

20,000

F123

2B. Second, record the reversal of the receivables/payables.

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

Budgetary Entry

4127 Amounts Appropriated From 

Specific Invested TAFS –

Payable

4124 Amounts Appropriated 

From Invested Fund 

TAFS Reclassified 

– Payable –

Temporary 

Reduction/Cancellation

Proprietary Entry

2150 Payable for Transfers of 

Currently Invested Balances

5755 Nonexpenditure 

Financing Sources -

Transfers-In

20,000

20,000

20,000

20,000

A522

Budgetary Entry

4123 Amounts Appropriated From Invested 

TAFS Reclassified – Receivable –

Temporary Reduction/Cancellation

4126 Amounts Appropriated From 

Specific Invested TAFS –

Receivable

Proprietary Entry

5765 Nonexpenditure Financing Sources -

Transfers-Out

1330 Receivable for 

Transfers of Currently 

Invested Balances

20,000

20,000

20,000

20,000

A518
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

7 of 16 August 2006

5th Expired Year (2006)

Pre-Closing Adjusted Trial Balances

Invested/Transferring TAFS 

(20X8001) DR CR

Receiving TAFS

(69 FY 8123) DR CR

BUDGETARY

4124

4127

4129

4201

4394

Total

PROPRIETARY

1010

2150

1610

3310

5755

Total

2,000

100,000

0

102,000

2,000

100,000

0

0

102,000

20,000

0 

0

0

82,000

102,000

0

 0

80,000

22,000

102,000

BUDGETARY

4123

4126

4201

4356

4357

4650

Total

PROPRIETARY

1330

3310

5765

Total

20,000

0

2,000

0

0

0

22,000

0

0

22,000

22,000

2,000

20,000

0

22,000

22,000

0

22,000
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

8 of 16 August 2006

5th Expired Year (2006)

CLOSING ENTRIES

3. To reclassify a reduction/cancellation recorded in an invested TAFS.

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

Budgetary Entry

4124 Amounts Appropriated From 

Invested TAFS Reclassified – 

Payable – Temporary 

Reduction/Cancellation

4384 Temporary 

Reduction/Cancellation 

Returned by

Appropriation

Proprietary Entry

N/A

20,000

20,000

F360 N/A

4. To record the consolidation of actual net-funded resources. 

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

Budgetary Entry

4201 Total Actual Resources –

Collected

4129 Amounts Appropriated 

From Invested TAFS –

Transfers-Out

Proprietary Entry

N/A

2,000

2,000

F302 N/A
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

9 of 16 August 2006

5th Expired Year (2006)

CLOSING ENTRIES

5. To reclassify a reduction/cancellation recorded in an invested TAFS.

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

N/A

Budgetary Entry

4357 Cancellation of Appropriated 

Amounts Receivable From Invested 

Trust or Special Funds

4123 Amounts Appropriated From 

Invested TAFS Reclassified 

– Receivable – Temporary 

Reduction/Cancellation

Proprietary Entry

N/A

20,000

20,000

F369

6. To record the consolidation of actual net-funded resources. 

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

N/A

Budgetary Entry

4356 Cancellation of Appropriation 

From Invested Balances

4201 Total Actual Resources –

Collected 

Proprietary Entry

N/A

2,000

2,000 F302
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

10 of 16 August 2006

5th Expired Year (2006)

CLOSING ENTRIES (continued)

7. To record the closing of revenue, expense, and other financing source accounts to cumulative results of operations.

Invested/Transferring TAFS 

(20X8001) DR CR TC

Receiving TAFS

(69 FY 8123) DR CR TC

Budgetary Entry

N/A

Proprietary Entry

5755 Nonexpenditure Financing 

Sources - Transfers-In

3310 Cumulative Results of 

Operations

22,000

22,000

F336

Budgetary Entry

N/A

Proprietary Entry

3310 Cumulative Results of Operations

5765 Nonexpenditure Financing 

Sources - Transfers-Out

22,000

22,000

F336
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

11 of 16 August 2006

5th Expired Year (2006)

Post-Closing Trial Balances

Invested/Transferring TAFS 

(20X8001) DR CR

Receiving TAFS

(69 FY 8123) DR CR

BUDGETARY

4201

4384

4394

Total

PROPRIETARY

1010

1610

3310

Total

102,000

0

 0 

102,000

2,000

100,000 

0

102,000

20,000

82,000

102,000

 

102,000

102,000

BUDGETARY

N/A

PROPRIETARY

N/A
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

12 of 16 August 2006

5th Expired Year (2006)

Budgetary Reports

SF 133: REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

BUDGETARY RESOURCES

1. Unobligated balance:

 A. Brought forward, October 1 (4201B, 4126B, 4127B, 4394B) 0

7. Total budgetary resources 0

STATUS OF BUDGETARY RESOURCES

11. Total status of budgetary resources 0

BUDGETARY RESOURCES

1. Unobligated balance:

 A. Brought forward, October 1 (4201B, 4126B, 4127B) 22,000

3. Budget authority:

 A. Appropriation

1. Actual (4123E, 4126E-B) 0

6. Permanently not available (-)

 A. Cancellations of exp’d and no-year accts (-) (4356E, 4357E) (22,000)

7. Total budgetary resources 0

STATUS OF BUDGETARY RESOURCES

9. Unobligated balance:

 B. Exempt from apportionment:

1. Balance, currently available 

11. Total status of budgetary resources 0
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

13 of 16 August 2006

5th Expired Year (2006)

Budgetary Reports

USSGL 2108: YEAR-END CLOSING STATEMENT

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

Column 5 Post-Closing Unexpended Balance (1010E) 2,000

Column 6 Other Authorizations (1610E) 100,000

Column 10 Accounts Payable and Other Liabs (4124E) 20,000

Column 11 Unobligated Balance (4394E) 82,000

Columns 5+6+7+8 = 9+10+11

102,000 = 102,000

Column 5 Post-Closing Unexpended Balance (1010E) 0

Column 7 Reimbursements Earned (4123E) 20,000

Column 8 Unfilled Customer Orders 0

Column 11 Unobligated Balance (4357E) 20,000

Columns 5+6+7+8 = 9+10+11

20,000 = 20,000
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

14 of 16 August 2006

5th Expired Year (2006)

Budgetary Reports

BUDGET PROGRAM AND FINANCING SCHEDULE (P&F)

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

Budgetary Resources Available for Obligation

2140 Unob bal cf, soy (4126B, 4127B, 4201B, 4394B) 0

2440 Unobligated bal CF, end of year 0

Net Budget Authority and Outlays

8900 Budget auth (net) (+) (same as 2200 and 8800..8896) 0

9000 Outlays (net) (+) (sum 8690..8698 minus 8800..8845) 0 

Memorandum Entry

2441 Special and trust fund receipts ret to sch N (4356E, 4357E) 22,000

Net Budget Authority and Outlays

8900 Budget auth (net) (+) (same as line 2200 and 8800..8896) 0

9000 Outlays (net) (+) (sum 8690..8698 minus 8800..8845) 0
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

15 of 16 August 2006

5th Expired Year (2006)

OMB Form and Content Statements

BALANCE SHEET

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

Assets

Intragovernmental

1. Fund Balance With Treasury (1010E) 2,000

2. Investments (1610E) 100,000

15. Total Assets (calc 6..14) 102,000

Liabilities

Intragovernmental

28. Total Liabilities (calc 19..27) 0

Net Position

32. Cumulative Results of Operations – Earmarked Funds 102,000

34. Total Net Position (calc 29..33) 102,000

35. Total Liabilities and Net Position (calc 28+34) 102,000

N/A

STATEMENT OF NET COST

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

N/A N/A
CANCELLATIONS

Available Trust or Special Funds With Invested Relationships

16 of 16 August 2006

5th Expired Year (2006)

OMB Form and Content Statements

STATEMENT OF CHANGES IN NET POSITION

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

Earmarked FundsAll Other Funds

Cumulative Results of Operations:

1. Beg Balances (3310B) 80,000 0

2. Adjustments 0 0

3. Beginning Bal, As Adjusted (calc 1..2b) 80,000 0

Other Financing Sources (Nonexchange):

11. Transfers-In/Out Without Reimb (+/-) (5755E) 22,000

14. Total Financing Sources (calc 4..13) 22,000 0

15. Net Cost of Operations 0 0

16. Net Change (calc 14-15) 22,000 0

17. Cumulative Results of Operations (calc 3+16) 102,000 0

Cum Res of Ops Unexp Approps

Cumulative Results of Operations:

1. Beg Balances (3310B) 22,000 0

2. Adjustments 0 0

3. Beginning Bal, As Adjusted (calc 1..2b) 22,000 0

Other Financing Sources (Nonexchange)

11. Transfers-In/Out Without Reimb (+/-) (5765E) (22,000)

14. Total Financing Sources (calc 4..13) (22,000) 0

15. Net Cost of Operations 0 0

16. Net Change (calc 14-15) (22,000) 0

17. Cumulative Results of Operations (calc 3+16) 0 0

STATEMENT OF FINANCING

Invested/Transferring TAFS 

(20X8001)

Receiving TAFS

(69 FY 8123)

N/A N/A