SFFAS 54 LEASE GUIDANCE: 

SHORT-TERM LEASES 

RENEWAL OPTIONS 

LEASE CONCESSIONS 

EFFECTIVE FISCAL YEAR 2024 

PREPARED BY: 

 GENERAL LEDGER AND ADVISORY BRANCH 

BUREAU OF THE FISCAL SERVICE 

U.S. DEPARTMENT OF THE TREASURY 
Version 

Number 

Date Description of Change Effective USSGL TFM 

1.0 11/2022 Original TFM Bulletin No. 2024-01

1.1 08/2023 Added Footnote 2 to offer flexibility for agencies to record 

short-term lease expenses/short-term lease revenues.

TFM Bulletin No. 2024-01 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 3 of 27 November 2022

Proprietary Accounting Requirements & Agency Decision Points 

SFFAS No. 54, Leases, as amended by SFFAS No. 60, Omnibus Leases-Related Topics, replaces proprietary lease accounting and disclosure standards 

for general purpose federal financial reports. SFFAS No. 54 is effective for reporting periods beginning after September 30, 2023. (Early 

implementation is not permitted.) 

A lease is defined as “a contract or agreement whereby one entity (lessor) conveys the right to control the use of PP&E (the underlying asset) to another 

entity (lessee) for a period of time as specified in the contract or agreement in exchange for consideration.” (SFFAS 54, Par. 6) 

Short-Term Leases 

Short-Term leases are non-intragovernmental leases with a lease term of 24 months or less. Short-term lease payments are recognized as 

expenses/revenues based on the payment provisions of the contract and the respective payables/receivables standards. Reporting entities do not record 

lease liabilities or lease assets for short-term leases. (SFFAS 54, Pars. 23-24) 

For proprietary accounting, entity management is responsible for exercising professional judgement and collaborating within its agency to reach 

certain determinations before establishing proprietary accounting treatment, including: 

1) Lease Term, with consideration for Options, Renewals/Terminations, and Cancellation Clauses; 

3) Interest Rates - Amortization of Discount on Lease Liability/Receivable; and 

4) Modifications, Terminations, and any respective remeasurements. 

Proprietary Lease Term 

For proprietary accounting, calculating the lease term is pivotal because the classification between short-term leases and right-to-use leases depends 

on the lease duration. The lease term is determined to be the noncancelable lease period, plus certain periods subject to options to extend or terminate 

the lease. The noncancelable period is the shorter of the period agreed upon in the lease contract that: (1) precedes any option to extend the lease; or 

(2) precedes the first option to terminate the lease. In addition, the lessee’s lease term should include the noncancelable period, along with periods: 

 Involving an option to extend the lease, if it is probable that the lessee or lessor will exercise that option (SFFAS 54, Par. 15a & 15c) 

 Following an option to terminate the lease, if it is probable that the lessee or lessor will not exercise that option (SFFAS 54, Par. 15b & 15d) 

Some specific provisions may also need to be applied when determining the lease term: 

 Periods for which the lessee/lessor (1) have an option to terminate the lease without permission from the other entity, or (2) have to agree to 

extend, are considered to be cancelable periods and are thus excluded from the lease term (SFFAS 54, Par. 19a.) 

 An availability of funds/cancellation clause allowing lessees to cancel a lease agreement if funds for the lease payments are not appropriated 

should only affect the lease term when it is probable that the clause will be exercised (SFFAS 54, Par. 19c.) 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 4 of 27 November 2022

 If a lessee has the option to purchase the underlying asset during the lease term and the contract is not a contract that transfers ownership, the 

lease term should exclude the period, after the date at which the option is probable of being exercised (SFFAS 61, Par. 19d.) 

Lease Concessions 

On certain occasions, Lessors will offer rent discounts in order to persuade a potential Lessee to sign a lease contract. SFFAS 60 amends SFFAS 54 

guidance, stating that these lease concessions are to be recognized by the lessee as reductions of lease rental expense when incurred. Likewise, lease 

concessions should be recognized by the lessor as reductions in rental income as incurred. (SFFAS 60, Par. 15 rescinds SFFAS 54, Pars. 32-33.) 

FASAB Technical Release 20, Par. 36, provides one example of how concessions should be recognized. 

Advances/Prepayments 

If the lease contract allows for prepayments or advance payments, a Lessee should recognize a prepaid asset if payments are made in advance of the 

reporting period to which they relate, as well as a payable for rent due and unpaid at the end of the reporting period to which they relate. Likewise, a 

Lessor should recognize a liability for advances and prepayments if payments are received in advance of the reporting period, or a receivable for rent 

due and to be received. (SFFAS 54, Pars. 23-24, as amended by SFFAS 60, Pars. 9-10) 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 5 of 27 November 2022

Budgetary Accounting Requirements & Agency Decision Points 

While proprietary accounting requirements for leases are transformed by SFFAS 54, Leases, budgetary accounting requirements will remain unchanged 

and continue to be guided by the lease scorekeeping rule developed by OMB, CBO, and the House and Senate Budget Committees originally in 

connection with the Budget Enforcement Act of 1990, and guidance regarding this rule provided in OMB Circular No. A-11, Appendix B, Budgetary 

Treatment Of Lease-Purchases and Leases of Capital Assets. 

For budgetary accounting, entity management is responsible for exercising professional judgement and collaborating within its agency to reach 

certain determinations before establishing budgetary accounting treatment, including: 

1) Operating vs. Capital Lease (as defined by Appendix B of OMB Circular No. A-11); 

2) Budgetary Lease Term, with consideration for Cancellation Clauses; and 

3) Budget Authority and Outlays. 

Operating/Capital/Lease-Purchase 

The lease scorekeeping rule developed by OMB, CBO, and the House and Senate Budget Committees originally in connection with the Budget 

Enforcement Act of 1990, and related guidance in OMB Circular No. A-11, Appendix B does not classify leases into the same buckets as FASAB’s 

SFFAS No. 54. Rather than intragovernmental, short-term, or right-to-use classifications, the lease scorekeeping rule distinguishes leases as either 

“Operating”, “Capital”, or “Lease-Purchases.” 

“An Operating Lease meets all the criteria listed below. If the criteria are not met, the lease will be considered to be a capital lease or a lease-purchase: 

• Ownership of the asset remains with the lessor during the term of the lease and is not transferred to the Government at or shortly after the end of the lease term; 

• The lease does not contain a bargain-price purchase option; 

• The lease term does not exceed 75 percent of the estimated economic life of the asset; 

• The present value of the minimum contractually required payments over the life of the lease does not exceed 90 percent of the fair market value of the asset at the 

beginning of the lease term; 

• The asset is a general purpose asset rather than being for a special purpose of the Government and is not built to the unique specification of the Government as 

lessee; and 

• There is a private sector market for the asset.” 

Operating leases allow agencies to budget their lease costs annually, while capital leases require the agency to budget the entire asset cost (net present 

value of all lease and other contractually required payments over the lease term) up-front, including any option/renewal terms. 

Reporting entities should apply professional judgment, consistent with the guidance in Appendix B of OMB Circular No. A-11, on Operating 

Leases/Capital Leases criteria to discern the correct budgetary treatment of leases deemed to be Short-Term for proprietary accounting. This may or 

may not include consultation with OMB, depending on the specific characteristics of the transaction. 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 6 of 27 November 2022

Budgetary Lease Term & Renewal Options 

One step in determining the proper budgetary treatment is calculating the term of the lease. OMB Circular No. A-11, Appendix B states agencies should 

presume that all options will be exercised when calculating the lease term: 

“If the lease agreement contains an option to renew that can be exercised without additional legislation, it will be presumed that the option will be exercised. If the 

lease agreement contains an option to purchase at less than fair market value (at the time the option is to be exercised), and the option can be exercised without 

additional legislation, it will be presumed that the option will be exercised.” 

This calculation then factors into the six-part operating lease/capital lease test, excerpted above. 

Budget Authority and Outlays – Operating Lease 

Assuming all six parts of the operating lease test above are met, this would mean the lease should be considered an operating lease for budgetary 

purposes. The lease scorekeeping rule prescribes the following budgetary treatment for budget authority and outlays: 

“For operating leases, budget authority is required to be obligated up front in the amount necessary to cover the Government's legal obligations, consistent with the 

requirements of the Antideficiency Act. This will include the estimated total payments expected to arise under the full term of the contract or, if the contract includes 

a cancellation clause, an amount sufficient to cover the lease and other contractually required payments for the first year plus an amount sufficient to cover the costs 

associated with cancellation of the contract. For each subsequent year, sufficient budget authority is required to be obligated to cover the annual lease payment for 

that year plus any additional cancellation costs.” 

The amount necessary to cover the Government’s legal obligations in the example below is the first noncancelable period’s total amount of lease 

payments. The Government does not incur an obligation for the second year until it exercises the renewal option. 

Some agencies may have special legislative authority to enter into long-term leases, and only funding for the first year must be available to obligate. 

Obligations are recorded each year as they become due. However, these agencies are still required to evaluate proposed lease transactions against the 

six-part operating lease test as well as follow other guidance included in Appendix B of OMB Circular No. A-11. 

Budget Authority and Outlays – Capital Lease 

At other times, short-term leases could be considered ‘Capital leases’ for budgetary purposes when one of the criteria above is not met. In these cases, 

the lease scorekeeping rule prescribes the following budgetary treatment: 

“The up-front budget authority required for capital leases (called the asset cost) is the present value of the minimum lease and other contractually required payments 

excluding payments for identifiable annual operating expenses that would be paid by the Government as owner, such as utilities, minor maintenance, and insurance. 

Property taxes will not be considered to be an operating expense and will be included in the calculation of the up-front budget authority. Other contractually required 

payments include any and all costs related to the asset being leased in addition to the rent fee applied under the lease.” 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 7 of 27 November 2022

If management determines the lease to be a “Capital lease” for budgetary treatment, it should calculate the asset cost (present value of the minimum 

lease and other contractually required payments.) As part of this calculation, the agency would be required to assume the renewal option is exercised. 

The agency would then obligate the asset cost (present value of the full 24 months of payments) upfront upon signing the lease. 

Key Assumptions Driving Proprietary Accounting Entries: 

Lease Term & Classification 

 A federal reporting entity (Lessee) signs a 12-month lease with a non-federal Lessor for use of equipment, in which the monthly lease payments 

are $100,000. In the corresponding example titled “Lessor Entries”, a federal reporting entity acts as a Lessor conducting business with a nonfederal lessee. (i.e., transactions are not taking place between both entities within the examples.) 

 In addition to the initial 12-month period, the lease contract specifies that the Lessee has an option to extend the lease by another 12 months. 

Management believes it is probable, based on all relevant factors, that it will exercise that option. Therefore, the lessee’s lease term is 24 

months, which includes the noncancelable period of the initial 12 months, plus the following 12-month renewal period (See SFFAS 54, Pars. 

14-15a.) Thus, management determines the lease term to be 24 months, meeting the definition of a Short-Term Lease per SFFAS 54. 

 The Lessor already has equipment on its Balance Sheet with a cost basis of $1,000,000 prior to the start of the lease contract and $850,000 

Accumulated Depreciation. The equipment has a 20-year useful life and depreciation expense is $50,000 annually. 

 The lease contract within this scenario does not allow for prepayments or advance payments. 

Lease Concessions 

 As part of a lease concession, the Lessor will give $20,000 in reduced rent as the Lessee meets all occupation contingencies in the contract. 

The Lessee qualifies for reduced rent in each of the first three months of the lease term. 

 The $20,000 reduced rent is awarded after the Lessee meets the contract contingencies only in months 1-3. Thus, the Lessee recognizes the 

reduction in rental expense as incurred in each of the first 3 months by recording $20,000 less in rental expense in months 1-3. 

 In months 4-12, the Lessee recognizes the full $100,000 monthly rent payment. (See Also FASAB Technical Release 20, Lease Implementation 

Guidance, Par. 36.) The lease concessions are recognized as incurred and not spread out across the entire lease term. 

Key Assumptions Driving Budgetary Accounting Entries: 

Budgetary Authority 

 The Lessee received a direct appropriation and is working from an annual TAFS from a general fund expenditure account. Agency management 

has concluded that appropriations language allows the budget authority to remain available for the lease and other contractually required 

payments over the full term of the lease. 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 8 of 27 November 2022

Budgetary Lease Capital/Operating Determination 

 Appendix B states that agencies should presume that all options will be exercised when calculating the lease term, if it can be exercised without 

additional legislation. Therefore, the lease term for purposes of distinguishing between capital and operating leases is 24 months: the initial 12-

month period plus the 12-month renewal option. 

 Management concludes that the lease satisfies the six-part test to be considered an “Operating lease” for budgetary purposes. 

 As an ‘Operating’ lease for budgetary treatment, budget authority is obligated up front in the amount necessary to cover the Government's legal 

obligations, which in this case includes the estimated total payments expected to arise under the full term as there is no cancellation clause. 

 The amount necessary to cover the Government’s legal obligations is only the first 12 months of lease payments; the agency does not incur an 

obligation for the second year until it exercises the renewal option. 

 Because the lease concession is not fixed as part of the initial contract, the agency’s obligation should include the full amount of the first three 

months’ lease payments. 

Budgetary Outlays 

 Since the lease is an “Operating lease” for budgetary purposes, Outlays will be scored over the lease term, equal to the annual lease and other 

“contractually required payments.” Agency management has determined all outlays are in fact contractually required payments. 

Listing of USSGL Accounts Used in This Scenario: 

Account Number Account Title 

Budgetary 

406000 Anticipated Collections From Non-Federal Sources

411900 Other Appropriations Realized

426600 Other Actual Business-Type Collections From Non-Federal Sources

445000 Unapportioned – Unexpired Authority

449000 Anticipated Resources - Unapportioned Authority

451000 Apportionments

459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment

461000 Allotments – Realized Resources

480100 Undelivered Orders – Obligations, Unpaid

490100 Delivered Orders – Obligations, Unpaid

490200 Delivered Orders – Obligations, Paid

Proprietary 

101000 Fund Balance With Treasury

310000 Unexpended Appropriations - Cumulative

310100 Unexpended Appropriations – Appropriations Received
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 9 of 27 November 2022

310710 Unexpended Appropriations - Used - Disbursed

331000 Cumulative Results of Operations

570010 Expended Appropriations – Used - Disbursed

593000 Lessor Lease Revenue*1

671000 Depreciation, Amortization, and Depletion

693000 Lessee Lease Expense* 

Disclaimer 

The below guidance is intended to serve as a reference only based on a finite number of underlying assumptions. It is in no way intended to provide 

comprehensive posting logic for every leasing activity. Agencies should have a thorough understanding of authoritative standards SFFAS 54, SFFAS 

60, and SFFAS 61, and apply other factors, including but not limited to certain prepayments, accruals, etc. As stated above, agency management must 

exercise professional judgement and collaborate within their agency to reach determinations of lease activities on a lease-by-lease basis, before 

establishing accounting treatment. 

Budgetary and/or legal staff should ascertain the applicability of certain budgetary accounting terms from OMB Circular No. A-11, Appendix B, 

including but not limited to “contractually required payments.” 

Entity management should document these decisions and incorporate them into management’s existing OMB Circular No. A-123, “Management's 

Responsibility for Enterprise Risk Management and Internal Control,” Appendix A, procedures. 

1 1Effective FY2024, please see Treasury Financial Manual, Volume 1, USSGL Supplements, Section II for Account Definitions of new lease accounts. 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 10 of 27 November 2022

Short-Term Leases with Rent Concessions 

Lessee Accounting 

1. The Lessee records the enactment of appropriations of $1,200,000, or $100,000 monthly payment x 12-months in the first year of the lease. (The agency does 

not incur an obligation for the second year until it exercises the renewal option.) 

Lessee Debit Credit TC 

Budgetary Entry 

411900 Other Appropriations Realized 

 445000 Unapportioned – Unexpired Authority 

Proprietary Entry 

101000 (G) Fund Balance With Treasury 

 310100 (G) Unexpended Appropriations – Appropriations Received 

1,200,000 

1,200,000 

1,200,000 

 1,200,000 

A104 

2. The Lessee records budget authority apportioned by the Office of Management and Budget and available for allotment. 

Lessee Debit Credit TC 

Budgetary Entry 

445000 Unapportioned – Unexpired Authority 

 451000 Apportionments 

Proprietary Entry 

None 

1,200,000 

1,200,000 

A116 

3. The Lessee records the allotment of authority. 

Lessee Debit Credit TC 

Budgetary Entry 

451000 Apportionments 

 461000 Allotments – Realized Resources 

Proprietary Entry 

None 

1,200,000 

1,200,000 

A120 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 11 of 27 November 2022

4. The Lessee records undelivered orders without an advance. 

Lessee Debit Credit TC 

Budgetary Entry 

461000 Allotments – Realized Resources 

 480100 Undelivered Orders – Obligations, Unpaid 

Proprietary Entry 

None

1,200,000 

1,200,000 B306 

5. In each of the first three months of Year 1, the Lessee meets all occupation contingencies in the contract, and pays the monthly lease payments to the Lessor 

and records the payment of funds not previously accrued. ($100,000 monthly payment - $20,000 incentive = $80,000.) 

Lessee Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

 

Proprietary Entry 

610000 (N) Operating Expenses2

 101000 Fund Balance with Treasury 

310710 Unexpended Appropriations – Used – Disbursed 

 570010 Expended Appropriations – Disbursed 

80,000 

80,000 

80,000 

80,000 

80,000 

80,000 

B107 

B234 

2

 Note: SGL 693000 is designed to capture all lease expenses that agencies wish to disclose. While SFFAS 54 does not require disclosures for short-term leases, OMB Circular No. 

A-136 and Treasury provide flexibility to lessees who may wish to disclose expenses other than those required. Due to forthcoming authoritative guidance from FASAB to offer a 

transition accommodation for “embedded leases”, lessees may choose to record short-term lease expenses in SGL 610000 or 693000 in FY24, while lessors may choose to record 

short-term lease revenues in SGL 520000 or 593000 in FY24. 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 12 of 27 November 2022

6. In each of the first three months of Year 1, the Lessee records a downward adjustment of a current-year unpaid undelivered order for the $60,000 total in 

reduced rent in Year 1. The Lessee has made the payment to the Lessor and met all occupation contingencies. ($20,000 incentive per month in Months 1, 2, & 

3.)

Lessee Debit Credit TC 

Budgetary Entry 

4801000 Undelivered Orders – Obligations, Unpaid 

 461000 Allotments – Realized Resources 

Proprietary Entry 

None 

20,000 

20,000 

B404 

7. In each of the remaining 9 months of Year 1, the Lessee pays the monthly lease payments to the Lessor and records the payment of funds not previously 

accrued. (Normal $100,000 monthly payment for months 4-12.) 

Lessee Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

 

Proprietary Entry 

610000 (N) Lessee Lease Expense 

 101000 Fund Balance with Treasury 

310710 Unexpended Appropriations – Used – Disbursed 

 570010 Expended Appropriations – Disbursed 

 

100,000 

100,000 

100,000 

100,000 

100,000 

100,000 

B107 

B107 

B234 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 13 of 27 November 2022

Lessor Accounting 

1. In Year 1, the Lessor records anticipated collections. ($100,000 monthly payment x 12 months of the year.) 

Lessor Debit Credit TC 

Budgetary Entry 

406000 Anticipated Collections From Non-Federal Sources 

 449000 Anticipated Resources – Unapportioned Authority 

Proprietary Entry 

None 

1,200,000 

1,200,000 

A140 

2. The Lessor records the apportionment approval by OMB of anticipated authority. 

Lessor Debit Credit TC 

Budgetary Entry 

449000 Anticipated Resources – Unapportioned Authority 

 459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment 

Proprietary Entry 

None 

1,200,000 

1,200,000 

A118 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 14 of 27 November 2022

3. In each of the first three months of Year 1, the Lessor receives the monthly lease payment from the Lessee. ($100,000 monthly payment - $20,000 incentive 

= $80,000.) The Lessor determines that the Lessee met all occupation contingencies in the contract and accepts the $20,000 incentive for the first three months. 

Lessor Debit Credit TC 

Budgetary Entry 

426600 Other Actual Business-Type Collections From Non-Federal Sources 

 406000 Anticipated Collections From Non-Federal Sources 

459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment 

 451000 Apportionments 

451000 Apportionments 

 461000 Allotments – Realized Resources 

Proprietary Entry 

101000 Fund Balance with Treasury 

 520000 (N) Revenue For Services Provided 

80,000 

80,000 

80,000 

80,000 

80,000 

80,000 

80,000 

80,000 

C109 

A123 

A120 

C109 

4. In each of the first three months of Year 1, the Lessor must adjust anticipated resources not realized for the reduced rent ($20,000 per month lease concessions 

from Months 1, 2, & 3) after the Lessor determines that the Lessee has met all occupation contingencies in the contract.

Lessor Debit Credit TC 

Budgetary Entry 

459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment 

 406000 Anticipated Collections From Non-Federal Sources 

Proprietary Entry 

None 

20,000 

20,000 

F112 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 15 of 27 November 2022

5. In each of the remaining 9 months of Year 1, the Lessee pays the monthly lease payments to the Lessor and records the payment. (Normal $100,000 monthly 

payment for months 4-12.) 

Lessor Debit Credit TC 

Budgetary Entry 

426600 Other Actual Business-Type Collections From Non-Federal Sources 

 406000 Anticipated Collections From Non-Federal Sources 

459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment 

 451000 Apportionments 

451000 Apportionments 

 461000 Allotments – Realized Resources 

Proprietary Entry 

101000 Fund Balance with Treasury 

 520000 (N) Revenue For Services Provided 

100,000 

100,000 

100,000 

100,000 

100,000 

100,000 

100,000 

100,000 

C109 

A123 

A120 

C109 

6. In Year 1, the Lessor records depreciation expense on equipment it owns as an underlying asset within the lease. The equipment has a 20-year useful life; 

annual depreciation expense is $50,000. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

671000 (N) Depreciation, Amortization, and Depletion 

 175900 Accumulated Depreciation on Equipment 

50,000 

50,000 

E120 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 16 of 27 November 2022

Pre-Closing Adjusted Trial Balance: 

PRE-CLOSING LESSEE LESSOR 

Account Description Debit Credit Debit Credit 

Budgetary

411900 Other Appropriations Realized 1,200,000 - - -

426600 Other Actual Business-Type Collections From Non-Federal Sources - - 1,140,000 -

461000 Allotments – Realized Resources - 60,000 - 1,140,000

480100 Undelivered Orders – Obligations, Unpaid - - - -

490100 Delivered Orders, Obligations Unpaid - - - -

490200 Delivered Orders – Obligations, Paid - 1,140,000 - -

Total 1,200,000 1,200,000 1,140,000 1,140,000

Proprietary 

101000 (G) Fund Balance With Treasury 60,000 - 1,140,000 -

175000 Equipment - - 1,000,000 -

175900 Accumulated Depreciation on Equipment - - - 900,000

310000 Unexpended Appropriations - Cumulative - - - -

310100 (G) Unexpended Appropriations – Appropriations Received - 1,200,000 - -

310710 (G) Unexpended Appropriations – Used - Disbursed 1,140,000 - - -

331000 (G) Cumulative Results of Operations - - - 150,000

570010 (G) Expended Appropriations – Used - Disbursed - 1,140,000 - -

520000 (N) Revenue From Services Provided - - - 1,140,000

610000 (N) Operating Expenses 1,140,000 - - -

671000 (N) Depreciation, Amortization, and Depletion - - 50,000 -

Total 2,340,000 2,340,000 2,190,000 2,190,000
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

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Lessee Closing Entries: 

8. The Lessee records the closing of lease expense to cumulative results of operations. 

Lessee Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry

331000 Cumulative Results of Operations 

 610000 (N) Operating Expenses

 

570010 Expended Appropriations – Disbursed 

 331000 Cumulative Results of Operations 

310000 Unexpended Appropriations – Cumulative 

 310710 Unexpended Appropriations - Used - Disbursed 

310100 (G) Unexpended Appropriations – Appropriations Received 

 310000 Unexpended Appropriations - Cumulative 

1,140,000 

1,140,000 

1,140,000 

1,200,000 

1,140,000 

1,140,000 

1,140,000 

1,200,000 

F336 

F336 

F342 

F342 

9. The Lessee records the closing of paid delivered orders to total actual resources. 

Lessee Debit Credit TC 

Budgetary Entry 

490200 Delivered Orders – Obligations, Paid 

 420100 Total Actual Resources, Collected 

 

Proprietary Entry 

 None 

1,140,000 

1,140,000 

F314 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 18 of 27 November 2022

10. The Lessee records the consolidation of actual net-funded resources. 

Lessee Debit Credit TC 

Budgetary Entry 

420100 Total Actual Resources, Collected 

 411900 Other Appropriations Realized 

 

Proprietary Entry 

 None 

1,200,000 

1,200,000 

F302 

11. The Lessee records the closing of unobligated balances in programs subject to apportionment to unapportioned authority. 

Lessee Debit Credit TC 

Budgetary Entry 

461000 Allotments – Realized Resources 

 445000 Unapportioned – Unexpired Authority 

 

Proprietary Entry 

 None 

60,000 

60,000 

F308 

Lessor Closing Entries: 

7. The Lessor records the closing of revenue to cumulative results of operations. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

520000 (N) Revenue From Services Provided 

 331000 Cumulative Results of Operations 

1,140,000 

1,140,000 

F336 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

Page 19 of 27 November 2022

8. The Lessor records the closing of expense to cumulative results of operations. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

331000 Cumulative Results of Operations 

 671000 (N) Depreciation, Amortization, and Depletion 

50,000 

50,000 

F336 

9. The Lessor records the closing of unobligated balances in programs subject to apportionment to unapportioned authority. 

Lessor Debit Credit TC 

Budgetary Entry 

461000 Allotments – Realized Resources 

 445000 Unapportioned – Unexpired Authority 

Proprietary Entry 

None 

1,140,000 

1,140,000 

F308 

10. The Lessor records the consolidation of actual net-funded resources. 

Lessor Debit Credit TC 

Budgetary Entry 

420100 Total Actual Resources, Collected 

 426600 Other Actual Business-Type Collections From Non-Federal Sources 

 

Proprietary Entry 

 None 

1,140,000 

1,140,000 

F302 
SHORT-TERM LEASE WITH RENEWAL OPTIONS 

Effective Fiscal 2024 

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Post-Closing Adjusted Trial Balance: 

POST-CLOSING LESSEE LESSOR 

Account Description Debit Credit Debit Credit 

Budgetary

420100 Total Actual Resources, Collected 60,000 - 1,140,000 -

445000 Unapportioned – Unexpired Authority - 60,000 - 1,140,000

Total 60,000 60,000 1,140,000 1,140,000

Proprietary 

101000 (G) Fund Balance With Treasury 60,000 - 1,140,000 -

175000 Equipment - - 1,000,000 -

175900 Accumulated Depreciation on Equipment - - - 900,000

310000 Unexpended Appropriations - Cumulative - 60,000 - 1,240,000

Total 60,000 60,000 2,140,000 2,140,000
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Financial Statements: 

STANDARDIZED BALANCE SHEET 

Line 

No. 

LESSEE LESSOR 

Assets (Note 2) 

Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000E) 60,000 1,140,000

7 Total intra-governmental assets 60,000 1,140,000

12 General property, plant, and equipment, net (Note 10) (175000E, 175900E) - 100,000

18 Total other than intra-governmental assets - 100,000

 

19 Total assets 60,000 1,240,000

 

 Net position 

41.2 Unexpended appropriations - Funds from other than Dedicated Collections (310000E, 310100E, 

310700E, 310710E)

60,000 -

42.2

Cumulative results of operations - Funds from other than Dedicated Collections (331000B, 570010E, 

593000E, 693000E, 671000E) - 1,240,000

43 Total net position 60,000 1,240,000

44 Total liabilities and net position 60,000 1,240,000

STATEMENT OF NET COST 

Line 

No. 

LESSEE LESSOR 

Gross Program Costs (Note 21): 

1 Gross costs (671000E, 610000E, 693000E) 1,140,000 50,000

2 Less: earned revenue (520000E, 593000E) - 1,140,000

3 Net program costs 1,140,000 (1,090,000)

5 Net program costs including Assumption Changes: 1,140,000 (1,090,000)

8 Net cost of operations 1,140,000 (1,090,000)
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STATEMENT OF CHANGES IN NET POSITION 

Line 

No. 

LESSEE LESSOR 

Unexpended Appropriations: 

4 Appropriations received (310000E, 310100E) 1,200,000 -

7 Appropriations used (310700E, 310710E) (1,140,000) -

8 Net Change in Unexpended Appropriations (calc.) 60,000 -

9 Total Unexpended Appropriations – Ending (calc.) 60,000 -

Cumulative Results of Operations:

10 Beginning Balances (331000B) - 150,000

12 Beginning balances, as adjusted - 150,000

14 Appropriations used (570010E) 1,140,000 -

21 Revenue From (Net Cost of) Operations (+/-) (1,140,000) 1,090,000

22 Net Change in Cumulative Results of Operations - 1,090,000

23 Cumulative Results of Operations – Ending - 1,240,000

24 Net Position (calc.) 60,000 1,240,000
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STATEMENT OF BUDGETARY RESOURCES 

Line 

No. 

LESSEE LESSOR 

Budgetary resources: 

1290 Appropriations (discretionary and mandatory) (411900E) 1,200,000 -

1890 Spending authority from offsetting collection (discretionary and mandatory) (426600E) - 1,140,000

 

1910 Total budgetary resources (calc.) 1,200,000 1,140,000

Status of budgetary resources: 

2190 New obligations and upward adjustments (total) (Note 31) (490200E) 1,140,000 -

Unobligated balance, end of year: 

2204 Apportioned, unexpired account (461000E) 60,000 1,140,000

2412 Unexpired unobligated balance, end of year (calc.) 60,000 1,140,000

2490 Unobligated balance, end of year (total) 60,000 1,140,000

2500 Total budgetary resources (calc.) 1,200,000 1,140,000

Outlays, Net and Disbursements, Net 

4190 Outlays, net (total) (discretionary and mandatory) (426600E, 490200E) 1,140,000 (1,140,000)

SF 133 AND SCHEDULE P – REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES AND BUDGET PROGRAM 

AND FINANCING SCHEDULE 

Line 

No. 

LESSEE LESSOR 

BUDGETARY RESOURCES SF 133 Schedule P SF 133 Schedule 

P 

0900 Total new obligations, unexpired accounts (490200E) - 1,140,000 - -

Budget authority: 

Appropriations: 

Discretionary: 

1100 Appropriation (411900E) 1,200,000 1,200,000 - -

1160 Appropriation, discretionary (total) 1,200,000 1,200,000 - -
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1700 Collected (426600E) - - 1,140,000 1,140,000

1750 Spending authority from offsetting collections, discretionary (total) - - 1,140,000 1,140,000

1900 Budget authority (total) 1,200,000 1,200,000 1,140,000 1,140,000

1910 Total budgetary resources (calc.) 1,200,000 - 1,140,000 -

1930 Total budgetary resources available - 1,200,000 - 1,140,000

Memorandum (non-add) entries: 

1941 Unexpired unobligated balance, end of year (461000E) - 60,000 - 1,140,000

STATUS OF BUDGETARY RESOURCES 

New obligations and upward adjustments: 

Direct: 

2002 Category B (by project) (490200E) 1,140,000 - - -

2004 Direct obligations (total) (calc.) 1,140,000 - - -

2170 New obligations, unexpired accounts (490200E) 1,140,000 - - -

2190 New obligations and upward adjustments (total) 1,140,000 - - -

2201 Available in the current period (461000E) 60,000 - 1,140,000 -

2412 Unexpired unobligated balance: end of year (calc.) 60,000 - 1,140,000 -

2490 Unobligated balance, end of year (total) 60,000 - 1,140,000 -

2500 Total budgetary resources (calc.) 1,200,000 - 1,140,000 -

Memorandum (non-add) entries: 

2501 Subject to apportionment – excluding anticipated amounts (461000E) 60,000 - 1,140,000 -

CHANGE IN OBLIGATED BALANCE 

Unpaid obligations: 

3010 New obligations, unexpired accounts (490200E) 1,140,000 1,140,000 - -

3020 Outlays (gross) (-) (490200E) (1,140,000) (1,140,000) - -

3200 Obligated balance, end of year (= or -) - - - -

BUDGET AUTHORITY AND OUTLAYS, NET 

Discretionary: 

4000 Budget authority, gross (calc.) 1,200,000 1,200,000 1,140,000 1,140,000

Outlays, gross
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Effective Fiscal 2024 

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4010 Outlays from new discretionary authority (490200E) 1,140,000 1,140,000 - -

4020 Outlays, gross (total) 1,140,000 1,140,000 - -

Offsets against gross budget authority and outlays:

Offsetting collections (collected) from: 

4033 Non-Federal sources (-) (426600E) - - (1,140,000) (1,140,000)

4040 Offsets against gross budget authority and outlays (-) (calc.) - - (1,140,000) (1,140,000)

4070 Budget authority, net (discretionary) (calc.) 1,200,000 1,200,000 1,140,000 1,140,000

4080 Outlays, net (discretionary) (calc.) 1,140,000 1,140,000 (1,140,000) (1,140,000)

4180 Budget authority, net (total) (calc.) 1,200,000 1,200,000 (1,140,000) (1,140,000)

4190 Outlays, net (total) (calc.) 1,140,000 1,140,000 (1,140,000) (1,140,000)

Unobligated balance: 

5321 Direct unobligated balance, end of year (461000E) 60,000 60,000 (1,140,000) (1,140,000)

5323 Discretionary unobligated balance, end of year (461000E) 60,000 60,000 (1,140,000) (1,140,000)
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Effective Fiscal 2024 

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Reclassified Financial Statements: 

STANDARDIZED BALANCE SHEET 

Line 

No. 

LESSEE LESSOR 

Assets (Note 2) 

Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000E) 60,000 1,140,000

7 Total intra-governmental assets 60,000 1,140,000

12 General property, plant, and equipment, net (Note 10) (175000E, 175900E) - 100,000

18 Total other than intra-governmental assets - 100,000

 

19 Total assets 60,000 1,240,000

 

 Net position 

41.2 Unexpended appropriations - Funds from other than Dedicated Collections (310000E, 310100E, 

310700E, 310710E)

60,000 -

42.2

Cumulative results of operations - Funds from other than Dedicated Collections (593000E, 693000E, 

671000E) - 1,240,000

43 Total net position 60,000 1,240,000

44 Total liabilities and net position 60,000 1,240,000
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RECLASSIFIED STATEMENT OF NET COST 

Line 

No. 

LESSEE LESSOR 

1 Gross cost 

2 Non-federal gross cost (610000E, 693000E, 671000E) 1,140,000 50,000

6 Total non-federal gross cost (calc.) 1,140,000 50,000

7 Federal gross cost (610000E, 693000E) (RC24) - -

8 Total federal gross cost (calc.) - -

9 Department total gross cost (calc.) 1,140,000 50,000

10 Earned revenue

11 Non-federal earned revenue (520000E, 593000E) - 1,140,000

13 Total federal earned revenue (calc.) - -

14 Department total earned revenue (calc.) - 1,140,000

15 Net cost of operations (calc.) 1,140,000 (1,090,000)

RECLASSIFIED STATEMENT OF OPERATIONS AND CHANGES IN NET POSITION 

Line 

No. 

LESSEE LESSOR 

1 Net position, beginning of period (331000B) - 150,000

7 Financing sources: 

7.1 Appropriations received as adjusted (rescissions and other adjustments) (RC 41)/1 (310000E, 

310100E)

1,200,000 -

7.2 Appropriations used (RC 39) (310710E) (1,140,000) -

7.3 Appropriations expended (RC 38)/1 (570010E) 1,140,000 -

7.30 Total financing sources (calc.) 1,200,000 -

8 Revenue From (Net Cost of) Operations (+/-) (1,140,000) 1,090,000

 

9 Net position, end of period (calc.) 60,000 1,240,000