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

November 20, 2008

GENERAL ITEMS:

Karen Metler (FMS) opened the meeting and reviewed the agenda. Introductions were made.

HANDOUTS:

  • Prior Period (Proprietary) Adjustments and Prior Year (Budgetary) Adjustments - Draft (dated November 18, 2008)

  • Edit 13 Failures, Fourth Quarter, Fiscal 2008 - Edit Details (undated)

AGENDA ITEMS:

Presentation of Prior-Period (Proprietary) Adjustments (PPAs) and Prior Year (Budgetary) Adjustments (PYAs) - Drafts

Sherry Pontell (FMS) used the flowchart on page 3 of the handout to explain the differences between the budgetary versus the proprietary rules for correcting accounting errors that occurred in previous reporting periods.

This guidance revises previous USSGL accounting guidance on proprietary PPAs. The revision incorporates the Statement of Federal Financial Accounting Standards (SFFAS) No. 21, Reporting Corrections of Errors and Changes in Accounting Principles, which amended SFFAS No.7, Accounting for Revenue and Other Financial Sources, to: "…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."

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

Members of the IRC suggested that Sherry alter the flowchart on page 3 to show that the two tracks (in green) are identical. Sherry will add the six corresponding illustrative transaction numbers to the bottom of the flowchart. She also will clarify that the budgetary track is for SF 132: Apportionments and Reapportionment Schedule, during the Federal Agencies Centralized Trial-Balance System (FACTS II) reporting.

Members of the IRC also stated that OMB Circular No. A-136, Statement of Budgetary Resources (SBR) guidance is inconsistent with OMB Circular No. A-11, SF 133: Report on Budget Execution and Budgetary Resources guidance.

Kathy Winchester (FMS) encouraged agency representatives to share their concerns with OMB. Agencies may participate in the Governmentwide workgroup that convenes annually in January to address issues OMB's Office of Federal Financial Management considers before the publication of the revised OMB Circular No. A-136. Agencies also may submit their concerns when OMB's Budget Concepts Division solicits agency comments on OMB Circular No. A-11 before its annual update.

Kathy mentioned that the Department of the Treasury (Treasury) refers to transactions posted to the current-year reporting after the close of Treasury's central accounting system as "backdated." However, only those backdated transactions processed after the FACTS II revision period should include the FACTS II PYA attribute domain value "B."

Rita Cronley (FMS) added that an agency must submit a paper copy of the SF 224: Statement of Transactions, or other fund balance adjustment document to her or Crystal Holloman, if it requires a backdated adjustment.

Sherry noted other suggested changes. She will provide an updated scenario at a future meeting.

Michele Crisman (FMS) noted that some of the transactions in the scenario are not included in the USSGL Section III, "Transactions," because the current USSGL does not provide accounting transactions at the attribute level.

Sherry reviewed the financial statements to page 19, Balance Sheet. At the next IRC meeting, the review will begin at page 19, Balance Sheet.

Edit 13 Failures, Fourth Quarter, Fiscal 2008 - Edit Details

Rita discussed the topic of edits by tying the PYA attribute to FACTS II, Edit 12. She stated that SF 133, line 19A, is equivalent to FACTS II, Edit 12. If preparers report USSGL account 4902, "Delivered Orders - Obligations, Paid," with a PYA attribute domain value "B," and there is no matching backdated Treasury central accounting document, the edit may fail.

Rita reviewed the handout. She called attention to four Treasury Appropriation Fund Symbols (TAFS) that were erroneously displayed in the report:

  • DR-12 DT FYX Main-4158

  • DR-13 DT FYX Main-4314

  • DR-73 DT FYX Main-4150

  • DR-73 DT FYX Main-4148

Rita also noted that this report/handout compares fiscal 2007 ending balances, as calculated by FACTS II, to fiscal 2008 beginning balances entered by agencies. This report shows accounts that would not have passed the edit phase of FACTS II in fiscal 2008 if FACTS II, Edit 13 had been a hard edit at the time.

FACTS II, Edit 13 will become a hard edit for first quarter, fiscal 2009 reporting. It is imperative that the preparers' FACTS II submissions pass this edit. If the submissions do not pass this edit, they cannot be certified. OMB and FMS will not extend the reporting window in the future.

Kathy explained the link between FACTS II, Edit 13 and the PYA/PPA scenario presented by Sherry. Agencies must adjust beginning balances only by using the FACTS II PYA attribute, domain values "B" and "P." Otherwise, they will fail FACTS II, Edit 13.

Rita suggested that preparers review the items on the handout as a first step toward successfully passing Edit 13 for first quarter, fiscal 2009. It appears that the preparers should have used a PYA attribute domain value "P" or "B" for the items on the list. She also suggested that preparers analyze and understand the USSGL SF 133 crosswalk.

Realignment of the President's Budget Program and Financing Schedule (P&F) and the SF 133

Teresa Tancre (OMB) explained that these reports need to be in alignment. It is apparent that agency preparers and budget examiners are not communicating. A coordinated effort between these two groups is needed for the reporting to be consistent.

OMB Circular No. A -11 changes for fiscal 2008 addressing cash advances were the result of OMB's analysis of the 2007 reporting data. OMB's analysis of fiscal 2008 reporting data may lead to additional changes to OMB Circular No. A-11.

OPEN DISCUSSION:

Yong Sun (FHA) asked what others are doing with their old payables (10- to 20- years old). These are no-year funds.

Kathy Winchester (FMS) suggested that agencies consult with their legal staff to determine the validity of old liabilities. The USSGL Division will not provide guidance for writing off payables.

CLOSING REMARKS:

Judy Yuran (FMS) thanked those in attendance. The IRC will meet again on December 4, 2008, at the DOT.

ATTENDEES:

Judy Yuran, FMS
Kathy Winchester, FMS
Karen Metler, FMS
Melinda Pope, FMS
Michele Crisman, FMS
Karl Foltz, FMS
Keith Mertz, FMS
Sherry Pontell, FMS
Gwen Marshman, FMS
Edwin Walker, FMS
Rita Cronley, FMS
Eileen Parlow, FASAB
Teresa Tancre, OMB
Teresa Lampkin, DOT
Jenny Smith, HHS
Marilyn Evans, DHS/FEMA
Boris Lyubovitsky, USDA
Yong Sun, FHA
Kathy Sherrill, DOD
Leon Fleischer, SBA
Kim Klein, DOE
Michael Ward, GSA
Lisa Trumbull, GSA
Dan Smith, USPTO
Eva Abeles, EPA
Susan Stengel, NRC
Heather Potter, NOAA
Chris Catignani, SEC
Carol Berg, BPD
Gail Duggett, BPD
Kent Hasbargen, BPD
Jill Hearn, BPD


   Last Updated:  March 14, 2014