U.S. Government Standard General Ledger Issues Resolution Committee (IRC) Meeting Minutes
April 10, 2008
Katherine Winchester (FMS) opened the meeting by reviewing the agenda, and introductions were made.
Christine Chang (FMS) summarized the fiduciary reporting options discussed at the last IRC meeting. At that meeting, the IRC agreed to add two additional new accounts, "Increases in Fiduciary Net Assets," and "Decreases in Fiduciary Net Assets," to record the inflows and outflows of the fiduciary activities. The two new accounts will close into proposed USSGL account 3400, "Fiduciary Net Assets," which will act as a cumulative account for all the 3400 series of accounts.
After Christine provided a summary of the last IRC meeting, Eileen Parlow (FASAB) expressed concern about using equity accounts to report the flows directly. Christine explained that at the last IRC meeting, the IRC determined that agencies should use the 9000 memorandum series to capture the detailed flows and that agencies will close the flow accounts into the proposed "Increases in Fiduciary Net Assets" and "Decreases in Fiduciary Net Assets" accounts before submitting a trial balance to FMS. Agencies can use the detailed flow information as well as the post-closing balance of USSGL account 3400, "Fiduciary Net Assets," to prepare their fiduciary footnote. Eileen stated that multiple closings would be too confusing for agencies.
Debra Carey (SEC) stated that agencies should not commingle the revenues and expenses with the equity contributions and distributions. The two new accounts only should record the equity contributions and distributions. For the expense/revenue inflows and outflows related to fiduciary activity, agencies can use the existing general ledger accounts that should close at yearend into USSGL account 3400, "Fiduciary Net Assets." She stated that an expanded trial balance including the flows would be better than the previously approved condensed trial balance without the flows. The expanded trial balance will allow agencies to prepare the fiduciary note as well as meet the FMS reporting requirements. The IRC agreed to the changes. The IRC also approved the use of language found in the 2008 draft OMB Circular No. A-136, note 40, for the following accounts and definitions.
There was some discussion as to whether a collection, such as fees collected for violation of law, is considered a revenue or contribution. The money is owned by the beneficiary even though the violators are putting up the money. Some IRC members thought it was revenue and some thought it was a contribution. The IRC decided to leave to individual agencies the determination of the nature of and the accounting for its fiduciary activity.
Gwen Marshman (FMS) reviewed the ballot (see above for the changes to fiduciary accounts). The proposed USSGL account 5313, "Interest Revenue - Subsidy Amortization," will add, "that are subject to the Credit Reform Act of 1990 as amended," to the end of the first sentence of the definition. In addition, the proposed USSGL account 6340, "Interest Expense Accrued on the Liability of Loan Guarantees," also will add "that are subject to the Credit Reform Act of 1990 as amended" to the end of the first sentence of the definition.
Kathy thanked everyone for attending and closed the meeting.
Kathy Winchester, FMS
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