**Temporary Reduction**

**Reduction of Spending Authority from Offsetting Collections**

**Fiscal Year 2014**

PREPARED BY:

UNITED STATES STANDARD GENERAL LEDGER ADVISORY DIVISION

GOVERNMENTWIDE ACCOUNTING

BUREAU OF THE FISCAL SERVICE

U.S. DEPARTMENT OF THE TREASURY

### Background

Office of Management and Budget (OMB) Circular No. A-11 separates reductions into two basic categories.  These categories are temporary and permanent.  Reductions of spending authority from offsetting collections are generally considered temporary.   

Use the following scenario to temporarily reduce budget authority derived from spending authority from offsetting collections. Beginning in FY 2005, there were two USSGL accounts available for posting temporary reductions of spending authority from offsetting collections.  Refer to OMB Circular No. A-11, (2013) for further details.  

438200Temporary Reduction – New Budget Authority

438300Temporary Reduction – Prior Year Balances

As with all temporary reductions, the budget authority as originally provided remains as the gross amount of budget authority, while the reduction is reflected separately.  When combined to compute the total budgetary resources, the amount is shown net.  It is especially important to note, temporary reductions are not lost as potential resources of the Treasury Appropriation Fund Symbol (TAFS) forever.  Instead, amounts temporarily reduced are returned to the fund through a post-closing reclassification entry to USSGL account 438400 Temporary Reductions Returned By Appropriation.  The amount in USSGL account 438400 is brought forward in the next year and should be classified to properly reflect the availability of the resource.  The availability of the resources is determined by law and/or OMB.  **This scenario is not intended to illustrate the accounting effects resulting from the sequestration of funding.**

For report presentation purposes, the fund in this scenario is considered discretionary and does not expire in year 1 or year 2.  In year 1, USSGL account 438200 Temporary Reduction – Current Year Authority is used to reflect a reduction of new budget authority provided by spending authority from offsetting collections.  Similarly, a reduction of prior-year balances derived from spending authority from offsetting collections is reflected in USSGL account 438300 Temporary Reduction – Prior Year Balances in year 2.

Form and Content financial statements are not displayed since the proprietary accounts are not directly impacted by temporary reductions of spending authority from offsetting collections. 

## CLOSING ENTRIES

**FMS-2108 Yearend Closing StatementYEAR 1**

**Column 5**101000E3,500

**Column 7**425100E3,000

**Column 8**422100E1,000

**Column 9**480100E   500

**Column 10**490100E1,500

**Column 11**461000E5,000

**438200E**   500

Columns 4+5+6+7+8-9-10 = Column 11  

0+3,500+0+3,000+1,000+(500)+(1,500) = 5,500

**SF133:  REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/**

**SBR:  STATEMENT OF BUDGETARY RESOURCES**

**(YEAR-END)**

# YEAR 1

## BUDGETARY RESOURCES 

1. Spending authority from offsetting collections (gross)

A.  Earned

1. Collected (4252E) 4,000

2. Receivable from Federal sources (4251E-B) 3,000

B. Change in unfilled customer orders

1. Advance received (4222 E-B) 2,000

2. Without advance from Federal sources (4221 E-B) 1,000

      F.  Subtotal10,000

5.  Temporarily not available pursuant to Public Law___ (-) **(4382”S”E)   (500)**

7.  Total budgetary resources****9,500

## STATUS OF BUDGETARY RESOURCES

2. Obligations incurred:

B.Reimbursable (4801E-B+4901E-B+4902E) 4,500

9. Unobligated balance:

A. Apportioned

1. Balance currently available (4610E)     5,000

11. Total status of budgetary resources 9,500

### RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

14. Obligated balance, net, end of period:

A.  Accounts receivable (-) (4251E)(3,000)

B.  Unfilled customer orders from Federal sources (-) (4221E)(1,000)

C. Undelivered orders (+) (4801E)    500

D. Accounts payable (+) (4901E) 1,500

15. Outlays:

A. Disbursements (+) (4902E) 2,500

B. Collections (-) (4222E-B+4252E)(6,000)

**Outlay Formula:**

15A-15B = 8 – (3A+3B+3E+4A) + 12 +/- 13 – (-14A-14B+14C+14D)

2,500-6,000 = 4,500 – (10,000) +0 +/- 0 – (-3,000-1000+500+1500)

-3,500 = 4,500-10,000-(-2,000)

-3,500 = -5,500+2,000

-3,500 = -3,500

**BUDGET PROGRAM AND FINANCING (SCHEDULE P) PRIOR-YEAR ACTUAL COLUMN FOR YEAR 1 REPORTING**

##### OBLIGATIONS BY PROGRAM ACTIVITY

1000 Total new obligations (4801E-B+4901E-B+4902E) 4,500

### BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION

2200 New budget authority (gross) (lines 4000..6962) 9,500

2395 Total new obligations (-) (same as 1000 opposite sign)(4,500)

2440 Unobligated balance carried forward, end of year (4610E) 1,000

##### NEW BUDGET AUTHORITY (GROSS), DETAIL

6800 Spending Authority from offsetting collections (cash) (4222E-B+4252E) 6,000

6810 Chng. in uncoll, cust. Pymts. f/ Fed sources (unexp.) (4221E-B+4251E-B) 4,000

6837 Portion temporarily reduced (-) **(4382E)(S)(500)**

6890 Spending authority from offsetting collections (total discreationary) 9,500

##### CHANGE IN OBLIGATED BALANCES

7310 Total new obligations (line 1000)4,500

7320 Total outlays (gross) (-) (4902E)(2,500)

7400 Chng in uncoll cust pymts f/Fed sources (unexp) (line 6810 opp sign)(4,000)

7440 Obligated balance, end of year (4221E+4251E+4801E+4901E)                                (2,000)

##### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (4902E)2,500

##### OFFSETS

8800 Federal sources (-) (4222E-B+4252E)6,000

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net) (Lines 2200-(8800..8845), (8895..8896)3,500

9000 Outlays (net) Lines (8690..8698)-(8800..8845)                        (3,500)

Year 2

## CLOSING ENTRIES

**FMS-2108 Yearend Closing Statement YEAR 2**

**Column 5**101000E3,500

**Column 11**461000E, 438300E3,500

Columns 4+5+6+7+8-9-10 = Column 11  

0+3,500+0+0+0+(0)+(0) = 3,500

#### SF133:  REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES/

**SBR:  STATEMENT OF BUDGETARY RESOURCES**

**(YEAR-END)**

# YEAR 2

## BUDGETARY RESOURCES 

2.Unobligated balance:

A. Brought forward October 1 (4201B+4221B+4222B+4251B+

**4384”S” B**+4801B+4901B) 5,000

3. Spending authority from offsetting collections (gross)

A.  Earned

1. Collected (4252E)  6,000

2. Receivable from Federal sources (4251E-B) (3,000)

B.Change in unfilled customer orders

1. Advance received (4222 E-B) (2,000)

2. Without advance from Federal sources (4221 E-B) (1,000)

D. Previously unavailable **(4384 “S” E-B)**     500

F.  Subtotal     500

5.  Temporarily not available pursuant to Public Law___ (-) **(4383”S”E)   (100)**

7.  Total budgetary resources****5,400

## 

## STATUS OF BUDGETARY RESOURCES

8.Obligations incurred:

B.Reimbursable (4801E-B+4901E-B+4902E) 2,000

9.Unobligated balance:

A.Apportioned

1.Balance currently available (4610E)     3,400

11.Total status of budgetary resources 5,400

### RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

12. Obligated balance, net as of October 1 (4221B, 4251B, 4801B, 4901B)(2,000)

14.Obligated balance, net, end of period:

A.  Accounts receivable (-) (4251E)       0

B.  Unfilled customer orders from Federal sources (-) (4221E)       0

C.Undelivered orders (+) (4801E)       0

D.Accounts payable (+) (4901E)       0

15.Outlays:

A.Disbursements (+) (4902E) 4,000

B.Collections (-) (4222E-B+4252E)(4,000)

**Outlay Formula:**

15A-15B = 8 – (3A+3B+3E+4A) + 12 +/- 13 – (-14A-14B+14C+14D)

4,000-4,000 = 2,000 – (3,000-3000+0) +(2,000) +/- 0 – (-0-0+0+0)

0 = 2,000 – 0 + (2,000) + 0 - 0

0 = 0

**BUDGET PROGRAM AND FINANCING (SCHEDULE P) PRIOR-YEAR ACTUAL COLUMN FOR YEAR 2 REPORTING**

##### OBLIGATIONS BY PROGRAM ACTIVITY

1000 Total new obligations (4801E-B+4901E-B+4902E) 2,000

### BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION

2140 Unobligated balance carried forward, start of year 

(4201B+4221B+4222B+4251B+**4384”S”B**+4801B+4901B) 5,000

2200 New budget authority (gross) (lines 4000..6990)    400

2395 Total new obligations (-) (same as 1000 opposite sign))(2,000)

2440 Unobligated balance carried forward, end of year (4610E) 3,400

##### NEW BUDGET AUTHORITY (GROSS), DETAIL

6800 Spending Authority  from Offsetting collections (cash) (4222E-B+4252E) 4,000

6810 Chng in uncoll cust pymts f/ Fed sources (unexp) (4221E-B+4251E-B)(4,000)

6826 From offsetting collections (unavailable balances) **(4384 “S” E-B)2**   500

6837 Portion temporarily reduced (-) **(4383 “S” E)(100)**

6890 Spending authority from offsetting collections (total discretionary)   400

##### CHANGE IN OBLIGATED BALANCES

7240 Obligated balance, start of year (4221B+4251B+4801B+4901B)(2,000)

7310 Total new obligations (line 1000) 2,000

7320 Total outlays (gross) (-) (4902E) (4,000)

7400 Chng in uncoll cust pymts f/Fed sources (unexp) (line 6810 opp sign) 4,000

7440 Obligated balance, end of year (4221E+4251E+4801E+4901E)                                         

##### OUTLAYS (GROSS), DETAIL

8690 Outlays from new discretionary authority (4902E)4,000

##### OFFSETS

8800 Federal sources (-) (4222E-B+4252E)4,000

### NET BUDGET AUTHORITY AND OUTLAYS

8900 Budget authority (net) Lines 2200-(8800..8845), (8895..8896)3,600

9000 Outlays (net) Lines (8690..8698)-(8800..8845)                                0

Temporary reduction on line 5. Auth type “S” Attribute not required.

Authority Type attribute “S” required.

438400 is part of beginning balance calculation . Auth type “S” attribute not required

Authority Type attribute “S” required.

Temporary   reduction on line 5. Auth type “S” attribute not required.

438400 part of beginning balance calculation. “S” attribute not required.

Auth type Attribute “S” required

� Line 6837 is used for illustrative purposes.  OMB Circular No. A-11 (2004) provides lines 6837 and 6937 for temporary reductions to spending authority from offsetting collections.  The proper Schedule P line will be cross walked in FACTS II if the proper BEA category and Authority Type attributes are assigned to the transction.  The transactions in this scenario are presumed to be related to discretionary authority from spending authority from offsetting collections.

� Lines 6826 and 6837 are used for illustrative purposes.  The proper Schedule P line will be crosswalked in FACTS II if the proper BEA category and Authority Type attributes are assigned to the transction.  The transactions in this scenario are presumed to be related to discretionary authority from spending authority from offsetting collections.

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