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Chapter 4700

AGENCY REPORTING REQUIREMENTS FOR THE FINANCIAL REPORT OF THE UNITED STATES GOVERNMENT

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This Treasury Financial Manual (TFM) chapter describes how agencies provide data for the Financial Report of the United States Government (FR) using the Governmentwide Financial Report System (GFRS) and the Federal Agencies’ Centralized Trial-Balance System I (FACTS I). It also includes the Bureau of the Fiscal Service (Fiscal Service) Closing Package methodology, the Federal Intragovernmental Transactions process, and requirements for electronically submitting preclosing adjusted trial-balances (ATBs).

This TFM chapter does not include reporting requirements for the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS). Information pertaining to GTAS can be found on the GTAS Web site at http://www.fms.treas.gov/gtas/index.html.

Section 4701—Scope and Applicability

All agencies must provide the Fiscal Service with the required fiscal yearend data that is used to prepare the FR. All verifying agencies (see Figure 1) must submit their financial data using the Closing Package via GFRS and FACTS I. All nonverifying agencies must submit FACTS I ATB data and must complete GFRS FR Notes and Other FR Data.

GFRS uses a Closing Package methodology that has been developed to:

  • Capture each agencies’ Closing Package information and link the agencies’ comparative, audited consolidated, department-level financial statements to the FR;

    AND

  • Resolve material weaknesses identified by the Government Accountability Office (GAO).

The Chief Financial Officer (CFO) or CFO’s designee of each verifying agency must prepare and submit the Closing Package data for the current fiscal year (FY) and the prior FY via GFRS at the department level and must verify its consistency with the comparative, audited consolidated, department-level financial statements. The Inspector General (IG) of each verifying agency must opine on the Closing Package data, entered by the CFO into GFRS, as to its consistency with the comparative, audited consolidated, department-level financial statements. Verifying agencies with a yearend other than September 30 are subject to alternate audit procedures as outlined in subsection 4705.45.

All agencies (verifying and nonverifying) must submit preclosing ATBs via the FACTS I Internet application on the Government On-Line Accounting Link System (GOALS) II. Agencies must submit their ATBs at the Treasury appropriation/fund group level using proprietary U.S. Government Standard General Ledger (USSGL) accounts (see USSGL, Part 1, Fiscal 2013 Reporting). The ATB data from verifying agencies is used for research and analysis purposes during the compilation of the FR.

GFRS compiles the information from the FACTS I submissions for nonverifying agencies into a set of “generic” financial statements that are included in the consolidated FR. Nonverifying agencies must prepare and submit note data based on the amounts from the “generic” financial statements compiled in GFRS.

Reporting requirements in this chapter are grouped as follows:

  • Section 4705 includes Closing Package requirements;

  • Section 4706 includes intragovernmental requirements;

    AND

  • Section 4707 includes FACTS I requirements.

Section 4702—Authority

Section 405 of the Government Management Reform Act of 1994 [31 U.S.C. 331(e)(1)] requires that the Secretary of the Treasury annually prepare and submit to the President and the Congress an audited financial statement for the preceding fiscal year. This statement must cover all accounts and associated activities of the executive branch of the Federal Government. Section 114(a) of the Budget and Accounting Procedures Act of 1950 [31 U.S.C. 3513(a)] requires each executive branch agency to furnish financial and operational information as the Secretary of the Treasury may stipulate.

Even though these mandates are not applicable to the legislative and judicial branches of the Federal Government, Treasury strongly encourages these entities to submit ATBs, GFRS Notes, and Other FR Data, as defined in these reporting requirements. Executive branch agencies cannot easily reconcile balances with their legislative and judicial trading partners, unless the nonreporting agencies submit their balances. Therefore, when compiling the Financial Report of the United States Government (FR), the Fiscal Service will record a journal voucher to eliminate any intragovernmental transaction differences related to legislative and judicial transactions.

Section 4703—Definition of Terms

Agency—Refers to the reporting entities for inclusion in the FR. “Agency” and “department” are used interchangeably, unless otherwise noted (see Appendix 5).

Adjusted Trial-Balance (ATB)—This is a list of USSGL accounts with attributes and preclosing adjusted balances prepared at a specified date (yearend). Agencies submit ATBs by fund group and must include USSGL accounts listed in numeric order. The USSGL account balances should reflect preclosing adjusting entries. The total sum of the debit balances must equal the total sum of the credit balances in the ATB. Agencies must include the required attributes with the appropriate USSGL accounts (see USSGL Part 1, Fiscal 2013 Reporting).

Note: GTAS will replace FACTS I beginning in FY 2014 and will require reporting proprietary USSGL account balances with budgetary USSGL account balances in accordance with the current reporting period requirement for FACTS II.

Allocation Transfer—This is the amount of budget authority transferred from one agency, bureau, or account that is set aside in a transfer appropriation account to carry out the purposes of the parent appropriation or fund.

ATB Code—This is a code that consists of a department, a bureau, and a four-digit Treasury appropriation/fund group. This is a unique identifier code for a record in the Master Appropriation File (MAF).

Attribute—This is a modifier that further describes a USSGL account to meet a specific reporting requirement. Agencies capture this information at the transaction level. The following are attributes included in the USSGL Part 1, Fiscal 2013 Reporting:

A (Non-Custodial)—This is an attribute of a USSGL account balance that indicates the amount is not reported on the Statement of Custodial Activity or custodial footnote.

F (Federal)—This is an attribute of a USSGL account balance that results from transactions between Federal Government entities included in the FR. These often are referred to as “intragovernmental transactions.” The USSGL account reported on an ATB with attribute “F” must have a two-digit partner code (see the department codes in Appendix 5) that identifies the trading partner at the department level.

N (Non-Federal)—This is an attribute of a USSGL account balance that results from transactions not with a Federal Government entity included in the FR.

S (Custodial)—This is an attribute of a USSGL account balance that indicates the activity is related to the Statement of Custodial Activity or custodial footnote.

T (Nonexchange)—This is an attribute of a USSGL account balance that indicates the balance being reported is nonexchange revenue. Nonexchange revenue arises primarily from exercise of the Government’s power to demand payments from the public (for example, taxes, duties, fines, and penalties) but also includes voluntary donations and other inflows of resources.

X (Exchange)—This is an attribute of a USSGL account balance that indicates the balance being reported is exchange revenue. Exchange revenue arises when a Federal entity provides goods and services to the public or to another Federal entity for a price. Exchange revenue includes most user charges other than taxes. Another term for exchange revenue is “earned revenue.”

Note: Attribute reporting requirements for GTAS can be found at http://www.fms.treas.gov/ussgl/selection_page.html.

Budget Subfunction Code (BSF)—This code classifies budget resources by function and subfunction. It groups budget authority and outlays of budget and off-budget Federal entities in terms of the national needs being addressed. For a complete list of BSF codes, see the Office of Management and Budget (OMB) Web site at http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/db_guide.pdf.

The FACTS I MAF contains a three-digit BSF. Each three-digit BSF contained in the MAF represents a subfunction grouped under 1 of 19 functions. OMB groups each of the 19 functions under the 5 superfunctions presented in the Budget of the United States Government.

Closing Package—This methodology links agencies’ comparative, audited consolidated, department-level financial statements to the FR. The Closing Package is the data submitted by each verifying agency for inclusion in the FR.

Deposit Fund Accounts—Agencies use these accounts to hold the following:

  • Money the Government has withheld from payment for goods or services provided;

  • Deposits received from outside sources in cases where the Government acts solely as a banker, fiscal agent, or custodian;

    AND

  • Money the Government has withheld awaiting distribution based on a legal determination or an investigation.

Duplicate Partner Code Identifier (DPCI)—A single-letter code applied to a reporting trading partner agency sharing a two-digit agency code with another agency (Pension Benefit Guaranty Corporation, Farm Credit System Insurance Corporation, and Smithsonian Institution).

Financial Statement Template—Each agency defines this template based on its comparative, audited consolidated, department-level financial statement line items and USSGL crosswalks.

Fiduciary Transactions—Intragovernmental transactions that consist of Fiscal Service investments and borrowings; Federal Financing Bank (FFB) borrowings; Department of Labor (DOL) Federal Employees’ Compensation Act (FECA) transactions; and Office of Personnel Management (OPM) employee benefit transactions.

Note: The word “fiduciary” is distinct and should not be confused with Statements of Federal Financial Accounting Standards (SFFAS) No. 31, Accounting for Fiduciary Activities, discussed in subsection 4705.20d.

General Fund Receipt Account—This is a receipt account credited with all collections that are not earmarked by law for another account for a specific purpose. These collections are presented in the President’s Budget of the United States Government as either governmental (budget) receipts or offsetting receipts. These include taxes, customs duties, and miscellaneous receipts. There are numerous general fund receipt accounts that are described in the Federal Account Symbols and Titles (FAST) Book. See the FAST Book Web site at http://www.fms.treas.gov/fastbook.

Interdepartmental Balance—This USSGL account balance results from a transaction between trading partners included in the FR that are not in the same department.

Intradepartmental Balance—This USSGL account balance results from a transaction between trading partners in the same department.

Intragovernmental Transactions/Balances—These transactions and/or balances result from business activities conducted by two different Federal Government entities included in the FR. Interdepartmental and intradepartmental are subsets of intragovernmental.

Intragovernmental Fiduciary Confirmation System (IFCS)—An Internet-based application for confirming and reconciling quarterly fiduciary balances (see subsection 4706.20).

Note: GTAS will replace IFCS beginning in FY 2014.

Nonfiduciary Transactions—Consist of intragovernmental buy/sell (exchange) transactions, transfers, and non-Treasury investment transactions (see subsection 4706.25).

Nonverifying Agencies—Agencies not included in Figure 1.

Probable Likelihood of Loss—This term implies that the future event or events are more likely than not to occur, with the exception of pending or threatened litigation and unasserted claims. For pending or threatened litigation and unasserted claims, the future confirming event or events are likely to occur. If a negative outcome is probable, the agency must record a liability on its books for the estimated amount of loss. The estimated liability may be a specific amount or a range of amounts. If some amount within the range is a better estimate than any other amount within the range, then the agency should recognize that amount as a liability and should disclose the range of possible loss as well as the nature of the contingency in its financial statement notes. If no amount within the range is a better estimate than any other amount, then the agency should recognize the minimum amount in the range as a liability and should disclose the range and a description of the nature of the contingency in its financial statement notes. See Federal Accounting Standards Advisory Board (FASAB) SFFAS Nos. 5 and 12.

Reasonably Possible Likelihood of Loss—This term implies that the chance of the future event or events occurring is more than remote but less than probable. If it is reasonably possible that the agency will incur a loss, the agency must disclose the nature of the contingency and an estimate of the possible liability, an estimate of the range of the possible liability, or a statement that such an estimate cannot be made (see SFFAS Nos. 5 and 12).

Reciprocal Category (RC)—Is a set of Closing Package financial statement Federal line items that is used to perform eliminations at the Governmentwide level (see subsection 4705, and Appendices 6 and 7).

Reclassified Financial Statement—This is a “generic” agency financial statement format used across the Government. Agencies “reclassify” or move amounts from their comparative, audited consolidated, department-level financial statement line items to the Closing Package reclassified financial statement line items. For nonverifying agencies, these statements are system-generated using FACTS I ATB data.

Remote Likelihood of Loss—This term implies that the chance of the future event or events occurring is slight. If only a remote chance of loss is possible, the agency need not record a liability nor provide a note disclosure (see SFFAS Nos. 5 and 12).

Selected Nonverifying Agency—A selected nonverifying agency must submit quarterly full-proprietary ATBs in text format. Selected nonverifying agencies are those not listed in Figure 1.

Special Fund Receipt Accounts—Receipt accounts credited with collections that are earmarked by law but included in the Federal funds group rather than classified as trust fund collections. These collections are presented in the President’s Budget as either governmental (budget) receipts or offsetting receipts.

Suspense Accounts—Agencies use these accounts to temporarily hold collections and in certain suspense accounts, to hold disbursements. They use these accounts pending clearance to the applicable receipt or expenditure account in the budget. An FY “F” preceding the last four digits of the fund symbol identifies a suspense account.

Trading Partner (TP)—An agency, department, or Federal entity that is party to intragovernmental transactions with another agency, department, or Federal agency.

Trading Partner Code—The attribute used to identify the trading partner agency (see Appendix 5).

Treasury Appropriation/Fund Group—This four-digit identifier corresponds to the Treasury account symbol found in the FAST Book. Agencies report most ATBs at the Treasury appropriation/fund group (for exceptions, see subsection 4707.20c). The Treasury appropriation/ fund group combines all FYs reported for each agency’s appropriation or fund account symbol.

Treasury Appropriation Fund Symbol (TAFS)—This combination of numbers denotes the responsible agency, period of availability, and fund classification according to a prescribed system of account classification and identification.

Use of Central Accounting Data (UCAD)—UCAD is the authoritative data collected in Treasury’s central accounting system and presented in report format to resolve intragovernmental differences. This data includes appropriation warrants, nonexpenditure transfers, fund balance with the Treasury, and appropriations received, as adjusted.

U.S. Government Standard General Ledger (USSGL) Data—The USSGL, Supplement No. S2 to the TFM, provides a uniform Chart of Accounts and technical guidance to be used in standardizing Federal agency accounting. The USSGL is a part of the FACTS I ATB data that can be viewed in GFRS to assist verifying agencies in completing their Closing Package submission and nonverifying agencies in completing FR Notes. See the USSGL Web site at http://www.fms.treas.gov/ussgl/index.html.

Verifying Agencies—These agencies consist of the 24 major CFO Act agencies and selected other agencies material to the FR. Agencies are deemed material to the FR if they report any Closing Package Statement line items or note disclosures that are greater than $1 billion. See Figure 1 for the list of verifying agencies.

Section 4704—FR Reporting and Submission Dates

See Figure 3 for the FR reporting and submission dates regarding GFRS, FACTS I, IFCS, intragovernmental activity/transactions, legal representation letters, and subsequent events.

4704.10—Third Quarter Reporting (Unaudited Financial Statements and Notes)

The purpose of these submissions is to enable the Fiscal Service to conduct preliminary analysis on agency data to facilitate preparation of the FR.

Agencies must submit unaudited notes and other required supplemental disclosure information as deemed relevant and useful, for example, required supplemental information (RSI), required supplementary stewardship information (RSSI), and other information (OI) along with unaudited interim financial statements, in accordance with OMB Circular No. A-136, Section IV, Interim Financial Statements. Agencies should include all notes and supplemental information that will be included in their audited financial statements. In some cases, interim data may not be available or it may not be cost-effective to obtain the interim data. Based on data availability, agencies may request alternate deadlines or may provide preliminary, place-holder (for example, prior year) or pro forma information. Note and supplemental information may also be transmitted directly to the Fiscal Service in accordance with Fiscal Service requests. The Fiscal Service also will be requesting agency’s assistance with completing key notes that present a greater risk of failing to meet the prescribed disclosure requirements. Examples of key notes are Social Insurance, Federal Oil and Gas Resources, Troubled Asset Relief Program, and Investments in and Liabilities to Government Sponsored Enterprises.

Figure 1: Verifying Agencies Required To Verify and Submit a Closing Package and
Provide CFO Representations for Federal Intragovernmental Transactions and Balances

Department of Agriculture
Department of Commerce
Department of Defense
Department of Education
Department of Energy
Department of Health and Human Services
Department of Homeland Security
Department of Housing and Urban Development
Department of the Interior
Department of Justice
Department of Labor
Department of State
Department of Transportation
Department of the Treasury
Department of Veterans Affairs
Agency for International Development
Environmental Protection Agency
Export-Import Bank of the United States
Farm Credit System Insurance Corporation
Federal Communications Commission
Federal Deposit Insurance Corporation
General Services Administration
National Aeronautics and Space Administration
National Credit Union Administration
National Science Foundation
U.S. Postal Service
Office of Personnel Management
Pension Benefit Guaranty Corporation
Railroad Retirement Board
Securities and Exchange Commission
Small Business Administration
Smithsonian Institution
Social Security Administration
Tennessee Valley Authority
U.S. Nuclear Regulatory Commission

Section 4705—Closing Package Requirements

Verifying agencies must:

  • Reclassify all line items and amounts on their comparative, audited consolidated, department- level Balance Sheet, Statement of Net Cost/Income Statement, Statement of Changes in Net Position, and Statement or Note on Custodial Activity (if applicable) to the Closing Package reclassified financial statement formats (see Appendix 2). Statement of Social Insurance information and the Statement of Changes in Social Insurance Amounts are reported in GFRS Module GF006, FR Notes (see Figure 2 and refer to subsection 4705.20c for details).

    Note: The Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts are part of the basic financial statements to which the IG of the verifying agency, if applicable, must opine as to its consistency with the comparative, audited consolidated, department-level financial statements.

  • List Closing Package line item amounts identified as Federal (items to be eliminated in the Governmentwide consolidation) by trading partner and amount (see Appendix 6).

  • Report FR Notes information that is based on the Reclassified Balance Sheet line items. Also, report other FR Notes information that is required for the FR to meet FASAB standards (see Appendix 3).

  • Report Other FR Data information that is not based on the Reclassified Balance Sheet line items. Examples of Other FR Data include required supplemental information, stewardship information, and social insurance. Also, report Other FR Data information that is required for the FR to meet FASAB standards (see Appendix 4).

  • Provide explanations for any data that has changed by the Fiscal Service established threshold or more between prior FY and current FY as required by GFRS. Explanations must clearly present the reason or justification for the change in data.

  • Provide the Fiscal Service with an electronic copy of the third-quarter financial statements, notes, RSI, RSSI, and OI, if the statements are not available on OMB’s MAX Federal Community Web site. Notify the Fiscal Service of any additional updates to the financial statements as they are made available on OMB’s MAX Web site (see Section 4704.10).

  • Contact the Fiscal Service to determine the reporting procedures for any adjustments to the Closing Package data after December 17, 2013. See the contact list at http://www.fms.treas.gov/closingpackage/contacts.html.

Figure 2: Closing Package Process

GFRS Module

GF002

 

GF003

 

GF004

 

GF006

 

GF007

 

GF008

Module Title

Audited Financial Statements

>

Reclassification

>

Federal Trading Partner Note

>

Notes to the FR Financial Statements

>

Other FR Data

>

Completions and Approvals

Action

Enter agency's comparative, audited consolidated, department-level financial statements. •Balance Sheet;
• Statement of Net Cost/Income Statement;
•Statement of Changes in Net Position;
AND
•Statement or
Note on Custodial Activity (if applicable).

 

Reclassify agency's financial statements to Closing Package format.
•Balance Sheet;
•Statement of Net Cost;
AND
•Statement of Changes in Net Position.

 

Identify
Federal Trading
Partner Department
codes.

 

Enter
predefined notes to the Closing Package, including Statement of Social Insurance and Statement of Changes in Social Insurance Amounts (if applicable).

 

Enter other required data.

Examples:
Stewardship Deferred Maintenance Tax Burden.

 

Agency CFO reviews and certifies and IG issues an opinion on the reclassified statements and notes, including the Federal Trading Partner Note.

Additional TFM Reference

 

 

Appendix 2

 

Appendix 5

 

Appendix 3

 

Appendix 4

 

 

4705.10—GFRS System Access

The GFRS Internet application on GOALS II (https://fmsapps.treas.gov/ias) requires a user ID and password.

Agencies can apply for a user ID and password by completing a GOALS II Enterprise System Access Request (ESAAS) form and faxing the completed ESAAS form to 202-874-6170. For more information, contact the Fiscal Service’s Service Desk by telephone at 202-874-4357 or by email to fmsservicedesk@fms.treas.gov or itservicedesk@bpd.treas.gov. Users may access the ESAAS form at http://www.fms.treas.gov/goals.

4705.15—GFRS Reportable Data

4705.15a—Preparation of Financial Statement Template

Verifying agencies must update via GFRS Module GF001 (Financial Statement Template) the USSGL crosswalk logic to the comparative, audited consolidated, department-level financial statements. The financial statements include the Balance Sheet, Statement of Changes in Net Position, Statement of Net Cost/Income Statement, and Statement or Note on Custodial Activity, if applicable.

Note: The Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts are located in GFRS Module GF006 (FR Notes). Refer to subsection 4705.20c for details.

4705.15b—The Closing Package

Figure 2 depicts the Closing Package process. The Fiscal Service uses the agencies’ Closing Packages to prepare the FR.

CFOs of the verifying agencies and nonverifying agencies must submit all Closing Package data via the GFRS Internet application on GOALS II to the Fiscal Service for FY 2013 reporting. In addition, CFOs and/or designees, of the verifying agencies and nonverifying agencies must respond in a timely manner to the Fiscal Service’s request for concurrence with planned changes to agency submitted Closing Package data. These requests are based on the Fiscal Service’s review of agencies’ submitted data for compliance with this chapter and conformity with agencies’ general purpose financial statements.

4705.15c—FR Notes

Both verifying and nonverifying agencies must submit FR Notes data through GFRS.

Nonverifying agencies submit FR Notes data based on the amounts from the “generic” financial statements, compiled in GFRS from ATB data submitted via FACTS I. The generic financial statements are based on the USSGL crosswalks to the reclassified statements and are populated by FACTS I ATB data. See Appendix 3 for the format of the FR Notes.

Verifying and nonverifying agencies submit FR Notes data based on the following:

  • Amounts on selected Closing Package line items.

  • The source of the data being reported for each note on the “Agency Notes” line. The agency must reference the source of the data for traceability to the notes source (that is, the particular location in the consolidated audited financial statements, specific worksheet, etc.). This should be detailed enough to provide an adequate audit trail. See Appendices 3 and 4.

    AND

  • Amounts of items based on disclosure standards (for example, dedicated collections, commitments, and contingencies). See Appendix 3 for the FR Notes requirements.

4705.15d—Federal Trading Partner Notes

Verifying agencies must identify the Federal trading partners and amounts for each Federal Closing Package line item reported after reclassifying the agency’s comparative, audited consolidated, and department-level financial statements into the Closing Package formats. Amounts identified as Federal should be net of intradepartmental eliminations with the exception of custodial revenues retained by the collecting department and capital transfers reported in RC 11 and RC 12. Identifying the trading partner enables analysis and elimination of Federal activity/balances based on reciprocal categories at the Governmentwide level. See Appendix 5 for a complete list of Federal trading partner department codes.

Agencies must reclassify all General Fund activity (trading partner code 9900) to the appropriate Closing Package financial statement line within RC 29 non-reciprocating activities. Agencies must determine what the General Fund activity represents and should reclassify the activity to the appropriate Closing Package line within RC 29 (See Appendices 1, 6, and 7 for the appropriate reclassification of Closing Package financial statement lines).

Note: This Closing Package requirement does not impact agencies’ quarterly Intragovernmental Reporting and Analysis System (IRAS) submissions because the quarterly computation is based on USSGL crosswalks requirement.

4705.15e—Other FR Data

Verifying agencies and nonverifying agencies must disclose information relating to “Other FR Data” as it applies to the agency. Other FR Data can include stewardship information, social insurance disclosures, and supplemental information, such as deferred maintenance. See Appendix 4 for the format of Other FR Data.

4705.20—Reclassification of Verifying Agencies’ Financial Statements

Verifying agencies must enter and reclassify their comparative, audited consolidated, department-level Balance Sheet, Statement of Net Cost/Income Statement, Statement of Changes in Net Position, and Statement or Note on Custodial Activity (if applicable) to the formats in the three Closing Package financial statements presented in Appendix 1 (Reclassified Financial Statements and Line Item Descriptions). Appendix 1 describes the Closing Package financial statement line items. Appendix 2 includes examples of how to reclassify agency line items to the Closing Package format. For example, the Fiscal Service requires that agencies include two line items on the Statement of Net Cost or the Income Statement to facilitate the reclassification of this statement. These two line items, “Total Gross Cost” and “Total Earned Revenue” are the sum of all program lines for “Gross Cost” and “Earned Revenue” reported on the Statement of Net Cost.

GFRS uses a normal balance concept. The normal balance is the regular balance of a line item and is either a debit or credit as determined by the account type selected. For example, an asset and a liability would carry a debit and a credit “normal” balance, respectively. All numbers must be entered as positive numbers in GFRS, unless the balance of that line is abnormal, then the amount is entered as a negative number. The normal balance attribute is used to determine the appropriate stored value of manually entered amounts.

Verifying agencies report the line items on their financial statements based on what is most material and useful to them. These line items may not match line items in the Closing Package for several reasons. For example, the Closing Package line items may not apply to the agency, the amounts could be immaterial at the agency level, or the agency may find it useful to include more detail than the Closing Package reports.

4705.20a—Custodial Activity

SFFAS No. 7, paragraph 353, states:

Disposition of revenue to other entities: custodial transfers.—Revenue, primarily nonexchange revenue, may be collected by an entity acting on behalf of the General Fund or another entity within the Government on whose behalf it was collected. The collecting entity accounts for the disposition of revenue as part of its custodial activity. These custodial transfers, by definition, do not affect the collecting entity’s net cost of operations or operating results, nor are they part of the reconciliation between its obligations and net cost of operations. (The receiving entity recognizes the revenue as nonexchange or exchange revenue depending on its nature, according to the applicable revenue standards.)

For exchange revenue with virtually no cost, see SFFAS No. 7, paragraph 140. The custodial revenue is reported by the collecting agency on the Statement of Custodial Activity or on the Custodial Activity Note.

However, for exchange revenue collected for others with related cost incurred, agencies should follow the guidance from SFFAS No. 7, paragraph 137, which states:

As a general rule, exchange revenue transferred to others must be offset against the collecting entity’s gross cost to determine its net cost of operations. Exchange revenue reduces the net cost of operations incurred by the entity in producing outputs, regardless of whether the entity keeps the exchange revenue for its own use or transfers it to another operating entity or the General Fund. Likewise, exchange revenue reduces the net cost of the entity’s operations to the taxpayer regardless of its disposition. Therefore, all exchange revenue related to the cost of operations must be deducted from gross cost to determine the net cost of operations for the entity.

Furthermore, SFFAS No. 7, paragraph 138, states:

Any exchange revenue that is transferred to others, however, does not affect the collecting entity’s net position. Therefore, as required by the standards for other financing sources, such exchange revenue is recognized as a transfer-out in calculating the entity’s operating results.

At the Governmentwide level, these collections are recognized as revenue.

Verifying agencies that report a Statement or Note on Custodial Activity in their comparative, audited consolidated, department-level financial statements reclassify exchange revenue without associated costs (virtually no cost) and nonexchange revenue from the Statement or Note on Custodial Activity to the Closing Package line items on the Statement of Changes in Net Position. From the Sources of Collections section of the Custodial Statement or Note (with the exception of customs duties, and taxes collected by the Department of the Treasury, the Department of Labor, and the Department of Homeland Security), reclassify all nonexchange revenue lines to “Other taxes and receipts” and exchange lines to “Miscellaneous earned revenue.” From the Disposition of Collections section, reclassify all Federal lines to “Other Budgetary Financing Sources” and non-Federal lines to “Other taxes and receipts.”

Agencies must report the custodial revenue as non-Federal, “N,” at the time of collection from the public (that is, the Sources of Collection section). The disposition of the custodial revenue to other Federal agencies must be reported as Federal “F” in the reclassified Statement of Net Cost or Statement of Changes in Net Position when reporting in GFRS. Any Federal agency receiving custodial revenue from the collecting agency must report this revenue as Federal “F” in its reclassified Statement of Net Cost or Statement of Changes in Net Position when reporting in GFRS. If the collecting agency retains a portion of the custodial revenue, the agency also must report this revenue as Federal “F” in its reclassified Statement of Net Cost or Statement of Changes in Net Position when reporting in GFRS and must use its own trading partner code.

If agencies have collections that do not meet Statement or Note on Custodial Activity reporting requirements, they should refer to the General Fund Receipt Account Guide on the USSGL Web site at http://www.fms.treas.gov/ussgl/approved_scenarios/index.html#proprietary.

4705.20b—Funds From Dedicated Collections

Funds from dedicated collections are financed by specifically identified revenues, often supplemented by other financing sources, which remain available over time. These specifically identified revenues and other financing sources are required by statute to be used for designated activities, benefits, or purposes and must be accounted for separately from the Government’s general revenues in accordance with SFFAS No. 27 as amended by SFFAS No. 43. SSFAS No. 43 changed the name of these funds from “earmarked funds” to “funds from dedicated collections.” SFFAS No. 43 also modified the definition of these funds by clarifying that at least one source of funds external to the Federal Government must exist for a fund to qualify as a fund from dedicated collections. SFFAS No. 43 also added an explicit exclusion for any fund established to account for pensions, other retirement benefits, other post-employment, or other benefit provided for Federal employees (civilian and military).

At the Governmentwide level, the U.S. Government Balance Sheet shows separately the portion of the net position attributable to funds from dedicated collections. The standard further requires the disclosure of condensed information on assets, liabilities, and net cost for all funds from dedicated collections. The disclosure may present combined or consolidated amounts, and the presentation must be labeled accordingly.

Verifying agencies reclassify funds from dedicated collections amounts and activity from the agency’s Balance Sheet to the applicable Closing Package line items. Additional note disclosure information on funds from dedicated collections also is required in the Closing Package, Appendix 3, Note 22, to be completed by both verifying and nonverifying entities with activity from funds from dedicated collections. Agencies should report each fund from dedicated collections with a net position exceeding $5 billion (in absolute dollars), separately.

4705.20c—Social Insurance

The Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts are required by SFFAS Nos. 17, 25, 26, 28, and 37 to be presented as a basic financial statement. Agencies provide the Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts data in GFRS Module GF006, FR Notes. The information related to the Statement of Social Insurance, the Statement of Changes in Social Insurance Amounts, and the underlying significant assumptions also is included in GFRS Module GF006, FR Notes. All remaining social insurance information is contained in GFRS Module GF007, Other FR Data.

Note: The information related to these statements appears in GFRS Module GF006, FR Notes, because GFRS was not designed with a separate financial statement module for the Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts. As such, verifying agencies cannot enter information related to the Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts into a separate financial statement module. Since the Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts are two of the basic financial statements to which the IG of the verifying agency, if applicable, must opine as to its consistency with the comparative, audited consolidated, department-level financial statements, verifying agencies must enter the information related to the Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts into GFRS Module GF006, FR Notes.

The Social Insurance Program reporting agencies are required to report the Statements of Social Insurance, the Statement of Changes in Social Insurance Amounts, and the related notes in the FR Notes, and in Other FR Data in the Closing Package. The Social Insurance Program reporting agencies are the Social Security Administration (SSA), the Department of Health and Human Services (HHS), the Railroad Retirement Board (RRB), and the Department of Labor (DOL).

Most of the social insurance information pertaining to Social Security and Medicare can be obtained from SSA (the 2013 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds) and from HHS (the 2013 Annual Report of the Boards of the Trustees of the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds). SSA, HHS, RRB, and DOL are required to report the draft data of Social Insurance in the GFRS Closing Package (see Figure 3 for due dates).

4705.20d—Fiduciary Activities

In a fiduciary activity, the Government collects or receives and subsequently manages, protects, accounts for, invests, and/or disposes of cash or other assets in which non-Federal individuals or entities have an ownership interest that the Government must uphold. Non-Federal individuals and entities must have an ownership interest in the cash or other assets held by the Government under provision of loan, regulation, or other fiduciary arrangement. The ownership interest must be enforceable against the Government, and judicial remedies must be available for the breach of the Government’s fiduciary obligation. Agencies should account for this fiduciary activity, which includes the collection of cash or other assets and their distribution to the non-Federal owners and/or their beneficiaries, in accordance with SFFAS No. 31. In accordance with the standard, there is relatively similar Government activity that is specifically excluded from the SFFAS No. 31 reporting requirements such as: payroll withholdings and garnishments; unearned revenue; and seized property.

The standard requires that the Government’s fiduciary activities and a description thereof be included as a note disclosure. In addition, the Government must disclose that the fiduciary assets are not assets of the Government and are, therefore, not recognized on the U.S. Government Balance Sheet. However, at the Governmentwide level, the U.S. Government Balance Sheet recognizes a liability for fiduciary cash held in Fund Balance With Treasury and a liability for fiduciary investments in U.S. Treasury securities that are included in the agencies’ fiduciary assets. Since these fiduciary assets are not recognized on the agencies’ Balance Sheets, no verifying entities are required to enter this fiduciary liability line item in the Reclassified Balance Sheet, in the GFRS Module GF003.

However, both verifying and nonverifying entities with fiduciary activity must enter the agency fiduciary activity note disclosure information in the GFRS Module GF006, FR Notes (see Appendix 3, Note 27).

Note: The reporting requirements related to fiduciary activities, as required by SFFAS No. 31, are distinct and unrelated to the reporting and other requirements related to the “fiduciary” category of intragovernmental transactions as stated in subsections 4705.70b, 4706.15, 4706.20, 4706.20a, 4706.20b, 4706.25, and 4706.30c.

4705.20e—Reporting of Government Account Series (GAS) Investments With the Fiscal Service Purchased by Agencies Using Deposit Fund Monies

Treasury GAS securities purchased using nonfiduciary deposit fund monies are normally classified as public and not intragovernmental. However, for purposes of this TFM, investments in GAS securities by nonfiduciary deposit funds are to be reclassified as intragovernmental. Therefore, verifying agencies that invest deposit fund monies in GAS investments must adhere to the following three bullets for the portion of the investments that are not accounted for in the agencies’ fiduciary note:

  • Reclassify the deposit fund investments in GAS to the Closing Package Federal line titled, “Federal Investments,” and identify the amount in the Federal Trading Partner Note (Module GF004) using trading partner code “9900.”

  • Reclassify the liability with the public related to GAS investments by deposit funds to the Closing Package Federal line titled, “Other liabilities (without reciprocals),” and identify the amount in the Federal Trading Partner Note (Module GF004) using trading partner code “9900.”

  • Reclassify the revenue from earnings on deposit fund investments in GAS that the Federal Government is authorized to keep to the Closing Package Federal line titled, “Federal securities interest revenue,” and identify the amount in the Federal Trading Partner Note (Module GF004) using trading partner code “2000.”

Nonverifying agencies are directed to subsection 4707.20b for reporting GAS investments with deposit fund monies.

4705.20f—Department Code Reporting for General Fund Activities

Agencies use trading partner code “99” strictly for recording transactions with the General Fund of the United States. Do not confuse the General Fund of the United States (trading partner code 99) with the Department of the Treasury (department/trading partner code “20”), the agency. They are not synonymous and agencies must distinguish one from the other when designating an appropriate partner code. In addition, agencies must not use trading partner 99 on any buy/sell transactions. The General Fund Receipt Accounts (GFRAs) are credited with all collections that are not earmarked by law for another account for a specific purpose. Agencies that are collecting receipts into GFRAs should be aware that although GFRAs belong to the General Fund, the General Fund does not have all the details of all the accounting events in the GFRAs. Therefore, collecting agencies must record the accounting events in the GFRAs and must use their two-digit department codes in the GFRAs for collection and accrual activities (for example, receivables, revenues, other financing sources, transfer in, etc.). The accounts that have the “99” partner code in the GFRAs are listed below. Agencies should refer to the USSGL implementation guidance, in the General Fund Receipt Account Guide, on the USSGL Web site for examples of how to record partner codes in GFRAs. See the Web site at http://www.fms.treas.gov/ussgl/approved_scenarios/mr_transactions_17-b.pdf. In addition, agencies should refer to subsection 4707.20c in this TFM chapter. Some examples of activities that have “99” as a trading partner are:

  • Offsets to collections collected or accrued in the General Fund receipt accounts—USSGL accounts applicable to this activity include but are not limited to USSGL accounts 2980F, 2985F, 5990F, 5991F, 5993F, and 5994F.

  • Employer Federal Insurance Contributions Act (FICA) contributions collected by the Internal Revenue Service.

    Note: Beginning in FY 2014, employer FICA contributions will be considered non-reciprocating in GTAS.

  • Rescissions that are permanently canceled by law. (For trust and special fund transactions, treat similar to capital transfer transactions, RC 11 and RC 12. Refer to the discussion on capital transfer in Appendix 10. Permanent rescissions of balances derived from available trust and special fund accounts are treated differently. The accounting impacts RC 08, and thus does not involve trading partner 99.)

  • Other activities associated with the General Fund—USSGL accounts applicable to this activity include but are not limited to tax related accounts and USSGL accounts 1921F, 5997F, etc.

Agencies engaged in activity with the Department of the Treasury as a trading partner should use department code 20 regarding all other intragovernmental activities, such as Judgment Fund transactions, investments, borrowings, transfers not associated with a General Fund Receipt Account, and buy/sell activity. Agencies should contact the Director, Financial Reports Division, via email at financial.reports@fms.treas.gov, if they are unsure about the applicability of trading partner code “99” to particular transactions.

Agencies that record activities with the General Fund also must properly record this Federal activity at the Governmentwide level to assist with the preparation of the FR. General Fund activities (trading partner code 9900) are only reclassified to Federal FR lines with a RC 29 designation. RC 29 contains all line items for which reciprocal line items do not exist, and the USSGL accounts in RC 29 do not eliminate against another USSGL account. Refer to Appendix 1 for a description of each reclassified FR line and Appendices 6 and 7 for a listing of reclassified FR line reciprocal category designations and the financial statement to which they relate.

4705.25—Special Basis of Accounting

Verifying agencies under SFFAS No. 34, The Hierarchy of Generally Accepted Accounting Principles, that use accounting standards other than FASAB standards (for example, Financial Accounting Standards Board), as the basis for their audited financial statement data, or that do not have a fiscal yearend of September 30, are collectively referred to as converting agencies in GFRS. Converting agencies must perform an additional step in GFRS before reclassifying their financial statement line items to the Closing Package line items. They must convert their latest set of audited financial statements to a 12-month set of financial statements using the FASAB standards and a September 30 ending date. Converting agencies reclassify the converted data to the Closing Package line items instead of the data from their latest audited financial statements. They must subject all of the above-mentioned adjustments to their Closing Packages to the audit coverage described in subsection 4705.45.

Verifying agencies that may need to perform this additional step, as described above, are:

(1) Verifying agencies with comparative, audited financial statements not based on FASAB standards:

  • Federal Deposit Insurance Corporation;

  • National Credit Union Administration;

  • Pension Benefit Guaranty Corporation;

  • Smithsonian Institution;

  • Tennessee Valley Authority;

  • U.S. Postal Service;

    AND

  • Farm Credit System Insurance Corporation.

(2) Verifying agencies with a yearend other than September 30:

  • Farm Credit System Insurance Corporation;

  • Federal Deposit Insurance Corporation;

    AND

  • National Credit Union Administration.

For the verifying agencies with a yearend other than September 30, a crosswalk with a 12-month set of fiscal year financial statements should be provided to the Fiscal Service, as support to the Closing Package submission. In addition, these agencies must provide an updated 12-month set of the FY financial statements crosswalk after the audit is completed to show changes, if any, that may impact financial reporting at the Governmentwide level. Agencies must highlight any variances in the subsequent crosswalk and must provide reasons for the variances.

4705.30—Parent/Child Reporting

The parent agency (transferor of the appropriation) must report all activity of the child in its financial statements, whether material to the child agency (recipient of the transfer) or not, unless one of the three exceptions (detailed below) applies. The parent agency must use its two-digit trading partner code for all activities and balances with the child agency. This results in intragovernmental activity between the parent and the child being eliminated and not reported in the parent agency’s financial statements and GFRS. Other agencies that have activity with the child (see exceptions below) must use the Federal trading partner department code of the child’s parent agency when reporting their balances and transactions with the child in GFRS.

The three exceptions to the requirement for parent/child reporting (from OMB Circular No. A-136, revised) are:

  • Federal trust funds managed by the Fiscal Service (commonly known as Treasury Managed Trust Funds) for which the recipients are allocation accounts.

  • The parent is the Executive Office of the President.

  • Funds transferred from the Judiciary to the Department of Justice’s U.S. Marshals Service for court security.

In these cases, the receiving agency (child) is responsible for reporting all proprietary activity in its financial statements and GFRS. The child must use its two-digit trading partner code for all activities and balances with the parent agency. This results in intragovernmental activity between the child and the parent being eliminated and not reported in the child agency’s financial statements and GFRS. Agencies that have activity with the child listed in the three exceptions must use the Federal trading partner code of the child in reporting their balances and transactions with the child in GFRS.

Note: The reporting differences with the nonreporting agencies (for example, Judiciary Branch, House, Senate, etc.) will continue to be reflected as reasonable differences. The differences will be eliminated via a journal voucher at the Governmentwide level.

4705.35—Reciprocal Categories

A reciprocal category is comprised of a set of Federal Closing Package line items that are the reciprocal of each other (for example, accounts payable/accounts receivable). These categories assist in the elimination of Federal activity at the Governmentwide level to prepare the FR. Additionally, these reciprocal categories facilitate the reconciliation of activities between Federal agencies. All reciprocal categories currently contain a set of Federal line items except for RC 29, which contains all line items for which no reciprocal line items currently exist.

Note: General Fund activities must be reclassified to an FR line with a reciprocal category 29 designation for identifying General Fund activity at the Governmentwide level. See Appendix 6 for a complete list of reciprocal categories and the financial statements to which they relate.

4705.40—CFO Closing Package Data Verification

Verifying agency CFOs must certify the accuracy of the data in the Closing Package for the IG to opine no later than December 17, 2013, by 6 p.m., Eastern Standard Time (EST). The file should be submitted in Excel format, or in a format required by each agency’s IG.

4705.45—Audit Requirements for the Closing Package

For verifying agencies, an audit opinion is required for the Closing Package financial statements, for the current FY and the prior FY, based on agency-entered data in GFRS. This includes the intragovernmental activity and balances contained in the Closing Package’s GFRS Module GF004, Federal Trading Partner Note. The IG provides the audit opinion and its text of the audit opinion, regardless of whether the IG or an independent public accountant (IPA) conducted the audit. For guidance, refer to OMB Bulletin No. 07-04, as amended and as it relates to the Closing Package financial statements. Verifying agencies with a yearend other than September 30 are subject to all requirements of this TFM chapter. However, they are limited to audit assurance on material line items and note disclosures to which the verifying agencies contribute. For additional guidance, refer to the audit of the Closing Package financial statements section of OMB Bulletin No. 07-04, as amended.

The intragovernmental activity and balances contained in the Closing Package’s GFRS Module GF004, Federal Trading Partner Note, are included within the scope of the opinion on the Closing Package financial statements. Verifying agencies should review thoroughly information provided as Other FR Data in the Closing Package, which is not subject to audit coverage, to assure consistency with the applicable data.

Each applicable verifying agency must provide the following documents to the IG/IPA to perform the audit on the Closing Package. All of the following documents are a part of the IG/IPA audit scope except the GF007 Other FR Data Report, which must be thoroughly reviewed:

  • Reclassified financial statements – GF003F Closing Package Financial Statement Report (including FR Note 23 for the Statement of Social Insurance and FR Note 30 for the Statement of Changes in Social Insurance Amounts, if applicable);

  • GF004F Trading Partner Summary Note Report;

  • GF003G Closing Package Line Reclassification Summary Report;

  • GF006 FR Notes Report;

  • GF007 Other FR Data Report;

    AND

  • Management representation letter on the Closing Package, which includes the Summary of Uncorrected Misstatements (SUM), and uncorrected misstatements identified in the agency’s audited financial statement SUM, which is attached to the agency’s financial statement management representation letter (see subsection 4705.50 for instructions for entities with a yearend other than September 30).

Each IG must package a copy of the aforementioned documents in addition to the Closing Package auditors’ report and must email them in Portable Document Format (PDF) to GAO, the Fiscal Service, and OMB (see Figure 3 for due dates).

4705.50—Closing Package Schedule of Uncorrected Misstatements Process

Verifying agencies must submit a Closing Package SUM as a part of their Management Representation Letter on the Closing Package (as stated in subsection 4705.45) to the Fiscal Service. Verifying agencies with a yearend other than September 30 do not have to provide a SUM. The SUM is for agencies’ current-year Balance Sheet, Statement of Net Cost/Income Statement, Statement of Changes in Net Position, Statement of Social Insurance, and Statement of Changes in Social Insurance Amounts (if applicable). The schedule should contain the following:

  • The effect of the current year’s uncorrected misstatements and the carry-forward effect of the prior year’s uncorrected misstatements.

  • USSGL account number and account description.

  • Federal (F) or non-Federal (N) account indicator for each USSGL account affected.

  • A reference to an adjustment number or documentation reference.

  • An indication as to whether or not management has agreed to record the adjustment in its financial statements.

  • A statement as to whether the uncorrected misstatement is factual, judgmental, or projected.

  • A description of the adjustment.

  • The amount of the debit or credit.

  • The line items affected in the entity’s financial statements.

    AND

  • Uncorrected misstatements identified in the audited financial statement SUM and any additional uncorrected misstatements identified in the Closing Package. Explanations must be provided for any difference between the two SUMs to facilitate the consolidation of the FR.

In addition, the adjusting entries to correct the misstatements also should be provided. If there are no such uncorrected misstatements, a representation to this effect should be included in the management representation letter. Refer to the Financial Audit Manual (FAM), Section 595, for a sample schedule of uncorrected misstatements and adjusting entries. All responses should be submitted in Excel format.

For additional guidance, see OMB Bulletin No. 07-04, as amended, and OMB Circular No. A-136, revised, on the OMB Web site at http://www.whitehouse.gov/omb; and GAO/President’s Council on Integrity and Efficiency FAM, Section 595C, on the GAO Web site at http://www.gao.gov.

4705.55—Legal Representation Letter Process

4705.55a—Legal Letter Reporting Requirements

Verifying agency IGs must submit an interim and final legal representation letter prepared by the agency General Counsel summarizing and evaluating legal actions against the agency. Agency IGs must submit the interim and final legal representation letters and management schedules to the Fiscal Service, DOJ, and GAO. Legal representation letter files sent by email must be PDF files (zipped files are not accepted). Management Schedules must be in Excel format only (PDF files are not accepted). The agency’s legal representation letter must contain a schedule prepared by management that summarizes the content of the legal representation letter as disclosed in the agency’s financial statements. They must categorize cases, including cases to be paid from the Judgment Fund, in the table as either having a probable, reasonably possible, or a remote chance of a negative outcome for the agency consistent with American Bar Association guidance (see Figure 3 for due dates). Agencies must recognize a contingent liability on their financial statements or must disclose it in the financial statement notes if it meets the contingent liability criteria as defined in SFFAS No. 5. For guidance, refer to OMB Bulletin No. 07-04, as amended, as it relates to legal representation letters.

4705.55b—Other Required Information for Legal Representation Letters

Verifying agency IGs also must provide GAO, DOJ, and the Fiscal Service information about subsequent events that occurred after the effective date of their final legal representation letter through January 31, 2014 that resulted in a change of likelihood or an amount of loss (see Figure 3 for details). All agencies should send this information via email to GAO, DOJ, and the Fiscal Service.

Subsequent event information is based on the agency’s materiality threshold. For additional guidance, see OMB Bulletin No. 07-04, as amended, and OMB Circular No. A-136, revised, on the OMB Web site at http://www.whitehouse.gov/omb.

4705.60—Other Required Information for Subsequent Changes to Published Financial Statements

Verifying agency CFOs also must provide the Fiscal Service information regarding any subsequent changes, or no changes, to their management representation letters and published financial statements (see Figure 3 for due dates). Send this information via email to the Fiscal Service, OMB, and GAO. The email should indicate if there are no changes, and/or any changes to the management representation letters and the financial statements due to subsequent events. Subsequent event information is based on the agency’s materiality threshold. Do not include legal contingencies or items submitted in GFRS, Note 1.

4705.65—Yearend Intragovernmental Reconciliation Process Related to Closing Package Reporting

Verifying and nonverifying agencies should reconcile their intragovernmental balances with all available information before submitting their Closing Package data and FACTS I ATBs, respectively.

UCAD is the authoritative data collected in Treasury’s central accounting system. Agencies should validate and reconcile their data monthly with UCAD to resolve intragovernmental differences in certain reciprocal categories, prior to their data submissions in GFRS.

UCAD data consists of RC 07, Appropriation of Unavailable Trust or Special Fund Receipts; RC 08, Nonexpenditure Transfers of Unexpended Appropriations and Financing Sources; RC 11, Nonexpenditure Transfers of Financing Sources – Capital Transfers; RC 29, Appropriations Received as Adjusted; and RC 29, Fund Balance With Treasury.

The following monthly UCAD reports are available on the Fiscal Service Web site at http://www.fms.treas.gov/closingpackage/reports.html on the eighth workday of every month:

  • Summary Monthly UCAD Report for RC 07, 08, & 11;

  • Detail Monthly UCAD Report for RC 07, 08, & 11;

  • Monthly UCAD Report – Appropriations Received, as Adjusted-RC 29;

    AND

  • Monthly UCAD Report – Fund Balance With Treasury-RC 29.

The UCAD data reports for the period ending September 30 will be available to the agencies on October 10, 2013. The yearend report with backdated adjustments made between October 1 and 15 will be available to the agencies on October 17, 2013.

Verifying agencies generate their intragovernmental reports via the Discoverer application in GFRS or by using the direct URL link http://gfrs.fmsapps.treas.gov/discoverer/viewer for the following reports that show agencies their reciprocal balances, as reported in the Closing Package, for each of their trading partner agencies:

  • Intragovernmental Closing Package Activity Detail Report;

  • Intragovernmental Closing Package Activity Summary Report;

  • Intragovernmental Closing Package Reciprocal Category Detail Report;

  • Intragovernmental Closing Package Reciprocal Category Summary Report;

  • Material Differences Report (Part I of III). This report displays differences equal to or greater than $100 million;

  • Material Differences Report Part IIA - UCAD vs IRAS – Reciprocal Categories 7, 8, 11, FBWT and Appropriations Received;

  • Confirmation of Intragovernmental Activity (Part IIB) – Undefined Partners “00” and “99” General Fund. This report displays amounts reported equal to or greater than $10 million by reciprocal category.

    AND

  • Confirmation of Intragovernmental Activity (Part IIB) – Non-Reporting Agencies. This data is informational and requires an explanation if it is equal or greater than $100 million.

Any significant differences that are reconciled should form the basis for adjusting journal entries affecting intragovernmental activity and balances at the FR level. Agencies should submit their adjustments and supporting documentation for Part I and Part II (refer to subsections 4706.30e and 4706.30f for further detail regarding the explanation of differences) to their Fiscal Service contact via email and to the following email address: financial.reports@fms.treas.gov.

Verifying agencies generate the Intragovernmental Comparative Closing Package Explanations of Differences Report via the Discoverer application in GFRS or by using the direct URL link http://gfrs.fmsapps.treas.gov/discoverer/viewer.

4705.70—Yearend CFO Procedures for Intragovernmental Transactions/Balances

Verifying agencies must comply with the following instructions using the comparative, audited consolidated, department-level financial statements:

  • Provide responses to the representations outlined in the detailed “CFO Representation” instructions for each intragovernmental issue;

    AND

  • Ensure the data in the Intragovernmental Closing Package Material Differences/ Status of Disposition Certification Report is consistent with the information reported in the Federal program agency’s financial statements.

The Fiscal Service provides the CFO Representations form for Federal Intragovernmental Activity and Balances (see Appendix 8). The Fiscal Service posts this form on the Fiscal Service Web site at http://www.fms.treas.gov/closingpackage. The representations relating to whether the reconciliation was completed for each item of Section I (General Intragovernmental Reporting Results), Section II (Explanation of Closing Package Differences), and Section III (Additional Explanations) must be completed in their entirety.

4705.70a—Detailed CFO Representation Instructions

Verifying agencies must provide responses to the following intragovernmental items.

4705.70b—Section I: General Intragovernmental Reporting Results

  • Is consistency maintained between the agency intragovernmental reporting entered in GFRS Module GF004 Trading Partner Note (by line item and trading partner) and the agency source documents? If “no,” provide an explanation. (Refer to the Intragovernmental Closing Package Line Item Reports and the Trading Partner Identification Reports from GFRS Module GF004). Agency source documents include manual and electronic records, original documents, and accounting records generated by the agency’s official accounting system.

  • Identify policies and procedures that pertain to the agency’s ability to record, process, summarize, and report intragovernmental activity and balances by trading partner. Describe the accounting treatment and policies and procedures used for buy/sell, benefits, fiduciary, transfer, and General Fund intragovernmental transactions.

  • Review and explain the agency’s activity reported with trading partner “9999.” Indicate the dollar amount or percentage of this activity that relates to business conducted with highly classified agencies, the U.S. Senate, or the House of Representatives. Also, explain any activity that is unknown because the agency is unable to identify its trading partners and/or amounts.

  • Explain activity reported with trading partner “9900” (General Fund).

  • Explain unidentified material differences with trading partners.

  • Confirm whether all Federal program agencies were contacted or pursued concerning material differences. If “no,” list those agencies that were not contacted or pursued and provide an explanation.

  • Confirm whether the agency used the UCAD reports available on the Fiscal Service Web site at http://www.fms.treas.gov/closingpackage/reports.html to validate the agency’s data entered in GFRS Module GF004 for the Closing Package line items in RC 07, RC 08, and RC 11; as well as Fund Balance With Treasury-RC 29; and Appropriations Received as Adjusted-RC 29. If “no,” provide an explanation why the UCAD online reports were not used.

  • Confirm whether the independent auditors proposed any adjustments related to intragovernmental balances reported in the Closing Package. If “yes,” list the auditor’s intragovernmental adjustments waived by management.

4705.70c—Section II: Explanation of Closing Package Differences

Explain the differences indicated on the Intragovernmental Closing Package Material Differences/Status of Disposition Certification Report, Part I, on the Additional Explanations form (Part III), which is provided on the Fiscal Service Web site, and categorize (categories are defined in subsection 4706.30f) them as follows:

(1) Accounting/Reporting Error;

(2) Current Year Timing Difference;

(3) Prior Year Timing Difference;

(4) Accounting Methodology Difference;

(5) Accrual Methodology Difference;

AND

(6) Unidentified.

Also, explain the special items and differences on the Intragovernmental Closing Package Material Differences/ Status of Disposition Certification Report, Part II, on the Additional Explanations form (Part III). (Refer to subsection 4706.30c for further detail regarding special items and differences that are included in Part IIA and Part IIB.)

4705.70d—Section III: Additional Explanations

For each explanation, from Parts I and II, the supporting documentation must be included, in detail, on the “Additional Explanations” form provided by the Fiscal Service. (Refer to subsections 4706.30e and 4706.30f for further detail regarding the explanation of differences).

Provide an electronic file of the CFO’s Representations for Federal Intragovernmental Transactions and Balances along with the completed Intragovernmental Closing Package Material Differences/Status of Disposition Certification Report, including the “Additional Explanations” form to the Fiscal Service and GAO (see Figure 3 for due dates).

Section 4706—Intragovernmental Requirements

4706.10—Intragovernmental Transactions/Balances

Intragovernmental transactions result from business activities conducted between two Federal Government entities, called trading partners. Accounting differences occur in Governmentwide financial reporting when trading partners' record differing amounts for transactions that should eliminate or net to zero. Trading partners must reconcile and resolve these differences on a routine basis with their trading partners. The Intragovernmental Transactions Guide (Appendix 10) contains the business rules and processes to properly record, report, and reconcile intragovernmental transactions, including the processes for dispute resolution.

4706.15—Intragovernmental Reconciliation Requirements Authority

The intragovernmental transactions reconciliation requirements are stated in OMB Circular No. A-136 (see the OMB Web site at http://www.whitehouse.gov/omb).

4706.15a Federal Intragovernmental Transactions Accounting Scenarios

Agencies can refer to the USSGL Web site for accounting scenarios for selected Federal intragovernmental activities at http://www.fms.treas.gov/ussgl/approved_scenarios/index.html.

4706.15b Dispute Resolution of Intragovernmental Transactions Differences

If an agency’s intragovernmental balance does not materially (above $100 million threshold in absolute value) agree with the trading partner’s balance, the agency must work with its trading partner to reconcile the difference and must post the adjustment to its financial records. If trading partners cannot agree and resolve the difference within 60 calendar days after the quarter end, then both agencies must request dispute resolution from the Fiscal Service (see Appendix 10, subsection 2.4.2).

The Fiscal Service will review the request for dispute resolution and will notify both trading partners of the final decision within 30 calendar days of receiving the request. Once the Fiscal Service has rendered the decision and notified agencies via email, trading partners must update their financial records within 5 calendar days, but no later than the end of the quarter. If either trading partner does not agree with the decision, it may request an appeal. Appeals must be requested within 5 calendar days of the date the decision was rendered. The Fiscal Service will send the previously submitted documentation to the Office of the Deputy Fiscal Assistant Secretary-Accounting Policy, Office of the Fiscal Assistant Secretary (OFAS). OFAS will review the request for appeal and will render a final decision within 10 calendar days of receipt of the appeal request. Once OFAS has rendered the final decision, the affected agencies must update their financial records within 5 calendar days, but no later than the end of the quarter.

4706.20—Intragovernmental Fiduciary Confirmation System (IFCS)

The IFCS, an Internet-based application, is the official confirmation system for all Federal departments and agencies that engage in fiduciary intragovernmental transactions.

Agencies are required to use the IFCS to confirm and reconcile fiduciary and benefit transactions with their trading partners. Agencies should investigate and record adjustments for any discrepancies between their intragovernmental account balances and the reciprocal account balances of their trading partner(s). Discrepancies due to errors should be corrected prior to the preparation of financial statements and the Closing Package submission to the Fiscal Service (see Figure 3 for due dates).

Specifically, OMB Circular No. A-136 requires reporting agencies to reconcile/confirm intragovernmental activity and balances quarterly for the following reciprocal groupings:

  • Investments—Including shares/par, original issue discount and premium interest payables and receivables, interest income and expense, and amortization of premiums and discounts with the Fiscal Service.

  • Borrowings—Including loans receivable (including capitalized interest receivable), interest payables and receivables, and interest income and expense from the Fiscal Service or the FFB and gains/losses on disposition of borrowings that are reconciled/confirmed quarterly.

  • Federal Employees’ Compensation Act (FECA) transactions with DOL—Including routine payments and accruals for FECA liabilities. Note: Amounts relating to unemployment compensation are not included by DOL and FECA. Therefore, agencies need to exclude any amounts associated with unemployment compensation before posting expenses and liabilities in IFCS (USSGL accounts 2213, 2215, 2225, 2290, 6400, and 6850).

  • Employee Benefit Program transactions with OPM—Including routine payments and postretirement benefits related to the Federal Employees Retirement System (FERS), the Civil Service Retirement System (CSRS), the Federal Employees’ Group Life Insurance Program (FEGLI), and the Federal Employees’ Health Benefits Program (FEHB).

4706.20a—IFCS Reporting Reconciliation Requirements

Agencies must ensure that fiduciary intragovernmental balances are confirmed using the IFCS. Intragovernmental balances confirmed through IFCS should agree to the quarterly data, Closing Package reporting, and the agency’s financial statements.

To review DOL’s benefits activity, agencies should access DOL’s Internet Web site at http://www.dol.gov/ocfo/publications.html.

4706.20b—IFCS System Access

To access and confirm fiduciary balances in the IFCS, agency users should access the Internet Web site at https://fmsapps.treas.gov/ias. Agencies can apply for a user ID and password by completing a GOALS II ESAAS form and faxing it to 202-874-6170. All agencies must designate agency user backups for all roles. After the ESAAS form is processed, the IFCS administrator makes the agency assignment. Then, the agency department administrator assigns the designee to his or her specific agency fund symbols for the borrowings and investments categories and agency code for OPM and DOL categories. For more information, contact the Fiscal Service’s Service Desk by telephone at 202-874-4357 or by email to fmsservicedesk@fms.treas.gov or itservicedesk@bpd.treas.gov.

4706.25—Nonfiduciary Transactions

For nonfiduciary transactions, OMB requires reporting agencies to reconcile/confirm intragovernmental activity and balances quarterly for the following reciprocal groupings:

  • Services provided and reimbursables—Such as legal, consulting, investigative, financial management, grants management, technology, reimbursables, and other similar services.

  • Cost of products sold—Such as supplies, manufactured items, inventory, office space, and equipment/vehicle rentals.

  • Transfers, appropriations used, and collections for others, and unusual assets and liabilities related to appropriations—Including transfers between agencies based on agreements or legislative authority, expended appropriations, taxes and fees collected, collections for others, receivables from appropriations, transfers payable, and custodial revenue.

4706.25a—Related to Capitalized Purchases

Agencies that purchase capitalized assets from other Federal entities must record the purchase to the following USSGL memorandum accounts:

  • 8801F, “Offset for Purchases of Assets”;

  • 8802F, “Purchases of Property, Plant, and Equipment”;

  • 8803F, “Purchases of Inventory and Related Property”;

    AND

  • 8804F, “Purchases of Assets – Other.”

Agencies also must record the purchase to the appropriate USSGL asset account in the Closing Package.

The above memorandum accounts are not crosswalked to the Closing Package. The memorandum accounts are only supplemental USSGL accounts that are used for reconciling purposes.

4706.30—Quarterly Intragovernmental Transactions Reconciliation Process

The quarterly reconciliation process facilitates the elimination of intragovernmental differences for yearend financial reporting.

Agencies should use two-digit trading partner codes for all intragovernmental transactions. When agencies report “appropriations transfers” within their departments, they should use their two-digit trading partner code rather than “00.” Trading partner code “00” is limited to the House of Representatives, Senate, classified transactions, or any truly unidentifiable activity/balances.

4706.30a—Agency Quarterly Submission

In support of the quarterly reconciliation process, both verifying and selected nonverifying agencies must submit full proprietary ATBs in text format.

Agencies should derive these submissions directly from their departmental trial balances that are used as the basis for constructing quarterly unaudited financial statements for OMB.

The text file format must contain the following elements:

  • Department code (two digit)—Treasury department code associated with the ATB fund group and consistent with the MAF ATB code (Appendix 5).

  • Bureau code (two digit)—Bureau code associated with the ATB fund group and consistent with the MAF ATB code. Use “00” if the agency does not have any subdivisions.

  • Fund group (four digit)—MAF fund group.

  • USSGL account (four digit)—USSGL account number.

  • Federal/Non-Federal Attribute—F/N indicator.

  • Federal trading partner (Federal) (two digits)—Treasury department code of the Federal trading partner.

  • Sign indicator—The “-” (minus) symbol indicates a credit balance. Leave the field blank for debit balances, without regard to the normal-balance concept.

  • Dollar amount—Leading zeroes are required. The last two positions represent amounts after the decimal point.

  • Exchange/nonexchange attribute —X/T indicator.

  • Duplicate Partner Code Identifier (DPCI)—The attribute for certain reporting entities that use duplicate two-digit department codes.

  • Custodial/noncustodial attribute —S/A indicator.

All agencies should send their completed ATB files including a total record count via email to their Fiscal Service contact and to financial.reports@fms.treas.gov. The Fiscal Service will validate the files and notify the agencies of any errors. Errors must be corrected and files resubmitted within 1 business day of notification.

See Appendix 9 for the data file format and http://www.fms.treas.gov/closingpackage/keydates.html for intragovernmental key dates.

4706.30b—Agency Submission – Parent/Child Reporting

The parent agency (transferor of the appropriation) must report and code activity and balances between the parent and the child using the parent’s two-digit trading partner code on its file submission to properly eliminate parent/child activity and balances, unless one of the three exceptions applies (see subsection 4705.30 for exceptions). Agencies having activity with the child must use the parent’s two-digit trading partner code in the file to report their balances and transactions with the child. For example, agencies having activity with the account “AA BB 1234” use the “BB” trading partner code, in which “BB” represents the parent’s two-digit trading partner code.

For the three exceptions listed in subsection 4705.30, the child agency must report and code activity and balances between the parent and the child with the child’s two-digit trading partner code on its file submission to properly eliminate parent/child activity and balances. Agencies having activity with the child, for the three exceptions, must use the child’s two-digit trading partner code in the file to report their balances and transactions with the child. For example, agencies having activity with the account “AA BB 1234” use the “AA” trading partner code, in which “AA” represents the child’s two-digit trading partner code.

4706.30c—The Fiscal Service Intragovernmental Activity Reports

Within approximately 4 business days of agencies’ quarterly ATB file submissions, the Fiscal Service consolidates agency quarterly financial data. Reporting agencies use the Discoverer application through GFRS or use the direct URL link http://gfrs.fmsapps.treas.gov/discoverer/viewer to generate the intragovernmental reports (see the Discoverer User Manual at http://www.fms.treas.gov/closingpackage/regulations.html). The reports show agencies their reciprocal balances, as reported in the quarterly ATB files, for each of their trading partner agencies (Part I); UCAD vs. IRAS differences (Part IIA); and undefined and non-reporting partners and General Fund activity (Part IIB):

  • Intragovernmental Activity Detail Report by Trading Partner.

  • Intragovernmental Activity Summary Report by Trading Partner.

  • Intragovernmental Reciprocal Category Summary Report.

  • Intragovernmental Reciprocal Category Detail Report.

  • Fiduciary Quarterly Data vs. IFCS Agency Benefits Report.

  • Fiduciary Quarterly Data vs. IFCS Comparison Report.

  • Material Differences Report (Part I of III) displays differences with trading partners, excluding “99” and “00,” by reciprocal categories (excluding RC 07, 08, 11, 25, and 29) that are greater than or equal to $100 million.

  • Material Differences Report (Part IIA) – UCAD vs IRAS – Reciprocal Categories 7, 8, 11, FBWT and Appropriations Received identifies all differences between the trial balance and UCAD amounts.

  • Confirmation of Intragovernmental Activity (Part IIB) – Undefined partners “00” and “99” General Fund displays amounts reported equal to or greater than $10 million by reciprocal category.

    AND

  • Confirmation of Intragovernmental Activity (Part IIB) – Non-Reporting Agencies (non-reporting agencies that do not submit ATB files for IRAS processing) is informational and requires an explanation if it is equal to or greater than $100 million.

Agencies should use these reports to work with their trading partners to reconcile intragovernmental differences.

The Material Differences Part IIA – UCAD vs IRAS report shows agencies their balances reported in their quarterly ATB submissions compared to the data reported in Treasury’s central accounting system. Agencies should use these reports as a tool to reconcile their differences in RC 07, RC 08, and RC 11; Appropriations Received as Adjusted-RC 29; and Fund Balance with Treasury-RC 29 with the data they reported into Treasury’s central accounting system.

4706.30d—Agency Quarterly Status of Disposition Certification

Each verifying agency and selected nonverifying agencies generate an Intragovernmental Material Differences/ Status of Disposition Certification Report from the Discoverer application in GFRS (or use the direct URL link at http://gfrs.fmsapps.treas.gov/discoverer/viewer), containing comparative reporting between the agency and its trading partners by reciprocal category in Part I, and other significant material balances and confirmation of the reporting in Part II. The Fiscal Service provides Part III, which is a blank “Additional Explanations” form that agencies use to explain in detail their reporting on all records showing material differences. The Fiscal Service posts this form on the Web site at http://www.fms.treas.gov/closingpackage/reports.html.

The Intragovernmental Material Differences/Status of Disposition Certification Report, Part I, allows agencies to identify differences with trading partners, excluding “99” and “00,” by reciprocal categories (excluding RC 07, 08, 11, 25, and 29) that are greater than or equal to a materiality level that is determined by Treasury. Part IIA identifies all differences between the trial balance and UCAD amounts for RC 07, RC 08, and RC 11, Fund Balance With Treasury-RC 29, and Appropriations Received as Adjusted-RC 29. Part IIB identifies all transactions equal to or greater than $10 million with trading partners 00 and 99 by reciprocal category. Agencies must explain all the balances in Parts I, IIA, and Part IIB on Part III, the “Additional Explanations” form. The assurance level is systematically established using three functions for fiscal 2013:

  • Obtaining a sufficient explanation and corrective actions, if applicable, to resolve the out-of-balance and condition coverage for GAO assurance;

  • Obtaining assurance that agencies are performing quarterly intragovernmental reconciliation in accordance with OMB Circular No. A-136, revised;

    AND

  • Ensuring agencies are mutually completing the Intragovernmental Material Differences/Status of Disposition Certification Report for the same trading partner/reciprocal category material difference instances.

Both verifying agencies and selected nonverifying agencies should provide an explanation of the reporting on Parts I and II of the Intragovernmental Material Differences/Status of Disposition Certification Report by identifying their reporting justification by explanation number (refer to subsection 4706.30e) and should submit it to the agency’s respective Fiscal Service contact person via fax to 202-874-9907 or via email (PDF format). This report is due for each quarter except the fourth quarter.

Note: Verifying agencies that have recurring differences with a trading partner continue to receive an Intragovernmental Material Differences/Status of Disposition Certification Report that must be explained and certified. Recurring differences should be limited to those situations that have been confirmed by the Fiscal Service through the dispute resolution process.

4706.30e—Detailed Quarterly Status of Disposition Certification Instructions

Verifying agencies and selected nonverifying agencies are required to provide an explanation of the Intragovernmental Material Differences/Status of Disposition Certification Report, Parts I and II. An explanation of their Part I should be reporting based on each identified difference in terms of the following categories:

(1) Accounting/Reporting Error;

(2) Current Year Timing Difference;

(3) Prior Year Timing Difference;

(4) Accounting Methodology Difference;

(5) Accrual Methodology Difference;

AND

(6) Unidentified.

The agencies must include documented support for Parts I and II in detail for each explanation on the “Additional Explanations” form (Part III) provided by the Fiscal Service via the FACTS I Web site at http://www.fms.treas.gov/closingpackage/reports.html.

4706.30f—Reporting Agency’s Explanation of Reporting in Part I

Differences identified in Part I should be classified according to the following categories:

(1) Accounting/reporting error: occurs when the reporting agency has incorrectly reported activity either by reciprocal category, trading partner, or amount. The total of these amounts must be identified and explained. If the agency is in error, then provide the adjustment amount as well as the corrective action (journal entry, etc.) to be taken and when the error will be corrected.

(2) Current-year timing difference: occurs when the reporting agency has reported activity in a different quarter than the trading partner. The total of these amounts must be identified. Explain whether an adjustment should be made.

(3) Prior-year timing difference: occurs when the reporting agency has reported activity in a prior fiscal year other than the trading partner. The total of these amounts must be identified. Explain whether an adjustment should be made.

(4) Accounting methodology difference: occurs when the reporting agency uses a different method to account for activity than the trading partner. The method of accounting must be identified and explained.

(5) Accrual methodology difference: occurs when the reporting agency uses a different accrual method to account for activity than the trading partner. The method of accrual must be identified and explained.

(6) Unidentified: occurs when the reporting agency cannot validate the amount of the difference. The total of unidentified reporting amounts must be identified and explained.

Note: Unidentified also can include instances where the differences may be the result of existing guidance that is currently under review to ensure elimination at the Governmentwide level between trading partners when applied correctly (for example, judgment fund and FICA transactions).

4706.30g—Comparative Status of Disposition Report

Within approximately 4 business days of agencies’ submissions of the Intragovernmental Material Differences/Status of Disposition Certification Report, the Fiscal Service consolidates agency explanations and makes the Comparative Status of Disposition Report available via the Discoverer application through GFRS or use the direct URL link at http://gfrs.fmsapps.treas.gov/discoverer/viewer.

This report compares amounts and explanations of material differences reported between each reporting agency and its trading partner.

CFOs use this report to address and resolve inconsistencies in amounts and explanations between the agency and its trading partners. All material differences must be resolved and eliminated within 60 calendar days after quarter end, or a dispute resolution request must be submitted.

4706.30h—Intragovernmental Transactions Metrics and Scorecards

The Fiscal Service has implemented scorecards and metrics to track reporting differences Governmentwide and by agency. Scorecards will be updated quarterly and disseminated to agencies. The purpose of the metrics is to monitor progress on resolving and/or explaining material intragovernmental differences. Refer to Appendix 10, Section 2.5, for further information on the timeline for these scorecards and metrics and related agency requirements.

Section 4707—FACTS I Requirements

Note: GTAS will replace FACTS I beginning FY 2014 and will require reporting proprietary USSGL account balances with budgetary USSGL account balances in accordance with the current reporting period requirement for FACTS II.

4707.10—Collection of ATB Data

The Fiscal Service continues to collect ATB data to aid in its analytical process. ATB data should link directly to the agencies’ comparative, audited consolidated, department-level financial statements. Agencies may view ATB data in GFRS. ATB data are tools to facilitate the Closing Package and are not subject to coverage in the audit requirements of the Closing Package.

4707.15—FACTS I System Access

The FACTS I Internet application on GOALS II requires a user ID and password. The address for the FACTS I Internet application on GOALS II is https://fmsapps.treas.gov/ias.

Agencies can apply for a user ID and password by completing a GOALS II ESAAS form and faxing it to 202-874-6170. For more information, contact the Fiscal Service’s Service Desk by telephone at 202-874-4357 or by email to fmsservicedesk@fms.treas.gov or itservicedesk@fms.treas.gov.

4707.20—FACTS I Reportable Data

GFRS compiles the data from the FACTS I submissions for nonverifying agencies into a set of “generic” financial statements that are included in the consolidated FR. Nonverifying agencies must prepare and submit FR Notes using the amounts from the “generic” financial statements compiled in GFRS. Agencies must submit all changes to the “generic” statements through FACTS I.

4707.20a—Master Appropriation File (MAF)

The Fiscal Service uses the MAF as a control tool during the ATB submission process. The MAF consists of records (one record for each Treasury appropriation/fund group), uniquely identified by an eight-digit code. The eight-digit code combines a two-digit department code, a two-digit bureau code, and a four-digit fund group code. In FACTS I, it is referred to as the ATB code. Each MAF record also contains the following:

  • A BSF ID that represents the budget subfunction of the ATB.

  • A fund type ID. The fund type for MAF is not necessarily the fund type used in the FAST Book.

  • Other codes and identifiers the Fiscal Service uses for internal purposes.

Verifying and nonverifying agencies must maintain the MAF on the FACTS I database and must submit changes to the MAF data through the FACTS I Internet application. Agencies must review and update individual components of the MAF electronically. After agencies review, update, and submit the MAF, the Fiscal Service reviews and approves the MAF.

4707.20b—Adjusted Trial Balance

Agencies must prepare and submit preclosing ATBs at the Treasury appropriation/fund group level using USSGL accounts and attributes. Agencies that have not adopted the USSGL must crosswalk their general ledger accounts to the USSGL accounts before transmission.

The ATBs must include USSGL accounts in numerical order with the required attributes, and USSGL account balances must reflect the preclosing adjusting entries needed to produce financial statements. The total sum of debit balances must equal the total sum of credit balances in the ATBs. Report amounts in dollars and cents.

A variety of edits enable FACTS I to verify that the submitted USSGL accounts with associated attributes are valid and have equal debit and credit balances. Treasury rejects ATBs that do not meet these criteria.

Verifying and nonverifying agencies must use the same USSGL data on the ATBs that they use to prepare the current FY audited agency consolidated financial statements due to OMB. Agencies also must use the following required attributes:

  • “F” or “N” to identify a USSGL account balance as Federal (F) or non-Federal (N). Report the two-digit department code (see Appendix 5) of the trading partner when using attribute “F.”

  • “S” or “A” to identify a USSGL account balance as custodial (S) or noncustodial (A).

  • “X” or “T” to identify a USSGL account balance as exchange (X) or nonexchange (T) revenue.

More than one attribute may be valid for a USSGL account. See USSGL Part 1, Fiscal 2013 Reporting, for a list of the USSGL accounts with their valid attributes.

Nonverifying agencies that use deposit fund monies to invest in GAS investments, and, if the Fiscal Service records these GAS securities as public, must identify these investments with trading partner “99” instead of “20.”

4707.20c—Special Accounts

Verifying and nonverifying agencies may submit a single ATB for all fund groups in each of the following categories:

  • Clearing/suspense (F) accounts (use default 3800 for the fund group).

  • Deposit fund accounts (use default 6000 for the fund group).

  • Unavailable receipt accounts—General fund (use default 5555 for the fund group).

  • Unavailable receipt accounts—Special and trust fund (use default 5000 for the fund group).

Treasury appropriation/fund symbol ranges for receipt accounts include the following:

  • Unavailable general fund receipt accounts range from 0100 through 3799.

  • Clearing/suspense accounts range from 3800 through 3899.

  • Special fund receipt accounts range from 5000 through 5999.

  • Trust fund receipt accounts range from 8000 through 8999.

Agencies must determine whether the collections made under the special and trust fund receipt account symbols are “available” receipts or “unavailable” receipts. “Available” receipts constitute budget authority at the time of collection and are available for expenditure without further action. They are moved immediately to the corresponding expenditure account. Only one ATB, that of the expenditure account, should be submitted. “Available” receipts, for which the appropriation fund symbols only can be in the 5000s and the 8000s, constitute budget authority. Agencies should report ATBs for available receipt accounts individually under their Treasury appropriation fund symbol.

“Unavailable” receipts do not constitute budget authority and are not available until legislation is enacted that allows an agency to obligate and expend the funds. “Unavailable” receipts with account fund symbols from 5000 to 5999 (5000s) or 8000 to 8999 (8000s) represent receipts of the collecting agency. Agencies that deposit receipts into these fund symbols must submit ATBs and should ensure the receipts revenue appears on their financial statements. However, these receipts do not constitute budget authority until subsequent legislation appropriates the receipts.

4707.20d—Reporting Instructions for General Fund Receipt Accounts

Agencies that classify amounts on their Statement of Transactions (that is, FMS 224, FMS 1220, or SF 1221) in general fund receipt account symbols using their two-digit agency department code also must submit an ATB and must prepare agency financial statements that include the general fund receipt activity.

4707.20e—Treasury Managed Trust Fund Accounts

The Fiscal Service’s Trust Fund Management Branch provides the lead program agency an ATB for the Treasury managed trust fund activity located at the Fiscal Service for each of the Treasury managed trust funds listed in Figure 4.

The Fiscal Service uses USSGL accounts from the USSGL Part 1, Fiscal 2013 Reporting, with the proper attributes. The lead program agencies identified in Figure 4 must include the Treasury managed trust fund data in their ATBs. Direct any questions regarding the ATB data received from the Fiscal Service to Ryan Hanna at 304-480-5120.

4707.20f—Parent/Child Reporting

Report in FACTS I similar to the reporting for the quarterly file submissions. Refer to subsection 4706.30b.

4707.20g—ATB Reports Transmission Methods

Each ATB preparer can submit the ATB data using the online entry method or bulk file transfer method on the GOALS II FACTS I Internet application. The bulk file transfer requires that agencies build American Standard Code for Information Interchange (ASCII) files using the prescribed record layout for FACTS I posted on the FACTS I Web site at http://www.fms.treas.gov/closingpackage.

Agencies may submit ATBs for multiple fund groups in a single bulk file transfer.

4707.20h—Proprietary Balances in Canceled Accounts

There are two valid types of proprietary account balances in a canceled TAFS. They are fixed assets and canceled payables.

Agencies must maintain and report “canceled payable” balances in their original TAFS.

Agencies with fixed asset balances in a canceled TAFS may report those balances in either of three ways:

  • Report in the Treasury appropriation/fund group from which the funds were originally appropriated;

  • Transfer asset balances without reimbursement to an open TAFS and report in that open Treasury appropriation/fund group;

    OR

  • Use a default fund group to report the balances of fixed assets that cannot be identified to an original Treasury appropriation/fund group.

Figure 3: FR Reporting and Submission Dates

July 9, 2013

IFCS window opens for the third quarter.

July 30, 2013

IFCS window closes for the third quarter.

July 30, 2013

Third-quarter  agency IRAS data file due to the Fiscal Service.

August 6, 2013

Agencies generate third-quarter intragovernmental reports using the Discoverer application in GFRS.

August 13, 2013

Verifying and selected non-verifying agency CFOs must submit an explanation of the reporting on the Status of Disposition Certification form for the third quarter.

August 19, 2013

The Fiscal Service makes the Comparative Status of Disposition Report available to the agencies by this date, for the third quarter.

August 23, 2013

FACTS I MAF window opens.

August 27, 2013*

Verifying agency IGs must submit interim legal representation letters and management schedules to the Fiscal Service, DOJ, and GAO.

September 5, 2013

 

For verifying and nonverifying agencies, the window opens for Closing Package data submission in GFRS for Modules GF001 to GF008, as applicable.

September 13, 2013

Agencies’ FACTS I MAF submissions due.

September 20, 2013

SSA, HHS, and RRB report the draft Social Insurance data in the GFRS Closing Package.

September 27, 2013

After the agencies review, update, and submit the MAF, the Fiscal Service reviews and approves the MAF by this date.

October 1, 2013

Window opens for FACTS I ATB submissions.

October 26, 2013

IFCS window opens for fourth quarter.

November 4, 2013

Lead program agencies receive an ATB for the trust fund activity located at the Fiscal Service. (Refer to subsection 4707.20e.)

November 14, 2013

DOL reports the draft Social Insurance data for Black Lung and Unemployment Insurance in GFRS Closing Package.

November 19, 2013*

IFCS window closes for fourth quarter (final).

November 19, 2013*

Fourth quarter agency IRAS data file due to the Fiscal Service.

November 26, 2013

Agencies generate fourth quarter intragovernmental reports using the Discoverer application in GFRS.

December 17, 2013*

1. GFRS window for Closing Package submissions closes for verifying agencies.

2. Agencies will get updates from the Fiscal Service about any adjustments made on the Closing Package data after this date.

3. CFO and IGs must ensure that they collaborate on the Closing Package submission.

December 17, 2013*

1. GFRS Notes and other FR data submissions are due for nonverifying agencies by 6 p.m. eastern standard time (EST).

2. Window closes for FACTS I ATB submissions to the Fiscal Service for nonverifying agencies by 6 p.m. EST.

3. IG opinion on the Closing Package for verifying agencies, including the Trading Partner Note, is due by 6 p.m. EST.

4. IG must submit copies of documents listed under subsection 4705.45 and the Closing Package auditors’ report to GAO, the Fiscal Service, and OMB by 6 p.m. EST.

5. Verifying agency IGs must submit the final legal representation letters and management schedules to the Fiscal Service, DOJ, and GAO by 6 p.m. EST.

6. Verifying agencies must submit a Closing Package Schedule of Uncorrected Misstatements (SUM) including the management representation letter via email to the Fiscal Service, OMB, and GAO.

December 20, 2013

Verifying agencies generate intragovernmental reports (based on the Closing Package data) using the Discoverer application in GFRS.

December 31, 2013

FACTS I ATB submission window closes for verifying agencies by 6 p.m. EST.

January 7, 2014

Agency CFOs’ submit their Representations for Federal Intragovernmental Activity and Balances (Sections I, II, III, and required documentation) to the Fiscal Service and GAO.

January 10, 2014

Verifying agencies generate the Intragovernmental Comparative Closing Package Explanations of Differences Report via the Discoverer application in GFRS and distribute the report to the CFOs and IGs.

February 4, 2014

Verifying agency IGs must provide the Fiscal Service information about subsequent events that occurred after the effective date of their final legal representation letters through January 31, 2014, that resulted in a change of likelihood or an amount of loss. Send this information via email to the Fiscal Service, OMB, and GAO by 6 p.m. EST.

February 18, 2014

Verifying agency CFOs must provide the Fiscal Service information about subsequent changes to Management Representation Letters and financial statements that have arisen after the date of the financial statements audits (general purpose and Closing Package) and up through February 17, 2014. Send this information via email to the Fiscal Service, OMB, and GAO by 6 p.m. EST.

*Represents the “no later than date.” Agencies should submit data as early as possible.

TBD: Due dates are to be determined. The Fiscal Service will provide these due dates to agencies through a TFM announcement by late summer, in conjunction with updates from OMB Circular No. A-136.

Figure 4: Treasury Managed Trust Funds

Treasury Managed Trust Fund

Agency/Department

Federal Supplementary Medical Insurance

Department of Health and Human Services (HHS)

Federal Hospital Insurance

HHS

Vaccine Injury Compensation

HHS

Federal Old-Age and Survivors Insurance

Social Security Administration (SSA)

Federal Disability Insurance

SSA

Airport and Airway

Department of Transportation (DOT)

Aquatic Resources

Department of the Interior

Oil Spill Liability

Department of Homeland Security

Highway

DOT

Black Lung Disability

Department of Labor (DOL)

Unemployment

DOL

Hazardous Substance Superfund

Environmental Protection Agency (EPA)

Leaking Underground Storage Tank

EPA

Inland Waterways

U.S. Army Corps of Engineers

Harbor Maintenance

U.S. Army Corps of Engineers


CONTACTS

Direct inquiries and deliver documents required by this chapter to:

Jaime Saling
Director, Financial and Budget Reports Directorate
Governmentwide Accounting
Bureau of the Fiscal Service
Department of the Treasury
200 Third Street
Parkersburg, WV 26106-5312
Telephone: 304-480-5129
Fax: 304-480-5176
Email: financial.reports@fms.treas.gov

Also, deliver documents required by this chapter to:

Dawn Simpson
Government Accountability Office
441 G Street, NW., Room 5X23
Washington, DC 20548
Telephone: 202-512-9473
Email: uscfs@gao.gov

Office of Management and Budget
Telephone: 202-395-3993
Web site: https://max.omb.gov/community/x/njn1Iw


Appendices Listing

Appendix No.

Title

1

Reclassified Financial Statements and Line Item Descriptions

2

Sample Agency A Reclassification Entry Summary

3

Financial Report (FR) Notes and Instructions

4

Other Financial Report (FR) Notes Data and Instructions

5

Agency/Federal Trading Partner Department Codes for Governmentwide Financial Report System (GFRS) and Federal Agencies' Centralized Trial Balance System I (FACTS I)

6

Reciprocal Categories Crosswalk to Financial Statements

7

Federal Intragovernmental Transactions Categories of Reciprocal U.S. Standard General Ledger Proprietary Accounts

8

Fiscal 2013 CFO Representations for Federal Intragovernmental Activity and Balances

9

Quarterly Agency Intragovernmental Reporting and Analysis System (IRAS) Data File Submission - Description and Formats

10

Intragovernmental Transaction Guide

Appendices are available in the PDF version only.