U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
March 19, 2009
Kathy Winchester (FMS) opened the meeting and announced that the IRC would discuss capital transfers and the Multiline Project.
Christine Chang (FMS) began by stating that the Capital Transfers Guide had been updated to include the accounting for the general fund miscellaneous receipts. Capital transfers are credits to a Treasury miscellaneous receipt account. The credits repay the Government's investment in, or distribute the earnings of, a revolving fund.
The following new USSGL accounts were proposed for capital transfers and related property accounting:
Christine said it was necessary to create these new accounts because, unlike the current USSGL transfer accounts 5755, "Nonexpenditure Financing Sources - Transfers-In," and 5765, "Nonexpenditure Financing Sources - Transfers-Out," where both the transferring account and the recipient account have a budgetary impact, the recipient account of a capital transfer does not have a budgetary impact. As a result, the USSGL staff will crosswalk the two new USSGL accounts to two different lines on the Statement of Changes in Net Position crosswalk.
Then, Christine reviewed the proposed USSGL account 5792. She stated that the contingent liability associated with a capital transfer, which is similar to a loan from Treasury, should not be associated with the cost but rather with the future capital transfer to Treasury's General Fund. USSGL TFM No. S2 08-03, Section III, recognizes only costs when a contingent liability is recorded. To accommodate capital transfer activity, a new account is needed to record an offset other than cost when a contingent liability is recorded. A suggestion was made and accepted to modify the definition of proposed USSGL account 5792 by adding the following wording: ". . . to be used when recording a contingent liability."
Christine also stated that because there are now specific nonexpenditure transfer accounts for capital transfer activity, the definition of USSGL accounts 5755 and 5765 will be modified to specifically exclude capital transfers. In addition, the titles of USSGL accounts 5755 and 5765 will be changed to the following:
These accounts will have the following impact on the Balance Sheet and the Statement of Changes in Net Position:
Statement of Changes in Net Position
The USSGL staff will modify USSGL account 2920 on the FACTS I attribute table from a Non-Federal (N) only attribute to a Federal/Non-Federal (Y) attribute. As recommended, Christine also will delete the "additional note" on page 10.
Christine discussed the relevant capital transfer transactions on the scenario. She noted that USSGL account 4070, "Anticipated Transfers to the General Fund of the Treasury," recorded in transaction 17 will be segregated further by type of resources used to fund the transfer, prior-year unobligated resources or current-year authority. A comment was made that, on transaction 29, entities receiving appropriations in USSGL account 4119, "Other Appropriations Realized," do not pay interest. Kathy stated that, although most of the capital investments do not pay interest, there are certain circumstances where a statute requires agencies to pay interest to Treasury. Christine also added that, unlike the capital transfer, the interest payment is outlayed. Kathy noted that the USSGL staff will add additional language to transaction 29 of the scenario indicating that the payment of interest to a Treasury general fund receipt account may not be required for some revolving funds.
Keith Mertz (FMS) discussed the proposed USSGL accounts related to the Multiline Project. During the discussion, it was noted that several USSGL account definitions should be updated with the following reference concerning credit reform loans: "This account excludes the allowances for loans subject to credit reform that are recorded in USSGL account 1399, 'Allowance for Subsidy.'"
The USSGL staff will modify the following USSGL account definitions:
During the discussion of the interest receivable accounts, a question was raised concerning the reason for the requirement in the Office of Management and Budget (OMB) Circular No. A-136 that directs agencies to report interest receivables with the associated assets. Some IRC members stated that there may be no useful reporting requirement for the breakout of interest receivable. It was suggested that the requirement may be related to the Financial Report of the United States Government or the intergovernmental eliminations. After further discussion, the reasons for this requirement could not be immediately determined; therefore, the USSGL staff will research this subject in the coming weeks. Depending on the outcome of the research, an IRC member may raise the issue with the OMB Circular No. A-136 subcommittee and may recommend that the requirement be deleted from OMB Circular No. A-136.
Bruce Henshel (Commerce) requested that only one account be used for administrative fees revenue since all administrative fees revenue will be reported on the same line of the financial statement crosswalk. Therefore, it is not necessary to separate administrative fees revenue further to mirror the administrative fee receivable accounts.
Kathy noted that the USSGL staff will be developing additional USSGL accounts related to the recent economic stimulus acts. Also, Treasury's General Fund project will require the addition of several new USSGL accounts. This project may become a priority to be completed in fiscal 2009.
Kathy closed the meeting.
Karl Foltz, FMS