**Background:**

The Department of Justice (DOJ) collects monies on behalf of the Environmental Protection Agency (EPA) Superfund and transfers the collections to EPA. These collections are used by the EPA Superfund to pay for remediation projects that are to be completed at a future date. Due to the nature of these projects, EPA does not recognize the revenue from these collections at the time they are received from DOJ. Instead, EPA reports these collections as Other Deferred Revenue and recognizes the revenue as earned as the remediation project is completed. By following this practice, EPA cannot properly reciprocate with DOJ at the time these payments are transferred to EPA from DOJ which is creating an intra-governmental elimination issue on the government-wide financial statements.

The changes presented in this document are proposed for reporting periods beginning in FY 2023 and later. The expectation will be the recipient agency will continue to use the published Custodial Guidance to properly record the receipt of the custodial collection and correctly eliminate with the collecting agency, in this instance DOJ, and then as an additional step will record the new USSGL below to reclassify the collection on the recipient agency reporting only.

New USSGL account 599750 is being proposed as a contra account to existing USSGL account 599700. The proposed new USSGL account will allow a recipient entity to properly reciprocate with the collecting entity by following the published Custodial Collection Guidance and then immediately offset the collection and reclassify it into a deferred revenue or other liability account used by the recipient entity.

**New USSGL Account:**

**Account Title:**	Financing Sources Transferred In From Custodial Statement Collections- Contra Account

**Account Number:**	599750

**Normal Balance:**	Debit

**Definition:**	This account is used to record an offset to USSGL Account 599700 Financing Sources Transferred in From Custodial Statement Collections. It is intended to allow the recipient entity to reclassify the collection receipt as a liability to be recognized as a revenue in a future period.

*Justification: This USSGL account is needed to allow recipient entities to correctly delay the recognition of revenue from a custodial collection until it is earned in a future period.*

**Attribute Table Addition:**

**USSGL Account As Reflected in Statement Crosswalks:**

**New Transaction Code:**

**A220**	To record the reclassification of custodial collections received to a deferred revenue account. These collections will be recognized as revenue at a future date.

**Comment:**	Also post USSGL TC-A212 to record the transfer from collecting entity to recipient entity. This transaction code may only be used upon approval by Treasury.

**Budgetary Entry**

	None

**Proprietary Entry**

	Debit	599750	Financing Sources Transferred In From Custodial Statement Collections – Contra Account

	   Credit	   232000		Other Deferred Revenue

***Justification:****New transaction code needed to illustrate the use of the new USSGL account 599750.*

**Modified Transaction Code:**

**F336**	To record the closing of revenue, expense, and other financing source accounts to cumulative results of operations.

**Budgetary Entry**

	None

**Proprietary Entry**

	Debit	331000	Cumulative Results of Operations

	Debit	510000	Revenue From Goods Sold

	Debit	520000	Revenue From Services Provided

	Debit	531000	Interest Revenue - Other

	Debit	531100	Interest Revenue - Investments

	Debit	531200	Interest Revenue - Loans Receivable/Uninvested Funds

	Debit	531300	Interest Revenue - Subsidy Amortization

	Debit	531400	Dividend Income Accounted for Under the Provisions of the Federal Credit Reform Act

	Debit	532000	Penalties and Fines Revenue

	Debit	532500	Administrative Fees Revenue

	Debit	540000	Funded Benefit Program Revenue

	Debit	540500	Unfunded FECA Benefit Revenue

	Debit	550000	Insurance and Guarantee Premium Revenue

	Debit	560000	Donated Revenue - Financial Resources

	Debit	561000	Donated Revenue - Non-Financial Resources

	Debit	564000	Forfeiture Revenue - Cash and Cash Equivalents

	Debit	565000	Forfeiture Revenue - Forfeitures of Property

	Debit	570000	Expended Appropriations - Used - Accrued

	Debit	570010	Expended Appropriations - Disbursed

	Debit	570500	Expended Appropriations - Prior-Period Adjustments Due to Corrections of Errors - Years Preceding the Prior-Year

	Debit	570800	Expended Appropriations - Prior-Period Adjustments Due to Corrections of Errors

	Debit	570900	Expended Appropriations - Prior-Period Adjustments Due to Changes in Accounting Principles

	Debit	572000	Financing Sources Transferred In Without Reimbursement

	Debit	574000	Appropriated Dedicated Collections Transferred In

	Debit	575000	Expenditure Financing Sources - Transfers-In

	Debit	575500	Non-Expenditure Financing Sources - Transfers-In - Other

	Debit	575600	Non-Expenditure Financing Sources - Transfers-In - Capital Transfers

	Debit	577500	Non-Budgetary Financing Sources Transferred In

	Debit	578000	Imputed Financing Sources

	Debit	579000	Other Financing Sources

	Debit	579100	Adjustment to Financing Sources - Credit Reform

	Debit	579500	Seigniorage

	Debit	580000	Tax Revenue Collected - Not Otherwise Classified

	Debit	580100	Tax Revenue Collected - Individual

	Debit	580200	Tax Revenue Collected - Corporate

	Debit	580300	Tax Revenue Collected - Unemployment

	Debit	580400	Tax Revenue Collected - Excise

	Debit	580500	Tax Revenue Collected - Estate and Gift

	Debit	580600	Tax Revenue Collected - Customs

	Debit	582000	Tax Revenue Accrual Adjustment - Not Otherwise Classified

	Debit	582100	Tax Revenue Accrual Adjustment - Individual

	Debit	582200	Tax Revenue Accrual Adjustment - Corporate

	Debit	582300	Tax Revenue Accrual Adjustment - Unemployment

	Debit	582400	Tax Revenue Accrual Adjustment - Excise

	Debit	582500	Tax Revenue Accrual Adjustment - Estate and Gift

	Debit	582600	Tax Revenue Accrual Adjustment - Customs

	Debit	590000	Other Revenue

	Debit	592100	Valuation Change in Investments - Exchange Stabilization Fund (ESF)

	Debit	592200	Valuation Change in Investments for Federal Government Sponsored Enterprise

	Debit	592300	Valuation Change in Investments - Beneficial Interest in Trust

	Debit	599400	Offset to Non-Entity Accrued Collections - Statement of Changes in Net Position

	Debit	599700	Financing Sources Transferred In From Custodial Statement Collections

	Debit	619000	Contra Bad Debt Expense - Incurred for Others

	Debit	619900	Adjustment to Subsidy Expense

	Debit	660000	Applied Overhead

	Debit	661000	Cost Capitalization Offset

	Debit	679500	Contra Expense-Non-Fiduciary Deposit Fund Intra-governmental Administrative Fees

	Debit	680000	Future Funded Expenses

	Debit	690000	Non-Production Costs

	   Credit	   331000		Cumulative Results of Operations

	   Credit	   510900		Contra Revenue for Goods Sold

	   Credit	   520900		Contra Revenue for Services Provided

	   Credit	   531500		Contra Revenue for Dividend Income Accounted for Under the Provisions of the Federal Credit Reform Act

	   Credit	   531700		Contra Revenue for Interest Revenue - Loans Receivable

	   Credit	   531800		Contra Revenue for Interest Revenue - Investments

	   Credit	   531900		Contra Revenue for Interest Revenue - Other

	   Credit	   532400		Contra Revenue for Penalties and Fines

	   Credit	   532900		Contra Revenue for Administrative Fees

	   Credit	   540600		Contra Revenue for Unfunded FECA Benefit Revenue

	   Credit	   540900		Contra Revenue for Funded Benefit Program Revenue

	   Credit	   550900		Contra Revenue for Insurance and Guarantee Premium Revenue

	   Credit	   560900		Contra Revenue for Donations - Financial Resources

	   Credit	   561900		Contra Donated Revenue - Nonfinancial Resources

	   Credit	   564900		Contra Forfeiture Revenue - Cash and Cash Equivalents

	   Credit	   565900		Contra Forfeiture Revenue - Forfeitures of Property

	   Credit	   570500		Expended Appropriations - Prior-Period Adjustments Due to Corrections of Errors - Years Preceding the Prior-Year

	   Credit	   570800		Expended Appropriations - Prior-Period Adjustments Due to Corrections of Errors

	   Credit	   570900		Expended Appropriations - Prior-Period Adjustments Due to Changes in Accounting Principles

	   Credit	   573000		Financing Sources Transferred Out Without Reimbursement

	   Credit	   574500		Appropriated Dedicated Collections Transferred Out

	   Credit	   576000		Expenditure Financing Sources - Transfers-Out

	   Credit	   576500		Non-Expenditure Financing Sources - Transfers-Out - Other

	   Credit	   576600		Non-Expenditure Financing Sources - Transfers-Out - Capital Transfers

	   Credit	   577600		Non-Budgetary Financing Sources Transferred Out

	   Credit	   579200		Financing Sources To Be Transferred Out - Contingent Liability

	   Credit	   583000		Contra Revenue for Taxes - Not Otherwise Classified

	   Credit	   583100		Contra Revenue for Taxes - Individual

	   Credit	   583200		Contra Revenue for Taxes - Corporate

	   Credit	   583300		Contra Revenue for Taxes - Unemployment

	   Credit	   583400		Contra Revenue for Taxes - Excise

 	   Credit	   583500		Contra Revenue for Taxes - Estate and Gift

	   Credit	   583600		Contra Revenue for Taxes - Customs

	   Credit	   589000		Tax Revenue Refunds - Not Otherwise Classified

	   Credit	   589100		Tax Revenue Refunds - Individual

	   Credit	   589200		Tax Revenue Refunds - Corporate

	   Credit	   589300		Tax Revenue Refunds - Unemployment

	   Credit	   589400		Tax Revenue Refunds - Excise

	   Credit	   589500		Tax Revenue Refunds - Estate and Gift

	   Credit	   589600		Tax Revenue Refunds - Customs

	   Credit	   590900		Contra Revenue for Other Revenue

	   Credit	   591900		Revenue and Other Financing Sources - Cancellations

	   Credit	   599000		Collections for Others - Statement of Custodial Activity

	   Credit	   599100		Accrued Collections for Others - Statement of Custodial Activity

	   Credit	   599300		Offset to Non-Entity Collections - Statement of Changes in Net Position

	   Credit	   599400		Offset to Non-Entity Accrued Collections - Statement of Changes in Net Position

	   Credit	   599750	   Financing Sources Transferred In From Custodial Statement Collections – Contra Account	

              Credit	   599800		Custodial Collections Transferred Out to a Treasury Account Symbol Other Than the General Fund of the U.S. Government

	   Credit	   610000		Operating Expenses/Program Costs

	   Credit	   615000		Expensed Asset

	   Credit	   631000		Interest Expenses on Borrowing From the Bureau of the Fiscal Service and/or the Federal Financing Bank

	   Credit	   632000		Interest Expenses on Securities

	   Credit	   633000		Other Interest Expenses

	   Credit	   634000		Interest Expense Accrued on the Liability for Loan Guarantees

	   Credit	   640000		Benefit Expense

	   Credit	   650000		Cost of Goods Sold

	   Credit	   660000		Applied Overhead

	   Credit	   661000		Cost Capitalization Offset

	   Credit	   671000		Depreciation, Amortization, and Depletion

	   Credit	   672000		Bad Debt Expense

	   Credit	   673000		Imputed Costs

	   Credit	   679000		Other Expenses Not Requiring Budgetary Resources

	   Credit	   680000		Future Funded Expenses

	   Credit	   685000		Employer Contributions to Employee Benefit Programs Not Requiring Current-Year Budget Authority (Unobligated)

	   Credit	   690000		Non-Production Costs

***Justification:****Transaction code modification needed to update closing entry to include new USSGL account 599750*

 	Page **1** of **2**	IRC Handout – April 20, 2022