**Scenario VII**

**Trust Funds with Contract Authority**

**Part I:  Appropriations to Liquidate Contract Authority - Funded by Nonexpenditure Transfers**

Scenario VII illustrates the liquidation of contract authority for trust funds, where a nonexpenditure transfer from a Fiscal Service corpus trust fund account funds the liquidation.   For a detailed description and background related to contract authority and the USSGL accounts involved, refer to contract authority scenarios posted on the USSGL Web site.

The main factor that singles out these trust funds with contract authority from other TAFS with contract authority is the involvement of at least two different entities.  The first entity is the piece managed by the Fiscal Service.  The Fiscal Service records the collection and investment of receipts.  For example, the Fiscal Service -managed Airport and Airway Trust Fund collects taxes paid by airport and airway users.  The second entity is the piece managed by the Federal program agency.  The agency TAFS is the account in which the contract authority is granted and where program activities are managed.  For example, the Federal Aviation Administration of the U.S. Department of Transportation manages the Liquidation of Contract Authorization trust fund, and is responsible for recording the contract authority, recording the appropriations to liquidate contract authority, as well as tracking obligations and disbursements of the fund*.  Note that while the appropriation to liquidate contract authority is granted in appropriation acts, the funds will not be transferred via SF 1151 until actually needed for disbursement.*  This is for cash management purposes so that the interest earned in the Fiscal Service TAFS is maximized.  In order to capture this concept in the USSGL, and in order to support the SF 133 and P&F, USSGL account 4136 Contract Authority to be Liquidated by Trust Funds was established, and is the basis of this scenario.

The pages that follow present transactions of the " Fiscal Service corpus account" and the "parent account."  The parent account represents the agency TAFS, and is referred to as the parent account because it commonly has authority to transfer funds to recipient TAFS.  Those types of transfers are illustrated in Scenario VIII, Trust Funds with Contract Authority, Part II: Transfers of Contract Authority.

Scenario VII assumes that only "definite" contract authority is involved, and for the sake of simplicity also assumes that programs are not subject to apportionment.  Refer to Section III, Accounting Transactions, of TFM S2-01-02 (as updated) for a more comprehensive listing of detailed transactions.

**Year 1****Fiscal Service Corpus Account (20X8100)Parent Account (69X8123)**

**Year 1****Fiscal Service Corpus Account (20X8100)Parent Account (69X8123)**

**Year 1****Fiscal Service Corpus Account (20X8100)Parent Account (69X8123)**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

***Budgetary***

**Pre-Closing Trial Balance (FACTS II ATB):**

**Parent Account (69X8123)**

***Budgetary***

**Pre-Closing Trial Balance (FACTS II ATB):**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

***Budgetary***

**Closing Entries:**

**Post-Closing Trial Balance:**

**Parent Account (69X8123)**

***Budgetary***

**Closing Entries:**

**Post-Closing Trial Balance:**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

***Proprietary***

**Pre-Closing Trial Balance (FACTS I):**

**Closing Entry:**

**Post-Closing Trial Balance:**

**Parent Account (69X8123)**

***Proprietary***

**Pre-Closing Trial Balance (FACTS I):**

**Closing Entry:**

**Post-Closing Trial Balance:**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

**Parent Account (69X8123)**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

**Parent Account (69X8123)**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

**Parent Account (69X8123)**

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

# OMB Form and Content Statements

N/A

**Parent Account (69X8123)**

# OMB Form and Content Statements (Consolidated)

**Year 1**

**Fiscal Service Corpus Account (20X8100)**

# OMB Form and Content Statements

## N/A

**Parent Account (69X8123)**

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

**Year 2****Fiscal Service Corpus Account (20X8100)Parent Account (69X8123)**

**Year 2**

**Fiscal Service Corpus Account (20X8100)Parent Account (69X8123)**

***Budgetary***

**Pre-Closing Trial Balance (FACTS II ATB):**

**Closing Entries:**

***Budgetary***

**Pre-Closing Trial Balance (FACTS II ATB):**

**Closing Entries:**

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

**Post-Closing Trial Balance:**

**Parent Account (69X8123)**

**Post-Closing Trial Balance:**

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

***Proprietary***

**Pre-Closing Trial Balance (FACTS I):**

**Closing Entry:**

N/A

**Post-Closing Trial Balance:**

**Parent Account (69X8123)**

***Proprietary***

**Pre-Closing Trial Balance (FACTS I):**

**Closing Entry:**

## N/A

**Post-Closing Trial Balance:**

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

**Parent Account (69X8123)**

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

**Parent Account (69X8123)**

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

**Parent Account (69X8123)**

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

# OMB Form and Content Statements

N/A

**Parent Account (69X8123)**

# OMB Form and Content Statements (Consolidated)

**Year 2**

**Fiscal Service Corpus Account (20X8100)**

# OMB Form and Content Statements

N/A

**Parent Account (69X8123)**

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

� A credit to USSGL account 4450 Unapportioned Authority is to be recorded for programs subject to apportionment.  Refer to Section III - Accounting Transactions of TFM S2-01-02 (as updated) for more detailed transactions.

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VII - 1

Revised January 2003 ~~June 2001~~