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Background

Fund Balance with Treasury Reconciliation Procedures

A Supplement to I TFM 2-5100

Background

The FBWT account is an asset account representing the future economic benefit of monies that can be spent for authorized transactions. The SGL defines the FBWT as consisting of all funds on deposit with Treasury, excluding seized cash deposited, reported on the Statement of Transactions, Statement of Accountability and the Yearend Closing Statement. Federal agencies use the FBWT account to record appropriation, receipt, transfer and disbursement activity. Typical fund balance transactions involve: (1) appropriations; (2) accounts receivable; (3) disbursements/deposits in transit; (4) accrued payroll/benefits; (5) accounts payable; (6) miscellaneous receipts; and (7) advances on customer orders. Agencies record this activity in the U.S. Standard General Ledger (SGL) Account 1010 and any related subaccounts. The fund balance is increased by a debit general ledger (G/L) entry. Credit G/L entries decrease the fund balance. Federal agencies must use the FBWT account to reconcile with the Department of the Treasury, Financial Management Service (FMS) records. This reconciliation is essential to enhancing internal controls, improving the integrity of various U.S. Government financial reports and providing a more accurate measurement of budget results.

Federal agencies derive fund balances from different sources. At the agency level, agencies accumulate the fund balance from the numerous receipt and disbursement transactions they record in the SGL 1010 account during an accounting month. Agencies also report this activity on their Statement of Transactions and Statement of Accountability. FMS uses STAR, an accounting and reporting system that integrates data from financial institutions (FIs) via CA$HLINK, the On-line Payment and Collection System (OPAC) and the Regional Finance Centers (RFCs). FMS uses the information consolidated into STAR to compare agencies reported receipts and disbursements to amounts reported by depositories using form FMS 6652. Therefore, any discrepancies between agency reports and data from banks, RFCs and the OPAC system are reported on FMS 6652. FMS also uses STAR information to generate and present accounting results for the month by fund to Federal agencies. FMS presents those accounting results on the FMS 6653: Undisbursed Appropriation Account Ledger, FMS 6654: Undisbursed Appropriation Account Trial Balance, FMS 6655: Receipt Account Ledger/Trial Balance, and FMS 6652: Statement of Differences (SOD). FMS 6653 and 6654 give agencies their closing fund balances. The FMS 6655 discloses agencies= receipt account totals. Agencies may access those reports, FMS 6652, 6653, 6654 and 6655, using either the Government On-line Accounting Link System (GOALS) or microfiche. See Appendix 5 of this document for a map of reconciliation process procedures.


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