U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
February 22, 2007
Judy Yuran (FMS) opened the meeting and introductions were made.
Karen Metler (FMS) introduced Jamie Saling (BPD) and gave a brief overview of the Capitalized Interest scenario. Jamie explained that interest is capitalized when a borrowing agency cannot make an interest payment on the outstanding loans with BPD. BPD needs additional USSGL accounts to distinguish the amount of interest that is capitalized from the amount of the initial loans receivable. The new USSGL accounts proposed in the scenario are: 1351, "Capitalized Loan Interest Receivable - Non-Credit Reform"; and 2511, "Capitalized Loan Interest Payable - Non-Credit Reform." These new accounts will resolve elimination issues and will allow BPD to track capitalized interest separately from the principal amounts. A typical loan agreement does not address capitalized interest; therefore, adding new accounts to track capitalized interest also will allow the parties involved to separately identify it. Additionally, the scenario proposes modifying the definitions of USSGL accounts 7112, "Gains on Disposition of Borrowings," and 7212, "Losses on Disposition of Borrowings," to include gains and losses to agencies other than the Federal Financing Bank (FFB).
The following changes were discussed and/or made to the handout:
The attendees discussed what Treasury Appropriation Fund Symbol (TAFS) the BPD column represents, and Karen agreed to add some additional language for clarification. Jamie (BPD) explained that all borrowing activity in BPD is lumped into one generic TAFS, 20X9997, for purposes of reporting in Treasury's TIER system. In actuality, however, when interest payments and/or loan repayments are made from FFB to BPD, the fund balance is deposited directly to a miscellaneous receipt account on the SF 224, Statement of Transactions, not to 20X9997. Therefore, the BPD column more closely represents miscellaneous receipt account reporting. Furthermore, it was noted that the USSGL staff is currently proposing new accounts for General Fund Receipt Account reporting, which may impact the USSGL accounts used by BPD in this scenario. The USSGL staff will footnote the accounts in this scenario that may change and will update the scenario once the new guidance is in effect.
Christine Chang (FMS) reviewed the General Fund Receipt Account Guide. She stated that the scenarios were divided into two sections. The first section deals with collections of nonexchange revenue that are reported on the Statement of Custodial Activity. The second section deals with collections that do not meet the reporting requirements of the Statement of Custodial Activity and, therefore, are reported on the collecting entity's other financial statements (that is, the Statement of Net Cost and/or the Statement of Changes in Net Position.)
Christine also explained that the guidance illustrates both first-quarter and yearend reporting. The intent is to demonstrate how fund balance is reported differently on quarterly and yearend reports. Christine emphasized that the fund balance in a general fund receipt account should be reported by the collecting agency with the corresponding liability on the entity's quarterly Balance Sheet. At yearend, however, agencies should preclose the fund balance and liability to mimic Treasury's closing of miscellaneous receipt account collections.
The draft scenario presented used existing USSGL accounts 5990, "Collections for Others" and 5591, "Accrued Collections for Others" to track custodial activity that is reported on the Statement of Custodial Activity, as well as, custodial activity that is reported on the Statement of Net Cost and/or the Statement of Changes in Net Position. IRC members requested that two new accounts be established to capture the offset to the custodial activity that is not reported on the Statement of Custodial Activity. Christine was prepared for this request and provided a handout with new USSGL accounts 5993, "Offset to Non-Entity Collection - Noncustodial" and 5994, "Offset to Non-Entity Accrued Collections - Noncustodial," as well as, revised titles and definitions for existing USSGL accounts 5990 and 5991. The IRC agreed with the handout provided.
Deborah Carey (SEC) asked why the fund balance needs to be removed from the Balance Sheet at yearend. Judy responded that some agency collections for the General Fund are material and, therefore, agencies would not want to reflect the amounts on their Balance Sheets.
The entire IRC did not review the Seigniorage section of the guidance since it applies only to Treasury. This section will be sent to Treasury for review and approval.
Judy closed the meeting by thanking everyone for attending.
Judy Yuran (FMS)
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