**Trust Fund Transfers of Contract Authority – Nonallocation Transfers**

**Guidance Specific to the Highway Trust Fund (69X8102) and**

**Recipient Trust Funds (69X8083 and 69X8350)**

**Trust Fund Transfers of Contract Authority – Nonallocation Transfers**

**Guidance Specific to the Highway Trust Fund (69X8102) and**

**Recipient Trust Funds (69X8083 and 69X8350)**

**PREPARED BY:**

**UNITED STATES STANDARD GENERAL LEDGER DIVISION**

**ACCOUNTING SYSTEMS AND STANDARDS DIRECTORATE**

**GOVERNMENTWIDE ACCOUNTING**

**BUREAU OF THE FISCAL SERVICE**

**DEPARTMENT OF THE TREASURY**

**Background**

This scenario illustrates accounting and reporting of contract authority activity pertaining to the Department of Transportation’s Highway Trust Fund (HTF).  The Highway Trust Fund consists of a Treasury Appropriation Fund Symbol (TAFS) “corpus” account, and several “recipient” accounts.  Only two of the HTF recipient accounts are subject to the guidance in this scenario, and they are listed below.  Note, transactions for the HTF “corpus” account are NOT illustrated in this scenario, only the “recipient” accounts are illustrated.

Highway Trust Fund TAFS “corpus” account

· 69X8102, “Highway Trust Fund”

Highway Trust Fund TAFS “recipient” accounts (non-allocation)

· 69X8083, “Federal-Aid Highways (Liquidation of Contract Authorization), Federal Highway Administration”

· 69X8350, “Formula and Bus Grants, Liquidation of Contract Authorization, Federal Transit Administration, Transportation”

The HTF corpus account is managed by the Bureau of the Fiscal Service (Fiscal Service).  The Fiscal Service is responsible for recording the collection and investment of receipts.  For example, the Fiscal Service-managed HTF collects earmarked taxes on gasoline and other fuels.  The HTF does not have any type of budget authority including contract authority.  It does not maintain, track, or record contract authority.  Instead, it is the primary **source of funding** for the recipient accounts.  

The HTF recipient accounts are managed by the Department of Transportation.  All of the contract authority and appropriations to liquidate contract authority reside with the recipient accounts.  The recipient TAFS is the account in which contract authority and appropriation to liquidate contract authority are granted and program activities are managed.  It captures the activity pertaining to contract authority, the appropriations to liquidate contract authority, as well as obligations and disbursements of the fund.  Note that while the appropriation to liquidate contract authority is granted in appropriation acts (for the HTF), the funds (i.e. Fund Balance With Treasury) will not be transferred via SF 1151: Nonexpenditure Transfer Authorization until actually needed for disbursement*.* This is for cash management purposes so that the interest earned on investments in the HTF corpus account is maximized.  

In some instances, however, the recipient accounts are also granted the authority to *transfer contract authority* from one recipient account to another, as well as the authority to *transfer appropriations to liquidate contract authority*.  The transfer of contract authority can be in the form of either allocation or nonallocation transfers, each resulting in different budgetary accounting and reporting on the SF 133/P&F.  This scenario, which pertains only to the 3 TAFS listed previously, illustrates the *nonallocation transfers of contract authority*, and required the establishment of two new USSGL accounts.  See the account proposals and justifications that follow.

This scenario follows USSGL TFM S2 11-01 (June 2011) fiscal 2011 crosswalks.

**Basic Illustration of Trust Fund Flows**

**NEW USSGL ACCOUNTS FOR FISCAL 2012**: 

**Account Number**: 4153**Account Title**: Transfers of Contract Authority - Nonallocation**Normal Balance**: Debit

**Definition**: The amount of contract authority transferred between two nonallocation Treasury Appropriation Fund Symbols. This occurs before the actual transfer of funds, which will later be accomplished as a nonexpenditure nonallocation transfer. Only the Department of Transportation may use this account. Although the normal balance for this account is debit, it is acceptable for this account to have a credit balance. This account is reduced at yearend by the amount of appropriations received to liquidate contract authority – nonallocation – transferred. This account does not close at yearend.

**Justification**:  To differentiate transfers of contract authority between those that are accomplished as allocation transfers (USSGL account 4137) from and those that are accomplished as nonallocation transfers (USSGL 4153).

**Account Number**: 4154**Account Title**: Appropriation To Liquidate Contract Authority – Nonallocation – Transferred**Normal Balance**: Debit

**Definition**: The amount of liquidating appropriations received during the fiscal year to fund contract authority transferred from one nonallocation Treasury Appropriation Fund Symbol to another.  The transfer is accomplished via SF 1151: Nonexpenditure Transfer Authorization. Only the Department of Transportation may use this account. Although the normal balance for this account is debit, it is acceptable for this account to have a credit balance.

**Justification**:  To capture the nonexpenditure transfer of appropriations to liquidate contract authority.

**Listing of USSGL Accounts Used in This Scenario**

**USSGL Scenario**

**Assumptions Specific to this Scenario**

· Appropriations to liquidate contract authority are classified as discretionary budget authority

· Transfers of contract authority – nonallocation are classified as mandatory budget authority

· Beginning trial balances are not applicable in Year 1 of this scenario

· Trust Fund A and Trust Fund B represent the HTF “recipient” accounts 69X8083 and 69X8350.  In practice, the activity illustrated in Trust Fund A also occurs in Trust Fund B.  Additionally, the transfers that occur from A to B also occur from B to A.

· The HTF “corpus” account 69X8102 is not illustrated in this scenario

**Illustrative Transactions**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

# CLOSING ENTRIES

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**SF 133 STATEMENT OF BUDGETARY EXECUTION AND BUDGETARY RESOURCES and PROGRAM AND FINANCING (P&F) SCHEDULE**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 1**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

# CLOSING ENTRIES

**Year 2**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

**SF 133 STATEMENT OF BUDGETARY EXECUTION AND BUDGETARY RESOURCES and PROGRAM AND FINANCING (P&F) SCHEDULE**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

**Year 2**

Highway Trust Fund

(Corpus Account)

TAFS 69X8102

FHA Trust Fund

(Recipient Account)

TAFS 69X8083

FTA Trust Fund

(Recipient Account)

TAFS 69X8350

USSGL 4153, 4154

(Yr 1, txn 4, 7B

 Yr 2, txn 3, 4B)

� BEA Category is not required in FACTS II; however, BEA Category for USSGL account 4153 pertains to domain value “M” Mandatory only, and USSGL account 4154 pertains to domain value “D” Discretionary only.

� Limited to domain value “7” Trust (non-revolving) Fund only

� SF 133/P&F line 1013 is a projected new line. Refer to OMB Circular No. A-11 (2011 release) for actual line number and title.

� This transaction represents a receivable from the Highway Trust Fund corpus TAFS 69X8102 (not illustrated).

� In this transaction, Trust Fund A is transferring contract authority from current-year authority (Year Of Budget Authority Code domain value “NEW”).  If the transfer had represented a transfer of contract authority from prior-year balances instead, domain value “BAL” would have been assigned.

� Note:  Even though the balances of contract authority were from year 1, the appropriation to liquidate contract authority occurred in year 2; therefore, USSGL 4170 is appropriate.

� SF 133/P&F line 1013 is a projected new line. Refer to OMB Circular No. A-11 (2011 release) for actual line number and title.

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