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 11/2022 Original TFM Bulletin No. 2023-03

Background: Proprietary Requirements
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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SFFAS No. 54, Leases, as amended by SFFAS No. 58 and SFFAS No. 60, 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.

At the commencement of the lease term, the lessee should recognize a lease liability and a right-to-use lease asset, while the lessor should recognize a 

lease receivable and unearned revenue. 

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

The Lessee’s lease asset and the Lessor’s lease liability 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 receivable/lease 

liability. (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. 

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

In subsequent financial 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. Any payments received should be allocated first to the accrued interest receivable and then to the lease receivable. (SFFAS 54, Par. 60) 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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Lease Amortization

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) 

Background: Budgetary Requirements

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. 

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).” 

Key Assumptions Driving Proprietary Accounting Entries:
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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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.)

• 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 Treasury Rate of 10.00%. 

• No purchase option probable of being exercised exists. 

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. 

Key Assumptions Driving Budgetary Accounting Entries:

Budgetary Authority 

• 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.) 

• 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 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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• 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. 

Listing of USSGL Accounts Used in This Scenario:

Account Number Account Title

Budgetary

406000 Anticipated Collections From Non-Federal Sources

411900 Other Appropriations Realized

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

445000 Unapportioned – Unexpired Authority

449000 Anticipated Resources - Unapportioned Authority

451000 Apportionments

459000 Apportionments – Anticipated Resources – Programs Subject to Apportionment

461000 Allotments – Realized Resources

480100 Undelivered Orders – Obligations, Unpaid

490100 Delivered Orders – Obligations, Unpaid
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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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*

633000 Other Interest Expense

671000 Depreciation, Amortization, and Depletion

671300 Lessee Lease Amortization*

Proprietary Amortization Table (PV of Payments = $100,000; Treasury Interest Rate of 10.0%)

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

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Year Annual Lease Payment Interest on Unpaid Lease 

(Treasury Rate = 10.0%) 

Reduction of Lease 

Liability/Asset

Ending Lease Liability/ 

Lease Asset Balance

Contract Signed $100,000

1 $23,982 $0 $23,982 $76,018

2 $23,982 $7,602 $16,380 $59,638

3 $23,982 $5,964 $18,018 $41,620

4 $23,982 $4,162 $19,820 $21,800

5 $23,982 $2,182 $21,800 $0

Total $119,910 $19,910 $100,000 -

FISCAL YEAR 1

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 and Year 1. The Present Value of expected payments is $100,000, and interest accrued during the first year is $7,602 = Total 

upfront Budget Authority = $107,602. (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

107,602 

107,602 

107,602 

107,602 

A104 

2. The Lessee records budgetary authority apportioned by the Office of Management and Budget and available for allotment in Year 1.
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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Lessee Debit Credit TC

Budgetary Entry

445000 Unapportioned - Unexpired Authority 

 451000 Apportionments 

Proprietary Entry 

None 

107,602 

107,602 

A116 

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 

107,602 

107,602 

A120 

4. The lease contract is signed by both parties. The Lessee records current-year undelivered orders without an advance (Equal to only the $100,000 Present 

Value of expected payments.)

Lessee Debit Credit TC

Budgetary Entry

461000 Allotments – Realized Resources

 480100 Undelivered Orders – Obligations, Unpaid 

Proprietary Entry 

None 

100,000 

100,000 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. 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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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 - Used - Accrued

100,000 

100,000 

100,000 

100,000 

100,000 

100,000 

B134 

6. In Year 1, the Lessee makes the first annual lease payment to Lessor, and records the payment of funds previously accrued. The Lessee records the 

disbursement of appropriations for the fiscal year.

Lessee – Disbursement of first Annual Lease Payment Debit Credit TC

Budgetary Entry

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability

 101000 (G) Fund Balance With Treasury

310710 Unexpended Appropriations - Used - Disbursed 

570000 Expended Appropriations - Used - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

B235 

Ending Lease Liability Balance of USSGL 293000 = $100,000 - $23,928 = $76,018
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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7. The Lessee records amortization of the right-to-use lease asset for the period. ($100,000 / 5 Year Life of Lease = $20,000 Amortization per year.) 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 Year 1 Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

671300 Lessee Lease Amortization 

 195900 Accumulated Amortization on Lessee Lease Assets

20,000 

20,000 

8. The lessee records accrued interest during the first year of the lease. 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 Year 1 Debit Credit TC

Budgetary Entry

461000 Allotments – Realized Resources

 490100 Delivered Orders – Obligations, Unpaid

Proprietary Entry 

633000 (N) Other Interest Expense

 214000 (N) Accrued Interest Payable - Not Otherwise Classified

310700 Unexpended Appropriations - Used - Accrued

 570000 Expended Appropriations - Used - Accrued

7,602 

7,602 

7,602 

7,602 

7,602 

7,602 

B416 

B134 

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

Lessee Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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Budgetary Entry

None 

Proprietary Entry

331000 Cumulative Results of Operations 

 671300 Lessee Lease Amortization 

 633000 (N) Other Interest Expense 

 

27,602 

 20,000 

 7,602 

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 - Used - 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

 83,620 

 23,982 

107,602 

107,602 

107,602 

 83,620 

 23,982 

107,602 

F336 

F342 

F342 

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

Lessee Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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Budgetary Entry

490200 Delivered Orders – Obligations, Paid 

 420100 Total Actual Resources, Collected 

Proprietary Entry

None

23,982 

23,982 

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 

107,602 

107,602 F302 

Lessor Accounting

1. In Year 1, the Lessor records anticipated collections. 

Lessor Debit Credit TC

Budgetary Entry

406000 Anticipated Collections From Non-Federal Sources

 449000 Anticipated Resources - Unapportioned Authority 

Proprietary Entry

None 

23,982 

23,982 

A140 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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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 

23,982 

23,982 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. 

Lessor Debit Credit TC

Budgetary Entry

None 

Proprietary Entry

193000 Lessor Lease Receivable 

193900 Allowance for Loss on Lease Receivable

 233000 Lessor Lease Unearned Revenue 

100,000 

 2,000 

98,000 

Initial Lease Receivable Balance of USSGL 193000 = $100,000.

4. In Year 1, the Lessor receives the annual lease payment from the Lessee and records the receipt of payment. Also in Year 1, the Lessor records the allotment 

of authority.

Lessor – Receipt of first Annual Lease Payment Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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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 

 193000 Lessor Lease Receivable 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

C109 

A123 

A120 

Ending Lease Receivable Balance of USSGL 193000 = $100,000 - $23,982 = $76,018

5. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period. 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 Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue

20,000 

20,000 

6. The lessor recognizes the amortization of the discount on the lease receivable as interest revenue for the period. (SFFAS 54, Par. 60)

Lessor – Accrual of Interest Revenue for Year 1 Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

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Budgetary Entry

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified

 531000 Interest Revenue - Other

7,602 

7,602 

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

 331000 Cumulative Results of Operations 

20,000 

 7,602 

27,602 

F336 
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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 

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 

23,982 

23,982 

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 

23,982 

23,982 

F302 
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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 83,620 - 23,982 -

445000 Unapportioned – Unexpired Authority - - - 23,982

490100 Delivered Orders, Obligations Unpaid - 83,620 - -

Total 83,620 83,620 23,982 23,982

Proprietary

101000 (G) Fund Balance With Treasury 83,620 - 23,982 -

134000 (N) Interest Receivable - Not Otherwise Classified - - 7,602 -

175000 Equipment - - 300,000 -

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

193000 Lessor Lease Receivable - - 76,018 -

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

195000 Lessee Right-To-Use Lease Asset 100,000 - - -

195900 Accumulated Amortization on Lessee Lease Assets - 20,000 - -

214000 (N) Accrued Interest Payable - Not Otherwise Classified - 7,602 - -

233000 Unearned Lessor Revenue - - - 78,000

293000 Lessee Lease Liability - 76,018 - -

331000 Cumulative Results of Operations - 80,000 - 162,602

Total 183,620 183,620 407,602 407,602
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FISCAL YEAR 2

Lessee Accounting

1. In Year 2, the Lessee makes the second annual lease payment to Lessor, and records the payment of funds previously accrued. The Lessee records the 

disbursement of appropriations for the fiscal year. 

Lessee - Disbursement of second Annual Lease Payment to Lessor Debit Credit TC

Budgetary Entry

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability

214000 (N) Accrued Interest Payable - Not Otherwise Classified

 101000 Fund Balance With Treasury

310710 Unexpended Appropriations - Used - Disbursed 

570000 Expended Appropriations - Used - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed

23,982 

16,380 

 7,602 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

B235 

Ending Lease Liability Balance of USSGL 293000 = $76,018- $16,380 = $59,638

2. 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. 

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

5,964 

5,964 

5,964 

5,964 

A104 
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3. 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 

5,964 

5,964 

A116 

4. 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 

5,964 

5,964 

A120 

5. For Year 2, the Lessee records amortization of the right-to-use Lease Asset for the period. 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 Year 2 Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

671300 Lessee Lease Amortization

 195900 Accumulated Amortization on Lessee Lease Assets

20,000 

20,000 
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6. The lessee records interest accrued over the second year of the lease. 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)s 

Lessee - Accrual of Interest Expense for Amortization of Discount - Year 2 Debit Credit TC

Budgetary Entry

461000 Allotments – Realized Resources

 490100 Delivered Orders – Obligations, Unpaid

Proprietary Entry 

633000 (N) Other Interest Expense

 214000 (N) Accrued Interest Payable - Not Otherwise Classified

310700 Unexpended Appropriations - Used - Accrued

 570000 Expended Appropriations - Used - Accrued

5,964 

5,964 

5,964 

5,964 

5,964 

5,964 

B416 

B134 

7. 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 

 

25,964 

 20,000 

 5,964 

F336 

8. 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
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 22 of 44 November 2022

Budgetary Entry

None 

Proprietary Entry

570010 Expended Appropriations – Disbursed

 570000 Expended Appropriations - Used - 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

23,982 

5,964 

18,018 

5,964 

18,018 

5,964 

23,982 

5,964 

F336 

F342 

F342 

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

Lessee Debit Credit TC

Budgetary Entry

490200 Delivered Orders – Obligations, Paid 

 420100 Total Actual Resources, Collected 

Proprietary Entry

None 

23,982 

23,982 

F314 

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

Lessee Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 23 of 44 November 2022

Budgetary Entry

420100 Total Actual Resources, Collected 

 411900 Other Appropriations Realized 

 

Proprietary Entry 

 None 

5,964 

5,964 F302 

Lessor Accounting

1. In Year 2, the Lessor records anticipated collections. (Year 2 Lease Payment of $23,982)

Lessor Debit Credit TC

Budgetary Entry

406000 Anticipated Collections From Non-Federal Sources

 449000 Anticipated Resources - Unapportioned Authority 

Proprietary Entry

None 

23,982 

23,982 

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 

23,982 

23,982 A118 

3. In Year 2, the Lessor receives the annual lease payment from the Lessee and records the receipt of payment. Also in Year 2, the Lessor records the allotment 

of authority.
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 24 of 44 November 2022

Lessor – Receipt of second Annual Lease Payment from Lessee 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 (N) Interest Receivable - Not Otherwise Classified

 193000 Lessor Lease Receivable 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

 7,602 

16,380 

C109 

A123 

A120 

Ending Lease Receivable Balance of USSGL 193000 = $76,018 - $16,380 = $59,638

4. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period. 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 Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue

20,000 

20,000 

5. The lessor recognizes the amortization of the discount on the lease receivable as interest revenue for the period. (SFFAS 54, Par. 60)

Lessor - Accrual of Interest Revenue Year 2 Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 25 of 44 November 2022

Budgetary Entry

None 

Proprietary Entry 

134000 (N) Interest Receivable - Not Otherwise Classified

 531000 (N) Interest Revenue - Other

5,964 

5,964 

6. 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 

7. 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 

20,000 

 5,964 

25,964 

F336 

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

Lessor Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 26 of 44 November 2022

Budgetary Entry

None 

Proprietary Entry 

331000 Cumulative Results of Operations 

 671000 Depreciation, Amortization, and Depletion 

15,000 

15,000 

F336 

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 

23,982 

23,982 

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 

23,982 

23,982 

F302 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 27 of 44 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 65,602 - 47,964 -

445000 Unapportioned – Unexpired Authority - - - 47,964

490100 Delivered Orders, Obligations Unpaid - 65,602 - -

Total 65,602 65,602 47,964 47,964

Proprietary

101000 (G) Fund Balance With Treasury 65,602 - 47,964 -

134000 (N) Interest Receivable - Not Otherwise Classified - - 5,964 -

175000 Equipment - - 300,000 -

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

193000 Lessor Lease Receivable - - 59,638 -

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

195000 Lessee Right-To-Use Lease Asset 100,000 - - -

195900 Accumulated Amortization on Lessee Lease Assets - 40,000 - -

214000 (N) Accrued Interest Payable - Not Otherwise Classified - 5,964 - -

233000 Unearned Lessor Revenue - - - 58,000

293000 Lessee Lease Liability - 59,638 - -

331000 Cumulative Results of Operations - 60,000 - 173,566

Total 165,602 165,602 413,566 413,566
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 28 of 44 November 2022

FISCAL YEAR 3

Lessee Accounting

1. In Year 3, the Lessee makes the third annual lease payment to Lessor, and records the payment of funds previously accrued. The Lessee records the 

disbursement of appropriations for the fiscal year. 

Lessee – Disbursement of Annual Lease Payment to Lessor Debit Credit TC

Budgetary Entry

490100 Delivered Orders – Obligations, Unpaid 

 490200 Delivered Orders – Obligations, Paid 

Proprietary Entry 

293000 Lessee Lease Liability

214000 (N) Accrued Interest Payable - Not Otherwise Classified

 101000 Fund Balance With Treasury 

310710 Unexpended Appropriations - Used - Disbursed 

570000 Expended Appropriations - Used - Accrued 

 310700 Unexpended Appropriations - Used - Accrued 

 570010 Expended Appropriations - Disbursed

23,982 

18,018 

 5,964 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

B235 

Ending Lease Liability Balance of USSGL 293000 = $59,638 - $18,018 = $41,620

2. In Year 3, 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.

Lessee - Enactment of appropriation for Year 3 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

4,162 

4,162 

4,162 

4,162 

A104 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 29 of 44 November 2022

3. The Lessee records budgetary authority apportioned by the Office of Management and Budget and available for allotment in Year 3.

Lessee Debit Credit TC

Budgetary Entry

445000 Unapportioned - Unexpired Authority 

 451000 Apportionments 

Proprietary Entry 

None 

4,162 

4,162 

A116 

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

Lessee Debit Credit TC

Budgetary Entry

451000 Apportionments 

 461000 Allotments – Realized Resources 

Proprietary Entry 

None 

4,162 

4,162 

A120 

5. For Year 3, the Lessee records amortization of the right-to-use Lease Asset for the period. 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 Year 3 Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

671300 Lessee Lease Amortization

 195900 Accumulated Amortization on Lessee Lease Assets

20,000 

20,000 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 30 of 44 November 2022

6. The lessee records interest accrued over the third year of the lease. 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)s 

Lessee - Accrual of Interest Expense for Amortization of Discount - Year 3 Debit Credit TC

Budgetary Entry

461000 Allotments – Realized Resources

 490100 Delivered Orders – Obligations, Unpaid

Proprietary Entry 

633000 (N) Other Interest Expense

 214000 (N) Accrued Interest Payable - Not Otherwise Classified

310700 Unexpended Appropriations - Used - Accrued

 570000 Expended Appropriations - Used - Accrued

4,162 

4,162 

4,162 

4,162 

4,162 

4,162 

B416 

B134 

7. 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 

 

24,162 

 20,000 

 4,162 

F336 

8. 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
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 31 of 44 November 2022

Budgetary Entry

None 

Proprietary Entry

570010 Expended Appropriations – Disbursed

 570000 Expended Appropriations - Used - 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

23,982 

 4,162 

 19,820 

 4,162 

 19,820 

 4,162 

 23,982 

 4,162 

F336 

F342 

F342 

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

Lessee Debit Credit TC

Budgetary Entry

490200 Delivered Orders – Obligations, Paid 

 420100 Total Actual Resources, Collected 

Proprietary Entry

None 

23,982 

23,982 

F314 

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

Lessee Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 32 of 44 November 2022

Budgetary Entry

420100 Total Actual Resources, Collected 

 411900 Other Appropriations Realized 

 

Proprietary Entry 

 None 

4,162 

4,162 F302 

Lessor Accounting

1. In Year 3, the Lessor records anticipated collections. (Year 3 Lease Payment of $23,982)

Lessor Debit Credit TC

Budgetary Entry

406000 Anticipated Collections From Non-Federal Sources

 449000 Anticipated Resources - Unapportioned Authority 

Proprietary Entry

None

23,982 

23,982 

A140 

2. In Year 3, 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

23,982 

23,982 A118 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 33 of 44 November 2022

3. In Year 3, the Lessor receives the annual lease payment from the Lessee and records the receipt of payment. Also in Year 3, the Lessor records the allotment 

of authority.

Lessor – Receipt of third Annual 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 (N) Interest Receivable - Not Otherwise Classified

 193000 Lessor Lease Receivable

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

23,982 

 5,964 

18,018 

C109 

A123 

A120 

Ending Lease Receivable Balance of USSGL 193000 = $59,638 - $18,018 = $41,620

4. The Lessor recognizes revenue from the measurement of the lease receivable as earned revenue for the reporting period. 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 3 Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

233000 Lessor Lease Unearned Revenue 

 593300 Amortization of Unearned Lessor Revenue

20,000 

20,000 

5. The lessor recognizes the amortization of the discount on the lease receivable as interest revenue for the period. (SFFAS 54, Par. 60)

Lessor - Accrual of Interest Revenue Year 3 Debit Credit TC
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 34 of 44 November 2022

Budgetary Entry

None 

Proprietary Entry 

134000 Interest Receivable - Not Otherwise Classified

 531000 Interest Revenue - Other

4,162 

4,162 

6. In Year 3, 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 

7. 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

 331000 Cumulative Results of Operations 

20,000 

 4,162 

24,762 

F336 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 35 of 44 November 2022

10. The Lessor records the closing of depreciation expense to cumulative results of operations in Year 3.

Lessor Debit Credit TC

Budgetary Entry

None 

Proprietary Entry 

331000 Cumulative Results of Operations 

 671000 Depreciation, Amortization, and Depletion 

15,000 

15,000 

F336 

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 

23,982 

23,982 

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 

23,982 

23,982 

F302 
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 36 of 44 November 2022

Fiscal Year 3 Pre-Closing Trial Balance:

FISCAL YEAR 3 PRE-CLOSING LESSEE LESSOR

Account Description Debit Credit Debit Credit

Budgetary

411900 Other Appropriations Realized 4,162 - - -

420100 Total Actual Resources, Collected 65,602 - 47,964 -

426600 Other Actual Business-Type Collections From Non-Federal Sources - - 23,982 -

445000 Unapportioned - Unexpired Authority - - - 47,964

461000 Allotments – Realized Resources - - - 23,982

490100 Delivered Orders, Obligations Unpaid - 45,782 - -

490200 Delivered Orders – Obligations, Paid - 23,982 - -

Total 69,764 69,764 71,946 71,946

Proprietary

101000 (G) Fund Balance With Treasury 45,782 - 71,946 -

134000 (N) Interest Receivable - Not Otherwise Classified - - 4,162 -

175000 Equipment - - 300,000 -

175900 Acc. Depreciation on Equipment - - - 195,000

193000 Lessor Lease Receivable - - 41,620

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

195000 Lessee Right-To-Use Lease Asset 100,000 - - -

195900 Accumulated Amortization on Lessee Lease Assets - 60,000 - -

214000 (N) Accrued Interest Payable - Not Otherwise Classified - 4,162 - -

233000 Unearned Lessor Revenue - - - 38,000

293000 Lessee Lease Liability - 41,620 - -

310100 (G) Unexpended Appropriations - Appropriations Received - 4,612 - -

310700 (G) Unexpended Appropriations - Used - Accrued - 19,820 - -

310710 (G) Unexpended Appropriations - Used - Disbursed 23,982 - - -

331000 Cumulative Results of Operations - 60,000 - 173,566

531000 (N) Interest Revenue - Other - - - 4,162

570000 Expended Appropriations - Used - Accrued 19,820 - - -

570010 Expended Appropriations - Disbursed - 23,982 - -

593300 Amortization of Unearned Lessor Revenue - - - 20,000

633000 (N) Other Interest Expense 4,162 - - -

671000 Depreciation, Amortization, and Depletion - - 15,000 -
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 37 of 44 November 2022

671300 Lessee Lease Amortization 20,000 - - -

Total 213,746 213,746 432,728 432,728

Fiscal Year 3 Post-Closing Trial Balance:

FISCAL YEAR 3 POST-CLOSING LESSEE LESSOR

Account Description Debit Credit Debit Credit

Budgetary

420100 Total Actual Resources, Collected 45,782 - 71,946 -

445000 Unapportioned - Unexpired Authority - - - 71,946

490100 Delivered Orders, Obligations Unpaid - 45,782 - -

Total 45,782 45,782 71,946 71,946

Proprietary

101000 (G) Fund Balance With Treasury 45,782 - 71,946 -

134000 (N) Interest Receivable - Not Otherwise Classified - - 4,162 -

175000 Equipment - - 300,000 -

175900 Acc. Depreciation on Equipment - - - 195,000

193000 Lessor Lease Receivable - - 41,620

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

195000 Lessee Right-To-Use Lease Asset 100,000 - - -

195900 Accumulated Amortization on Lessee Lease Assets - 60,000 - -

214000 (N) Accrued Interest Payable - Not Otherwise Classified - 4,162 - -

233000 Unearned Lessor Revenue - - - 38,000

293000 Lessee Lease Liability - 41,620 - -

331000 Cumulative Results of Operations - 40,000 - 182,728

Total 145,782 145,782 417,728 417,728
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 38 of 44 November 2022

Financial Statements:

STANDARDIZED BALANCE SHEET – YEAR 3

Line 

No.

YEAR 3 LESSEE LESSOR

Assets (Note 2)

Intra-governmental

1 Fund Balance with Treasury (Note 3) (101000E) 45,782 71,946

7 Total intra-governmental assets 45,782 71,946

Other than intra-governmental

9 Accounts receivable, net (Notes 6 and 7) (134000E) - 4,162

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

195900E) 40,000 105,000

17 Other assets (Note 12) (193000E, 193900E) - 39,620

18 Total other than intra-governmental 40,000 148,782

19 Total assets 85,782 220,728

Liabilities (Note 13)

Other than intra-governmental

28 Accounts payable (214000E) 4,162 -

36 Advances from others and deferred revenue (233000E) - 38,000

37 Other liabilities (Notes 18, 19, and 20) (293000E) 41,620 -

38 Total other than intra-governmental 45,782 38,000

39 Total liabilities 45,782 38,000

Net position

42.2

Cumulative results of operations - Funds from other than Dedicated Collections (331000E, 570000E, 

570010E) 40,000 182,728

43 Total net position 40,000 182,728

44 Total liabilities and net position 85,782 220,728
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 39 of 44 November 2022

STATEMENT OF NET COST – YEAR 3

Line 

No.

YEAR 3 LESSEE LESSOR

Gross Program Costs (Note 21):

1 Gross costs (633000E, 671000E, 671300E, 693000E, 880100E, 880200E) 24,162 15,000

2 Less: earned revenue (531000E, 593000E, 593300E) - 24,162

3 Net program costs 24,162 (9,162)

5 Net program costs including Assumption Changes: 24,162 (9,162)

8 Net cost of operations 24,162 (9,162)

STATEMENT OF CHANGES IN NET POSITION – YEAR 3

Line 

No.

YEAR 3 LESSEE LESSOR

Unexpended Appropriations:

4 Appropriations received (310100E) 4,162 -

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

8 Net Change in Unexpended Appropriations (calc.) 4,162 -

9 Total Unexpended Appropriations – Ending (calc.) 4,162 -

Cumulative Results of Operations:

10 Beginning Balances (331000B) 60,000 173,566

12 Beginning balances, as adjusted 60,000 173,566

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

21 Revenue From (Net Cost of) Operations (+/-) (24,162) 9,162

22 Net Change in Cumulative Results of Operations (24,162) 9,162

23 Cumulative Results of Operations – Ending 35,838 32,728

24 Net Position (calc.) 40,000 182,728
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024 

Page 40 of 44 November 2022

STATEMENT OF BUDGETARY RESOURCES – YEAR 3

Line 

No.

YEAR 3 LESSEE LESSOR

Budgetary resources:

1071 Unobligated balance from prior year budget authority, net (discretionary and mandatory) (Note 25)

(420100B)

65,602 47,964

1290 Appropriations (discretionary and mandatory) (411900E) 4,162 -

1890 Spending authority from offsetting collection (discretionary and mandatory) (426600E) - 23,982

1910 Total budgetary resources (calc.) 69,764 71,946

Status of budgetary resources:

2190 New obligations and upward adjustments (total) (Note 31) (490100E, 490200E) 69,764 -

Unobligated balance, end of year:

2204 Apportioned, unexpired account (461000E) - 23,982

2405 Unapportioned, unexpired accounts (445000E) - 47,964

2412 Unexpired unobligated balance, end of year (calc.) - 71,946

2490 Unobligated balance, end of year (total) - 71,946

2500 Total budgetary resources (calc.) 69,764 71,946

Outlays, Net and Disbursements, Net

4190 Outlays, net (total) (discretionary and mandatory) (426600E, 490200E) 23,982 (23,982)

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

AND FINANCING SCHEDULE – YEAR 3

Line 

No.

YEAR 3 LESSEE LESSOR

BUDGETARY RESOURCES SF 133 Schedule P SF 133 Schedule 

P

0900 Total new obligations, unexpired accounts (490200E) 23,982 23,982 - -
RIGHT-TO-USE LEASES GUIDANCE: BUDGETARY CAPITAL

Effective Fiscal 2024

Page 41 of 44 November 2022

1000 Unobligated balance brought forward, Oct 1 (420100E) 65,602 65,602 47,964 47,964

1070 Unobligated balance (total) (calc.) 65,602 65,602 47,964 47,964

Budget authority:

Appropriations:

Discretionary:

1100 Appropriation (411900E) 4,162 4,162 - -

1160 Appropriation, discretionary (total) 4,162 4,162 - -

1700 Collected (426600E) - - 23,982 23,982

1750 Spending authority from offsetting collections, discretionary (total) - - 23,982 23,982

1900 Budget authority (total) 4,162 4,162 23,982 23,982

1910 Total budgetary resources (calc.) 69,764 - 71,946 -

1930 Total budgetary resources available - 69,764 - 71,946

Memorandum (non-add) entries:

1941 Unexpired unobligated balance, end of year (445000E, 461000E) - - - 71,946

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments:

Direct:

2002 Category B (by project) (490100E, 490200E) 69,764 - - -

2004 Direct obligations (total) (calc.) 69,764 - - -

2170 New obligations, unexpired accounts (490200E) 23,982 - - -

2190 New obligations and upward adjustments (total) 23,982 - - -

2201 Available in the current period (461000E) - - 23,982 -

2403 Other (445000E) - - 47,964

2412 Unexpired unobligated balance: end of year (calc.) - - 71,946 -

2490 Unobligated balance, end of year (total) - - 71,946 -

2500 Total budgetary resources (calc.) 69,794 - 71,946 -

Memorandum (non-add) entries:

2501 Subject to apportionment – excluding anticipated amounts (445000E, 461000E) - - 71,946 -
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CHANGE IN OBLIGATED BALANCE

Unpaid obligations:

3010 New obligations, unexpired accounts (490100E, 490200E) 69,794 69,794 - -

3020 Outlays (gross) (-) (490200E) (23,982) (23,982) - -

3050 Unpaid obligations, end of year (490100E) 45,782 45,782

3200 Obligated balance, end of year (= or -) 45,782 45,782 - -

BUDGET AUTHORITY AND OUTLAYS, NET

Discretionary:

4000 Budget authority, gross (calc.) 4,162 4,162 23,982 23,982

Outlays, gross

4010 Outlays from new discretionary authority (490200E) 23,982 23,982 - -

4020 Outlays, gross (total) 23,982 23,982 - -

Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:

4033 Non-Federal sources (-) (426600E) - - (23,982) (23,982)

4040 Offsets against gross budget authority and outlays (-) (calc.) - - (23,982) (23,982)

4070 Budget authority, net (discretionary) (calc.) 4,162 4,162 23,982 23,982

4080 Outlays, net (discretionary) (calc.) 23,982 23,982 (23,982) (23,982)

4180 Budget authority, net (total) (calc.) 4,162 4,162 (23,982) (23,982)

4190 Outlays, net (total) (calc.) 23,982 23,982 (23,982) (23,982)

Unobligated balance:

5321 Direct unobligated balance, end of year (461000E) - - (23,982) (23,982)

5323 Discretionary unobligated balance, end of year (461000E) - - (23,982) (23,982)
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Reclassified Financial Statements:

STANDARDIZED BALANCE SHEET – YEAR 3

Line 

No.

YEAR 3 LESSEE LESSOR

Assets (Note 2)

Intra-governmental

1 Fund Balance with Treasury (Note 3) (101000E) 45,782 71,946

7 Total intra-governmental assets 45,782 71,946

Other than intra-governmental

9 Accounts receivable, net (Notes 6 and 7) (134000E) - 4,162

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

195900E) 40,000 105,000

17 Other assets (Note 12) (193000E, 193900E) - 39,620

18 Total other than intra-governmental 40,000 148,782

19 Total assets 85,782 220,728

Liabilities (Note 13)

Other than intra-governmental

28 Accounts payable (214000E) 4,162 -

36 Advances from others and deferred revenue (233000E) - 38,000

37 Other liabilities (Notes 18, 19, and 20) (293000E) 41,620 -

38 Total other than intra-governmental 45,782 38,000

39 Total liabilities 45,782 38,000

Net position

42.2

Cumulative results of operations - Funds from other than Dedicated Collections (331000E, 570000E, 

570010E) 40,000 182,728

43 Total net position 40,000 182,728

44 Total liabilities and net position 85,782 220,728
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Page 44 of 44 November 2022

RECLASSIFIED STATEMENT OF NET COST – YEAR 3

Line 

No.

LESSEE LESSOR

1 Gross cost

2 Non-federal gross cost (633000E, 671000E, 671300E, 693000E) 24,162 15,000

6 Total non-federal gross cost (calc.) 24,162 15,000

9 Department total gross cost (calc.) 24,162 15,000

10 Earned revenue

11 Non-federal earned revenue (531000E, 593000E, 593300E) - 24,162

14 Department total earned revenue (calc.) - 24,162

15 Net cost of operations (calc.) 24,162 (9,162)

RECLASSIFIED STATEMENT OF OPERATIONS AND CHANGES IN NET POSITION – YEAR 3

Line 

No.

LESSEE LESSOR

1 Net position, beginning of period (310000B, 331000B) 60,000 173,566

7 Financing sources:

7.1 Appropriations received as adjusted (rescissions and other adjustments) (RC 41)/1 (310100E) 4,162 -

7.2 Appropriations used (RC 39) (310700E, 310710E) 13,762 -

7.3 Appropriations expended (RC 38)/1 (570000E, 570010E) 13,762 -

7.30 Total financing sources (calc.) 4,162 -

8 Revenue From (Net cost of) Operations (+/-) (24,162) 9,162

9 Net position, end of period (calc.) 40,000 182,728