U.S. Government Standard General Ledger
Issues Resolution Committee (IRC) Meeting Minutes
May 5, 2011
GENERAL ITEMS:
This meeting was held on May 5, 2011, at the Government Accountability Office, 441 G Street, NW., Room 7C13, Washington, DC.
Kathy Winchester (FMS) opened the meeting and briefly mentioned the three agenda items for the meeting. She also mentioned that the proposal for the Exchange Stabilization Fund (ESF) is still being worked on and is not in final yet.
Introductions were made.
HANDOUTS:
- Draft Ballot #11-01, dated May 5, 2011
- Non-fiduciary Deposit Fund with Investment Authority and Clearing Account Guidance, dated May 4, 2011
- Issues Resolution Committee Presentation Dates for Proposed Changes to the USSGL Chart of Accounts – USSGL Board Voting Ballot #11-01, dated May 5, 2011
- USSGL IRC Proposal Trust Fund Transfers of Contract Authority – Nonallocation Transfers Revised Impact on FACTS II Attribute Table and Crosswalks (Revised from 4/28/11 IRC Handout), dated May 5, 2011
- Deposit Fund Flowchart, May 5, 2011
- FY2009 Fiduciary TAS Summary, dated September 2010
AGENDA ITEMS:
Proposed/Revised USSGL Accounts for Nonfiduciary Deposit Funds With Investment Authority and Clearing Account Guidance
Christine Chang (FMS) reviewed the flowchart titled "Current Nonfiduciary Deposit Fund and Clearing Account Guidance." By definition, money in a clearing account belongs to the Federal Government but temporarily remains in the account until further information can be collected to identify it. The USSGLD believes that the current practice of recording clearing account balances as liabilities is inappropriate because the clearing account should instead increase the Federal Government's net position.
Christine then went over a separate chart that Oscar Castro (FMS) sent her, titled "FY 2009 Fiduciary Funds Based on Agency Responses to FMS Related to Fiduciary Funds and Review of Final Agency PARs". What is on the list is what the agencies define as "fiduciary." Therefore, by process of elimination, all other TAS not listed would be considered "nonfiduciary." Eileen Parlow (FASAB) was concerned about the list being authoritative and all inclusive. Kathy Winchester explained that the agencies themselves are responsible for telling FMS if their TAS is fiduciary or nonfiduciary and that the list is simply based on information the agencies have provided to FMS.
The scenario titled, "Non-fiduciary Deposit Fund with Investment Authority and Clearing Account Guidance" was then discussed. Starting with the proprietary attributes, Christine noted a few minor errors that will be corrected. Additionally, Christine recommended that the new account not crosswalk to Balance Sheet line 32, "Cumulative Results of Operations – Earmarked Funds," and that it should crosswalk to line 33, "Cumulative Results of Operations – Other Funds."
Christine then went over the changes for the existing USSGL account 2400, "Liability for Nonfiduciary Deposit Funds, Clearing Accounts, and Undeposited Collections." The title is being changed to "Liability for Nonfiduciary Deposit Funds and Undeposited Collections."
Carol Gower (State) wanted to know how this would affect the clearing accounts that agencies had been granted waivers to continue to use. Christine confirmed that it is being limited because an agency only should be putting money in a clearing account if the agency knows it belongs to the Government. Maryla Engelking (DoD) also had a concern about double counting revenue. For example, if a receivable has been set up and the revenue accounted for, but money comes in later and is put into the clearing account until it can be specifically identified, the revenue is being double counted. Kathy understood that concern and asked how often this happens. After further discussions, it was decided that even though the amounts collected in clearing accounts do belong to the Government, a new revenue account will not be established to conform with the principle of conservatism and to prevent potential double counting of revenue. A new liability account was recommended as follows:
Account Number: 2410
Account Title: Liability for Clearing Accounts
Definition: Amount of collections deposited in clearing accounts awaiting disposition or reclassification. This account does not close at yearend.
Christine then went over the rest of the scenario noting that she will update the scenario with the new USSGL 2410 account information and will take out proposed USSGL account 5796.
The USSGLD will come forward at another time to recommend a resolution to reporting interest earnings in deposit funds.
PROPOSED REVISION TO USSGL ACCOUNT 4120, "APPROPRIATIONS ANTICIPATED - INDEFINITE"
Karen Metler (FMS) reviewed the "Trust Fund Transfer of Contract Authority – Nonallocation Transfers" handout. She recapped the two proposed new USSGL accounts that were discussed at the previous IRC meeting. They are USSGL account 4153 "Transfers of Contract Authority – Nonallocation," and USSGL account 4154 "Appropriation To Liquidate Contract Authority – Nonallocation – Transferred."
It was brought to Karen's attention that these two transfers can be of current-year authority or prior-year balances, and, if the transfers are of prior-year balances, OMB will require different SF 133/P&F lines. In order to accommodate this issue, rather than establishing separate accounts for prior-year and current-year transfers, it was decided that the "Year of BA" attribute be required along with the originally proposed two new accounts. Therefore, a "Y" was placed in the "Year of BA" column for the new accounts, and USSGL account 4153 will now crosswalk to lines 1014/1015 of the SF 133/P&F for balances and to lines 1610/1611 of SF 133/P&F for new authority. Note that lines 1014 and 1015 are projected new lines from OMB.
Year 2 has been added to the scenario to show a couple transactions where the "BAL" domain value would be used and how it crosswalks to the new lines.
REVIEW DRAFT BOARD BALLOT
Gwen Marshman (FMS) briefly went over the "IRC Presentation Dates for Proposed Changes to the USSGL Chart of Accounts" mentioning that it will be updated and that agencies can see the dates that each of the accounts were discussed. This will allow review of the minutes from that day if necessary to assist them in making an informed decision when voting. Gwen also reviewed the draft "USSGL Voting Ballot" noting that this information has been presented to the IRC and there should not be any surprises.
Kathy mentioned that for the ESF – Investments series accounts, the USSGL will work on the titles to make sure they describe the asset itself and not the fund that is buying it.
CLOSING REMARKS:
Kathy mentioned that the Board meeting will be in two weeks, on May 19, 2011, at the GAO Building in the smaller room across the hall and thanked everyone for attending.
ATTENDEES:
Kathy Winchester, FMS
Sherry Pontell, FMS
Stephanie Pickerell, FMS
Melinda Pope, FMS
Gwen Marshman, FMS
Christine Chang, FMS
Karen Metler, FMS
Kim Klein, DOE
Cindy Scharf, Library of Congress
Al Buck, USAID
Jerry Shea, VA
Eileen Parlow, FASAB
Dan Smith, PTO
Lise Trumbull, GSA
Michael Ward, GSA
David Cary Thomas, VA
Teresa Lampkin, DOT
Bruce Henshel, Commerce
Boris Lyubovitsky, USDA
Leon Fleischer, SBA
David Surti, DHS
Nikcola Yorkshire, FMS
Jenny Smith, HHS
Nancie Kebioh Gray, ED
Letha Holliday, SSA
Mark Graham, SSA
Barbara, Ricks, SSA
Karen Hunter, SSA
Ana Labador, SSA
DeGloria Hall, SSA
Michele Murrill, SSA
Bethany Williams, DOE
Jane Stephen, NRC
Ellis Ogun, NASA
Loren Phillips, NASA
Phil Howland, TREAS
Cassandra Pullman-Watkins, TREAS
Carol Gower, STATE
Maryla, Engelking, DoD
Shanell Overton, NSF
Yong Sun, HUD
Carl Gayton, HUD
Jackie McLaurin, DHS
Gerald Davenport, DoD