U.S. Government Standard General Ledger
Issues Resolution Committee (IRC) Meeting Minutes

May 20, 2010

GENERAL ITEMS:

PLACE: White House Conference Center,
726 Jackson Place NW.,
Washington, D.C.

TIME: 9 a.m. to 11:30 a.m.

PARTICIPANTS:

Kathy Winchester, FMS
Karen Metler, FMS
Karl Boettcher, FMS
Edwin Walker, FMS
Gwendolen Marshman, FMS
Christine Chang, FMS
Michele Crisman, FMS
Karl Foltz, FMS
Melinda Pope, FMS
Jena Gruby, FMS
Tiffany Dillworth, FMS
Anthony Dunbar, FMS
Ben Sussman, FMS
Jan Smith, OMB
Teresa Tancre, OMB
Carol Berg, BPD
Robert Holiday, BPD
Valarie Smithen-More, Treasury
Boris Lyubovitsky, AGRI
Alice Rice, DOD
Barbara Harbell, DOE
Bruce Henshel, DOC
Daniel Smith, DOC – P&T
Kim Klein, DOE
James Shea, DVA
David Surti, DHS
Valeria Dungee, DOJ
Webster Coleman, DOL
Drena McDaniel, DOT
Chris Dyson, EDU
Lisa Trumbull, GSA
Michael Ward, GSA
Jenny Smith, HHS
Rita Hebb, HUD
Carl Gayton, HUD
Yong Sun, HUD
Julie Callahan, NASA
Ellis Ogun, NASA
Shashi Patel, NASA
Tamara West, NASA
Ebony Overton, NSF
Cynthia Paolillo, NSF
Susan Stengel, NRC
Stuart Turner, NOAA
Karen Hunter, SSA
Joseph Henry, SBA
Letha Holiday, SSA
Junghee Gogue, SSA
Dianne White, SSA
Mark Graham, SSA
Paul Webster, SSA
Mathew Trusch, SSA
Joshua Koontz, SSA
Clinton Yoho, SSA
Sal Caltabiano, SSA

HANDOUTS:

• Agenda
• United States Standard General Ledger Ballot #10-01
• Actuarial Liabilities
• Scenario To Reflect the Use of the Appropriation for the Redemption of Treasury Securities
• USSGL Changes Related to Capital Transfers Effective for Fiscal 2011
• Capital Transfer
• U.S. Debit Card Program
• International Monetary Fund Assets – Exchange Stabilization Fund Assets – Valuation Change in Investments – ESF
• Forfeiture Revenue
• Forfeiture Revenue Scenario
• Governmentwide Treasury Account Symbol Adjusted Trial-Balance System
• Governmentwide Treasury Account Symbol Adjusted Trial-Balance System Flyer
• Nonexpenditure Transfers – GWA System NET Application Changes and USSGL Impact
• GWA System NET Application Reference Sheet USSGL Accounts by NET Transfer Type
• Nonexpenditure Transfers Balance Transfers Resulting From a Legislative Change of Purpose Effective Fiscal 2011
• Reappropriations – Budgetary Resources Transferred Out Due to a Reappropriation Effective Fiscal 2011
• One Stop Shopping: SF 132, SF 133, and the President's Budget
• Prior-Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year
• Prior-Year Advances or Other Offsetting Collections Refunded in the Current Year as Obligations and Outlays
• Six-Digit USSGL Accounts
• TARP, GSE, and BIT
• Presentation Dates for Proposed Changes to the USSGL Chart of Accounts – USSGL Board Voting Ballot #10-01
• USSGL Board Bylaws – Proposed Technical Changes
• USSGL Bylaws
• Bolding and Definition Modifications to the USSGL Section II – Accounts and Section III – Transactions
• U.S. Debit Card Program
• Appropriation for the Redemption of Treasury Securities – Prior-Year Unfilled Customer Orders With Advance

PRESENTATIONS AND DISCUSSIONS:

Opening Remarks

Kathy Winchester (FMS) opened the meeting and reviewed the agenda. She then asked attendees to introduce themselves and to indicate their organizational affiliation.

Troubled Assets Relief Program and Government Sponsored Enterprises

Melinda Pope (FMS) reviewed the handouts for the Troubled Assets Relief Program and the Government Sponsored Enterprises.

She indicated that, in response to the Emergency Stabilization Act of 2008, the USSGL staff has proposed 12 new USSGL accounts as follows:

– = — 1380 – Loans Receivable – Troubled Assets Relief Program

1381 – Interest Receivable – Loans – Troubled Assets Relief Program

1385 – Allowance for Loss on Interest Receivable – Loans – Troubled Assets Relief Program

1389 – Allowance for Subsidy – Loans – Troubled Assets Relief Program

1642 – Preferred Stock Accounted for Under the Provisions of the Federal Credit Reform Act

1643 – Allowance for Subsidy – Preferred Stock Accounted for Under the Provisions of the Federal Credit Reform Act

1644 – Common Stock Accounted for Under the Provisions of the Federal Credit Reform Act

1645 – Allowance for Subsidy – Common Stock Accounted for Under the Provisions of the Federal Credit Reform Act

1646 – Discount on Securities Accounted for Under the Provisions of the Federal Credit Reform Act

1647 – Premium on Securities Accounted for Under the Provisions of the Federal Credit Reform Act

5314 – Dividend Income Accounted for Under the Provisions of the Federal Credit Reform Act

5315 – Contra Revenue for Dividend Income Accounted for Under the Provisions of the Federal Credit Reform Act

In addition, the USSGL staff proposed revisions to the following USSGL accounts:

1621 – Discount on Securities Other Than the Bureau of the Public Debt Securities

1622 – Premium on Securities Other Than the Bureau of the Public Debt Securities

Then, Melinda reviewed the attribute and crosswalk impact of these accounts. She stated that in response to the Government Sponsored Enterprise (GSE) investment transactions under the Housing and Economic Recovery Act, as well as transactions related to the "bail-out" of the Agency for International Development, the USSGL staff has proposed adding 10 new USSGL accounts:

1650 – Preferred Stock in Federal Government Sponsored Enterprise

1651 – Market Adjustment – Preferred Stock in Federal Government Sponsored Enterprise

1652 – Common Stock Warrants in Federal Government Sponsored Enterprise

1653 – Market Adjustment – Common Stock Warrants in Federal Government Sponsored Enterprise

1660 – Beneficial Interest in Trust

1661 – Market Adjustment – Beneficial Interest in Trust

2112 – Accounts Payable for Federal Government Sponsored Enterprise

2922 – Contingent Liabilities – Federal Government Sponsored Enterprise

5922 – Valuation Change in Investments for Federal Government Sponsored Enterprise

5923 – Valuation Change in Investments – Beneficial Interest in Trust

Melinda discussed the attribute and crosswalk impact of these accounts.

Nonexpenditure Transfers, Reappropriations, and Balance Transfers – Legislative Changes Anticipated

Karen Metler (FMS) reviewed handouts for the Nonexpenditure Transfers, Reappropriations, and Balance Transfers – Legislative Changes Anticipated.

Nonexpenditure Transfers – GWA System NET Application Changes and USSGL Impact

Karen indicated that, beginning November 2010, the initiating agency of a nonexpenditure transfer (NET) in the GWA System must select the appropriate USSGL budgetary accounts required. Agencies must know their NET transfer type and what type of funds they are transferring. Karen provided a snapshot of the current and future GWA System NET Application. Then, she discussed the reappropriations and balance transfers for which legislation has changed the purpose and their USSGL impact on accounts.

Reappropriations

Karen addressed the issue that the current USSGL account 4393, "Permanent Reduction - Prior-Year Balances" was not originally intended for reappropriation activity. Furthermore, with the addition of budgetary account selections required in the GWA System, USSGL account 4393 would map to two NET transfer types. Therefore, the USSGL staff proposed new USSGL account 4390, "Reappropriations – Transfers-Out," to be recorded by the transferring out entity. This proposal also included modifying two additional USSGL accounts as follows:

4150 — Reappropriations, Transfers-In

4393 — Permanent Reduction – Prior-Year Balances

Then, Karen described the impacts on the Federal Agencies Centralized Trial-Balance System (FACTS) II Attribute Table and the USSGL crosswalks.

Balance Transfers – Legislative Change in Purpose

Karen talked about balance transfers occurring because legislation has changed the purpose. She indicated that OMB requires that the transfer to be reflected as an "appropriation transfer" on the SF 133 and Budget Program and Financing (P&F) Schedule, whereas Treasury requires the transfer to be reflected as a "balance transfer" on the Treasury Combined Statement (TCS). Currently USSGL account 4170, "Transfers – Current-Year Authority" captures both the normal transfers of current-year authority and the exception for prior-year balance transfers where legislation has changed the purpose. With the addition of budgetary account selections required in the GWA System. USSGL account 4170 would map to two GWA NET transfer types. Therefore, the USSGL staff proposed two new USSGL accounts as follows:

4183 – Anticipated Balance Transfers – Unobligated Balances – Legislative Change of Purpose

4193 – Balance Transfers – Unobligated Balances – Legislative Change of Purpose

The proposal also included modification of USSGL account 4170, "Transfers – Current-Year Authority."

Karen addressed the impact of these accounts on the FACTS II Attribute Table and the USSGL crosswalks.

Exchange Stabilization Fund

Jena Gruby (FMS) reviewed the handout for the Exchange Stabilization Fund.

The USSGL staff proposed three new USSGL accounts as follows:

1193 – International Monetary Fund Assets – Reserve Position

1194 – Exchange Stabilization Fund Assets – Holdings of Special Drawing Rights

5921 – Valuation Change in Investments – Exchange Stabilization Fund

In addition, the USSGL staff proposed modification to USSGL account 1195, "Other Monetary Assets." Jena addressed the impact these accounts have on the USSGL crosswalks.

Prior-Period Adjustments, U.S. Debit Cards, and Forfeiture Revenue

Edwin Walker (FMS) reviewed the handouts for Prior-Period Adjustments, U.S. Debit Cards, and Forfeiture Revenue.

Prior-Period Adjustments

Edwin indicated that corrections of errors in the financial statements are the result of mathematical mistakes, mistakes in the application of accounting principles, and/or oversight or misuse of facts that existed at the time the financial statements were prepared. Government Accountability Office (GAO) auditors of the Financial Report of the United States Government advised the Financial Reports Division to make a clear distinction between corrections of errors that occurred in the earliest year presented, and corrections of errors that occurred in years preceding the prior year.

The USSGL staff proposed three new USSGL accounts to capture corrections of errors – years preceding the prior-year activity (effective fiscal 2011), as follows:

3105 –Unexpended Appropriations – Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

5705 – Expended Appropriations – Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

7405 –Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year

Edwin addressed the impact on the USSGL crosswalks.

U.S. Debit Cards

U.S. Debit Card is a bankcard that Federal agencies use for Federal payments to individuals. Agencies have the option of issuing the card as a disposable or reloadable payment mechanism. All U.S. Debit Card Program activity should be reported as Cash and Investments Held Outside of Treasury (CIHO).

To capture all U.S. Debit Card Program activity, the USSGL staff proposed new USSGL account 1125, "U.S. Debit Card Funds." Agencies may report U.S. Debit Card activity in one of three ways: as an advance, as an expense, or as a reimbursement or entitlement.

Edwin addressed the impact the proposed USSGL account 1125 will have on the USSGL crosswalks.

Forfeiture Revenue

Edwin stated that currently forfeiture revenue is captured in USSGL account 5900, "Other Revenue," and is crosswalked on the Statement of Changes in Net Position to lines 7 and 10.

The USSGL staff proposed the following four new USSGL accounts to correct the multiple line issue and eliminate the use of footnotes:

5640 – Forfeiture Revenue – Cash and Cash Equivalents

5649 – Contra Forfeiture Revenue – Cash and Cash Equivalents

5650 – Forfeiture Revenue – Forfeitures of Property

5659 – Contra Forfeiture Revenue – Forfeitures of Property

Edwin concluded by addressing the impact the above proposed USSGL accounts have on the USSGL crosswalk.

Actuarial Liabilities

Gwen Marshman (FMS) reviewed the handout for the Actuarial Liabilities. Currently, agencies are reporting various types of activity in USSGL account 2690, "Other Actuarial Liabilities." GAO and Treasury requested that specific USSGL accounts be established to identify actuarial liabilities in Federal insurance and guarantee programs and that Treasury-managed benefit program actuarial activity be separately reported because of the Governmentwide materiality level. While footnotes currently separate this activity, a permanent fix is to add separate reporting lines and create new USSGL accounts.

The USSGL staff proposed the following two new USSGL accounts:

2660 – Actuarial Liabilities for Federal Insurance and Guarantee Programs

2670 – Actuarial Liabilities for Treasury-Managed Benefit Programs

Gwen addressed the impact on the USSGL proprietary account attributes and crosswalk.

Capital Transfers

Christine Chang (FMS) reviewed the handout on Capital Transfers. The capital transfer illustrated in the scenario is a revolving fund transaction. It is a repayment of the capital investment back to the designated miscellaneous receipt accounts. Generally, a contingent asset is not recognized and, as a result, the previous capital transfer scenario reflected that practice. However, the USSGL staff realized that for the purpose of intra-agency elimination between an agency's revolving fund and its two-digit general fund receipt account, new accounts were needed for contingent assets related to capital transfers.

The USSGL staff proposed the following three new USSGL accounts for fiscal 2011:

1923 – Contingent Receivable for Capital Transfers

1925 – Capital Transfers Receivable

2923 – Contingent Liability for Capital Transfers

The new accounts will support intra-agency eliminations. Then, Christine reviewed the updated scenarios for capital transfers and the accounts impact to the 2011 financial statements.

Appropriation for the Redemption of Treasury Securities and Prior-Year Unfilled Customer Orders With Advance – Refunds Paid

Michele Crisman (FMS) reviewed handouts for Appropriation for the Redemption of Treasury Securities and Prior-Year Unfilled Customer Orders With Advance – Refunds Paid.

Michele discussed the use of appropriations for the redemption of Treasury securities. The Bureau of the Public Debt uses USSGL account 4170, "Transfers – Current-Year Authority," to record an exchange of assets – cash for Treasury securities. The account is for transfers of authority requiring an SF 1151: Nonexpenditure Transfer Authorization. The transfers do not represent payments or collections but instead adjust the amounts available in a Treasury Account Symbol (TAS).

The USSGL staff proposed a new USSGL account for fiscal 2011:

4370 – Offset to Appropriation Realized for Redemption of Treasury Securities

Michele reviewed the impact the proposed account has on the SF 133/P&F line 1200: Budget Authority, and Statement of Budgetary Resources, line 3A: Budget Authority.

Michele then addressed Prior-Year Unfilled Customer Orders With Advance – Refunds Paid. While OMB Circular No. A-11 indicates that if an agency returns a cash advance or other offsetting collection received in a prior fiscal year, it must record an obligation and outlay. The USSGL TFM states that transactions reduce the unfilled customer orders with advance and/or other offsetting collections related to status accounts and do not reflect obligations and outlays. The USSGL staff proposed creating a new USSGL account:

4253 - Prior Year Unfilled Customer Orders With Advance – Refunds Paid

Michele discussed Year 1 and Year 2 scenarios and the impacts the proposed account has on the SF133/P&F.

USSGL Formatting

Karl Boettcher (FMS) reviewed the handout for USSGL formatting. Karl noted a lack of consistency in "bolding" of USSGL accounts. Section I indicates that USSGL accounts in "bold" are new or indicate a change to title, normal balance, and/or definition from the August 2008 USSGL TFM release. Section III states that in the yearend closing entries, USSGL accounts that may contain a balance (remain open) after closing appear in "boldface." To avoid confusion, a sentence will be added to Section II account definitions for those proprietary, budgetary, and memorandum accounts that remain open stating, "This account does not close at yearend." The bolding for yearend closing account transactions F3XXX in Section III will be removed.

Voting Ballot #10-01

Gwen Marshman (FMS) reviewed the handout for Voting Ballot #10-01.

Gwen indicated that the proposed new USSGL accounts for 2010 reporting are: 1380, 1381, 1385, 1389, 1642, 1643, 1644, 1645, 1646, 1647, 1650, 1651, 1652, 1653, 1660, 1661, 2112, 2922, 5314, 5315, 5922, and 5923. The proposed changes for fiscal 2010 are to USSGL accounts: 1621, 1622.

The proposed new USSGL accounts for 2011 reporting are: 1125, 1193, 1194, 1923, 1925, 2660, 2670, 2923, 3105, 4183, 4193, 4253, 4370, 4390, 5640, 5649, 5650, 5659, 5705, 5921, and 7405. The proposed changes for fiscal 2011 are to USSGL accounts: 1195, 4150, 4170, 4392, and 4393.

Agencies should indicate "yes" or "no" for each proposal and provide detailed justification for all "no" votes. FMS must receive the agency's votes by close of business on June 3, 2010.

Governmentwide Treasury Account Symbol Adjusted Trial-Balance System

Rita Cronley (FMS) reviewed the handout for the Governmentwide Treasury Account Symbol Adjusted Trial-Balance System (GTAS) Update. Rita provided an overview of GTAS and indicated it would streamline the central reporting requirements for Federal agencies, integrate agency budgetary and proprietary reporting, and make the USSGL more user friendly and accessible. In addition, GTAS will improve the consistency of all Federal financial reporting and will replace the FACTS I, FACTS II, Intragovernmental Reporting and Analysis System, and Intragovernmental Fiduciary Confirmation System trial-balance reporting systems.

She discussed the problems with today's systems, including:

• GAO has 13 disclaimers.
• FMS makes adjustments of $1 trillion each year to "fix" agency data.
• Reporting is at too high a level to conduct effective data analysis.
• Agency information and reporting is often inconsistent with USSGL guidance, monthly SF 224 reports, and central accounting records.
  
  AND
• Budgetary and proprietary reporting is inconsistent.

Then, Rita discussed the following items that GTAS should include:

• One USSGL trial balance for each TAS.
• Daily Super Master Account File (SMAF) and Fund Balance With Treasury dollar updates from GWA.
• Open system to users 24 hours, 7 days a week (bulk file only).
• Open testing by agencies in July 2012, and implementation in January 2013.

In addition, Rita reviewed other issues related to GTAS, including the:

• SMAF;
• Bulk file format;
• Validation and edits;
• Yearend transaction; AND
• Proprietary balances in a canceled TAS.

Six-Digit USSGL Account Structure

Melinda Pope (FMS) reviewed the handout for the six-digit USSGL account structure. She indicated that the USSGL staff has proposed that the current four digits in the USSGL accounts be expanded to six digits. The USSGL account number has two components: (1) USSGL account code – six digits; and (2) USSGL account extension code – two digits after the six digits and to the right of the decimal point that are assigned by the agency for agency-specific reporting needs. Agencies cannot modify the six digits but can use the two-digit extension. The six digits will be implemented in GTAS and will be effective in 2013. Melinda stated that the USSGL staff will have future restructuring of USSGL accounts, but the timeframe has not been determined.

One Stop Shopping: SF 132, SF 133, and the President's Budget

Teresa Tancre (OMB) reviewed the handout for One Stop Shopping: SF 132, SF 133, and the President's Budget. She reviewed the Status of Realignment Project and indicated that on March 31, 2010, OMB had updated the electronic version of Part 9 of OMB Circular No. A-11 (2009) - Advance Guidance. Guidance in Part 9 will be moved to Parts 2, 4, and 5 when OMB Circular No. A-11 (2010) is released. OMB Circular No. A-11 sections 82, 120, 121, 130, and 185, and Appendix F will be covered. Under the realignment, the sections of the SF 132, SF 133, and P&F that share common data elements will use the same nomenclature, format, and data definitions to the extent possible. When the change is fully implemented, the SF 132, SF 133, and P&F will use a single format to present like information. Also, the USSGL TFM will include a single crosswalk format that incorporates both the SF 133 and P&F. Draft crosswalks will be presented to the IRC in the near future. Then, Teresa provided an overview of line numbers and sections. She also discussed the new OMB Circular No. A- 11 exhibits. While some complex exhibits have been eliminated in OMB Circular No. A-11, new exhibits (for example, exhibit F-1) have been added.

She reviewed the USSGL impact of the combined SF 133/P&F crosswalk and discussed the implementation. Then, she discussed that the first step is to review and compare the second-, third-, and fourth-quarter realigned SF 133 and P&F reports on the budget community page. Fiscal 2011 apportionments will require anticipated budget authority, capital transfers, redemptions of debt/new budget authority, and nonexpenditure transfers of new budget authority. She concluded by stating that OMB and BRD are working with the OMB Circular No. A-136, Statement of Budgetary Resources (SBR), subcommittee to align the SBR with the realigned SF 133. She anticipates that the SBR will be realigned to be consistent with the SF 133 and P&F.

USSGL Board Bylaws

Gwen Marshman (FMS) reviewed the handout for the USSGL Board Bylaws – Technical Changes. She said that "SGL" would change to "USSGL" throughout the document. Then, Gwen reviewed various other changes from page 6 to 26 involving various deletions and additions.

USSGL Survey

Kathy Winchester (FMS) reviewed the handout for the USSGL Survey. She indicated that the USSGL Board Bylaws were implemented 18 years ago. Since 1992, the USSGL Division has taken on a variety of duties related to the USSGL. The USSGL staff request that the IRC members complete the attached 10-question USSGL Survey for FMS by June 1, 2010. An electronic copy of this survey is located on the USSGL Web site.

CLOSING REMARKS:

Kathy thanked everyone for attending and stated that the next IRC meeting is scheduled for Thursday, May 27, 2010.