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

April 15, 2010

GENERAL ITEMS:

This meeting was held at the White House Conference Center, 726 Jackson Place, Washington, D.C.

Kathy Winchester (FMS) opened the meeting and reviewed the agenda. Then, she asked attendees to introduce themselves and indicate their organizational affiliations.

HANDOUTS:

  • Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year, dated 4/15/2010


  • Draft Scenario for Actuarial Liabilities, dated 4/15/2010

AGENDA ITEMS:

Edwin Walker (FMS) presented the draft scenario for Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year. He provided a brief overview of why the scenario was created. Edwin suggested printing this scenario in color because the tables contain color-specific coding that would benefit the readers’ understanding. Previously, the IRC saw Prior Period Adjustments (PPAs) and Prior Year Adjustments (PYAs) presentations. The original scenario addressed PPAs due to corrections of errors in the prior year only. That is, if an agency presented comparative financial statements for fiscal 2009 and 2008, the error would have occurred in the earliest year presented (fiscal 2008). However, the current scenario addresses corrections of errors in the years preceding the prior year. Meaning, if those same comparative financial statements were presented, the error would have occurred prior to the earliest year presented. As a result, three new USSGL accounts were created:

  • 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”;

    AND


  • 7405, “Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Year.”

Edwin also proposed adding two new lines to the Reclassified Statement of Changes in Net Position:

  • Line 2.3, “Corrections of Errors – Years Preceding the Prior Year”;

    AND


  • Line 3.3, “Corrections of Errors – Years Preceding the Prior Year.”

These lines ultimately will impact the Governmentwide Financial Report System and the Financial Report of the United States Government.

In addition, the following changes were discussed:

  • Page 5 of 27 – The IRC requested that the references to “Y” and “N” be deleted because they are confusing. Edwin also corrected “7402” to “7405” in the upper left-hand box.


  • Page 10 of 27 – Eileen Parlow (FASAB) questioned why an “X” wasn’t with USSGL account 4610, “Allotments – Realized Resources,” and suggested adding a footnote.


  • Page 13 of 27 – The USSGL staff will add USSGL account 4610, “Allotments – Realized Resources.” Eileen suggested a separate column for entry “A.”


  • Pages 22, 23, and 24 of 27 – Edwin will adjust “Ending Bal. from page 16” to be above the last two columns only.


  • Page 24 of 27 – The Statement of Changes in Net Position will follow OMB Circular No. A-136.


  • Page 26 of 27 – The Reclassified Statement of Net Cost will show “Restated” above the fiscal 2008 column. The Reclassified Statement of Changes in Net Position will show the revised line, “Not Restated,” above the fiscal 2008 column with a footnote.

Gwendolen Marshman (FMS) presented the Draft Scenario for Actuarial Liabilities. The scenario proposes two new USSGL accounts that will allow agencies to report a specific activity without using the USSGL crosswalk footnotes. The proposal also illustrated the proper transactions for estimated loss on actuarial liabilities. The USSGL staff will modify USSGL transactions to reflect the revised accounting for the new accounts.

Gwen indicated that last year the USSGL staff was approached about a reporting issue in fiscal 2008. The Balance Sheet, line 24, “Federal Employee and Veterans Benefits,” contained USSGL account 2690, “Other Actuarial Liabilities.” Several agencies have material activity in USSGL account 2690 that is not related to Federal employees and veteran’s benefits. Last year the temporary remedy was to add USSGL account 2690 to the fiscal 2009 and fiscal 2010 Balance Sheet crosswalks, line 27, “Other Liabilities,” with the footnote, “Other than Federal employee and veterans benefits.” At an IRC meeting on May 21, 2009, the Department of the Treasury mentioned that it had similar activity that would require a new USSGL account. The Government Accountability Office identified additional agencies that would benefit from using the proposed USSGL account 2660, “Actuarial Liabilities for Insurance Programs.” The proposal was to create and or modify the following:

  • Create USSGL account 2660, “Actuarial Liabilities for Insurance Programs.”


  • Create USSGL account 2670, “Actuarial Liabilities for Treasury-Managed Benefit Programs.”


  • Revise the Reclassified Balance Sheet for fiscal 2010:

    – Add USSGL account 2690 to line 6.9, “Other Liabilities”;

    – Add footnote 5, “Treasury-managed benefit actuarial liabilities.”

  • Update the Balance Sheet crosswalk for fiscal 2010:

    – Revise footnote 8 to read, “Other than Federal employee and veterans benefits, for example, insurance program and Treasury-managed benefit actuarial liabilities.


  • Update the Balance Sheet crosswalk for fiscal 2011:

    – Delete footnote 8 and USSGL account 2690 from line 27;

    – Add USSGL accounts 2660 and 2670 to line 27.


  • Update the Reclassified Balance Sheet for fiscal 2011:

    – Delete USSGL account 2690 from line 6.9 and footnotes 4 and 5;

    – Add USSGL accounts 2660 and 2670 to line 6.9.

Kathy said USSGL account 2400, “Liability for Nonfiduciary Deposit Funds, Clearing Accounts, and Undeposited Collections,” is a liability to one agency and a receipt to another agency. However, this USSGL account is associated with a clearing account; therefore, it is Government money and represents Government revenue.

CLOSING REMARKS:

Kathy thanked everyone for attending and stated that the next IRC meeting is scheduled for Thursday, April 29, 2010.

ATTENDEES:

Kathy Winchester, FMS
Karen Metler, FMS
Karl Boettcher, FMS
Edwin Walker, FMS
Gwendolen Marshman, FMS
Tiffany Dillworth, FMS
Ben Sussman, FMS
Kathy Schoenburger, FMS
Martin Greg, FMS
Robert Hoiday, BPD
Carol Berg, BPD
Daniel Smith, DOC – P&T
Eileen Parlow, FASAB
Mai Ly Chi, GAO
Diane Washington, DOI
Sherry Lee, DOI
James Shea, DVA
Gene Kim, NSF
Karen Hunter, SSA


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