SFFAS 54 LEASE GUIDANCE: 

RIGHT-TO-USE LEASES: 

DEEMED “CAPITAL LEASES” FOR BUDGETARY TREATMENT 

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 01/2023 Original TFM Bulletin No. 2023-03

1.1 03/2023 Lessee Transactions 6-8 updated with budget/accrual guidance. TFM Bulletin No. 2024-01

1.2 04/2023 Lessor Year 1 Transactions updated with USSGL 593900 TFM Bulletin No. 2024-01

1.3 05/2023 Assumptions for Proprietary Interest Rates clarified per SFFAS 

61 amendments.

TFM Bulletin No. 2024-01 

1.4 09/2023 SFFAS 62 practical accommodation added to “Proprietary 

Accounting Requirements & Agency Decision Points”

TFM Bulletin No. 2024-01 

1.5 12/2023 New Lease Transaction Codes added after November IRC TFM Bulletin No. 2024-01
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 3 of 69 November 2022

Proprietary Accounting Requirements & Agency Decision Points 

SFFAS No. 54, Leases, as amended by SFFAS No. 60 and SFFAS No. 61, 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.) SFFAS No. 54 requires 

that federal lessees recognize a lease liability and a right-to-use lease asset (also referred to as a lease asset), and that federal lessors recognize a lease 

receivable and unearned revenues at the commencement of the lease term, unless the lease meets the definitional criteria of a short-term lease, contract 

or agreement that transfers ownership, or an intra-governmental lease. 

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; 

2) Calculation of Lease Asset/Liability; with consideration for Fixed vs. Variable Payments; 

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

4) Modifications, Terminations, and any respective remeasurements; and 

5) Contracts or Agreements Containing Nonlease and Lease Components (if applicable)

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.) 

 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. 6) 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 4 of 69 November 2022

Calculating the Lease Asset/Lease Liability Amounts: Fixed vs. Variable Payments 

The Lessee’s lease asset and the Lessor’s lease receivable should include the present value of payments expected to be made during the lease term. 

Generally, these should include: 

 Fixed payments; 

 Variable payments that depend on an index or a rate; 

 Variable payments that are fixed in-substance; and 

 Any lease incentives receivable from the lessor. 

For a complete list of payment types to include in the present value of payments, please see SFFAS 54, Paragraphs 40 and 56. (SFFAS 54, Par. 49 also 

identifies costs that are to be capitalized as part of Lessor’s lease asset that are not components of a Lessee’s lease liability.) 

Variable payments based on future performance of the lessee or usage of the underlying asset should be recognized as lease expense/revenue during 

the reporting period to which those payments relate. These variable payments should not be included in the measurement of the lease liability/lease 

receivable. (See SFFAS 54, Pars. 41 and 54.) Reporting entity management should consult with appropriate procurement officials, and use professional 

judgment, to make determinations on what payments are fixed and what are variable for proprietary lease accounting purposes. 

Proprietary Interest Rates - Amortization of Discount on Lease Liability/Receivable - Interest Expense/Revenue 

Future lease payments should be discounted using the interest rate the lessor charges the lessee. When the rate is not stated in the lease, SFFAS 61 

allows agencies flexibility to use a rate based on a recent marketable Treasury security rate, or a historical average interest rate on marketable Treasury 

securities of a similar maturity to the term of the lease: “If the interest rate is not stated in the lease, the interest rate should be based on the interest rate 

on marketable Treasury securities at the commencement of the lease term (or at the subsequent financial reporting date), with a similar maturity to the 

term of the lease.” (SFFAS 61, Par. 6) Methodology for selecting interest rates based on marketable Treasury securities should be documented and 

should be consistent from period to period. 

In subsequent reporting periods, the Lessee should calculate the amortization of the discount on the lease liability and recognize that amount as interest 

expense for the period. Any payments made should be allocated first to the accrued interest liability and then to the lease liability. (SFFAS 54, Par. 43) 

Likewise, the Lessor should calculate the amortization of the discount on the receivable and report that amount as interest revenue for the period 

(SFFAS 54, Par. 60.) 

Lease Amortization & Lessor Unearned Revenue 

During the lease term, the Lessee’s lease asset should be amortized in a systematic and rational manner, over the shorter of: The lease term; or the 

useful life of the underlying asset. Meanwhile, the Lessor should amortize the unearned revenue to lease revenue in a systematic and rational manner 

over the term of the lease. (SFFAS 54, Par. 65) 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 5 of 69 November 2022

Modifications/Terminations 

In the event a right-to-use lease is terminated before the end of the contractual lease term (other than by a transfer of ownership/purchase of the 

underlying asset), a Lessee should account for the termination by reducing the carrying values of the lease liability and the lease asset and recognizing 

a gain/loss for the difference. Likewise, lessors should reduce the carrying value of the lease receivable and the related unearned revenue, and record 

a gain/loss for the difference. 

Contracts or Agreements Containing Nonlease and Lease Components 

For contracts or agreements containing both nonlease and lease components, in which the purpose of the contract is primarily attributable to the nonlease 

component(s), entities may elect to apply the practical accommodation in SFFAS 62. 

This practical accommodation allows for the entity to treat the entire contact (including lease components) as a nonlease contract and to 

expense/recognize as revenue the lease payments, rather than recognizing both expenses/revenue and lease assets/liabilities following the provisions 

of SFFAS 54. (See SFFAS 62 for complete details on how to make the election, along with how to apply certain reporting and disclosure requirements. 

Entity management must use professional judgement to assess the nature of contracts or agreements to make the most appropriate decision on the 

primary purpose of the contract. (SFFAS 62, Par. 5) 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 6 of 69 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; 

3) The Budgetary Interest Rate is selected per OMB Circular No. A-94, Appendix C guidance; and

4) Budget Authority and Outlays.

Operating/Capital/Lease Purchase 

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 each lease contract. Budget Authority for Capital Leases should be recorded 

up-front in an amount equal to the “asset cost,” as defined in Appendix B. Meanwhile, outlays of Capital Leases are scored over the lease term in an 

amount equal to the annual lease and other contractually required payments. 

“Amounts. The up-front budget authority required for both lease-purchases and capital leases is called the asset cost. This equals 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. (See section 3 for the treatment of property taxes for purposes of distinguishing operating leases 

from capital leases.) 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. 

For example, other contractually required payments would include all costs under triple net or other unique arrangements. The present value of the lease and 

other contractually required payments is discounted as of the date of the first payment (or the beginning of the lease term, whichever is earlier) using the 

appropriate interest rate (see section 4 for a more detailed explanation and the treatment of multiple deliveries).” 

Listing of USSGL Accounts Used in This Scenario:

Account Number Account Title 

Budgetary 

406000 Anticipated Collections From Non-Federal Sources

411900 Other Appropriations Realized
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 7 of 69 November 2022

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

134000 Interest Receivable - Not Otherwise Classified

175000 Equipment

175900 Accumulated Depreciation on Equipment

193000 Lessor Lease Receivable*1

193900 Allowance for Loss on Lease Receivable* 

195000 Lessee Right-To-Use Lease Asset* 

195900 Accumulated Amortization on Lessee Lease Assets* 

214000 Accrued Interest Payable - Not Otherwise Classified

233000 Unearned Lessor Revenue* 

293000 Lessee Lease Liability* 

310000 Unexpended Appropriations - Cumulative

310100 Unexpended Appropriations – Appropriations Received

310700 Unexpended Appropriations - Used - Accrued

310710 Unexpended Appropriations - Used - Disbursed

331000 Cumulative Results of Operations

531000 Interest Revenue - Other

570000 Expended Appropriations – Used Accrued

570010 Expended Appropriations - Disbursed

593300 Amortization of Unearned Lessor Revenue* 

593900 Contra Revenue for Lessor Lease Revenue* 

633000 Other Interest Expense

671000 Depreciation, Amortization, and Depletion

671300 Lessee Lease Amortization* 

1

 See Treasury Financial Manual, Volume 1, USSGL Supplements, Section II for Account Definitions of new lease accounts. 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 8 of 69 November 2022

Key Assumptions Driving Proprietary Accounting Entries: 

Lease Term 

 A federal reporting entity (Lessee) signs a 5-year lease with a non-federal entity (Lessor) for the right to control/right to use equipment. (For 

illustration purposes, the scenario also shows posting logic under a separate heading for a federal Lessor working with a non-federal Lessee.) 

 For illustration purposes, the lease is assumed to begin at the start of the fiscal year, 10/01/2023.

 No purchase option probable of being exercised exists. 

 The Lessor already has equipment on its Balance Sheet valued at $300,000 with $150,000 Accumulated Depreciation. 

 The Present Value of all expected fixed payments is $100,000. 

 The Lessor charges the Lessee the Interest Rate on marketable Treasury securities as of the commencement of the lease term, per SFFAS 61 

Paragraph 6 guidance, which for purposes of this scenario is assumed to be 10.00%. 

 All monthly payments are made at the last business day of the month – This scenario assumes payments are made directly to vendor and that 

there is no lag time between disbursement, authorization, and receipt. 

Lease Asset/Liability Calculation 

 The contract amount is $120,000 ($2,000 monthly payments x 60 months.) 

 Management calculates the Present Value of all expected fixed payments to be $94,131. The Lessor charges the Lessee the Treasury Rate of 

10.00%. 

 The Lessor already has equipment on its Balance Sheet valued at $300,000 with $150,000 Accumulated Depreciation. 

Fixed & Variable Payments 

 Management determines the lease contains only fixed payments. Fixed payments include a minimum annual payment required by the lease 

contract, and lease payments (including interest) are paid at the start of the year. 

 Management determines there are no variable payments based on lessee performance or future usage of the underlying asset in the contract, per 

SFFAS 54, Par. 41. (Also See Technical Release 20, Lease Implementation Guidance, Par. 48 for more information on Variable Payments.) 

 Management determines that the fixed lease payments are “contractually required payments" per OMB Circular A-11, Appendix B. 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 9 of 69 November 2022

Key Assumptions Driving Budgetary Accounting Entries: 

Budgetary Authority 

 For illustration purposes, the lease is assumed to begin at the start of the fiscal year, 10/01/2023.

 The Lessee received a direct appropriation and is working from a multi-year appropriated 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. 

 It is the responsibility of agencies to determine the correct discount rate and do their own calculations when determining budget authority for 

capital leases. Per OMB Circular No. A-11, Appendix B, all assumptions required to perform the lease analysis are subject to OMB approval. 

(The differential cost of financing has to be paid upfront by the agency as part of their asset cost calculation.) 

 The Lessor charges the Lessee the Interest Rate from OMB Circular No. A-94, Appendix C guidance, which for purposes of this scenarios is 

assumed to be 10.00%. Per OMB Circular No. A-11, Appendix B, all assumptions required to perform the lease analysis are subject to OMB 

approval. 

 Management determines that the fixed payments are "contractually required payments" per OMB Circular A-11, Appendix B. 

 Note – For budgetary purposes, agencies will need to develop amortization tables to calculate the asset cost of capital leases. 

Budgetary Lease Capital/Operating Determination 

 Management determines the lease to be a “Capital lease” for budgetary purposes. Therefore, the asset cost (up-front budget authority required) 

is the present value of the minimum lease and other contractually required payments. (Note that the differential cost of financing has to be paid 

upfront by the agency as part of their asset cost calculation.) 

 Additional budget authority equal to the cost of financing (imputed interest cost) is recorded on an annual basis over the lease term. Imputed 

interest cost is calculated pursuant to the guidance in OMB Circular No. A-11, Appendix B using the Treasury interest rates published in the 

most recent update to Appendix C of OMB Circular No. A-94. It is equal to the difference between the minimum lease and other contractually 

required payments under the full term of the lease and the estimated net present value of those payments (asset cost) that is recorded upfront. 

For this example, assume the appropriate discount rate is 10.0%. 

 There are no other payments for identifiable annual operating expenses (utilities, minor maintenance, and insurance, etc.) 

Budgetary Outlays 

 Outlays are scored annually equal to the annual lease and contractually required payments. Over the life of the lease: 

o Outlays for the asset cost comes from the balances obligated when the lease agreement was signed; and 

o Outlays for the imputed interest cost comes from new budget authority. 

Cancellation Clauses 

 The lease does not contain renewal/purchase options or cancellation clauses, and is not associated with government land. 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 10 of 69 November 2022

Proprietary Amortization Table 

 Contract Amount $120,000 

 5-Year Lease, 60 monthly payments of $2,000 each 

 Interest Rate of 10.0% for Proprietary Accounting 

 Present Value of Payments = $94,131 

 Lessee Right-To-Use- Asset & Lease Liability amount: $94,131 

 For illustration purposes, the lease begins at the start of the fiscal year, 10/01/23 

 Monthly payments are considered to be disbursed on the last business day of each month. 

Schedule of Budgetary Resources 

 Year 1 Budget Authority = Up-front Budget Authority (Present value of the minimum lease and other contractually required payments over the 

full term of the lease), as well as the imputed interest accrued on the debt in Year 1. 

 $94,131 Lease Principal Payments over 5 years, plus Year 1 Interest Expense of $8,726 = $102,857 

 Year 2 Budget Authority = Year 2 Interest Expense of $7,126 = $7,126 

 Interest Rate of 10.0% for Budgetary Accounting. 

 Budget Outlays correspond to the monthly fixed payments over the lease term. 

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. 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 11 of 69 November 2022
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 12 of 69 November 2022
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 13 of 69 November 2022

FISCAL YEAR 1 - Right-To-Use Leases; “Capital” for Budgetary Treatment 

Lessee Accounting 

1. The Lessee records the enactment of appropriations in Year 1 of the 5-year lease agreement. Per OMB Circular No. A-11, Appendix B, this upfront Budget 

Authority includes the present value of the minimum lease and other contractually required payments over the full term of the lease, as well as the imputed 

interest accrued on the debt in Year 1. The Present Value of expected payments is $94,131, and interest accrued during the first year is $8,726 = Total 

upfront Budget Authority = $102,857. (Imputed interest cost is recorded annually over the lease term.) 

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 

102,857 

102,857 

102,857 

102,857 

A104 

A104 

2. The Lessee records budgetary authority apportioned by the Office of Management and Budget and available for allotment in Year 1. 

Lessee Debit Credit TC 

Budgetary Entry 

445000 Unapportioned - Unexpired Authority 

 451000 Apportionments 

Proprietary Entry 

None 

102,857 

102,857 

A116 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 14 of 69 November 2022

3. The Lessee records the allotment of authority in Year 1. 

Lessee Debit Credit TC 

Budgetary Entry 

451000 Apportionments 

 461000 Allotments – Realized Resources 

Proprietary Entry 

None 

102,857 

102,857 

A120 

4. The lease contract is signed by both parties. The Lessee records current-year undelivered orders without an advance (Equal to only the $94,131 Present 

Value of expected payments, plus $8,726 Year 1 Interest- Additional budget authority equal to the cost of financing (imputed interest cost) is recorded 

on an annual basis over the lease term.) 

Lessee Debit Credit TC 

Budgetary Entry 

461000 Allotments – Realized Resources 

 480100 Undelivered Orders – Obligations, Unpaid 

Proprietary Entry 

None 

102,857 

102,857 B306 

5. The Lessee takes control over the use of the equipment; The lease term is 5 years. A Lease Asset and Lease Liability are recorded per SFFAS 54, Par. 40 & 

Par. 49. The entire amount of the lease liability (principle) is covered from the Year 1 appropriation. 

Lessee Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

195000 Lessee Right-To-Use Lease Asset 

 293000 Lessee Lease Liability 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

94,131 

94,131 

94,131 

94,131 

94,131 

94,131 

B145 

B437 

B134 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 15 of 69 November 2022

6a. The lessee records accrued interest for month 1, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 1. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

784 

784 

784 

784 

784 

784

B117 

B117 

B134 

7a. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,216 

 784 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $92,915

8a. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 1. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $92,562
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 16 of 69 November 2022

6b. The lessee records accrued interest for month 2, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 2. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

774 

774 

774 

774 

774 

774

B117 

B117 

B134 

7b. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,226 

 774 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $91,689

8b. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 2. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $90,993
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 17 of 69 November 2022

6c. The lessee records accrued interest for month 3, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 3. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

764 

764 

764 

764 

764 

764

B117 

B117 

B134 

7c. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,236 

 764 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $90,454

8c. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 3. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $89,424
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 18 of 69 November 2022

6d. The lessee records accrued interest for month 4, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 4. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

754 

754 

754 

754 

754 

754

B117 

B117 

B134 

7d. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,246 

 754 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $89,207

8d. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 4. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $87,855
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 19 of 69 November 2022

6e. The lessee records accrued interest for month 5, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 5. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

743 

743 

743 

743 

743 

743

B117 

B117 

B134 

7e. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,257 

 743 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $87,951

8e. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 5. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $86,287
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 20 of 69 November 2022

6f. The lessee records accrued interest for month 6, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 6. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

733 

733 

733 

733 

733 

733

B117 

B117 

B134 

7f. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,267 

 733 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $86,684

8f. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 6. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $84,718
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 21 of 69 November 2022

6g. The lessee records accrued interest for month 7, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 7. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

722 

722 

722 

722 

722 

722

B117 

B117 

B134 

7g. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,278 

 722 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $85,406

8g. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 7. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $83,149
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 22 of 69 November 2022

6h. The lessee records accrued interest for month 8, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 8. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

712 

712 

712 

712 

712 

712

B117 

B117 

B134 

7h. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,288 

 712 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $84,118

8h. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 8. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $81,580
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 23 of 69 November 2022

6i. The lessee records accrued interest for month 9, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 9. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

701 

701 

701 

701 

701 

701

B117 

B117 

B134 

7i. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,299 

 701 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $82,819

8i. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 9. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $80,011
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 24 of 69 November 2022

6j. The lessee records accrued interest for month 10, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 10. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

690 

690 

690 

690 

690 

690

B117 

B117 

B134 

7j. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,310 

 690 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $81,509

8j. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 10. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $78,442
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 25 of 69 November 2022

6k. The lessee records accrued interest for month 11, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease 

liability and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 11. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

679 

679 

679 

679 

679 

679

B117 

B117 

B134 

7k. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,321 

 679 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $80,188

8k. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 11. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $76,873
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 26 of 69 November 2022

6l. The lessee records accrued interest for month 12, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 12. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

668 

668 

668 

668 

668 

668

B117 

B117 

B134 

7l. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority received up-front in Year 1.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,332 

 668 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $78,856

8l. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 12. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $75,305
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 27 of 69 November 2022

9. The Lessee records the closing of lease and interest expenses to cumulative results of operations. 

Lessee Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry

331000 Cumulative Results of Operations 

 671300 Lessee Lease Amortization 

 633000 (N) Other Interest Expense 

 

27,552 

 18,826 

 8,726 

F336 

10. The Lessee records the closing of expended appropriation to cumulative results of operations, along with the closing of fiscal-year activity to unexpended 

appropriations.

Lessee Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

570000 Expended Appropriations – Accrued 

570010 Expended Appropriations – Disbursed 

 331000 Cumulative Results of Operations 

 

310000 Unexpended Appropriations – Cumulative 

 310700 Unexpended Appropriations - Used – Accrued 

 310710 Unexpended Appropriations - Used – Disbursed 

310100 (G) Unexpended Appropriations – Appropriations Received 

 310000 Unexpended Appropriations - Cumulative 

 78,857 

24,000 

 102,857 

 102,857 

 102,857 

78,857 

24,000 

 102,857 

F336 

F342 

F342 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 28 of 69 November 2022

11. 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 

24,000 

24,000 

F314 

12. 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 

102,857 

102,857 F302 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 29 of 69 November 2022

Lessor Accounting – FY 1

1. In Year 1, the Lessor records anticipated collections. (The amount of expected Year 1 monthly payments is $24,000.) 

Lessor Debit Credit TC 

Budgetary Entry 

406000 Anticipated Collections From Non-Federal Sources 

 449000 Anticipated Resources - Unapportioned Authority 

Proprietary Entry 

None 

24,000 

24,000 

A140 

2. In Year 1, 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 

24,000 

24,000 

A118 

3. The Lessee takes control over the use of the equipment; The lease term is 5 years. A Lease Receivable and Unearned Revenue are recorded per SFFAS 54. 

Also per SFFAS 54, Par. 56, the Lessor reduces the lease receivable by a provision for uncollectible amounts based on adjustments/allowances/refunds. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

193000 Lessor Lease Receivable 

 233000 Lessor Lease Unearned Revenue 

593900 Contra Revenue for Lessor Lease Revenue 

 193900 Allowance for Loss on Lease Receivable 

94,131 

 2,000 

94,131 

 2,000 

C129 

D402 

Initial Lease Receivable Balance of USSGL 193000 = $94,131
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 30 of 69 November 2022

4a. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 1. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 1, Month 1 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

784 

784 

5a. In month 1, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of first Monthly Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 784 

 1,216 

C109 

A123 

A120 

C109 

*Note- Lessors may elect to record USSGL 426400 “Actual Collections of Rent” rather than 426600, based on management’s judgement of the nature of collections. 

Ending Lease Receivable Balance of USSGL 193000 = $92,915 

6a. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 1, Month 1 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 31 of 69 November 2022

4b. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 2. (SFFAS 54, Par. 60)

Lessor - Accrual of Interest Revenue for Year 1, Month 2 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

774 

774 

5b. In month 2, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of second Monthly Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 774 

 1,226 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $91,689 

6b. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 1, Month 2 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

 1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 32 of 69 November 2022

4c. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 3. (SFFAS 54, Par. 60)

Lessor - Accrual of Interest Revenue for Year 1, Month 3 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

764 

764 

5c. In month 3, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of third Monthly Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 764 

 1,236 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $90,454

6c. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 1, Month 3 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 33 of 69 November 2022

4d. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 4. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 1, Month 4 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

764 

764 

5d. In month 4, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of fourth Monthly Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 764 

 1,236 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $89,207

6d. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 1, Month 4 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 34 of 69 November 2022

4e. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 5. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 1, Month 5 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

743 

743 

5e. In month 5, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of fifth Monthly Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 743 

 1,257 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $87,951

6e. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 1, Month 5 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 35 of 69 November 2022

4f. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 6. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 1, Month 6 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

733 

733 

5f. In month 6, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of sixth Monthly Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 733 

 1,267 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $86,684

6f. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 1, Month 6 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 36 of 69 November 2022

*(For simplicity, the recurring entries of Lessor Receipts for Months 7-12 are not illustrated, but amounts can be seen in the amortization table.)* 

7. In Year 1, the Lessor records depreciation expense on equipment it owns (the underlying asset within the lease.) $300,000 cost / 20-year useful life = $15,000. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

671000 (N) Depreciation, Amortization, and Depletion 

 175900 Accumulated Depreciation on Equipment 

15,000 

15,000 

E120 

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

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

593300 Amortization of Unearned Lessor Revenue 

531000 Interest Revenue – Other 

593900 Contra Revenue for Lessor Lease Revenue 

 331000 Cumulative Results of Operations 

18,826 

 8,726 

 2,000 

25,552 

F336 

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

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

331000 Cumulative Results of Operations 

 671000 Depreciation, Amortization, and Depletion 

15,000 

15,000 

F336 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 37 of 69 November 2022

10. 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 

24,000 

24,000 

F308 

11. 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 

24,000 

24,000 

F302 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 38 of 69 November 2022

Fiscal Year 1 Post-Closing Adjusted Trial Balance: 

FISCAL YEAR 1 POST-CLOSING LESSEE LESSOR 

Account Description Debit Credit Debit Credit 

Budgetary

420100 Total Actual Resources, Collected 78,857 - 24,000 -

445000 Unapportioned – Unexpired Authority - - - 24,000

490100 Delivered Orders, Obligations Unpaid - 78,857 - -

Total 78,857 78,857 24,000 24,000

Proprietary 

101000 (G) Fund Balance With Treasury 78,857 - 24,000 -

134000 (N) Interest Receivable - Not Otherwise Classified - - - -

175000 Equipment - - 300,000 -

175900 Acc. Depreciation on Equipment - - - 165,000

193000 Lessor Lease Receivable - - 76,857 -

193900 Allowance for Loss on Lease Receivable - - - 2,000

195000 Lessee Right-To-Use Lease Asset 94,131 - - -

195900 Accumulated Amortization on Lessee Lease Assets - 18,826 - -

214000 (N) Accrued Interest Payable - Not Otherwise Classified - - - -

233000 Unearned Lessor Revenue - - - 75,305

293000 Lessee Lease Liability - 78,857 - -

310000 Unexpended Appropriations - Cumulative - - - -

331000 Cumulative Results of Operations - 75,305 - 160,552

Total 172,988 172,988 402,857 402,857
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 39 of 69 November 2022

Year 1 Financial Statements: 

STANDARDIZED BALANCE SHEET – YEAR 1 

Line No. YEAR 1 LESSEE LESSOR 

 Assets (Note 2) 

 Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 78,857 24,000

7 Total intra-governmental assets 78,857 24,000 

Other than intra-governmental 

12 General and right-to-use property, plant, and equipment, net (Note 10) (175000E, 175900E, 195000E, 

195900E) 75,305 135,000

17 Other assets (Note 12) (193000E, 193900E) - 76,857

18 Total other than intra-governmental 75,305 213,357 

 

19 Total assets 154,162 235,857 

 

 Liabilities (Note 13) 

 Other than intra-governmental 

36 Advances from others and deferred revenue (233000N) - 75,305

37 Other liabilities (Notes 18, 19, and 20) (293000E) 78,857 -

38 Total other than intra-governmental 78,857 75,305 

39 Total liabilities 78,857 75,305 

 

 Net position 

42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 75,305 160,552

43 Total net position 75,305 160,552 

44 Total liabilities and net position 154,162 235,857 

STATEMENT OF NET COST – YEAR 1 

Line No. YEAR 1 LESSEE LESSOR 

 Gross Program Costs (Note 21): 

1 Gross costs (633000E, 671000E, 671300E, 693000E) 27,552 15,000 

2 Less: earned revenue (531000E, 593000E, 593300E, 593900E) - 25,552

3 Net program costs 27,552 (10,552)

5 Net program costs including Assumption Changes: 27,552 (10,552)

8 Net cost of operations 27,552 (10,552) 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 40 of 69 November 2022

STATEMENT OF CHANGES IN NET POSITION – YEAR 1 

Line No. YEAR 1 LESSEE LESSOR 

 Unexpended Appropriations: 

4 Appropriations received (310100E) 102,857 - 

7 Appropriations used (310700E, 310710E) 102,857 - 

8 Net Change in Unexpended Appropriations (calc.) - -

9 Total Unexpended Appropriations – Ending (calc.) - -

Cumulative Results of Operations:

10 Beginning Balances (331000B) - 150,000

12 Beginning balances, as adjusted - 150,000

14 Appropriations used (570000E, 570010E) 102,857 -

21 Revenue From (Net Cost of) Operations (+/-) (27,552) 10,552

22 Net Change in Cumulative Results of Operations 75,305 10,552

23 Cumulative Results of Operations – Ending 75,305 160,552

24 Net Position (calc.) 75,305 160,552 

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

FINANCING SCHEDULE – YEAR 1 

Line 

No. 

YEAR 1 LESSEE LESSOR 

BUDGETARY RESOURCES SF 133 Schedule P SF 133 Schedule P

0900 Total new obligations, unexpired accounts (480100E, 490100E, 490200E) - 102,857 - - 

Budget authority: 

Appropriations: 

Discretionary: 

1100 Appropriation (411900E) 102,857 102,857 - -

1160 Appropriation, discretionary (total) 102,857 102,857 - -

1700 Collected (426600E) - - 24,000 24,000

1750 Spending authority from offsetting collections, discretionary (total) - - 24,000 24,000

1900 Budget authority (total) 102,857 102,857 24,000 24,000
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 41 of 69 November 2022

1910 Total budgetary resources (calc.) 102,857 - 24,000 - 

1930 Total budgetary resources available - 102,857 - 24,000

1941 Unexpired unobligated balance, end of year (461000E) 24,000

STATUS OF BUDGETARY RESOURCES 

New obligations and upward adjustments: 

Direct: 

2002 Category B (by project) (480100E, 4901000E, 490200E) 102,857 - - -

2004 Direct obligations (total) (calc.) 102,857 - - -

2170 New obligations, unexpired accounts (480100E, 4901000E, 490200E) 102,857 - - -

2190 New obligations and upward adjustments (total) 102,857 - - -

2201 Available in the current period (461000E) - - 24,000 -

2412 Unexpired unobligated balance: end of year (calc.) - - 24,000 -

2490 Unobligated balance, end of year (total) - - 24,000 -

2500 Total budgetary resources (calc.) 102,857 - 24,000 -

 

2501 Subject to apportionment unobligated balance, end of year (461000E) 24,000 

CHANGE IN OBLIGATED BALANCE 

Unpaid obligations: 

3010 New obligations, unexpired accounts (480100E, 4901000E, 490200E) 102,857 102,857 - -

3020 Outlays (gross) (-) (490200E) (24,000) (24,000) - -

3050 Unpaid obligations, end of year (480100E, 490100E) 78,857 78,857

3200 Obligated balance, end of year (= or -) 78,857 78,857 - -

BUDGET AUTHORITY AND OUTLAYS, NET 

Discretionary: 

4000 Budget authority, gross (calc.) 102,857 102,857 24,000 24,000

Outlays, gross

4010 Outlays from new discretionary authority (490200E) 24,000 24,000 - -

4020 Outlays, gross (total) 24,000 24,000 - -

Offsets against gross budget authority and outlays:

Offsetting collections (collected) from: 

4033 Non-Federal sources (-) (426600E) - - (24,000) (24,000)

4040 Offsets against gross budget authority and outlays (-) (calc.) - - (24,000) (24,000)

4070 Budget authority, net (discretionary) (calc.) 102,857 102,857

4080 Outlays, net (discretionary) (calc.) 24,000 24,000 (24,000) (24,000)
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 42 of 69 November 2022

4180 Budget authority, net (total) (calc.) 102,857 102,857

4190 Outlays, net (total) (calc.) 24,000 24,000 (24,000) (24,000)

Unobligated balance: 

5321 Direct unobligated balance, end of year (461000E) - - (24,000) (24,000)

5323 Discretionary unobligated balance, end of year (461000E) - - (24,000) (24,000)

5341 Direct obligated balance, end of year (480100E, 490100E) 78,857 78,857

5343 Discretionary obligated balance, end of year (480100E, 490100E) 78,857 78,857

Year 1 Reclassified Financial Statements: 

STANDARDIZED BALANCE SHEET – YEAR 1 

Line No. YEAR 1 LESSEE LESSOR 

 Assets (Note 2) 

 Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 78,857 24,000

7 Total intra-governmental assets 78,857 24,000 

Other than intra-governmental 

12 General and right-to-use property, plant, and equipment, net (Note 10) (175000E, 175900E, 195000E, 

195900E) 75,305 135,000

17 Other assets (Note 12) (193000E, 193900E) - 76,857

18 Total other than intra-governmental 75,305 213,357 

 

19 Total assets 154,162 235,857 

 

 Liabilities (Note 13) 

 Other than intra-governmental 

36 Advances from others and deferred revenue (233000N) - 75,305

37 Other liabilities (Notes 18, 19, and 20) (293000E) 78,857 -

38 Total other than intra-governmental 78,857 75,305 

39 Total liabilities 78,857 75,305 

 

 Net position 

42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 75,305 160,552

43 Total net position 75,305 160,552 

44 Total liabilities and net position 154,162 235,857 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 43 of 69 November 2022

RECLASSIFIED STATEMENT OF NET COST – YEAR 1 

Line No. YEAR 1 LESSEE LESSOR 

1 Gross cost 

2 Non-federal gross cost (633000E, 671000E, 671300E, 693000E) 27,552 15,000

6 Total non-federal gross cost (calc.) 27,552 15,000 

9 Department total gross cost (calc.) 27,552 15,000 

 

10 Earned revenue 

11 Non-federal earned revenue (531000E, 593000E, 593300E, 593900E) - 25,552

14 Department total earned revenue (calc.) - 25,552 

15 Net cost of operations (calc.) 27,552 (10,552) 

RECLASSIFIED STATEMENT OF OPERATIONS AND CHANGES IN NET POSITION – YEAR 1 

Line No. YEAR 1 LESSEE LESSOR 

1 Net position, beginning of period (310000B, 331000B) - 150,000 

7 Financing sources: 

7.1 Appropriations received as adjusted (rescissions and other adjustments) (RC 41)/1 (310100E) 102,857 -

7.2 Appropriations used (RC 39) (310700E, 310710E) 102,857 - 

7.3 Appropriations expended (RC 38)/1 (570000E, 570010E) (102,857) - 

7.30 Total financing sources (calc.) 102,857 - 

8 Revenue From (Net cost of) Operations (+/-) (27,552) 10,552

 

9 Net position, end of period (calc.) 75,305 160,552 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 44 of 69 November 2022

FISCAL YEAR 2 - Right-To-Use Leases; “Capital” for Budgetary Treatment 

Lessee Accounting – FY 2 

1. In Year 2, the Lessee records the enactment of appropriations. Per OMB Circular No. A-11, Appendix B, interest accrued during the year is included in the 

appropriation. (Imputed interest cost is recorded annually over the lease term.) 

Lessee - Enactment of appropriation for Year 2 of interest. 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 

7,126 

7,126 

7,126 

7,126 

A104 

A104 

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

Lessee Debit Credit TC 

Budgetary Entry 

445000 Unapportioned - Unexpired Authority 

 451000 Apportionments 

Proprietary Entry 

None 

7,126 

7,126 

A116 

3. The Lessee records the allotment of authority in Year 2. 

Lessee Debit Credit TC 

Budgetary Entry 

451000 Apportionments 

 461000 Allotments – Realized Resources 

Proprietary Entry 

None 

7,126 

7,126 

A120 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 45 of 69 November 2022

4. The Lessee records current-year undelivered orders without an advance (Equal to only the cost of financing (imputed interest cost) which is recorded 

on an annual basis over the lease term.) 

Lessee Debit Credit TC 

Budgetary Entry 

461000 Allotments – Realized Resources 

 480100 Undelivered Orders – Obligations, Unpaid 

Proprietary Entry 

None 

 7,126 

 7,126 

B306 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 46 of 69 November 2022

5a. The lessee records accrued interest for month 1, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 1. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

657 

657 

657 

657 

657 

657

B117 

B117 

B134 

6a. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority for principal received up-front in Year 1, Interest in Year 2.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,343 

 657 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $77,513

7a. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 1. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $73,736
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 47 of 69 November 2022

5b. The lessee records accrued interest for month 2, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 2. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

646 

646 

646 

646 

646 

646

B117 

B117 

B134 

6b. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority for principal received up-front in Year 1, Interest in Year 2.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,354 

 646 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $76,159

7b. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 2. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $72,167
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 48 of 69 November 2022

5c. The lessee records accrued interest for month 3, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 3. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

635 

635 

635 

635 

635 

635

B117 

B117 

B134 

6c. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority for principal received up-front in Year 1, Interest in Year 2.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,365 

 635 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $74,794

7c. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 3. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $70,598
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 49 of 69 November 2022

5d. The lessee records accrued interest for month 4, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 4. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

623 

623 

623 

623 

623 

623

B117 

B117 

B134 

6d. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority for principal received up-front in Year 1, Interest in Year 2.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,377 

 623 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $73,417

7d. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 4. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $69,029
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 50 of 69 November 2022

5e. The lessee records accrued interest for month 5, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 5. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

612 

612 

612 

612 

612 

612

B117 

B117 

B134 

6e. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority for principal received up-front in Year 1, Interest in Year 2.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,388 

 612 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $72,029

7e. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 5. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $67,460
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 51 of 69 November 2022

5f. The lessee records accrued interest for month 6, per the proprietary amortization schedule. The lessee should calculate the amortization of the discount on the lease liability 

and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43) 

Lessee - Accrual of Interest Expense for Month 6. Debit Credit TC 

Budgetary Entry 

480100 Undelivered Orders – Obligations, Unpaid 

 490100 Delivered Orders – Obligations, Unpaid 

Proprietary Entry 

633000 Other Interest Expense 

 214000 Accrued Interest Payable – Not Otherwise Classified 

310700 Unexpended Appropriations - Used - Accrued 

 570000 Expended Appropriations - Accrued

600 

600 

600 

600 

600 

600

B117 

B117 

B134 

6f. The Lessee makes the monthly lease payment to Lessor and records the disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of Monthly Lease Payment (Budget Authority for principal received up-front in Year 1, Interest in Year 2.) Debit Credit TC 

Budgetary Entry 

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability 

214000 Accrued Interest Payable - Not Otherwise Classified 

 101000 (G) Fund Balance With Treasury 

310710 Unexpended Appropriations - Used – Disbursed 

570000 Expended Appropriations - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed 

2,000 

1,400 

 600 

2,000 

2,000 

2,000 

2,000 

 2,000 

 2,000 

B110 

B110 

B235 

Ending Lease Liability Balance (USSGL 293000) = $70,629

7f. The Lessee records amortization of the right-to-use Lease Asset. ($94,131 / 5 Year Life of Lease / 12 months = $1,569 Straight-line Amortization per month.) A lease 

asset should be amortized in a systematic and rational manner over the shorter of: The lease term; OR the useful life of the underlying asset. (SFFAS 54, Par. 50) 

Lessee - Amortization of Lease Asset for Month 6. Debit Credit TC 

Budgetary Entry 

None

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets 

1,569 

1,569 

E127 

Ending Lease Asset Balance (USSGL 195000 - 195900) = $65,892
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 52 of 69 November 2022

*(For simplicity, the recurring entries of Lessee Payments for Months 7-12 are not illustrated, but amounts can be seen in the amortization table.)* 

8. The Lessee records the closing of lease and interest expenses to cumulative results of operations. 

Lessee Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry

331000 Cumulative Results of Operations 

 671300 Lessee Lease Amortization 

 633000 (N) Other Interest Expense 

 

25,952 

 18,826 

 7,126 

F336 

9. The Lessee records the closing of expended appropriation to cumulative results of operations, along with the closing of fiscal-year activity to unexpended 

appropriations.

Lessee Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

570010 Expended Appropriations – Disbursed 

 570000 Expended Appropriations – Accrued 

 331000 Cumulative Results of Operations 

 

310000 Unexpended Appropriations – Cumulative 

310700 Unexpended Appropriations - Used – Accrued 

 310710 Unexpended Appropriations - Used – Disbursed 

310100 (G) Unexpended Appropriations – Appropriations Received 

 310000 Unexpended Appropriations - Cumulative 

24,000 

 7,126 

16,874 

 7,126 

16,874 

 7,126 

24,000 

 7,126 

F336 

F342 

F342 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 53 of 69 November 2022

10. 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 

24,000 

24,000 

F314 

11. 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 

7,126 

7,126 

F302 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 54 of 69 November 2022

Lessor Accounting – FY 2 

1. In Year 2, the Lessor records anticipated collections. (The amount of expected Year 2 monthly payments is $24,000.) 

Lessor Debit Credit TC 

Budgetary Entry 

406000 Anticipated Collections From Non-Federal Sources 

 449000 Anticipated Resources - Unapportioned Authority 

Proprietary Entry 

None 

24,000 

24,000 

A140 

2. In Year 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 

24,000 

24,000 

A118 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 55 of 69 November 2022

4a. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 1. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 2, Month 1 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

657 

657 

5a. In month 1, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of Year 2, Month 1 Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 657 

 1,343 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $77,513

6a. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 2, Month 1 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 56 of 69 November 2022

4b. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 2. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 2, Month 2 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

646 

646 

5b. In month 2, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of Year 2, Month 2 Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 646 

 1,354 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $76,159

6b. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 2, Month 2 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

 1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 57 of 69 November 2022

4c. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 3. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 2, Month 3 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

635 

635 

5c. In month 3, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of Year 2, Month 3 Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 635 

 1,365 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $74,794

6c. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 2, Month 3 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 58 of 69 November 2022

4d. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 4. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 2, Month 4 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

623 

623 

5d. In month 4, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of Year 2, Month 4 Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 623 

 1,377 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $73,417

6d. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 2, Month 4 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 59 of 69 November 2022

4e. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 5. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 2, Month 5 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

612 

612 

5e. In month 5, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of Year 2, Month 5 Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 612 

 1,388 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $72,029

6e. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 2, Month 5 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 60 of 69 November 2022

4f. The Lessor recognizes interest revenue for the amortization of the discount on the lease receivable for month 6. (SFFAS 54, Par. 60) 

Lessor - Accrual of Interest Revenue for Year 2, Month 6 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified 

 531000 Interest Revenue - Other 

600 

600 

5f. In month 6, the Lessee pays monthly lease payment to Lessor, and the Lessor records the receipt of payment. The Lessor allots the funds. 

Lessor - Receipt of Year 2, Month 6 Lease Payment 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 (G) Fund Balance With Treasury 

 134000 Interest Receivable - Not Otherwise Classified 

 193000 Lessor Lease Receivable 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

2,000 

 600 

 1,400 

C109 

A123 

A120 

C109 

Ending Lease Receivable Balance of USSGL 193000 = $70,629

6f. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period via straight-line amortization. A Lessor should 

amortize the unearned revenue (recognizing it as earned revenue) in a systematic and rational manner of life of the lease. (SFFAS 60, Par. 26) 

Lessor - Recognition of Unearned Revenue for Year 2, Month 6 Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue 

1,569 

1,569 

C460 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 61 of 69 November 2022

7. In Year 2, the Lessor records depreciation expense on equipment it owns (the underlying asset within the lease.) $300,000 cost / 20-year useful life = $15,000. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

671000 (N) Depreciation, Amortization, and Depletion 

 175900 Accumulated Depreciation on Equipment 

15,000 

15,000 

E120 

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

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

593300 Amortization of Unearned Lessor Revenue 

531000 (N) Interest Revenue - Other 

 331000 Cumulative Results of Operations 

18,826 

 7,126 

25,952 

F336 

10. The Lessor records the closing of depreciation expense to cumulative results of operations in Year 2. 

Lessor Debit Credit TC 

Budgetary Entry 

None 

Proprietary Entry 

331000 Cumulative Results of Operations 

 671000 Depreciation, Amortization, and Depletion 

15,000 

15,000 

F336 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 62 of 69 November 2022

11. 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 

24,000 

24,000 

F308 

12. 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 

24,000 

24,000 

F302 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 63 of 69 November 2022

Fiscal Year 2 Post-Closing Adjusted Trial Balance: 

FISCAL YEAR 2 POST-CLOSING LESSEE LESSOR 

Account Description Debit Credit Debit Credit 

Budgetary

420100 Total Actual Resources, Collected 61,983 - 48,000 -

445000 Unapportioned – Unexpired Authority - - - 48,000

490100 Delivered Orders, Obligations Unpaid - 61,983 - -

Total 61,983 61,983 48,000 48,000 

Proprietary 

101000 (G) Fund Balance With Treasury 61,983 - 48,000 -

175000 Equipment - - 300,000 -

175900 Acc. Depreciation on Equipment - - - 180,000

193000 Lessor Lease Receivable - - 61,983 -

193900 Allowance for Loss on Lease Receivable - - - 2,000

195000 Lessee Right-To-Use Lease Asset 94,131 - - -

195900 Accumulated Amortization on Lessee Lease Assets - 37,652 - -

233000 Unearned Lessor Revenue - - - 56,479

293000 Lessee Lease Liability - 61,983 - -

310000 Unexpended Appropriations - Cumulative - - - -

331000 Cumulative Results of Operations - 56,479 - 171,504

Total 156,114 156,114 409,983 409,983 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 64 of 69 November 2022

Year 2 Financial Statements: 

STANDARDIZED BALANCE SHEET – YEAR 2 

Line No. YEAR 2 LESSEE LESSOR 

 Assets (Note 2) 

 Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 61,983 48,000

7 Total intra-governmental assets 61,983 48,000 

Other than intra-governmental 

12 General and right-to-use property, plant, and equipment, net (Note 10) (175000E, 175900E, 195000E, 

195900E) 56,479 135,000

17 Other assets (Note 12) (193000E, 193900E) - 59,983

18 Total other than intra-governmental 56,479 179,983 

 

19 Total assets 118,462 227,983 

 

 Liabilities (Note 13) 

 Other than intra-governmental 

36 Advances from others and deferred revenue (233000N) - 56,479

37 Other liabilities (Notes 18, 19, and 20) (293000E) 61,983 -

38 Total other than intra-governmental 61,983 56,479 

39 Total liabilities 61,983 56,479 

 

 Net position 

42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 56,479 171,504

43 Total net position 56,479 171,504 

44 Total liabilities and net position 118,462 227,983 

STATEMENT OF NET COST – YEAR 2 

Line No. YEAR 2 LESSEE LESSOR 

 Gross Program Costs (Note 21): 

1 Gross costs (633000E, 671000E, 671300E, 693000E) 25,952 15,000 

2 Less: earned revenue (531000E, 593000E, 593300E) - 25,952

3 Net program costs 25,952 (10,952)

5 Net program costs including Assumption Changes: 25,952 (10,952)

8 Net cost of operations 25,952 (10,952) 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 65 of 69 November 2022

STATEMENT OF CHANGES IN NET POSITION – YEAR 2 

Line No. YEAR 2 LESSEE LESSOR 

 Unexpended Appropriations: 

1 Beginning Balance (310000B) - - 

3 Beginning balance, as adjusted - - 

4 Appropriations received (310100E) 7,126 - 

7 Appropriations used (310700E, 310710E) 7,126 - 

8 Net Change in Unexpended Appropriations (calc.) - -

9 Total Unexpended Appropriations – Ending (calc.) - -

Cumulative Results of Operations:

10 Beginning Balances (331000B) 75,305 160,552

12 Beginning balances, as adjusted 75,305 160,552

14 Appropriations used (570000E, 570010E) 7,126 -

21 Revenue From (Net Cost of) Operations (+/-) (25,952) 10,952

22 Net Change in Cumulative Results of Operations (18,826) 10,952

23 Cumulative Results of Operations – Ending 56,479 171,504

24 Net Position (calc.) 56,479 171,504 

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

FINANCING SCHEDULE – YEAR 2 

Line 

No. 

YEAR 2 LESSEE LESSOR 

BUDGETARY RESOURCES SF 133 Schedule P SF 133 Schedule P

0900 Total new obligations, unexpired accounts (420100B, 480100B, 490100B) - - 

1000 Unobligated balance brought forward, Oct 1 (420100B, 480100B, 490100B) - - 24,000 24,000 

1070 Unobligated balance (total) (calc.) - - 24,000 24,000

Budget authority: 

Appropriations: 

Discretionary: 

1100 Appropriation (411900E) 7,126 7,126 - -

1160 Appropriation, discretionary (total) 7,126 7,126 - -
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 66 of 69 November 2022

1700 Collected (426600E) - - 24,000 24,000

1750 Spending authority from offsetting collections, discretionary (total) - - 24,000 24,000

1900 Budget authority (total) 7,126 7,126 24,000 24,000

1910 Total budgetary resources (calc.) 7,126 - 48,000 - 

1930 Total budgetary resources available - 7,126 - 48,000 

Memorandum (non-add) entries: 

1941 Unexpired unobligated balance, end of year (445000E, 461000E) - - - 48,000

STATUS OF BUDGETARY RESOURCES 

New obligations and upward adjustments: 

Direct: 

2002 Category B (by project) (480100E – 480100B, 490100E – 490100B, 490200E) 7,126 - - -

2004 Direct obligations (total) (calc.) 7,126 - - -

2170 New obligations, unexpired accounts (480100E – 480100B, 490100E – 490100B, 490200E) 7,126 - - -

2190 New obligations and upward adjustments (total) 7,126 - - -

Unobligated balance:

Apportioned, unexpired accounts:

2201 Available in the current period (461000E) - - 24,000 -

2403 Other (445000E) - - 24,000

2412 Unexpired unobligated balance: end of year (calc.) - - 48,000 -

2490 Unobligated balance, end of year (total) - - 48,000 -

2500 Total budgetary resources (calc.) 7,126 - 48,000 -

Memorandum (non-add) entries: 

2501 Subject to apportionment – excluding anticipated amounts (445000E, 461000E) - - 48,000 -

CHANGE IN OBLIGATED BALANCE 

Unpaid obligations: 

3000 Unpaid obligations, brought forward, Oct 1 (480100B, 490100B) 78,857 78,857 - -

3010 New obligations, unexpired accounts (480100EE – 480100B, 490100E – 490100B, 490200E) 7,126 7,126 - -

3020 Outlays (gross) (-) (490200E) (24,000) (24,000) - -

3050 Unpaid obligations, end of year (480100E, 490100E) 61,983 61,983

3100 Obligated balance, start of year (+ or -) 78,857 78,857

3200 Obligated balance, end of year (= or -) 61,983 61,983 - -

BUDGET AUTHORITY AND OUTLAYS, NET 

Discretionary: 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 67 of 69 November 2022

4000 Budget authority, gross (calc.) - - 24,000 24,000

Outlays, gross

4010 Outlays from new discretionary authority (490200E) 24,000 24,000 - -

4020 Outlays, gross (total) 24,000 24,000 - -

Offsets against gross budget authority and outlays:

Offsetting collections (collected) from: 

4033 Non-Federal sources (-) (426600E) - - (24,000) (24,000)

4040 Offsets against gross budget authority and outlays (-) (calc.) - - (24,000) (24,000)

4070 Budget authority, net (discretionary) (calc.) - 25,500

4080 Outlays, net (discretionary) (calc.) 24,000 24,000 (24,000) (24,000)

4180 Budget authority, net (total) (calc.) - - - (24,000)

4190 Outlays, net (total) (calc.) 24,000 24,000 (24,000) (24,000)

Unobligated balance: 

5311 Direct unobligated balance, start of year (420100B, 480100B, 490100B) - - 24,000 24,000

5313 Discretionary unobligated balance, start of years (420100B, 480100B, 490100B) - - 24,000 24,000

5321 Direct unobligated balance, end of year (445000E, 461000E) - - 48,000 48,000

5323 Discretionary unobligated balance, end of year (445000E, 461000E) - - 48,000 48,000

5331 Direct obligated balance, start of year (480100B, 490100B) 78,857 78,857

5333 Discretionary obligated balance, start of year (480100B, 490100B) 78,857 78,857

5341 Direct obligated balance, end of year (480100B, 490100B) 61,983 61,983

5343 Discretionary obligated balance, end of year (480100B, 490100B) 61,983 61,983
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 68 of 69 November 2022

Year 2 Reclassified Financial Statements:

STANDARDIZED BALANCE SHEET – YEAR 2 

Line No. YEAR 2 LESSEE LESSOR 

 Assets (Note 2) 

 Intra-governmental 

1 Fund Balance with Treasury (Note 3) (101000) 61,983 48,000

7 Total intra-governmental assets 61,983 48,000 

Other than intra-governmental 

12 General and right-to-use property, plant, and equipment, net (Note 10) (175000E, 175900E, 195000E, 

195900E) 56,479 135,000

17 Other assets (Note 12) (193000E, 193900E) - 59,983

18 Total other than intra-governmental 56,479 179,983 

 

19 Total assets 118,462 227,983 

 

 Liabilities (Note 13) 

 Other than intra-governmental 

36 Advances from others and deferred revenue (233000N) - 56,479

37 Other liabilities (Notes 18, 19, and 20) (293000E) 61,983 -

38 Total other than intra-governmental 61,983 56,479 

39 Total liabilities 61,983 56,479 

 

 Net position 

42.2 Cumulative results of operations - Funds from other than Dedicated Collections (331000E) 56,479 171,504

43 Total net position 56,479 171,504 

44 Total liabilities and net position 118,462 227,983 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL 

Effective Fiscal 2024 

 Page 69 of 69 November 2022

RECLASSIFIED STATEMENT OF NET COST – YEAR 2 

Line No. YEAR 2 LESSEE LESSOR 

1 Gross cost 

2 Non-federal gross cost (633000E, 671000E, 671300E, 693000E) 25,952 15,000

6 Total non-federal gross cost (calc.) 25,952 15,000 

9 Department total gross cost (calc.) 25,952 15,000 

 

10 Earned revenue 

11 Non-federal earned revenue (531000E, 593000E, 593300E) - 25,952

14 Department total earned revenue (calc.) - 25,952 

15 Net cost of operations (calc.) 25,952 (10,952) 

RECLASSIFIED STATEMENT OF OPERATIONS AND CHANGES IN NET POSITION – YEAR 2 

Line No. YEAR 2 LESSEE LESSOR 

1 Net position, beginning of period (310000B, 331000B) 75,305 160,552 

7 Financing sources: 

7.1 Appropriations received as adjusted (rescissions and other adjustments) (RC 41)/1 (310100E) 7,126 -

7.2 Appropriations used (RC 39) (310700E, 310710E) 7,126 - 

7.3 Appropriations expended (RC 38)/1 (570000E, 570010E) (7,126) - 

7.30 Total financing sources (calc.) 82,431 - 

8 Revenue From (Net cost of) Operations (+/-) (25,952) 10,952

 

9 Net position, end of period (calc.) 56,479 171,504