**Scenario VI**

**Trust Fund Appropriation Transfers for Specific Treasury Appropriation Fund Symbols**

Scenario VI addresses the Budget’s unique presentation of nonexpenditure appropriation transfers for TAFS involving two specific entities:  transferring-out entities, which are Treasury-managed trust funds, and receiving entities, which are agency trust funds.  Currently, only four transferring-out Treasury-managed trust fund entities are subject to this guidance:  Airport and Airway Trust Fund, Aquatic Resources Trust Fund, Highway Trust Fund, and Oil Spill Liability Trust Fund.  These funds are designed to collect receipts and transfer-out, based upon the legislation of the receiving entities.  There are, however, multiple agency receiving entities involved.  The receiving entities are responsible for managing the program activities, including tracking and recording appropriations and disbursements.

The reporting characteristics of the nonexpenditure transfers between the entities are very unique compared to typical nonexpenditure appropriation transfers.  In the Budget, the entities transferring-out do not present P&Fs (with the exception of the Memorandum Entries); they only present Schedules of Unavailable Collections (Schedule N’s).  Budget authority, which mainly consists of tax receipts and interest earned, is not executable.  For the receiving entities, P&Fs are presented in the Budget, but Schedule N’s are not.

Furthermore, definite amounts are typically appropriated annually to the receiving entities, but the amounts are appropriated from the receipts collected by the transferring-out entities.  These are not appropriations from the General Fund of Treasury.  Fiscal Service Forms 6200: Appropriation Warrants, are not processed.  Instead, the appropriations are accomplished via SF 1151.  However, in the Budget, they are to be recorded as *appropriations*, not as *transfers*.  In reporting terminology, the appropriation is to be recorded on SF 133 Line 1A, not Line 1D, and also the respective P&F appropriation lines, not the P&F transfer lines.  The TAR of the receiving entities, which is derived in part from USSGL 2108’s, reflects current-year nonexpenditure transfers in the "Appropriations and Other Obligational Authority" column (includes appropriations and appropriation transfer activity) and prior-year nonexpenditure transfers in the "Transfers" column.

The four USSGL accounts below were established to account for this unique activity:

###### 4126Amounts Appropriated from Specific Treasury-Managed Trust Fund TAFS - Receivable

4127Amounts Appropriated from Specific Treasury-Managed Trust Fund TAFS - Payable

4128Amounts Appropriated from Specific Treasury-Managed Trust Fund TAFS - Transfers-In

4129Amounts Appropriated from Specific Treasury-Managed Trust Fund TAFS - Transfers-Out

Prior to the establishment of these accounts, all USSGL transfer accounts representing current-year nonexpenditure activity crosswalked to transfer lines on the SF 133 (Line 1D) and P&F (Lines 4100, 4200, 6100, 6200).  The characteristics described above require the transfers to crosswalk to appropriation lines.  Therefore, USSGL account 4128 was established to account for nonexpenditure transfers-in that crosswalk to SF 133 and P&F appropriation lines.  Account 4129 was established to account for nonexpenditure transfers-out that do **not** crosswalk to the SF 133 or P&F, since the authority is not executable. 

Furthermore, a mechanism is sometimes needed to transfer authority to the receiving entity prior to transferring the funds.  This gives the receiving entity the resource from which to obligate.  The funds remain in the transferring-out TAFS in order to maximize interest earned until such time as needed by the receiving entity for disbursement.  In order to support this mechanism, USSGL accounts 4126 and 4127 were established to represent receivable and payable amounts between the two entities. These accounts will crosswalk to SF 133, P&F, and USSGL 2108 lines to accurately reflect authority transferred prior to funds.

**Year 1 illustrates receipts credited to a Treasury-managed trust fund account, where the receipts are immediately available for investment, but not available for obligation.  A specific amount is then appropriated in the agency's appropriation act to the agency trust fund account.  For year 1, assume that the full amount appropriated is simultaneously transferred via SF 1151.**

***Budgetary:***

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission):**

**Closing Entry:**

**Post-closing Trial Balance:**

***Budgetary:***

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission):**

**Closing Entries:**

**Post-closing Trial Balance:**

N/A

***Proprietary:***

**Pre-closing Trial Balance:**

**Closing Entry:**

**Post-closing Trial Balance:**

***Proprietary:***

**Pre-closing Trial Balance:**

**Closing Entry:**

**Post-closing Trial Balance:**

N/A

**OMB Form and Content Statements**

N/A

# OMB Form and Content Statements (consolidated)

**OMB Form and Content Statements****(continued)**

N/A

**OMB Form and Content Statements****(consolidated) (continued)**

**Year 2 illustrates receipts credited to a Treasury-managed trust fund account, where the receipts are immediately available for investment, but not available for obligation.  A specific amount is then appropriated in the agency's appropriation act to the agency trust fund account.  For year 2, assume that actual funds are not immediately needed for disbursement; therefore, a corresponding receivable/payable will be established on the books for the amount of the appropriation.  In order to maintain sound cash management principles, obligations may be incurred by the agency, but disbursements may not be made until an SF 1151 is accomplished.**

***Budgetary:***

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission):**

**Closing Entry:**

**Post-closing Trial Balance:**

***Budgetary:***

**Pre-closing Adjusted Trial Balance**

**(FACTS II submission):**

**Closing Entries:**

**Post-closing Trial Balance:**

***Proprietary:***

**Pre-closing Trial Balance:**

**Closing Entry:**

**Post-closing Trial Balance:**

***Proprietary:***

**Pre-closing Trial Balance:**

**Closing Entry:**

**Post-closing Trial Balance:**

OMB Form and Content Statements

N/A

# OMB Form and Content Statements (consolidated)

**OMB Form and Content Statements (continued)**

N/A

**OMB Form and Content Statements (consolidated) (continued)**

� TFM Vol. I Part 2 - Chapter 2000 defines nonexpenditure transactions.

� This is a basic transaction to illustrate that the receipts collected by the corpus account are immediately invested.  No further investment activity is reflected in this scenario.  Refer to Scenario IV, Trust Fund Investments, of this Guide as well as Section III - Accounting Transactions of TFM S2-01-02 (as updated) for more detailed guidance on trust fund investments.

� The USSGL entries for budgetary control and obligations for trust funds are the same as those published in TFM S2-01-02 (as updated).  For purposes of illustration, only the final results are shown here.

� This is a basic transaction to illustrate that the receipts collected by the corpus account are immediately invested.  No further investment activity is reflected in this scenario.  Refer to Scenario IV, Trust Fund Investments, of this Guide as well as Section III - Accounting Transactions of TFM S2-01-02 (as updated) for more detailed guidance on trust fund investments.

� The USSGL entries for budgetary control and obligations for trust funds are the same as those published in TFM S2-01-02 (as updated).  For purposes of illustration, only the final results are shown here.

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June 2001