Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Overview

Prior-period adjustments (PPAs), according to the Statement of Federal Financial Accounting Standards (SFFAS) No. 21, Reporting 

Corrections of Errors and Changes in Accounting Principles, occasionally occur as a result of material corrections of errors and/or 

changes in accounting principles applied to an agency’s prior-year financial statements. This scenario focuses on PPAs as they relate 

to corrections of errors only. 

“Errors in financial statements result from mathematical mistakes, mistakes in the application of accounting principles, or oversight or 

misuse of facts that existed at the time the financial statements were prepared.” 1 According to SFFAS No. 21, par. 10, “When errors 

are discovered after the issuance of financial statements, and if the financial statements would be materially misstated absent 

corrections of the errors, corrections should be made as follows... If comparative financial statements are presented... If the earliest 

period presented is not the period in which the error occurred and the cumulative effect is attributable to prior periods, then the 

cumulative effect should be reported as a prior period adjustment...”

As a result, the Bureau of the Fiscal Service, Financial Reports Division, producers of the Financial Report of the United States

Government, requested new lines and corresponding USSGL accounts for the Reclassified Statement of Changes in Net Position 

crosswalk. The new lines and USSGL accounts distinguish between corrections of errors for the prior year (USSGL account 7400) and

corrections of errors in years preceding the prior year (USSGL account 7405). 

Due to the complexity of the scenario and the manner in which it is presented, we suggest the use of a color printer when generating a 

hardcopy.

For purposes of this scenario:

• Budgetary transactions are highlighted in light green

• Proprietary transactions are highlighted in blue

• And “Work Paper Only” transactions are highlighted in peach 

 1 Accounting Principles Board Opinion No. 20, par. 13.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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USSGL Accounts

Account Number: 3105

Account Title: Unexpended Appropriations – Prior Period Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

Normal Balance: Debit

Definition: The amount of net increase or decrease to unexpended appropriations due to errors in years preceding the prior-year’s 

financial statements that resulted from mathematical mistakes, mistakes in the application of accounting principles, or oversight or 

misuse of facts that existed at the time the financial statements were prepared. (Use only when comparative financial statements 

are being presented.) 

Justification: The Financial Reports Division (producers of the Financial Report of the United States Government) requested an 

account to distinguish between corrections of errors for the prior year and corrections of errors in years preceding the prior year. 

Account Number: 5705

Account Title: Expended Appropriations - Prior Period Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

Normal Balance: Credit

Definition: The amount of net increase or decrease to expended appropriations due to errors in years preceding the prior-year’s 

financial statements that resulted from mathematical mistakes, mistakes in the application of accounting principles, or oversight or 

misuse of facts that existed at the time the financial statements were prepared. (Use only when comparative financial statements 

are being presented.) 

Justification: The Financial Reports Division (producers of the Financial Report of the United States Government) requested an 

account to distinguish between corrections of errors for the prior year and corrections of errors in years preceding the prior year. 
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Account Number: 7405

Account Title: Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Normal Balance: Credit

Definition: The amount of adjustments affecting the cumulative results of operations due to errors in years preceding the prior-year’s 

financial statements that resulted from mathematical mistakes, mistakes in the application of accounting principles, or oversight or 

misuse of facts that existed at the time the financial statements were prepared. (Use only when comparative financial statements 

are being presented.) 

Justification: The Financial Reports Division (producers of the Financial Report of the United States Government) requested an 

account to distinguish between corrections of errors for the prior year and corrections of errors in years preceding the prior year. 

Statement Presentation Table (for material errors only)

If Comparative Financial Statements Are 

Being Presented (that is, XXCY and 

XXPY):

If Only Current Period Statements Are 

Being Presented (that is, XXCY):

If the error occurred during the 

earliest affected period presented in 

the financial statements (i.e., XXPY):

Then, the adjustment is made to the earliest 

affected period presented by correcting any 

individual amounts on the financial 

statements. 

Then, the adjustment is made to the 

beginning balance of cumulative results of 

operations on line 2b (Corrections of Errors) 

of the SCNP. (USSGL account 7400)

If the error occurred before the 

earliest period presented in the 

financial statements (i.e., XXPY-1):

Then, the adjustment is made to the 

beginning balance of cumulative results of 

operations on the SCNP, line 2b 

(Corrections of Errors), for the earliest 

period presented. (USSGL account 7405) 

This scenario reflects this example.

Then, the adjustment is made to the 

beginning balance of cumulative results of 

operations on the SCNP, line 2b 

(Corrections of Errors). (USSGL account 

7400)

Note: The Statement of Changes in Net Position (SCNP) current-year unadjusted beginning balance must agree with the restated 

ending balance shown on the prior-year SCNP. USSGL account 7405 can be used only if comparative financial statements are 

being presented.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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This scenario uses Prior-Year Adjustments (PYAs) as they are defined in the USSGL Treasury Financial Manual (TFM). Refer to the 

original PPA scenario on the USSGL Web site at http://www.fms.treas.gov/ussgl/approved_scenarios/index.html for further 

details.

PYA Attribute Definition for FACTS II Reporting

Use when changes to obligated or unobligated balances occurred in the previous fiscal year but were not recorded in the 

appropriate Treasury Appropriation Fund Symbol (TAFS) as of October 1 of the current fiscal year or during the FACTS II 

revision window. Exclude upward and downward adjustments to current-year/prior-year obligations and most reclassifications 

from clearing accounts.

Domain Definitions

“B” – Adjustments to prior-year reporting backdated in Treasury’s Central Accounting System

Use when a PYA does affect the Fund Balance With Treasury (FBWT) and is backdated in Treasury’s Central Accounting 

System after the FACTS II revision window has closed for the period being adjusted.

“P” – Adjustments to prior-year reporting not backdated in Treasury’s Central Accounting System

Use when a PYA does not affect FBWT and is not backdated in Treasury’s Central Accounting System after the FACTS II 

revision window has closed for the period being adjusted.

“X” – Not an adjustment to prior-year reporting

Use when a PYA does not meet the requirements of domains “B” or “P” and for current-period activity. 
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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FLOWCHART FOR CORRECTIONS OF ERRORS IN A PREVIOUS PERIOD

Restate.

Use USSGL

account 

7400/7405.

Is the event 

material to your 

agency’s 

financials?

YES NO

Is FBWT 

affected?

Is FBWT ≥ 

$500,000?

Do not request a 

backdated Treasury 

document. 

Use PYA attribute 

domain value “P.”

Do not restate. 

Use current-year 

USSGL.

Request a backdated

Treasury document.

Use PYA attribute 

domain value “B.”

YES

Do not request a 

backdated Treasury 

document.

Use PYA attribute 

domain value “X.”

NO YES NO

Restated: Transaction 1 Restated: Transaction 2 Restated: Transaction 3
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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This document provides guidance for correcting both financial and budgetary reporting errors. The following scenario assumes the 

activity occurs in a no-year Treasury Account Symbol (TAS). As presented graphically in the previous flowchart, there are six 

possible reporting outcomes when correcting errors, however, this scenario only addresses the restated material errors. The 

transactions, listed in the detailed chart below, correspond with the transaction numbers in the illustrative transaction section and 

represent each of the three possible outcomes. 

 

 2 Each agency should determine its materiality threshold. This scenario assumes that all “YES” answers in this column indicate the amount is material.

AFFECTS

PROPRIETARY

AFFECTS

BUDGETARY

Illustrative

Transaction

No. USSGL Account

Transaction

Amount

Is it 

Proprietarily

Material?2

Are 

Comparative 

Financial 

Statements 

Presented?

Is FBWTUSSGL 

Account 

1010 

Affected?

Is it

>$500,000

? Results

1 4901 Delivered Orders

– Obligations, Unpaid $4,000,000 YES YES NO Does Not

Apply

Not

backdated.

Use attribute

“P.”

2 4902 Delivered Orders 

– Obligations, Paid $6,000,000 YES YES YES YES

Backdated.

Use attribute

“B.”

3 4902 Delivered Orders 

– Obligations, Paid $250,000 YES YES YES NO

Not

backdated.

Use attribute

“X.”
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Listing of USSGL Accounts Used In This Scenario

Account 

Number Account Name

Budgetary

4119 Other Appropriations Realized

4201 Total Actual Resources – Collected

4450 Unapportioned Authority

4510 Apportionments

4610 Allotments – Realized Resources

4901 Delivered Orders – Obligations, Unpaid

4902 Delivered Orders – Obligations, Paid

Proprietary

1010 Fund Balance With Treasury

2110 Accounts Payable

3100 Unexpended Appropriations – Cumulative

3101 Unexpended Appropriations – Appropriations Received

3105 Unexpended Appropriations – Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year

3107 Unexpended Appropriations – Used

3310 Cumulative Results of Operations

5700 Expended Appropriations

5705 Expended Appropriations – Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year

6100 Operating Expenses/Program Costs

7405 Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the 

Prior Year
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Assumptions

For the illustrative transactions that begin on page 10, assume the following:

1. The materiality of a transaction, with respect to restatement requirements, is known when posted.

2. The agency’s accounting system for the prior period cannot be reopened.

3. The activity occurs in a no-year TAFS.

4. Comparative financial statements are presented.

5. Budgetary transactions highlighted in light green are prior-year activities that flow to the “Fiscal 2009 Prior-Year Adjustments

Activity,” Column 7 of the Financial System Activity and Trial Balance for Budgetary Accounts chart, on page 16. 

6. Proprietary transactions highlighted in blue are PPAs that: require financial restatement; flow to the “FY09 Prior-Period 

Adjustments,” Column 3 of the Work Paper Trial Balance for Proprietary Accounts chart, on page 17; and are entered into the 

accounting system. 

7. “Work Paper Only” transactions highlighted in peach are PPAs that: require restatement; flow to the “FY09 Prior-Period WorkPaper Adjustments,” Column 4 of the Work Paper Trial Balance for Proprietary Accounts chart, on page 17; and are not entered in an 

agency’s accounting system. These transactions occur outside the system and are used in calculations to determine amounts to be 

presented in published restated financial statements and reports. When the agency’s system cannot be reopened, balances still must be 

impacted appropriately. However, current-period financial statements cannot be prepared directly from the agency’s accounting 

system. Therefore, Work Paper adjustments are necessary. 

8. All transactions not highlighted: are current-year transactions, are posted in the accounting system, and do not fall into any of the 

three highlighted categories (green, blue, or peach).
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Prior-Year Trial Balances

System Preclosing Trial Balance – Fiscal 2008

USSGL Account Debit Credit

Budgetary

4119 X Other Appropriations Realized 12,000

4450 X Unapportioned Authority 11,000

4901 X Delivered Orders – Obligations, Unpaid 1,000

Total 12,000 12,000

Proprietary

1010 Fund Balance With Treasury 12,000

2110 Accounts Payable 1,000

3101 Unexpended Appropriations – Appropriations Received 12,000

3107 Unexpended Appropriations – Used 1,000

3310 Cumulative Results of Operations 0

5700 Expended Appropriations 1,000

6100 Operating Expenses/Program Costs 1,000

Total 14,000 14,000

System Postclosing Trial Balance – Fiscal 2008 / Beginning Balance – Fiscal 2009

USSGL Account Debit Credit

Budgetary

4201 Total Actual Resources – Collected 12,000

4450 X Unapportioned Authority 11,000

4901 X Delivered Orders – Obligations, Unpaid 1,000

Total 12,000 12,000

Proprietary

1010 Fund Balance With Treasury 12,000

2110 Accounts Payable 1,000

3100 Unexpended Appropriations – Cumulative 11,000

3310 Cumulative Results of Operations 0

Total 12,000 12,000
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Illustrative Transactions (The agency produces comparative financial statements.)

Financial Event Accounting Transaction Debit Credit Trans 

Code

A. Annual apportionment and allotment: OMB 

apportions and the agency head allots $10,250,000 of 

the $11,000,000 prior-year unobligated balance. 

Generally, the initial apportionment will not include 

an amount to cover corrections of errors. The 

following entries in this scenario show that 

unapportioned authority is reclassified from the PYA 

attribute domain value “X” to the “P” or “B” domain 

value when a PYA transaction is processed.

SYSTEM ONLY ENTRIES

Budgetary 

4450X Unapportioned Authority 

 4510 Apportionments

4510 Apportionments 

 4610 Allotments – Realized Resources

10,250

10,250

10,250

10,250

A116

A120

1. During fiscal 2009, an error that occurred in 

fiscal 2007 was discovered. The error understated 

expenses by $4,000,000. A bill for a delivered unpaid 

order had not been recorded. No prior related 

obligation had been previously recorded. The error is 

material and requires restatement of the proprietary 

financial statements. A budgetary entry also is 

required to reflect a beginning balance adjustment. 

The PYA attribute domain value “P” is used because 

FBWT is not affected. A matching backdated 

Treasury central accounting document is not prepared 

after the FACTS II revision period has closed for the 

period being corrected.

SYSTEM ONLY ENTRIES

Budgetary 

4450P Unapportioned Authority

 4450X Unapportioned Authority

46103 Allotments – Realized Resources 

 4901P Delivered Orders – Obligations, Unpaid

Proprietary (prior-year activity) 

7405 Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year 

 2110 Accounts Payable 

3105 Unexpended Appropriations – Prior-Period 

 Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

 5705 Expended Appropriations – Prior-Period 

 Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

4,000

 

4,000

4,000

4,000

4,000

4,000

4,000

4,000

Footnote5

B402 without 

previously 

recording 

4801

D312

D304

 3 An attribute to crosswalk to the SF 133 is not needed.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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WORK PAPER ONLY ENTRIES4

Proprietary

6100 Operating Expenses/Program Costs

 7405 Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year

5705 Expended Appropriations – Prior-Period

 Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

 5700 Expended Appropriations 

3107 Unexpended Appropriations – Used

 3105 Unexpended Appropriations – Prior-Period

 Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

4,000

4,000

4,000

4,000

4,000

4,000

2. During fiscal 2009, an error that occurred in 

fiscal 2007 was discovered. The error understated 

expenses and overstated cash by $6,000,000. A bill 

and payment for a delivered paid order had not been 

recorded. This error is material and requires 

restatement of the proprietary financial statements. A 

budgetary entry also is required to reflect a beginning 

balance adjustment. The PYA attribute domain value 

“B” is used because FBWT is > $500,000. A 

backdated Treasury central accounting document is 

prepared after the FACTS II revision period has 

closed for the period being corrected. 

SYSTEM ONLY ENTRIES

Budgetary 

4450B Unapportioned Authority

 4450X Unapportioned Authority

4610 Allotments – Realized Resources 

 4902B Delivered Orders – Obligations, Paid

 

Proprietary (prior-year activity)

7405 Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year 

 1010B Fund Balance With Treasury 

3105 Unexpended Appropriations – Prior-Period 

Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year 

 5705 Expended Appropriations – Prior-Period 

Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

B102 

substitute 

D306 for 

proprietary

D306

D304

 5 Transaction Codes (TC) between the same USSGL accounts and differentiated by attributes only are not displayed in the USSGL TFM Section III. 4 Cross reference all “Work Paper Only Entries” to page 17.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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WORK PAPER ONLY ENTRIES

Proprietary

6100 Operating Expenses/Program Costs

 7405 Prior-Period Adjustments Due to Corrections of 

Errors –Years Preceding the Prior Year

5705 Expended Appropriations – Prior-Period 

Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

 5700 Expended Appropriations

3107 Unexpended Appropriations – Used

 3105 Unexpended Appropriations – Prior-Period 

 Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

6,000

6,000

6,000

6,000

6,000

6,000
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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3. During fiscal 2009, an error that occurred in 

fiscal 2007 was discovered. The error understated 

expenses and overstated cash by $250,000. A bill and 

payment for a delivered paid order had not been 

recorded. This error is material and requires 

restatement of the proprietary financial statements. 

The PYA attribute domain value “X” is used because 

FBWT is < $500,000. A backdated Treasury central 

accounting document is not prepared after the FACTS 

II revision period has closed for the period being 

corrected.

SYSTEM ONLY ENTRIES

Budgetary 

4610 Allotments - Realized Resources 

 4902X Delivered Orders – Obligations, Paid 

Proprietary (prior-year activity)

7405 Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year 

 1010X Fund Balance With Treasury 

3105 Unexpended Appropriations - Prior-Period 

Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year 

 5705 Expended Appropriations - Prior-Period 

Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

WORK PAPER ONLY ENTRIES

Proprietary

6100 Operating Expenses/Program Costs

 7405 Prior-Period Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year

5705 Expended Appropriations – Prior-Period 

Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

 5700 Expended Appropriations

3107 Unexpended Appropriations – Used

 3105 Unexpended Appropriations – Prior-Period 

 Adjustments Due to Corrections of Errors – Years 

Preceding the Prior Year

250

250

250

 

250

250

250

250

250

250

250

250

250

B102 

substitute 

D306 for 

proprietary

D306

D304
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Fiscal 2009 Accounting System Activity Summary 

(Assumes agency’s accounting system was not reopened to record PPAs or PYAs.)

USSGL 

Budgetary 

and 

Proprietary 

Accounts

Column 1

System

Postclosing 

Trial 

Balance 

Fiscal 2008

Column 2

System

Activity

Fiscal 2009

(Transaction 

A)

Column 3

System

Activity

Fiscal 2009

(Transactions 

1,2, and 3)

Column 4

System

Preclosing 

Trial Balance 

Fiscal 2009

(calc. 

Col. 2 + 4)

Column 5

System

Closing 

Entries

Fiscal 2009

Column 6

System

Postclosing

Trial Balance 

Fiscal 2009

(calc. 

Col. 5 + 6)

Column 7

4201 12,000 12,000 (6,250) 5,750

4450B 6,000 6,000 (6,000) 0

4450P 4,000 4,000 (4,000) 0

4450X (11,000) 250 (10,750) 10,000 (750)

4901P (4,000) (4,000) 4,000 0

4901X (1,000) (1,000) (4,000) (5,000)

4902B (6,000) (6,000) 6,000 0

4902X (250) (250) 250 0

Totals 0 0 0 0 0

1010X 12,000 (250) 11,750 (6,000) 5,750

1010B (6,000) (6,000) 6,000 0

2110 (1,000) (4,000) (5,000) (5,000)

3100 (11,000) (11,000) 10,250 (750)

3107 0 0 0 0

3105 10,250 10,250 (10,250) 0

3310 0 0 0 0

5700 0 0 0 0

5705 (10,250) (10,250) 10,250 0

6100 0 0 0 0

7405 10,250 10,250 (10,250) 0

Totals 0 0 0 0 0

Accounts highlighted in yellow are closed at yearend.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Work Paper Trial Balance for Budgetary Accounts – SBR ONLY6

Budgetary 

Accounts

Column 1

PriorYear

Adjustment

Attribute

(N/A for the 

SBR)

Column 2

Fiscal 

2008

Published

Preclose

Column 3

Fiscal 2009

Prior-Period

Adjustments

(Transactions 

1, 2, and 3 )

Column 4

Restated 

Preclose

for Fiscal 2008 

SBR

(Calc. Col. 3+4)

Column 5

Restated 

Fiscal 

2008 

SBR

Closing 

Entries

Column 6

Restated 

Postclose

Fiscal 2008

SBR

(Calc. Col. 5+6)

Column 7

Fiscal 2009

Current-Year 

Activity for 

SBR

Column 8

Fiscal 2009

SBR for

Publication

(Calc. Col. 7+8)

Column 9

4119 N/A 12,000 12,000 (12,000) 0 0

4201 N/A 0 5,750 5,750 5,750

4450 N/A (11,000) 10,250 (750) (750) (750)

4901 N/A (1,000) (4,000) (5,000) (5,000) (5,000)

4902 N/A (6,250) (6,250) 6,250 0 0

Total 0 0 0 0 0 0 0

Accounts highlighted above in yellow are closed at yearend.

 6 Considers FASAB Standard No. 21 requirements regarding PPAs but does not consider OMB Circular No. A-11 requirements regarding PYAs.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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Financial System Activity and Trial Balance for Budgetary Accounts (Used To Prepare SF 133, FMS 2108: 

Yearend Closing Statement, and the Budget Program and Financing (P&F) Schedule) 7

Budgetary 

Accounts

Column 1

Prior-Year

Adjustment

Attribute

Column 2

Fiscal 2008

Trial Bal.

(used to 

prepare SF 

133)

Column 3

Fiscal 2008

Closing 

Entries

Activity

Column 4

Fiscal 2008

Postclosing 

Trial Balance

(Calc. Col. 3+4)

Column 5

Fiscal 2009

Apportionment 

and Allotment 

(Transaction A)

Column 6

Fiscal 2009

Prior-Year 

Adjustments

Activity

(Transactions 1, 

and 2 with “B” and 

“P” domains)

Column 7

Fiscal 2009

Prior-Year 

Activity

(Transaction 3 

with “X” domain)

Column 8

Fiscal 2009 Trial Balance

(used to prepare SF 133)

(Calc. Col. 6+7+8)

Column 9

4119 X 12,000 (12,000) 0 0 0

4201 12,000 12,000 0 12,000

4450 B 0 6,000 6,000

4450 P 0 4,000 4,000

4450 X (11,000) (11,000) 10,500 (10,000) 500

4610 0 (10,500) 10,000 250 250

4901 P 0 (4,000) (4,000)

4901 X (1,000) (1,000) (1,000)

4902 B 0 (6,000) (6,000)

4902 X 0 (250) (250)

Total 0 0 0 0 0 0 0

Accounts highlighted in yellow are closed at yearend.

 7 Includes OMB Circular No. A-11 requirements regarding PYAs. This chart is not used for the SBR.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 17 of 28

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Work Paper Trial Balance for Proprietary Accounts – Restated Fiscal 2009 Comparative Financials

Proprietary

Accounts

Column 1

Fiscal 2008

Published

Comparative 

Financials

(Pre-Close)

Column 2

Fiscal 2009

Prior-Period

Adjustments

(transactions 

1, 2, and 3 as 

posted in 

agency 

accounting 

system)

Column 3

Fiscal 2009 

Prior-Period 

Work-Paper

Adjustments

(for 

transactions 

1, 2, and 3 

not recorded 

in agency 

accounting 

system)

Column 4

Fiscal 2008

Restated

Preclose

for Fiscal 

2009 

Comparative 

Financials

(calc. col. 

2+3+4)

Column 5

Fiscal 2008 

Work-Paper 

Closing 

Entries for 

Restated 

Fiscal 2009 

Comparative 

Financials

Column 6

Fiscal 2008

Restated

Postclose

Equals

Fiscal 2009 

Beginning 

Balances for 

Fiscal 2009 

Comparative 

Financials

(calc. col. 

5+6)

Column 7

Fiscal 2009 

Current 

Year 

Activity

(excludes 

prior-period 

adjustments 

to fiscal 2008 

in column 3) 

(transactions 

4, 5, and 6)

Column 8

Fiscal 2009 

Preclose after 

Fiscal 2008 

Restatement 

for Fiscal 

2009 

Comparative 

Financials

(calc. col. 

7+8)

Column 9

1010 12,000 (6,250) 5,750 5,750 0 5,750

2110 (1,000) (4,000) (5,000) (5,000) 0 (5,000)

3100 0 0 (750) (750) 0 (750)

3101 (12,000) (12,000) 12,000 0 0 0

3105 0 10,250 (10,250) 0 0 0 0

3107 1,000 10,250 11,250 (11,250) 0 0 0

3310 0 0 0 0 0

5700 (1,000) (10,250) (11,250) 11,250 0 0 0

5705 0 (10,250) 10,250 0 0 0 0

6100 1,000 10,250 11,250 (11,250) 0 0 0

7405 0 10,250 (10,250) 0 0 0 0

Total 0 0 0 0 0 0 0 0

Accounts highlighted in yellow are closed at yearend.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 18 of 28

06/03/2010

Closing Entries for Fiscal 2009

Financial Event

Accounting Transaction Debit Credit Trans 

Code

C-1 Close prior-year adjustment attribute 

domain values “P” and “B” to “ X.”

SYSTEM ONLY ENTRIES

Budgetary

4450X Unapportioned Authority

 4450B Unapportioned Authority

 4450P Unapportioned Authority

4901P Delivered Orders – Obligations, Unpaid

 4901X Delivered Orders – Obligations, Unpaid

4902B Delivered Orders – Obligations, Paid

 4902X Delivered Orders – Obligations, Paid

Proprietary

1010B Fund Balance With Treasury

 1010X Fund Balance With Treasury

WORK PAPER ONLY ENTRIES

Budgetary

No Entry

Proprietary

No Entry

10,000

4,000

6,000

6,000

6,000

4,000

4,000

6,000

6,000

Footnote 8

 8 TCs between the same USSGL accounts and differentiated by only attributes are not displayed in the USSGL TFM Section III.
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 19 of 28

06/03/2010

Financial Event

Accounting Transaction Debit Credit

C-2 Close revenues, expenses, and other 

financing sources to cumulative results of 

operations.

SYSTEM ONLY ENTRIES

Budgetary

No Entry

Proprietary

5705 Expended Appropriations – Prior-Period 

Adjustments Due to Corrections of Errors – Years 

 Preceding the Prior Year

 

 3310 Cumulative Results of Operations

 

3310 Cumulative Results of Operations

 7405 Prior-Period Adjustments Due to Corrections of

Errors – Years Preceding the Prior Year

WORK PAPER ONLY ENTRIES

Budgetary

No Entry

Proprietary

5700 Expended Appropriations

3310 Cumulative Results of Operations

 3310 Cumulative Results of Operations

 6100 Operating Expenses/Program Costs 

10,250

10,250

10,250

10,250

10,250

10,250

10,250

10,250
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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06/03/2010

Financial Event Accounting Transaction Debit Credit Trans 

Code

C-3 Close unexpended appropriations –

prior-period adjustment account and 

unexpended appropriations used account 

to unexpended appropriations-cumulative.

SYSTEM ONLY ENTRIES

Budgetary

No Entry

Proprietary

3100 Unexpended Appropriations – Cumulative 

 3105 Unexpended Appropriations – PriorPeriod Adjustments Due to Corrections of 

Errors – Years Preceding the Prior Year

WORK PAPER ONLY ENTRIES

Budgetary

No Entry

Proprietary

3100 Unexpended Appropriations – Cumulative 

 3107 Unexpended Appropriations – Used

 

10,250

10,250

10,250

10,250

F342

C-4 Close budgetary obligations paid 

account. SYSTEM ONLY ENTRIES

Budgetary

4902X Delivered Orders – Obligations, Paid

 4201 Total Actual Resources – Collected

Proprietary

No Entry

WORK PAPER ONLY ENTRIES

N/A

6,250

6,250

F314
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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06/03/2010

Postclosing Trial Balances – Fiscal 2009

Note: The Postclosing Trial Balance (Work Paper) – Fiscal 2009 equals the Postclosing Trial Balance (System) – Fiscal 2009. 

Postclosing Trial Balance (Work Paper) – Fiscal 2009

USSGL Account Debit Credit

Budgetary

4201 Total Actual Resources – Collected 5,750 0

4450X Unapportioned Authority 0 750

4901X Delivered Orders – Obligations, Unpaid 0 5,000

Total 5,750 5,750

Proprietary

1010X Fund Balance With Treasury 5,750 0

2110 Accounts Payable 0 5,000

3100 Unexpended Appropriations – Cumulative 0 750

Total 5,750 5,750

Postclosing Trial Balance (Accounting System) – Fiscal 2009

FMS 2108: YEAREND CLOSING STATEMENT (2009)

USSGL Account Debit Credit

Budgetary

4201 Total Actual Resources – Collected 5,750 0

4450X Unapportioned Authority 0 750

4901X Delivered Orders – Obligations, Unpaid 0 5,000

Total 5,750 5,750

Proprietary

1010X Fund Balance With Treasury 5,750 0

2110 Accounts Payable 0 5,000

3100 Unexpended Appropriations – Cumulative 0 750

Total 5,750 5,750
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 22 of 28

06/03/2010

Column 2. Preclosing Unexpended Balance 5,750

Column 5. Postclosing Unexpended Balance (1010E, PYA “B”/ “X” attributes) 5,750

Column 6. Other Authorizations 

Column 7. Reimbursements Earned and Refunds 

Column 8. Unfilled Customer Orders

Column 9. Undelivered Orders and Contracts 

Column 10. Accounts Payable and Other Liabilities (4901E, PYA “B”/“P”/“X” attributes) 5,000

Column 11. Unobligated Balance (4450E, PYA “B”/“P”/“X” attributes) 750

FMS 2108 Edit (Columns 5+6+7+8 = 9+10+11) (Column 2 = Column 5) Yes, Yes
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 23 of 28

06/03/2010

BALANCE SHEET (Refer to page 17)

 

Fiscal 2009

(col. 9)

Fiscal 2008 

(Restated 

Preclose)

(col. 2+3)

Fiscal 2008

(Published)

(col. 2)

Not Part of 

Comparative 

Statements

Assets:

 Intragovernmental:

 1. Fund Balance With Treasury (1010E) 5,750 5,750 12,000

 6. Total Intragovernmental (calc.) 5,750 5,750 12,000

15. Total Assets (calc.) 5,750 5,750 12,000

Liabilities:

 Intragovernmental:

 17. Accounts Payable (2110E) 5,000 5,000 1,000

 20. Total Intragovernmental (calc.) 5,000 5,000 1,000

 28. Total Liabilities (calc.) 5,000 5,000 1,000

Net Position:

 31. Unexpended Appropriations – Other Funds

 (3100B, 3101E, 3105E, 3107E)

Published Fiscal 2008: (0 + (12,000) + 1,000)

Restated Fiscal 2008: (0 + (12,000) + 10,250 + 1,000)

Current-Year Fiscal 2009: ((750) + 0 +0) (col. 9 – col. 7)

750 750 11,000

 33. Cumulative Results of Operations – Other Funds 

(5700E, 5705, 6100E, 7405)

Published Fiscal 2008: ((1,000) + 1,000)

Restated Fiscal 2008: ((1000) + (10,250) + 1,000 + 10,250) 

Current-Year Fiscal 2009: (0 + 0)

 0 0 0 

 34. Total Net Position (calc.) 750 750 11,000

35. Total Liabilities and Net Position (calc.) 5,750 5,750 12,000
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

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06/03/2010

STATEMENT OF NET COST (Refer to page 17)

 

Fiscal 

2009

(col. 9)

Fiscal 2008

(Restated 

Preclose

Published in 

Fiscal 2009 

Comparative)

(col. 2+3)

Fiscal 2008

(Published)

(col. 2)

Program Costs:

 Program A:

 1. Gross Costs (6100E) 0 1,000 1,000

 3. Net Program Costs 0 1,000 1,000

 6. Net Cost of Operations 0 1,000 1,000
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 25 of 28

06/03/2010

STATEMENT OF CHANGES IN NET POSITION (Refer to page 17, Fiscal 2008 column reflect restated amounts)

 

All Other 

Funds

Fiscal 2009

(col. 9)

All Other 

Funds

Fiscal 2008 

(col. 2+3)

Cumulative Results of Operations:

1. Beginning Balances (3310B) 0 0

2. Adjustments:

 2b. Corrections of Errors (5705E, 7405E) 

((10,250) + 10,250)

0 0

3. Beginning Balances, as Adjusted 0 0

Budgetary Financing Sources:

5. Appropriations Used (5700E) 0 1,000

14. Total Financing Sources (calc. sum of lines 4 through 13) 0 1,000

15. Net Cost of Operations (calc. from Statement of Net Cost) 0 1,000 

16. Net Change 0 0

17. Cumulative Results of Operations 0 0

Unexpended Appropriations:

18. Beginning Balance (3100 Beg.) 750 0

19. Adjustments:

 19b. Correction of Errors (3105E) (10,250)

20. Beginning Balance, as Adjusted 750 (10,250)

Budgetary Financing Sources:

 21. Unexpended Appropriations – Appropriations Received (3101E) 0 12,000

 24. Appropriations Used (3107E) 0 (1,000)

 25. Total Budgetary Financing Sources 0 11,000

26. Total Unexpended Appropriations 750 750

27. Net Position 750 750
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 26 of 28

06/03/2010

RECLASSIFIED BALANCE SHEET (Fiscal Years 2009 and 2008)

Fiscal 2009 Fiscal 2008

1. Assets:

3. Federal

 3.1 Fund Balance With Treasury (1010E) 5,750 5,750

 3.10 Total Federal Assets 5,750 5,750

4. Total Assets 5,750 5,750

5. Liabilities:

7. Federal

 7.1 Accounts Payable (2110E) 5,000 5,000

 7.9 Total Federal Liabilities 5,000 5,000

8. Total Liabilities 5,000 5,000

9. Net Position:

 9.1 Net Position – Nonearmarked Funds

(3101+3105+3107+5700+5705+6100+7405)

750 750

10. Total Net Position 750 750

11. Total Liabilities and Net Position 5,750 5,750

RECLASSIFIED STATEMENT OF NET COST (Fiscal Years 2009 & 2008)

Fiscal 2009 Fiscal 2008

1. Gross Cost:

2. Non-Federal Gross Cost (6100E) 0 1,000

4. Total Non-Federal Gross Cost 0 1,000

7. Department Total Gross Cost 0 1,000

8. Earned Revenue:

12. Department Total Earned Revenue 0 0

13. Net Cost of Operations 0 1,000
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 27 of 28

06/03/2010

RECLASSIFIED STATEMENT OF CHANGES IN NET POSITION (Fiscal Years 2009 and 2008)

Fiscal 2009 Fiscal 2008

1. Beginning Net Position Balance (3100) 750 0

2. Non-Federal Prior-Period Adjustments 

2.1 Change in Accounting Principles (7401) 0 0

2.2 Corrections of Errors (7400) 0 0

2.3 Corrections of Errors – Years Preceding the Prior Year

(7405)

0 0

3. Federal Prior-Period Adjustments

3.1 Changes in Accounting Principles (7401, 5709, 3109) 0 0

3.2 Corrections of Errors (7400, 5708, 3108) 0 0

3.3 Corrections of Errors – Years Preceding the Prior Year

(7405, 5705, 3105)

0 10,250

4. Adjusted Beginning Net Position Balance 750 (10,250)

5. Non-Federal Nonexchange Revenue: 0 0

6. Federal Nonexchange Revenue: 0 0

7. Budgetary Financing Sources:

 7.1 Appropriations Received as Adjusted (3101E) 0 12,000

 7.8 Other Budgetary Financing Sources (3107E, 5700E) 0 0

 7.9 Total Budgetary Financing Sources 0 12,000

8. Other Financing Sources: 0 0

9. Net Cost of Operations 0 1,000

10. Ending Net Position Balance 750 750
Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Page 28 of 28

06/03/2010

USSGL Account USSGL Proprietary Account Reporting Attributes Other Account Attributes

Number USSGL 

Account 

Title

Normal 

Bal. Ind.

Fed/ 

NonFed

Trading 

Partner

Exch/ 

NonExch

Budget 

Subfunction

Cust/ 

NonCust

Entity 

NonEntity

Covered/ 

NotCov

3105 Unexpended 

Appropriations 

-PPA Due to 

Corrections of 

Errors – Years 

Preceding the 

Prior Year

D

5705 Expended 

Appropriations 

– PPA Due to 

Corrections of 

Errors – Years 

Preceding the 

Prior Year

C

7405 PPA Due to 

Corrections of 

Errors – Years 

Preceding the 

Prior Year

C Y Y

D = Debit

C = Credit

Y = The attribute domain value is required

USSGL

Account 

Number

Balance 

Sheet

Net 

Cost

Net 

Position

Custodial 

Activity

Reclass 

Balance 

Sheet

Reclass 

Net 

Cost

Reclass 

Net 

Position

SF 133 SBR 2108 P&F

3105 Lines 30, 31 N/A Line 19b N/A N/A N/A N/A N/A N/A N/A N/A

5705 Lines 32, 33 N/A Line 2b N/A N/A N/A N/A N/A N/A N/A N/A

7405 Lines 32, 33 N/A Line 2b N/A N/A N/A N/A N/A N/A N/A N/A