***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

**Appropriations Provided by a Continuing Resolution**

**Effective Fiscal Year 2019**

**GENERAL LEDGER AND ADVISORY BRANCH**

**BUREAU OF FISCAL SERVICE**

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

***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

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***Continuing resolutions (CRs)****are joint resolutions (passed by the House and the Senate and signed by the President) that provide continuing appropriations for a fiscal year.  Continuing resolutions are enacted when Congress has not yet passed one or more appropriations bills for a fiscal year or when the President has vetoed congressionally passed appropriations bills.  Lacking appropriations, most programs can not incur new obligations.*

· *Continuing Resolutions usually do not appropriate specific sums of money.  Instead the CRs provide “formulas” for calculating the amounts available for continuing programs at minimal levels.  Continuing resolutions provide funds for projects and activities.  In most cases, the term “programs and projects” refers to appropriation accounts, but not always.[footnoteRef:1]* [1:  See chapter 8 of the Government Accountability Office’s Appropriation Law.  Usually, CRs last no longer than the first quarter of the fiscal year.] 

*After a CR is enacted into law, the Office of Management and Budget will issue a bulletin to automatically apportion amounts made available by the CR.*[footnoteRef:2]*The amount available during the period covered by the CR will be further defined in the bulletin based on the law.* [2: OMB Circular No. A-11 (2017), Section 123.1 - 123.5] 

Generally, warrants are not issued under a CR in anticipation that the appropriation act will be passed.  However, Fiscal Service may issue a warrant under the following instances:

· *The CR covers specific mandatory federal payments or*

· *On a case by case basis after the second quarter of the fiscal year; and/or*

· *The CR covers the entire year.[footnoteRef:3]* [3:  Treasury Financial Manual, Part 2, Chapter 2000, Section 2030.2 ] 

Although a warrant may not be issued, agencies’ Fund Balance With Treasury (FBWT) should be recorded under a CR.  The CR entitles agencies to FBWT.  SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, paragraph 71 states that appropriations should be recognized in capital as “unexpended appropriations” (and among assets as “funds with Treasury”) when made available for apportionment, even if a Treasury Warrant has not yet been received, or the amount has not been fully apportioned.  

***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

	Page 22		DRAFT IRC Handout 7-12-2018

Furthermore, until Fiscal Service processes a warrant, agencies’ FBWT will not be posted to its Central Accounting System.  The balance in this account will not match CARS.  However, agencies will post its normal receipt and disbursement activity using USSGL Account 101000, which should match the balance in CARS.  

This scenario illustrates accounting transactions and reporting requirements agencies should use to record FBWT while under a CR.  

***Current USSGL accounts:***

**Account Title:**Other Liabilities Without Related Budgetary Obligations 

**Account Number:**299000 

**Normal Balance:**Credit 

**Definition:**Other liabilities not otherwise classified, for which there is not a related budgetary obligation. This account does not close at yearend. 

**Justification:** To separate warrant activity. 

**Account Title:**Other Liabilities – Reductions 

**Account Number:**299100 

**Normal Balance:**Credit 

**Definition:**Other liabilities of reductions where there is not a related budgetary obligation. Use while awaiting a warrant to be issued for a reduction (i.e., rescission, across-the-board reduction, and sequestration). The warrant must be issued by yearend. This account does not close at yearend. 

**Justification:** To separate warrant activity. 

**Proposed USSGL Account Illustrated**

***Proposed USSGL Account:***

**Account Title:**Appropriated Dedicated Collections Receivable 

**Account Number:**139000 

**Normal Balance:**Debit 

**Definition:**The amount due from an unavailable receipt account for funding provided under a continuing resolution and apportioned in accordance with Office of Management and Budget's automatic apportionment bulletin. Pursuant to a continuing resolution or enacted annual appropriation act, the account may be used while awaiting a warrant to be issued for an appropriation derived from an unavailable special or trust non-revolving receipt account by the U. S. Department of the Treasury's Bureau of the Fiscal Service. This account may also be used while waiting a warrant for reductions from the expenditure TAS to the unavailable receipt account. The balance in this account will adjust to zero when the U.S. Department of the Treasury's Bureau of Fiscal Service issues a warrant and must adjust to zero by yearend. This account does not close at yearend.

**Justification:** To separately track funds to be appropriated from an unavailable special or trust non-revolving receipt account during a continuing resolution while awaiting the issuance of the warrant by Treasury’s Bureau of the Fiscal Service.

**Account Title:**Appropriated Dedicated Collections Liability 

**Account Number:**299200 

**Normal Balance:**Debit 

**Definition:**The amount due to the expenditure Treasury Account Symbol (TAS) from an unavailable receipt account for funding provided under a continuing resolution and apportioned in accordance with Office of Management and Budget's automatic apportionment bulletin. Pursuant to a continuing resolution or enacted annual appropriation act, the account may be used while awaiting a warrant to be issued for an appropriation derived from an unavailable special or trust non-revolving receipt account by the U. S. Department of the Treasury's Bureau of the Fiscal Service. This account may be used while waiting a warrant for reductions from the expenditure TAS to the unavailable receipt account.The balance in this account will adjust to zero when the U.S. Department of the Treasury's Bureau of Fiscal Service issues a warrant and must adjust to zero by yearend. This account does not close at yearend

**Justification:** To separately track appropriated dedicated collections during a continuing resolution or while waiting the issuance of a warrant from an unavailable special or trust non-revolving receipt account by Treasury’s Bureau of the Fiscal Service.

**Account Title:**Unexpended Appropriations While Awaiting a Warrant 

**Account Number:**309000 

**Normal Balance:**Credit 

**Definition:**The amount of new appropriations expected to be received during the fiscal year from the General Fund of the U.S. Governement. This is equal to the funding provided under a continuing resolution and apportioned in accordance with Office of Management and Budget’s automatic apportionment bulletin. Pursuant to a continuing resolution or enacted annual appropriation act, the account may be used while awaiting a warrant to be issued for an appropriation by the U.S. Department of the Treasury’s Bureau of the fiscal Service. Special and trust funds do not use this USSGL account to record appropriations for dedicated collections. However, special and trust funds that receive appropriations from the General Fund of the U.S. Government are to use this account. The balance in this account will adjust to zero when the U.S. Department of the Treasury’s Bureau of Fiscal Service issues a warrant and must adjust to zero by yearend. This account does not close at yearend. 

**Justification:** To separate appropriations while awaiting the issuance of a warrant by Treasury’s Bureau of the Fiscal Service from appropriations received.

****

**Account Title:**Appropriations Outstanding – Warrants to be Issued 

**Account Number:**309010 

**Normal Balance:**Credit 

**Definition:**The amount recorded by the General Fund of the U.S. Government for new appropriations expected to be issued during the fiscal year. This is equal to the funding provided under a continuing resolution and apportioned in accordance with Office of Management and Budget’s automatic apportionment bulletin. Pursuant to a continuing resolution or enacted annual appropriation act, the account may be used while awaiting a warrant to be issued for an appropriation by the U.S. Department of the Treasury’s Bureau of the Fiscal Service. This account corresponds to the Unexpended Appropriations While Awaiting a Warrant. The balance in this account will adjust to zero when the U.S. Department of the Treasury’s Bureau of Fiscal Service issues a warrant and must adjust to zero by yearend. This account does not close at yearend. 

**Justification:** A new USSGL account is needed for the General Fund of the U.S. Governemnt to capture and distinguish appropriations outstanding to be issued. This account is to be used with 209010**.**

**Account Title:**Appropriated Dedicated Collections to be Transferred In 

**Account Number:**573500 

**Normal Balance:**Credit 

**Definition:**The amount to be appropriated from an unavailable receipt account to the expenditure account of dedicated collection, via warrant. This is equal to the funding provided under a continuing resolution and apportioned in accordance with Office of Management and Budget’s automatic apportionment bulletin. Pursuant to a continuing resolution or enacted annual appropriation act, the account may be used while awaiting a warrant from the unavailable receipt account. This account may be used while waiting a warrant for reductions from the expenditure TAS to the unavailable receipt account. The balance in this account will adjust to zero when the U.S. Department of the Treasury’s Bureau of Fiscal Service issues a warrant and must adjust to zero by yearend. This account does not close at yearend. 

**Justification:** To record appropriations during a continuing resolution from dedicated collections while awaiting the transfer in to be processed. 

****

**Account Title:** Appropriated Dedicated Collections to be Transferred Out 

**Account Number**: 573600

**Normal Balance**: Debit

**Definition:** The amount to be appropriated to the expenditure account of dedicated collection, via warrant, from an unavailable receipt account. This is equal to the funding provided under a continuing resolution and apportioned in accordance with Office of Management and Budget’s automatic apportionment bulletin. Pursuant to a continuing resolution or enacted annual appropriation act, the account may be used while awaiting a warrant from the unavailable receipt account. This account may be used while waiting a warrant for reductions from the expenditure TAS to the unavailable receipt account.The balance in this account will adjust to zero when the U.S. Department of the Treasury’s Bureau of Fiscal Service issues a warrant and must adjust to zero by yearend. This account does not close at yearend. 

**Justification:** To record appropriations during a continuing resolution from dedicated collections while awaiting the transfer out to be processed. 

This scenario presents the first and second quarters of a fiscal year.  During the first quarter, the agency is notified that its appropriations bill has not been signed and the agency is under a continuing resolution.  In quarter two, the agency’s appropriation bill has been signed.  Two separate situations are presented in quarter two, which are as follows:

Situation 1:	General Fund Expenditure TAFS receives exact amount in the appropriation.

Situation 2:	Special Fund Expenditure TAFS receives exact amount in the appropriation. (Will be presented at a future IRC Meeting)

The following quarterly statements are presented:  SF 133, Report on Budget Execution and Budgetary Resources, Consolidated Balance Sheet, Consolidated Statement of Net Cost and Consolidated Statement of Changes in Net Position.  The statements are based on fiscal year 2018 crosswalks.

*After careful review of the CR, in conjunction with the agency budget office and in compliance with OMB’s automatic apportionment bulletin, it was determined that the annualized level of the appropriation provided under the continuing resolution is $100,000.  Since the seasonal obligations for this account are normally higher than the pro rata share and the CR covers the first 30 days of the fiscal year, the amount available for obligation under the CR is $24,953.[footnoteRef:4]* [4:  Refer to OMB’s automatic apportionment bulletin to determine the amount available for obligation under a continuing resolution.] 

***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

# 

	 Page 20 		DRAFT IRC Handout 7-12-2018

###### QTR 1 Situation 1

# 

# 1A & B. To record an agencies’ Fund Balance With Treasury under a continuing resolution as determined by OMB’s automatic apportionment bulletin. No warrants processed.

1A To record the Fund Balance With Treasury under a continuing resolution.

1B.	To record authority temporarily unavailable pursuant to public law.

1C.	To record budgetary authority *automatically*apportioned by OMB and available for allotment.  

****Transactions 1A, 1B, and 1C should occur simultaneously.***

2. To record allotment of authority.  

3. Purchase request for $5,000, was approved. (Commitment)

4. To record current-year undelivered orders without an advance.

5. To record the delivery of goods and accrue a liability.

6. 6. Payment schedule certified and confirmed.

***Note, No statements are illustrated in this scenario for period 03.***

**Appropriations Provided by a Continuing Resolution**

Quarter 2

Situation 1

Agency Receives Exact Amount in Appropriations Act Passed by Congress

###### QTR 2 Situation 1

***Appropriations Provided by a Continuing Resolution Guidance***

***Effective 2019***

###### 

###### *The CR, passed in Quarter 1 has expired and the agency has received notification that the CR has been extended for an additional 30 days.  The amount available for obligation under the extension is $8,408.  The annualized level of the appropriation provided under the CR is unchanged.*

###### 

# 1. To record additional Fund Balance With Treasury under a continuing resolution and record authority previously temporarily unavailable as available.

2. To record budgetary authority apportioned by OMB and available for allotment. 

******

***Note, Trial balance needs updated no statements are illustrated in this scenario for period 04.***

QTR 2 Period 05 (Situation 1)

***Congress enacted the appropriation bill for $100,000 and a 1% reduction.[footnoteRef:7]*** [7:  Note:  As previously stated, CRs usually do not last longer than the first quarter] 

# 1. To record receipt of authority (warrant Not received) and record authority previously temporarily unavailable as available.

2. To record the 1% permanent reduction of unexpended appropriations (SW BETC).

3. To record budgetary authority apportioned by OMB and available for allotment.  

4. To record allotment of authority.  

***Note, no statements are illustrated in this scenario for period 05.***

###### 

QTR 2 Period 06 (Situation 1)

# 1. To record receipt of the appropriation warrant

# 

# 2. To record receipt of surplus warrant.

****

****

****

****

**Appropriations Provided by a Continuing Resolution**

**Situation 2**

******

# 1A & B. To record an agencies’ Fund Balance With Treasury under a continuing resolution as determined by OMB’s automatic apportionment bulletin. ~~The apportionment bulletin contained a 1,000 temp. reduction of unexpended appropriations~~. No warrants processed.

1A To record the Fund Balance With Treasury under a continuing resolution.

New Edit: USSGL account 139000 is needed for edit 68 & eliminations. This may resolve timing issues with the edit. 

Should 139000 & 299200 be 100,000? 

1B.	To record authority temporarily unavailable pursuant to public law.

1C To record a specific reduction of unobligated balance i.e. 1,000 temp. reduction of unexpended appropriations (SW BETC). (This needs to be moved to when the appropriation has passed)

1D.	To record budgetary authority by OMB CR bulletin and available for allotment.  

Transaction 1A-1D need to be discussed prior to completion of the second half of this scenario.

****Transactions 1A, 1B, 1C and 1D should occur simultaneously.***

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