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

January 29, 2009

GENERAL ITEMS:

Kathy Winchester (FMS) opened the meeting and stated that Judy Yuran had retired recently. She informed the committee that Melinda Pope, Karen Metler, Michele Crisman, and she would be alternating as Acting Director for the USSGL Division. Kathy is currently acting. She reviewed the agenda and introductions were made.

HANDOUTS:

  • Corrections of Errors That Occurred In Previous Periods - Prior Period Adjustments (Financial Reporting) and Prior Year Adjustments - (Budgetary Reporting) - Final Review Draft, dated 1/29/2009

  • USSGL Accounts That Crosswalk to Multiple Lines on a Statement - (Draft)

  • USSGL Accounts That Crosswalk to Multiple Lines on a Statement - (Draft)

  • TFM, Volume I, Announcement No. A-2009-02, Quarterly Receipts by Department Report

AGENDA ITEMS:

Presentation of Final Review Draft Corrections of Errors That Occurred in Previous Periods - Prior Period Adjustments (PPAs) and Prior Year Adjustments (PYAs)

Sherry Pontell (FMS) stated that the scenario included changes made as a result of the November 20, 2008, and December 4, 2008, IRC meetings. This was the final draft review. She gave a brief overview of the importance of the scenario and the differences between the budgetary and the proprietary rules for correcting accounting errors that occurred in previous reporting periods.

The PPA and PYA scenario supersedes previous USSGL accounting guidance on proprietary PPAs. The revision incorporates the Statement of Federal Financial Account Standards (SFFAS) No. 21: Reporting Corrections of Errors and Changes in Accounting Principles, Amendment of SFFAS No.7, Accounting for Revenue and Other Financial Sources. Specifically, the scenario includes the guidance…"require that reporting entities restate prior-period financial statements for material errors discovered in the current period, if such statements are provided for comparative purposes, and if the effect would be material to the financial statements of either period."

The scenario also addresses new policy required by the Office of Management and Budget (OMB) Circular No. A-11 for adjustments to budgetary beginning balances effective fiscal year 2008. The scenario does not address events qualified as proprietary changes in accounting principle or current-year budgetary upward and downward adjustments of prior-year activity.

Sherry explained that the chart on page 3 had been changed from the previous draft for ease of comprehension. The six outcomes at the bottom of the chart now correspond with the illustrative transaction numbers on pages 4 and 8. The flow was condensed to show one branch for budgetary accounting instead of the initial two duplicate branches.

It was noted that the wording in the bottom right green box was incorrect. The USSGL staff will correct the text to state, "Do not request a BACKDATED Treasury Document - Use PYA Attribute Domain Value X."

For clarification purposes, it was recommended that the title, "System Post-Closing Trial Balance - FY08," on page 6, be changed to "System Beginning Balances - FY09." In addition, pages 6 and 7 will be switched so the presentation of the trial balances is presented immediately prior to the actual transactions.

On page 7, Eileen Parlow (FASAB) suggested that more clarification be made between assumptions 2, 3, and 4. Additionally, an explanation needs to be added for the illustrative transactions that are not highlighted.

On page 8, minor errors were noted, and the USSGL staff will correct them.

Kathy presented the various worksheets, trial balances, financial statements, and reports. She explained that the Work Paper Trial Balance for Budgetary Accounts - SBR ONLY differed from the Work Paper Trial Balance for Budgetary Accounts - SF 133 ONLY. OMB Circular No. A-11 guidelines state an entity may not backdate an SF 133: Report on Budget Execution and Budgetary Resources, and OMB Circular No. A-136, Statement of Budgetary Resources (SBR) guidelines, state an entity does have to restate the SBR if restatement of financial statements is necessary. The SBR does not take into account the PYA attributes; however, the SF 133 does. Therefore, two separate charts were necessary to obtain the correct results.

Minor changes were suggested to the charts on pages 14 through 17 and to the financial statements on pages 22 through 29. The USSGL staff will incorporate these changes.

Presentation of the Quarterly Receipts by Department Report and First-Quarter FACTS II Update

Rita Cronley (FMS) discussed TFM Volume I, Announcement No. A-2009-02, which introduced the Quarterly Receipts by Department Report. This announcement informs agencies that the Financial Management Service (FMS) has established a report to provide detailed information for transactions reported on the Statement of Transactions (FMS 224, 1220, and 1221) for distributed offsetting receipts reflected in the Monthly Treasury Statement. Additionally, agencies can use the report to assist with identifying and resolving differences found on line 19C of the SBR. The quarterly report will be available on the eighth workday of January, April, July, and October each year. The Treasury Combined Statement Receipts by Department Listing will still be available annually in October.

Rita continued by giving an update on the First-Quarter Federal Agencies Centralized Trial-Balance System (FACTS II) submissions. She mentioned that Edit 13 became a hard edit this quarter and reminded everyone that adjustments are made on the ending balance of the USSGL account and not the beginning balance. It is important for the FACTS II preparers to know this information. Additionally, other problems that were encountered during the window included recording adjustments twice in yearend balances and using the wrong USSGL accounts. She mentioned that partial cancellations involving extended disbursing authority need to be reviewed to determine the appropriate accounting treatment in relation to Edit 13. Nonetheless, Rita was pleased to say that it was the best first quarter ever with 97% reporting.

Teresa Tancre (OMB) spoke briefly about the importance of agency accountants coordinating PYAs through their agency budget offices, OMB (both the agency program examiner, as well as, the Budget Concepts Branch), and FMS's Budget Reports Division. She also praised all of the agencies that reported PYAs coordinated through OMB and those that passed Edit 13. OMB will contact the budget examiners for agencies that had PYAs coordinated through OMB but did not report them, and for agencies that reported PYAs but did not coordinate them through OMB.

Multi-Line Project Update

Michele Crisman (FMS) updated the IRC on the multi-line project. She gave a brief history of the project. Currently, USSGL crosswalks provide USSGL accounts that agencies use to populate the lines on a statement. Some USSGL accounts that crosswalk to multiple lines contain the same attributes with different additional information that directs the user to populate the line with specific activity within the account. To eliminate this issue, the USSGL Division is proposing to break out or split certain USSGL accounts into new accounts. Michele mentioned that a portion of the project was postponed last year because there was a possibility that OMB Circular No. A-136 was going to change and the accounts would no longer be necessary. However, a volunteer is needed to present the issue to the OMB Circular No. A-136 committee. If OMB Circular No. A-136 changes, all the accounts listed on the handout may not be needed. However, if OMB Circular No. A-136 does not change, then implementation of all the accounts listed on the handout will be necessary.

Carol Gower (State) volunteered to present the issue to the OMB Circular No. A-136 committee.

CLOSING REMARKS:

Kathy thanked those in attendance and closed the meeting.

ATTENDEES:

Kathy Winchester, FMS
Sherry Pontell, FMS
Edwin Walker, FMS
Melinda Pope, FMS
Karen Metler, FMS
Michele Crisman, FMS
Karl Foltz, FMS
Eileen Parlow, FASAB
Teresa Tancre, OMB
Harvey Dorosin, AOC
Susan Stengel, NRC
John Rich, GSA
Lise Trumbull, GSA
Dan Smith, PTO
Mark Siegelman, AOC
Kim Klein, DOE
Parker Hill, DOI
Greg Barker, FMS
Michele Murphy, VA
Jennifer Fleming, CFTC
Allan Lund, VA
Nancie Kebioh-Gray, ED
Boris Lyubovitsry, USDA
Patrice Cousins, NSF
Chris Catignani, SEC
Gregory Parker, HUD
Wanda Herbin, HUD
Carol Gower, State
Jenny Smith, HHS
David Surti, DHS
Margaret Lo Hing, DHS
Gregg Treml, DHS
Eva Abeles, EPA
Polly Law, ARC
Chris Dyson, ED
Webster Coleman, DIL
Heather Potter, NOAA
Jaime Saling, BPD
Kirstie Pottmeyer, BPD
Becky Marshall, BPD
Carol Berg, BPD
Gale Daggett, BPD
Rita Cronley, FMS
Cheryl Dixon, FMS
Joseph Wang, FMS


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