U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
March 27, 2008
Melinda Pope (FMS) opened the meeting by reviewing the agenda. Introductions were made.
Christine Chang (FMS) reviewed the fiduciary handout. She stated that agencies are required to report fiduciary fund Treasury Account Symbols (TAS) to FMS. This allows FMS to segregate fiduciary fund Trial Balances (TBs) from other TBs. She also stated that the implementation of Federal Accounting Standards Advisory Board's (FASAB's) Statement of Federal Financial Accounting Standards (SFFAS) No. 31 does not change the requirements to prepare Statements of Transactions. All agencies that report TAS must submit Statements of Transactions regardless of whether the TAS is considered fiduciary or not. Therefore, if agencies are preparing Statements of Transactions, they are required to submit TBs to FMS. This requirement ensures that agencies report correct asset balances and allows for verification of those balances with the data reported in Treasury's Governmentwide Accounting (GWA) System. Christine's presentation led to a discussion of what would be the best way to report to FMS without full-blown reporting requirements.
Judy Yuran (FMS) stated that agencies can use existing U.S. Standard General Ledger (USSGL) accounts to report their fiduciary activity. The USSGL allows agencies flexibility to report fiduciary activity, but, if agencies are using USSGL accounts, they must make sure the fiduciary activities are not reported on the principal financial statements. Bruce Henshal (Commerce) noted that beyond what agencies must report to FMS, it should be left up to the agencies to capture the necessary fiduciary activity information.
The IRC decided that agencies can use the memorandum accounts in the 9000 series to report the fiduciary flows, but for TB submissions to FMS, agencies must report fiduciary assets, fiduciary liabilities, and fiduciary net assets. Agencies will report the fiduciary net assets using proposed USSGL account 3400, "Fiduciary Net Assets," and two additional proposed USSGL accounts, USSGL account 3401, "Increase in Fiduciary Net Assets," and USSGL account 3402, "Decrease in Fiduciary Net Assets." Proposed USSGL account 3401 will capture the inflows of fiduciary assets, and proposed USSGL account 3402 will capture the outflow of fiduciary assets. At the end of the reporting period, USSGL accounts 3401 and 3402 will close to proposed USSGL account 3400. The IRC approved the title and the definition of proposed USSGL account 3400, "Fiduciary Net Assets."
The USSGL staff has asked that agencies, particularly those with fiduciary TAS, work with the USSGL staff in developing some basic transactions that illustrate the use of proposed USSGL accounts 3400, 3401, and 3402. These transactions can be added to Section III of the USSGL TFM, Account Transactions; however, they may be segregated from other transactions within Section III. The USSGL staff will not develop formal illustrative guidance on the fiduciary standard, since the USSGL does not currently support accounting guidance for notes to the financial statements.
Finally, Joe McAndrew (Treasury) stated that as a result of the implementation of SFFAS No. 31, agencies will have two ways of reporting deposit funds. Agencies with deposit funds that are fiduciary in nature will adhere to SFFAS No. 31 and will report fiduciary assets, fiduciary liabilities, fiduciary net assets, as well as the inflows and outflows when applicable, in the notes to the financial statements. Agencies with deposit funds that are nonfiduciary in nature will continue to report assets and liabilities on the financial statements. As a result, the title and definition of USSGL account 2400 will be changed as follows:
Melinda Pope (FMS) reviewed the handouts for credit reform. The words, "in certain instances," were deleted from the definition of proposed USSGL account 5313, "Interest Revenue - Subsidy Amortization." The title and definition of new USSGL account 6340 were changed as follows:
Melinda ended the IRC meeting. However, a question was raised regarding the six-digit USSGL accounts. Judy replied that the USSGL will be transitioning to six-digit USSGL accounts. FMS will be requesting that agencies be ready to report six-digit USSGL accounts in fiscal 2010 or 2011. The Governmentwide TAS-ATB System (GTAS) implementation is scheduled for fiscal 2011; however, GTAS will still accept four-digit USSGL accounts. The USSGL may use six-digit numbers if the four-digit numbers run out, but the USSGL staff will try to avoid that situation if possible. Judy thanked everyone and closed the meeting.
Judy Yuran, FMS