GUIDE FOR BASIC ACCOUNTING AND REPORTING

FOR FORECLOSED PROPERTY

IN FEDERAL CREDIT PROGRAMS

**GUIDE FOR BASIC ACCOUNTING AND REPORTING**

**FOR FORECLOSED PROPERTY**

**IN FEDERAL CREDIT PROGRAMS**

**EFFECTIVE FISCAL YEAR 2017**

**PREPARED BY:**

**CREDIT REFORM SUBCOMMITEE AND**

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

**U.S. DEPARTMENT OF THE TREASURY**

**Overview**

This guide is designed for those who:

· Formulate and execute Federal credit program budgets including accounting for assets, liabilities, net position, income, expenses, and budgetary resources

· Prepare agency financial statements; 

· Audit agency financial statements; 

· Design and maintain computer systems for financial and accounting programs; and

· Instruct others in basic accounting and reporting for foreclosed property in Federal credit programs.

The guide is illustrative, rather than authoritative, and is categorized as “other accounting literature” in the hierarchy of accounting principles for Federal entities.[footnoteRef:1] It supersedes the original and subsequent foreclosed property scenarios. Users may download the guide from the Fiscal Service Web site at **https://www.fiscal.treasury.gov/fsreports/ref/ussgl/approved_scenarios/approved_scenarios.htm#creditreform**.  [1: .See OMB Circular A-136, Financial Reporting Requirement, dated October 2016.] 

In order to understand and gain the most from the guide, users must have a working knowledge of the following: 

· Budgetary and proprietary accounting and related reporting;

· United States Standard General Ledger (USSGL) accounts for basic annual operating appropriations and revolving funds. 

· Federal credit program accounting and reporting;

· The Credit Reform Act and requirements established by the Act; and

· Fund structures.  

The guide is divided into four scenarios:

1.	Foreclosed property taken with recourse, Post-Credit Reform.

2.	Foreclosed property taken without recourse, Post-Credit Reform.

3.	Foreclosed property taken with recourse, Pre-Credit Reform.

4.	Foreclosed property taken without recourse, Pre-Credit Reform.

“With recourse” means that, if the net cashflows related to the foreclosed property are insufficient to pay the defaulted debt in full, the Federal credit agency may take further action against the borrower to collect the remainder. Conversely, if net cashflows are in excess of the debt, the agency must refund the excess to the borrower.  

“Without recourse” means that if the net cashflows related to the foreclosed property are insufficient to pay the defaulted debt in full, the Federal credit agency must write off the remaining debt. If the net cashflows are greater than necessary to repay the debt, the agency retains the excess. The loan contract with the borrower should indicate the terms of the loan.

The provided scenarios are not intended to be comprehensive. They cover common transactions and reports, focusing on property transactions unique to Federal credit program accounting. For example, the guide does not discuss undelivered orders with advances, because these orders are relatively rare and are not unique to credit program accounting.

The foreclosed property Credit Reform scenarios use net realizable value, rather than present value, as the basis for accounting. If agencies operate programs under Pre-Credit Reform based on present value, the foreclosed property accounting would be the same as that in the foreclosed property Post-Credit Reform scenarios.[footnoteRef:2] [2: Under SFFAS No. 2, Accounting for Direct Loans and Loan Guarantees, agencies may use either net realizable value or net present value as the basis for Pre-Credit Reform accounting.] 

The scenarios illustrate beginning, pre-closing, and post-closing trial balances. Where appropriate, the resulting yearend agency reports listed below are shown:

· Balance Sheet;

· Statement of Net Cost;

· Statement of Changes in Net Position;

· Statement of Budgetary Resources;

· Program and Financing Statement;

· Credit Program Footnote (including Schedule of Changes in the Allowance for Subsidy).[footnoteRef:3] [3: OMB Circular A-136, Footnote 8] 

The illustrated transactions within each scenario are:

· Formulation, apportionment, and allotment of the budget;

· Acquisition of foreclosed property;

· Repairs and maintenance on foreclosed property;

· Rental of foreclosed property prior to sale;

· Incurrence of expenses related to rental of foreclosed property prior to sale;

· Sale of foreclosed property;

· Collecting shortfalls from, recording shortfalls to, or paying excess cash to “with-recourse” borrowers;

· Closing entries.

In addition, two appendices are attached. Appendix 1 discusses fiscal yearend adjustments to the valuation of the property not sold by the yearend. Appendix 2 provides a listing of key references related to credit program accounting.

Direct questions regarding this guide to the General Ledger and Advisory Branch at **https://www.fiscal.treasury.gov/ussgl/report-an-issue.ht****ml**, using****the USSGL Issue Form.

C**onceptual Framework**

The transactions in this guide are based on property acquired and sold in the same year and are for a fictitious Federal agency with a single direct-loan-program cohort and no-risk categories. The entries essentially are the same for direct loan or loan guarantee programs, and disclosure is made where there are differences. For Pre-Credit Reform, it is assumed that the agency is operating from its collections rather than from appropriations. Therefore, no entries to show appropriations used are necessary, and net position consists only of cumulative results of operations. (Accounting for appropriations used is illustrated for the program fund in separate guides for direct loans and loan guarantees under Credit Reform.)

The guide uses USSGL account numbers and, generally, USSGL account titles. The guide expands account titles, where used, for illustrative purposes only, for the specific information being captured. For example, in order to capture information to separate loans receivable related to direct loan programs and those related to loan guarantee programs, which must be segregated in the financial statements, “[Direct]” is placed after the USSGL account title 135000, Loans Receivable [Direct]. For defaulted loans receivable, USSGL account title 135000 includes “[Defaulted Guaranteed]” after the account title: 135000 Loans Receivable [Defaulted Guaranteed]. 

Entries are in general journal form, using USSGL accounts, and are summarized in trial balances for each year. Note that the financing fund is used only in the transactions for Post-Credit Reform scenarios, and the liquidating fund is used only in the transactions for Pre-Credit Reform scenarios.

USSGL accounts that, by themselves, do not directly provide the reporting that is illustrated, are supplemented with additional detail. The entries made and the method chosen to illustrate the detail provide only one-way of accounting. Agencies may have other ways of structuring their ledgers and making journal entries to accomplish the same result.

**Account Tables**

The following account tables identify the accounts used in the guide to record transactions and prepare reports. Since the transactions are not comprehensive, the tables do not contain all accounts that agencies may use in day-to-day activities. The accounts used are presented and categorized by budgetary, proprietary, and memorandum accounts, as they relate to the changes in the loan guarantee level.[footnoteRef:4] Note that USSGL-accounts used in the scenarios that are enhanced to capture the information are illustrative rather than authoritative.  [4: The direct loan guide illustrates a similar set of accounts to report the changes in the allowance for subsidy account in a Post-Credit Reform direct loan program.] 

The budgetary accounts apply to both financing funds (Post-Credit Reform) and liquidating funds (Pre-Credit Reform). The memorandum accounts relate only to financing funds. Many of the proprietary accounts apply to both financing and liquidating fund transactions, but some are applicable to only one of the two. Proprietary accounts that relate only to the financing fund are indicated with a “(F)” following the title, and accounts that relate only to the liquidating fund are indicated with a “(L)” following the title. If the account applies to both funds, it is not indicated with either.  

The memorandum accounts are included primarily for use in preparing the required Post-Credit Reform schedule. The schedule illustrates the changes in the beginning and ending values for the allowance.[footnoteRef:5]   [5: Note that SFFAS No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, requires a schedule of changes in the Post-Credit Reform allowance for subsidy account only for direct loan programs.  A schedule for the allowance related to defaulted guaranteed loans in a Post-Credit Reform loan guarantee program is not required.  In addition, these schedules are not required for Pre-Credit Reform direct loan or loan guarantee programs.] 

Lastly, one account structure required by the parameters of the agency used in the scenario is not illustrated. The case agency is given a “Category B” apportionment, in which it must avoid over-obligating the amount of the apportionment separately for each category.  For proper administrative funds control, the agency would need a set of these status accounts for each category. 

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

It is necessary to separately report Credit Reform loans receivable, interest receivable, foreclosed property, and the related allowance for subsidy related to direct loans and to loan guarantees.  Agencies may do this through use of fund symbols or through other attributes associated with USSGL accounts.  This guide will use the basic USSGL accounts involved, and add information to the titles to indicate the distinction*.*

Pre-closing equation: 9XAA = the net of the remaining accounts.

Post-closing equation: 9XAA = 9XAB.

Scenario 1: Foreclosed Property Taken With Recourse–Post-Credit Reform

The agency has been operating for a number of years.  Transactions in the guide occur in fiscal year “X.”  For simplicity, the agency will have only one cohort.  Normally, the agency would need to capture and summarize Post-Credit Reform cash flow transactions by cohort.

This scenario presents transactions, interim and year-end trial balances, and year-end reports relating to fiscal year X.  If no entries appear in a category of accounts (budgetary, proprietary, memorandum) for a transaction, no entries are required in the category.  

The agency had the following financing fund account balances at the beginning of fiscal year X:

# 

**Transactions**

1-1. The agency estimated that $100 of direct loans and $500 of interest receivable would default, and that the collateral property involved would be foreclosed.  The agency further estimated that it would receive collections of $95 from sales and $20 from rental of the foreclosed property.  No transactions related to the existing foreclosed property at the beginning of the year were expected.  OMB apportioned the maximum amount, and the agency followed standard procedure in providing for blanket allotment of anticipated collections as they are realized.  The agency allotted the full allowable apportionment at the beginning of the year.

1-2. $100 of direct loans and $500 of interest receivable defaulted.  The fair market value of the property received was estimated to be $450. It came with a lien of $40, which was paid.[footnoteRef:10]  The loan terms provided that the foreclosed property was taken with recourse. [10: Although collateral property should be free of liens when the Government forecloses on it, creditors may have placed liens on the property, such as for an unpaid contractor’s lien or for unpaid property taxes.If the agency paid the lien in a separate transaction from the acquisition of the property, it makes a budgetary entry to credit account 490100 for $40 instead of 490200[Payments on Foreclosed Property]. In addition, the agency makes two proprietary entries (dr./cr.): 155100[Direct Loans] for $450/135000 for $410 and 199000 (Other Assets) or 211000 for $40.  Upon payment, the agency would make a budgetary entry to account 490100 or 490200[Payments on Foreclosed Property], and the following proprietary entries: 155100[Direct Loans] or 199000 and 211000 or 101000.  With few exceptions, an agency may not debit or credit account 155100 unless cash has been transacted.  Finally, if at the end of the year, a lien is still unpaid, the entry debiting account 199000 and crediting account 211000 would be reversed in the process of consolidation to avoid double-counting between the unpaid lien and the foreclosed property’s present value, which already contains the present value of the lien payment to be made.] 

1-3. The agency paid $60 to repair the new foreclosed property.

1-4. The agency rented the new property to a third party and collected $20 for the rent.

1-5. The agency paid expenses of $30 related to rental of the new property.

1-6. The agency sold the new property, which at this point is on the books at a gross value of $520, for $475, net of expenses of sale.

*Transactions 1-6a and 1-6b illustrate how an agency would handle the accounting if it had received more cash than necessary to satisfy the debt, rather than less, as was the case with transaction 1-6.  Transactions 1-6a and 1-6b are mutually exclusive of transaction 1-6, and are not included with the trial balance totals that follow.  There are no special reporting issues involved.*

1-6a. The agency sold the new property, which at this point is on the books at a gross value of $520, for $775, net of expenses of sale.

1-6b. The agency repays the excess cash collected to the borrower.[footnoteRef:23] [23: This assumes that the agency refunded the cash to the borrower in a separate transaction.  In practice, the agency may pay the excess directly to the borrower at the time the foreclosed property is sold, such as through escrow.  If that is the case, the agency reduces the net collection amount to $710 in the budgetary and proprietary entries for 6a and does not record a payable.  ] 

1-7. To record adjustments for resources realized in excess of those anticipated. 

**Closing Entries**

To record the consolidation of actual net-funded resources and reductions for withdrawn funds and to record the closing of Expended Authority – Paid

**Financial Statements**

The Statement of Net Cost and the Statement of Changes in Net Position are not presented because the balances are zero.

****

****

****

**Scenario 2: Foreclosed Property Taken Without Recourse–Post-Credit Reform**

The scenario presents transactions, interim and year-end trial balances, and year-end reports relating to fiscal year X. If no entries appear in a category of accounts (budgetary, proprietary, memorandum) for a transaction, no entries are required in the category.

The agency had the following financing fund account balances at the beginning of fiscal year X:

2-1.****The agency estimated that $100 of direct loans and $500 of interest receivable would default, and that the collateral property involved would be foreclosed on.  The agency further estimated that it would receive collections of $95 from sales and $20 from rental of the foreclosed property.  No transactions related to the existing foreclosed property at the beginning of the year were expected.  OMB apportioned the maximum amount, and the agency followed standard procedure in providing for blanket allotment of anticipated collections as they are realized.  The agency allotted the full allowable apportionment at the beginning of the year.

2-2. $100 of direct loans and $500 of interest receivable defaulted.  The fair market value of the property received was estimated to be $450.  It came with a lien of $40,[footnoteRef:31] which was paid.[footnoteRef:32]  The loan terms provided that the foreclosed property was taken without recourse. [31: Although collateral property should be free of liens when the Government foreclosed on it, creditors may have placed liens on the property, such as for an unpaid contractor’s lien or for unpaid property taxes.]  [32: If the agency paid the lien in a separate transaction from acquisition of the property, it makes a budgetary entry to credit account 490100 for $40 instead of 490200[Payments on Foreclosed Property], for $40, and the proprietary entry would be changed as follows: Debit 155100 $410, 139900 $190, and 119000 $40   Credit 134000 $500, 135000 $100, and 211000 $40.Upon payment, the agency makes the budgetary entry (dr./cr.) 490100/490200[Payments on Foreclosed Property], and the following proprietary entries: 155100/199000 and 211000/101000.  With few exceptions, an agency may not debit or credit account 155100 unless cash has been transacted.  Finally, if at the end of the year, a lien is still unpaid, the entry debiting account 199000 and crediting account 211000 would be reversed in the process of consolidation to avoid double-counting between the unpaid lien and the foreclosed property’s present value, which already contains the present value of the lien payment to be made.] 

2-3. The agency paid $60 to repair the new foreclosed property.

2-4. The agency rented the new property to a third party, and collected $20 for the rent. 

2-5. The agency paid expenses of $30 related to rental of the new property.

2-6. The agency sold the new property, which at this point is on the books at a gross value of $520, for $475, net of expenses of sale.

**Pre-Closing Entry**

2-7. To record adjustments for resources realized in excess of those anticipated.

**Closing Entries**

**Financial Statements**

The Statement of Net Cost and the Statement of Changes in Net Position are not presented because the balances are zero.

**Scenario 3: Foreclosed Property Taken With Recourse–Pre-Credit Reform**

The scenario presents transactions, interim and year-end trial balances, and year-end reports relating to fiscal year X.  If no entries appear in a category of accounts (budgetary, proprietary, memorandum) for a transaction, no entries are required in the category.  

The agency had the following liquidating fund account balances at the beginning of fiscal year X:

3-1. The agency estimated that $100 of direct loans and $500 of interest receivable would default, and that the collateral property involved would be foreclosed on.  The agency further estimated that it would receive collections of $95 from sales and $20 from rental of the foreclosed property.  No transactions related to the existing foreclosed property at the beginning of the year were expected.  OMB apportioned the maximum amount, and the agency followed standard procedure in providing for blanket allotment of anticipated collections as they are realized.  The agency allotted full allowable apportionment at the beginning of the year.

3-2. $100 of direct loans and $500 of interest receivable defaulted.  The fair market value of the property received was estimated to be $450. It came with a lien of $40, which was paid.[footnoteRef:45] The loan terms provided that the foreclosed property was taken with recourse. [45: Although collateral property should be free of liens when the Government forecloses on it, creditors may have placed liens, such as for an unpaid contractor’s lien or for unpaid property taxes.If agency paid the lien in a separate transaction from acquisition of the property, it makes a the budgetary entry to account 490100 instead of account 490200[Payments on Foreclosed Property], and in accordance with SFFAS No. 3, Accounting for Inventory and Related Property, par. 87.  In the proprietary the agency replaces account 101000 with account 155900[Direct Loans].  Upon payment, the agency debits account 490100 and credits account 490200[Payments on Foreclosed Property]; it debits accounts 155900[Direct Loans] and credits account 101000.  ] 

3-3. The agency paid $60 to repair the new foreclosed property.

3-4. The agency rented the new property to a third party, and collected $20 for the rent.

3-5. The agency paid expenses of $30 related to rental of the new property.

3-6. The agency sold the new property, which at this point is on the books at a gross value of $520, for $475, net of expenses of sale.[footnoteRef:48] [48: See transactions 1-6a and 1-6b in Scenario 1 for an example of how to handle the transaction if the sale yielded more cash than necessary to satisfy the borrower’s debt.] 

**Pre-Closing Entry**

3-7. To record adjustments for resources realized in excess of those anticipated. 

**Closing Entries**

**Financial Statements**

The Statement of Net Cost is not presented because the balance is zero.

****

Scenario 4: Foreclosed Property Taken Without Recourse–Pre-Credit Reform

The scenario presents transactions, interim and year-end trial balances, and year-end reports relating to fiscal year X.  If no entries appear in a category of accounts (budgetary, proprietary) for a transaction, no entries are required in the category.

The agency had the following liquidating fund account balances at the beginning of fiscal year X:

4-1. The agency estimated that $100 of direct loans and $500 of interest receivable would default, and that the collateral property involved would be foreclosed on.  The agency further estimated that it would receive collections of $95 from sales and $20 from rental of the foreclosed property.  No transactions related to the existing foreclosed property at the beginning of the year were expected.  OMB apportioned the maximum amount, and the agency followed standard procedure in providing for blanket allotment of anticipated collections as they are realized.  The agency allotted the full allowable apportionment at the beginning of the year.

4-2.  $100 of direct loans and $500 of interest receivable defaulted.  The fair market value of the property received was estimated to be $450. It came with a lien of $40, which was paid.[footnoteRef:58] The loan terms provided that the foreclosed property was taken without recourse. [58: Although collateral property is supposed to be free of liens when the Government forecloses on it, creditors may have placed liens on the property, such as for an unpaid contractor’s lien or for unpaid property taxes.If the agency paid the lien in a separate transaction from acquisition of the property, it makes a budgetary to account 490100 instead of account 490200[Payments on Foreclosed Property], and in accordance with SFFAS No. 3, Accounting for Inventory and Related Property, par. 87.  In the proprietary entry, the agency replaces account 101000 with account 155900[Direct Loans].  Upon payment, the agency debits account 490100and credits account 490200[Payments on Foreclosed Property]; it debits account 155900[Direct Loans] and credits account 101000.] 

4-3. The agency paid $60 to repair the new foreclosed property.

4-6. The agency sold the new property, which at this point is on the books at a gross value of $520, for $475, net of expenses of sale.[footnoteRef:60] [60: See entries 1-6a and 1-6b for Scenario 1 for an example of how the transaction would be handled if the sale yielded more cash than necessary to satisfy the borrower’s debt.] 

**Pre-Closing Entry**

**Closing Entries**

**Financial Statements**

****

**APPENDIX I: YEAR-END ADJUSTMENTS TO VALUATION OF FORECLOSED PROPERTY**

Often, a Federal credit program agency will foreclose on collateral property and dispose of it in the same fiscal year.  The transactions in the body of this guide illustrate how an agency record and report transactions to acquire repair and maintain, rent, and sell foreclosed property.  In some instances, foreclosed property will be sold in a later fiscal year than that during foreclosure.  This appendix discusses the valuation of foreclosed property existing at the Balance Sheet date under Credit Reform and Pre-Credit Reform.

**CREDIT REFORM VALUATION**

Under Credit Reform, loan assets (receivables and foreclosed property) are valued at the present value of their cash flows.  An agencies report this by listing and summing the receivables, and subtracting an allowance for subsidized costs from the sum of the receivables to yield their net cash flow.  This reporting is illustrated via the credit program footnote in Scenarios 1 and 2.

Each year, an agency re-estimate cash flows and increase or decrease the allowance for subsidy for each cohort of loans (by risk categories under each cohort, if any).  The agency recognizes an additional subsidy expense when the allowance is increased, and a decrease in subsidy expense when the allowance is decreased.  This is illustrated in the direct loan programs guide.  The entries and methodologies are essentially the same for loan assets related to defaulted guaranteed loans and those related to direct loans, though an agency must report each separately.  

Since no allowance account related solely to foreclosed property is recognized (the allowance account applies to the sum of the non-cash loan assets), the guide does not illustrate the recording and reporting of adjustments to the allowance for subsidy caused by changes in cash flows relating to foreclosed property.  Refer to the sections on upward and downward adjustments relating to direct loan, non-cash assets discussed in the accounting and reporting for direct loans guide under Credit Reform concepts.

**Pre-Credit Reform–Present Value Used**

Agencies may use either present value or net realizable value concepts for recording and valuing non-cash loan assets for Pre-Credit Reform direct loans or defaulted guaranteed loans.  If agencies use present value concepts, the valuation of the receivables and 

foreclosed property and related accounting and reporting are basically the same as that under Credit Reform.  Agencies should use account 680000, “Future Funded Expenses.”

**Pre-Credit Reform–Net Realizable Value Used**

Under the net realizable value concept, separate valuations are made for each receivable (accounts receivable, loans receivable, interest receivable, penalties and late charges receivable, etc.) and for foreclosed property.  Accounting and reporting related to the valuation, accounting, and reporting of Pre-Credit Reform receivables on a net realizable value basis is presented in the Pre-Credit Reform guide.  This section discusses valuation, accounting, and reporting for Pre-Credit Reform foreclosed property.  

SFFAS No. 3, *Accounting for Inventory and Related Property*, governs the valuation of Pre-Credit Reform foreclosed property when the present value of cash flows is not used as a basis for valuation.  In that case, SFFAS No. 3 specify that the lower of cost of market rule be used.[footnoteRef:69] This means that in valuing foreclosed property on the Balance Sheet, it be reduced by a related valuation account which, when netted against the gross amount of foreclosed property, yields the lower of what the property cost (as determined via the transactions discussed in the body of this case), or what its estimated fair market value is at the Balance Sheet date.  While foreclosed property may thus be reported at lower than cost if its fair market value is less, it cannot be valued at greater than cost, even if the fair market value is more.  This is essentially the same rule as used in commercial accounting. [69: See SFFAS No.  3, Accounting for Inventory and Related Property, par.  86.] 

Assume that foreclosed property is taken during fiscal year A, and at the end of that year, it is on the books at a value of $100, based on transactions involving acquisition, repairs and maintenance, and rentals.  The agency does not sell the property until fiscal year E,

 and no additional transactions occur, except those related to valuation for balance sheet purposes at the end of each of the fiscal years A, B, C, and D.  The agency determines fair market value for each of those fiscal years as follows:

**Fiscal Year****Fair Market Value**

	A			$96

	B			$93

	C			$98

	D		          $102 

The journal entries to value the foreclosed property on the balance sheet for each year and to close the accounts at year-end are set forth below, along with related reporting (solely for these transactions).  All entries are proprietary, as the revaluation of foreclosed property to the lower of cost or market does not affect budgetary resources or the status of resources.  The Balance Sheet and Statement of Changes in Net Position assume that the cumulative results of operations in fiscal year A before valuation are $100 for illustrative purposes only.  Additionally, the balance sheet presents details of the cost and market valuations, normally found in the credit program footnote.  This detail is not illustrated for brevity.  The Statement of Budgetary Resources is not presented, since no budgetary accounts are affected.  

**TRANSACTIONS**

**Fiscal Year A**

**FINANCIAL STATEMENTS**

**Fiscal Year A**

**TRANSACTIONS**

**Fiscal Year B**

**FINANCIAL STATEMENTS**

**Fiscal Year B**

**TRANSACTIONS**

**Fiscal Year C**

**FINANCIAL STATEMENTS**

**Fiscal Year C**

**TRANSACTIONS**

**Fiscal Year D**

**APPENDIX II: REFERENCES**

This appendix lists some key references and Web sites for readers who want to obtain additional information.

**OFFICE OF MANAGEMENT AND BUDGET**

· OMB *Circular No. A-136*

· OMB Circular No. A-11, *Preparation, Submission, and Execution of the Budget*

· OMB Credit Model

· OMB Publications Office at (202) 395-7332

· Office of Federal Financial Management (202) 395-3993

· Website: www.whitehouse.gov/omb 

**FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD**

Statement of Federal Financial Accounting Standards (SFFAS) and Statement of Federal Financial Accounting Concepts (SFFAC) No. 1, 

· SFFAS No.   1, *Accounting for Selected Assets and Liabilities*

· SFFAS No.   2, *Accounting for Direct Loans and Loan Guarantees*

· SFFAS No.   3, *Accounting for Inventory and Related Property*

· SFFAS No.   7, *Accounting for Revenue and Other Financing Sources* (including related implementation guide) 

· SFFAS No.   18, *Amendments to Accounting Standards for Direct Loans and Loan Guarantees*

· SFFAS No.   19, *Technical Amendments to Accounting Standards for Direct Loans and Loan Guarantees*

· SFFAC No.  2, *Entity and Display* (as amended by SFFAS No. 7)

Accounting and Auditing Policy Committee, Technical Release No.   3: *Preparing and Auditing Direct Loan and Loan Guarantee Subsidies Under the Federal Credit Reform Act*

· FASAB Staff at (202) 512-7350 

· Website: www.fasab.gov

· **BUREAU OF THE FISCAL SERVICE***U.S. Standard General Ledger (USSGL)* codified in the*Treasury Financial Manual (TFM)*

· *Budgetary Accounting in the Federal Government*

· Illustrative Scenarios in Accounting for Credit Programs (FRAD Staff)

· TFM Volume I, Part 2, Chapter 4600 Treasury Reporting Instructions for Credit Reform Legislation

· Present Value Monograph

**Foreclosed Property	Page 5 of 96	August 2017**