**Proposed new USSGL and TC’s/Changes to existing USSGL and TC’s – Nonfiduciary Deposit Fund Scenario**

**The following new USSGL accounts will be effective for fiscal 2016 reporting.**

**PROPOSED USSGL ACCOUNTS:**

**Account Title:**Contra Expense- Nonfiduciary Deposit Fund Intragovernmental Administrative Fees

**Account Number:**679500

**Normal Balance:** Credit

**Definition:**The amount that offsets intragovernmental administrative fees paid by nonfiduciary deposit funds, in compliance with SFFAS 7, paragraph 239. 

***Justification: Deposit Funds are non-budgetary accounts and cannot have results of operations. However, intragovernmental expenses need to be recorded to offset intragovernmental revenues in the performing federal agency.***

**PROPOSED CHANGE TO CURRENT USSGL ACCOUNTS FOR FISCAL 2016:**

**Account Title:**Contra Revenue for Interest Revenue- Investments

**Account Number:**531800

**Normal Balance:** Debit

**Old Definition**: The amount reflecting a reduction in revenue for interest accrued on investments when realization is not expected.

**New Definition**: The amount reflecting a reduction in revenue for interest accrued on investments when realization is not expected, or to offset intragovernmental interest revenue in nonfiduciary deposit funds with investment authority, in compliance with SFFAS 7, paragraph 239.

***Justification:******Deposit Funds are non-budgetary accounts and cannot have results of operations. However, intragovernmental revenues need to be recorded in non-fiduciary deposit funds with investment authority to offset intragovernmental interest expense paid by Treasury Fiscal Service.***

**Proposed Changes to Existing TC’s**

**C402**To record an accrual of revenue reported on the Statement of Custodial Activity or on the custodial footnote that is collected by an agency to be deposited directly into a General Fund receipt account.  In addition, to record administrative fees earned for administering a nonfiduciary deposit fund. 

**Comment:**Also post USSGL TC-C404. For amounts deposited into a General Fund receipt account but not reported on the Statement of Custodial Activity or on the custodial footnote, see USSGL TC- C420. See USSGL TC-F124 for the preclosing adjusting entry recorded at yearend.

**Reference:**GL implementation guidance; Miscellaneous Receipts; General Fund Receipt Account

Guide

# 

# 

# Budgetary Entry

None

# Proprietary Entry

****

**C417**To record interest receivable on non-federal securities held by a nonfiduciary deposit fund.

**Comment:**A nonfiduciary deposit fund should not have net position. Also, use this entry to record the accrual of inflation earned on Treasury Inflation Protected Securities (TIPS). Reverse this entry to record the accrual of deflation. 

**Reference:**USSGL Implementation Guide: Nonfiduciary Deposit Fund with Investment Authority and Clearing Account Guidance

# Budgetary Entry

None

# Proprietary Entry

Debit             134200    Interest Receivable - Investments Credit                                                      Credit		240000  Liability for Nonfiduciary Deposit Funds 

**C418**To record interest receivable on securities held by Treasury Appropriation Fund Symbol (TAFS).  Also recorded for federal securities held by nonfiduciary deposit funds.  

**Comment:**Also, use this entry to record the accrual of inflation earned on Treasury Inflation Protected Securities (TIPS). Reverse this entry to record the accrual of deflation. See USSGL TC-C417 for interest receivable on non-federal securities held by a nonfiduciary deposit fund.  If federal securities held by nonfiduciary deposit funds also record TC - E205.

# Budgetary Entry

None

# Proprietary Entry

Debit             134200    Interest Receivable - Investments Credit                531100  Interest Revenue- Investments

**D506**To record disbursements from nonfiduciary deposit funds.  This includes return of escrow amounts and 

****erroneous receipts and disbursing escrow monies to pay bills, taxes, insurance and administrative                                 

**Comment:**A nonfiduciary deposit fund should not have net position. Also, use this entry to record the accrual of inflation earned on Treasury Inflation Protected Securities (TIPS). Reverse this entry to record the accrual of deflation. 

# 

# Budgetary Entry

None

# Proprietary Entry

**E115**To record the amortization of the discount on non-federal securities in a nonfiduciary deposit fund.

**Comment:**Reverse this entry for amortization of a premium. For amortization of the discount on a U.S. Treasury Zero Coupon Bond issued by the Bureau of the Fiscal Service to a nonfiduciary deposit fund see USSGL TC-E119. A nonfiduciary deposit fund should not have net position.  Also record TC-E205 so that there will not be an impact on net position

**Reference:**USSGL Implementation Guide: Nonfiduciary Deposit Fund with Investment Authority and Clearing Account Guidance

**Budgetary Entry**

None

**Proprietary Entry**

~~Debit           161300         Amortization of Discount and Premium on Securities Issued by the Bureau of the Fiscal Service Securities~~

Debit           162300         Amortization of Discount and Premium on Securities Other Than the Bureau of the Fiscal Service Securities

Credit         240000        Liability for Nonfiduciary Deposit Funds and Undeposited Collections

**E117**To record the amortization of the discount on Federal securities that does not affect budgetary resources in a

Treasury Appropriation Fund Symbol (TAFS) ~~other than a nonfiduciary deposit fund~~. Also recorded for federal securities held by nonfiduciary deposit funds.

**Comment:**Reverse this entry for amortization of a premium. For amortization of the discount on a U.S. Treasury Zero Coupon Bond issued by the Bureau of the Fiscal Service see USSGL TC-E113. See USSGL TC-E115 for amortization of the discount on non-federal securities in a nonfiduciary deposit fund. If federal securities held by nonfiduciary deposit funds also record TC - E205.

# Budgetary Entry

None

# Proprietary Entry

**E119**To record the amortization of the discount on a U.S. Treasury Zero Coupon Bond issued by the Bureau of the

Fiscal Service in nonfiduciary deposit fund. Also record TC-E205 so that there will not be an impact on net position.

**Comment:**A nonfiduciary deposit fund should not have net position.

# Budgetary Entry

None

# Proprietary Entry

**Proposed New TC’s**

**B405**To record accounts payable in a nonfiduciary deposit fund for administrative fees paid to another federal entity.  This transaction is recorded only when an agency has the authority to charge an administrative fee to be paid by a nonfiduciary deposit fund.

**Comment:**A nonfiduciary deposit fund should not have net position.  Also record TC-B407 so that there will not be an impact on net position

**Reference:**USSGL Implementation Guide: Nonfiduciary Deposit Fund with Investment Authority and Clearing Account Guidance

**Budgetary Entry**

None

**Proprietary Entry**

Debit           679000         Other Expenses Not Requiring Budgetary Resources

Credit          211000         Accounts Payable

**B407**To record a contra expense in a nonfiduciary deposit fund for administrative fees paid to another federal entity.   This transaction is recorded only when an agency has the authority to charge an administrative fee to be paid by a nonfiduciary deposit fund.

**Comment:**A nonfiduciary deposit fund should not have net position.  Also record TC-B405at the same time so that there will not be an impact on net position

**Reference:**USSGL Implementation Guide: Nonfiduciary Deposit Fund with Investment Authority and Clearing Account Guidance

**Budgetary Entry**

None

**Proprietary Entry**

Debit           240000         Liability for Nonfiduciary Deposit Funds and Undeposited Collections

Credit          679500         Contra Expense – Nonfiduciary Deposit Fund Intragovernmental Administrative Fees

**E205**To record the amortization of the discount on Federal securities or interest receivable in a nonfiduciary deposit fund.

**Comment:**Reverse this entry for amortization of a premium. For amortization of the discount on a U.S. Treasury Zero Coupon Bond issued by the Bureau of the Fiscal Service to a nonfiduciary deposit fund see USSGL TC-E119. A nonfiduciary deposit fund should not have net position.  Also record TC-C418 or TC-E117 so that there will not be an impact on net position.

**Reference:**USSGL Implementation Guide: Nonfiduciary Deposit Fund with Investment Authority and Clearing Account Guidance

**Budgetary Entry**

None

**Proprietary Entry**

Debit          531800         Contra Revenue for Interest Revenue - Investments

Credit          240000         Liability for Nonfiduciary Deposit Funds and Undeposited Collections

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