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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 prescribes how agencies provide data for the Financial Report of the United States Government (FR) using the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) and the Governmentwide Financial Reports System (GFRS). It also includes the Bureau of the Fiscal Service (Fiscal Service) Closing Package methodology, the Federal Intragovernmental Transactions process, and requirements for submitting pre-closing GTAS Adjusted Trial-Balance (ATB).

This TFM chapter does not include all reporting requirements for GTAS. Additional information can be found on the GTAS website.

Section 4701—Scope and Applicability

All agencies must provide Fiscal Service with the required fiscal year-end data that is used to prepare the FR. All Significant Entities (see Appendix 5a) must review their reclassified financial statements prepared in accordance with United States Standard General Ledger (USSGL) TFM Supplement guidance as well as trading partner data populated by GTAS and must submit their notes and other data via GFRS. Please note that agency data reported in GFRS must be consistent with the agency’s audited financial statements, as well as the agency GTAS ATB submission. All entities (Significant or Other) must submit GTAS ATB data and must complete GFRS FR Notes and Other FR Data.

GTAS and GFRS use a Closing Package methodology developed to:

  • capture agency’s Closing Package information and link the agency’s 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 Significant Entity must review their reclassified financial statements as well as trading partner data populated by GTAS. Fiscal Service will send a data call to the 39 Significant Entities, and select Other Entities, requesting the agencies designate the certifying officials for various required year-end functions. These functions include, but are not limited to, approval of the Closing Package, journal vouchers, and intragovernmental certifications. Significant Entities must prepare and submit their notes and other data via GFRS at the agency level and must verify its consistency with the comparative, audited consolidated, department-level financial statements. The Inspector General (IG) of each Significant Entity must provide an opinion on the Closing Package data populated by GTAS and entered by the CFO into GFRS, as to its consistency with the comparative, audited consolidated, department-level financial statements. Significant Entities with a year-end other than September 30 are subject to alternate audit procedures as outlined in subsection 4705.45.

Agencies (Significant Entities and Other Entities) must submit pre-closing GTAS ATB via the GTAS application. Entities must submit their GTAS ATB at the Treasury Account Symbol (TAS) level using proprietary and budgetary USSGL accounts (see the USSGL website for fiscal year (FY) 2018 reporting).  

Fiscal Service compiles the information from the GTAS submissions for all entities into a set of reclassified financial statements that are included in the consolidated FR. All entities must prepare and submit FR note data in GFRS, based on the amounts from the reclassified financial statements compiled in GTAS applications.

Reporting requirements in this chapter are grouped as follows:

  • Section 4705 includes Closing Package requirements,
  • Section 4706 includes intragovernmental requirements, and
  • Section 4707 includes GTAS requirements.

Section 4701.10—Reporting Entity

Purpose

To provide the Federal Accounting Standards Advisory Board’s (FASAB) Statements of Federal Financial Accounting Standards (SFFAS) No. 47, Reporting Entity determinations received by the entities, reviewed by the Working Group, and approved by the SFFAS No. 47 Steering Committee. The determinations are listed in Appendix 5b (Consolidated Entities included in the governmentwide General Purpose Federal Financial Reports (GPFFR), Disclosure Entities included in the governmentwide GPFFR, and Related Party). Additional GFRS reporting guidance is provided for agencies with a determination of disclosure or related party in Note 30 of Appendix 3 and 3a.

Background

SFFAS No. 47 was published in December of 2014 effective for the periods beginning after September 30, 2017. Treasury, along with the SFFAS No. 47 Working Group (Working Group) and Steering Committee, has been engaged in achieving a successful implementation. A questionnaire was designed by compiling the key deciding factors throughout FASAB Standard No. 47, and listing them in branch logic sequence. The document referenced the corresponding paragraphs in SFFAS No. 47 with each question. The questionnaire asked for the component reporting entity to be identified. Upon completion of the survey, the agency was led to a reporting determination of consolidation entity (included in the governmentwide GPFFR), disclosure entity (included in the governmentwide GPFFR), related party, or not required to report.

The SFFAS No. 47 questionnaire was distributed through email between August 2015 and March 2016. Multiple requests were emailed. If an agency did not respond, the Working Group made a determination for the agency and emailed the agency a completed survey. The Working Group only asked for a negative confirmation of the survey determination. All surveys were reviewed by the Working Group and Steering Committee and discrepancies were addressed.

The survey supported the following determinations:

  • Component Reporting Entity—is used broadly to refer to a reporting entity within a larger reporting entity. Examples of component reporting entities include organizations such as executive departments, independent agencies, government corporations, legislative agencies, and federal courts. Component reporting entities would also include sub-components (those components included in the GPFFR of a larger component reporting entity) that may themselves prepare GPFFRs. An example would be a bureau that is within a larger department that prepares its own stand-alone GPFFR.
  • Consolidation Entity included in the governmentwide GPFFR—is an organization that should be consolidated in the financial statements based on the assessment of “(a) is financed through taxes and other non-exchange revenues (b) is governed by the Congress and/or the President (c) imposes or may impose risks and rewards to the federal government and (d) provides goods and services on a non-market basis.” It would also include organizations that would result in misleading or incomplete financial statements if excluded.
  • Disclosure Entity included in the governmentwide GPFFR—is an organization with a greater degree of autonomy with the federal government than a consolidation entity.
  • Related Party—Organizations are considered to be a related party in the GPFFR if the existing relationship or one party to the existing relationship, and has the ability to exercise significant influence over the other party’s policy decisions. Relationship of such significance that they would be misleading to exclude (such as relationships considered for inclusion under consolidation/disclosure, but determined not to meet the inclusion principles). Agencies should consider Government Sponsored Enterprises (GSE) and organizations wherein the federal government has agreed to ongoing or contingent financial support to accomplish objectives, for potential related party relationships.

The top down approach was used to identify entity determinations from a governmentwide perspective. Each component entity should perform an agency review to validate proper reporting at the agency level. For assistance in an agency level review, please contact Fiscal Service at financial.reports@fiscal.treasury.gov to receive the SFFAS No. 47 Agency Analysis Excel workbook. Notify Fiscal Service immediately if agency analysis results in a determination(s) that differs from those outlined in Appendix 5b, and include the basis for determination.

Procedure/Requirements

Agencies should report information based on the SFFAS No. 47 determination. The determinations are available in Appendix 5a and 5b and will be used to report Appendix A: Reporting Entity of the Financial Report of the United States Government.

An agency with the determination of consolidation will provide general ledger account balances in GTAS, unless other means are determined for financial reporting. This data will flow to the face of the governmentwide statements presented in the FR.

SFFAS No. 34 recognizes that some federal reporting entities prepare and publish financial reports pursuant to the accounting and reporting standards issued by the Financial Accounting Standards Board (FASB). SFFAS No. 34 provides that GPFFRs prepared in conformity with accounting standards issued by the FASB also may be regarded as in conformity with generally accepted accounting principles (GAAP). Consolidation entities (that is, the consolidated governmentwide reporting entity or a consolidated component reporting entity) may consolidate component or sub-component reporting entity financial statements prepared in accordance with SFFAS No. 34 without conversion for any differences in accounting policies among the organizations.

Agencies with a determination of disclosure or related party (see Appendix 5b) will continue to report Treasury Accounting Symbols (TAS), if applicable, but when utilizing the disclosure or related party TAS transactions must be processed as non-federal (N). This information is reported by the consolidation entities and not a direct report by the disclosure or related party. Therefore, if the agency has a relationship with a disclosure entity included in the governmentwide GPFFR or related party, make sure to report the federal or non-federal designation as non-federal. Financial information for disclosure entities and related party entities, if available, will be provided in GFRS Note 30, Disclosures and Related Parties.

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 FY. 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.

Treasury and OMB consolidate the legislative and judicial branches in the consolidated financial statements as well. To ensure that all material amounts across the three branches of government are accounted for, Fiscal Service uses the data submitted in GTAS plus records supported journal vouchers based on audited financial statements, as well as the authoritative data from the Central Accounting Reporting System (CARS).

Section 4703—Definition of Terms

Active Treasury Account Symbol (TAS)—Any TAS, regardless of balances or transaction activity, that has a TAS status of “U-Unexpired” or “E-Expired.” Exceptions include situations such as available receipt accounts (balances are rolled into the expenditure main account), TAS in the 7XXX main account series (not brought into the GTAS SMAF), and TAS that should have canceled but did not due to outstanding balances or other issues.

Adjusted Trial Balance (ATB)—This is a list of USSGL accounts with attributes and pre-closing adjusted balances prepared at a specified date (i.e., year-end). Agencies submit GTAS ATB, by TAS which includes USSGL accounts with attributes. The USSGL account balances should reflect pre-closing adjusting entries. The total sum of the debit balances must equal the total sum of the credit balances in the ATB per TAS. Agencies must include the required attributes with the appropriate USSGL accounts (see the USSGL website for FY 2018 reporting requirements).

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

Agency Identifier (AID)—Three-digit code of the component Treasury Account Symbol (TAS) format. The code is assigned based on the language in the legislation that established the TAS. AID does not necessarily indicate reporting agency responsibility, which is denoted by the FR Entity.

Attribute—A modifier that further describes a USSGL account to meet a specific reporting requirement. Agencies capture this information at the transaction level. The USSGL website contains applicable GTAS attributes for FY 2018 reporting.

Budget Subfunction Code (BSF)—A three-digit GTAS code that 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 (also known as functional classification codes), see OMB Circular No. A-11.

Business Event Type Code (BETC)—Up to an eight-character code that indicates the type of activity being reported (borrowing, repayment, offsetting collection, receipt, disbursement, etc.). It is used in combination with the TAS to determine the transaction effect on the Fund Balance with Treasury.

Calendar Year-end Entity—Entities that operate on a calendar year basis that are considered significant to the FR if they have a line item or note disclosure that is equal to or greater than $1 billion, but are only required to have audit assurance on line items or note disclosures that contribute to the top 95% of the total FR line item data.

Central Accounting Reporting System (CARS)—The Bureau of the Fiscal Service’s central accounting reporting system for budget execution, accountability, and cash/other asset management as reported by federal program agencies. 

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 Significant Entity for inclusion in the FR.

Fiduciary Fund Accounts—The Statement of Federal Financial Accounting Standards (SFFAS) No. 31, Accounting for Fiduciary Activities defines a fiduciary activity as “activity a federal entity 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 (or “non-federal parties”) have an ownership interest that the federal government must uphold. Non-federal parties must have an ownership interest in cash or other assets held by the federal entity under provision of law, regulation, or other fiduciary arrangement. The ownership interest must be enforceable against the federal government. Judicial remedies must be available for the breach of the fiduciary obligation.”

Treasury Account Symbols that are designated as fiduciary, per SFFAS No. 31, should be reported as non-federal. Please note that most fiduciary funds are Deposit Funds.

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.

It is noted the word “fiduciary” is used in a different context than used in Statements of Federal Financial Accounting Standards (SFFAS) No. 31, Accounting for Fiduciary Activities, discussed in subsection 4705.20e.

Financial Reporting Entity Code (FR Entity)—A four-digit code representing individual entities in both GTAS and GFRS that denotes reporting responsibility for agency financial statements, Adjusted Trial Balance data, Material Difference Explanations in GTAS, and the Closing Package submissions in GTAS and GFRS. 

General Fund Receipt Account—A receipt account credited with all funds from collections that are not identified 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 website for more information. 

General Purpose Federal Financial Reports (GPFFR)—Used as a generic term to refer to the report that contains the reporting entity's financial statements which are prepared pursuant to generally accepted accounting principles. In the federal government, the report for the U.S. Governmentwide reporting entity is known as the consolidated Financial Report of the U.S. Government. For component reporting entities, it is usually included in the Performance and Accountability Report (PAR), the Agency Financial Report (AFR), or the annual management report.

Governmentwide Financial Report System (GFRS)—GFRS is an application used to collect Closing Package information from populated reclassified financial statements from GTAS and Federal Program Agencies (FPAs).

Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS)—GTAS is used by agencies to submit a pre-closing ATB for proprietary and budgetary data simultaneously in one bulk file submission.

The GTAS Super Master Account File (SMAF)—The SMAF contains the valid TAS balances and attributes used for budgetary and proprietary ATB submissions. See the GTAS website for more information. 

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

Intragovernmental Transactions/Balances—These transactions or balances result from business activities conducted by two different federal government entities included in the FR.

Non-fiduciary Transactions—Consists of intragovernmental Buy/Sell (reimbursable/exchange) transactions, transfers, General Fund of the U.S. Government (General Fund) transactions, and non-Treasury investment transactions (see subsection 4706.25).

Non-reciprocating (Z)—An attribute of a USSGL account balance that results from transactions that are intragovernmental but no reciprocal balances will be reported by another federal entity.

Other Entities—Entities other than Significant Entities. See Appendix 5a and 5b for a complete listing. The complete list can also be found in Appendix A of the FR as Additional Entities/Funds.

Probable Likelihood of Loss—This term implies that the future event or events are more likely than not to occur, with the exceptions 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)—This is a set of reclassified financial statement federal line items or a grouping of USSGLs. The set is used to perform eliminations at the governmentwide level (see subsection 4705 and Appendices 6 and 7).

Reclassified Financial Statement—This is a standardized agency financial statement format used across the government. GTAS will crosswalk the GTAS ATB data to the Closing Package reclassified financial statement line items based on the USSGL crosswalks. The statements are system-generated using GTAS 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).

Reporting Entity—Reporting entities are organizations that issue a General Purpose Federal Financial Report (GPFFR) because either there is a statutory or administrative requirement to prepare a GPFFR, or they choose to prepare one. The term “reporting entity” may refer to either the governmentwide reporting entity or a component reporting entity.

Guidance for what organization should be reported upon by a reporting entity is in the SFFAS No. 47, Reporting Entity and Section 4701.10 of TFM Volume I, Part 2, Chapter 4700, which is effective for the current FY 2018.

Reporting Type Code—A Treasury Account Symbol (TAS) is either designated as E-Dedicated Collections, F-Fiduciary, or U-Undesignated by Treasury in both CARS and GTAS. If the fund is designated as E it is consolidated in the Financial Report of the U. S. Government (Financial Report) and it is also designated as part of the Funds from Dedicated Collections footnote. If the fund is designated as F it is not consolidated in the Financial Report and it is only included in the Fiduciary Activities footnote. If the fund is designated as U it is consolidated in the Financial Report and included in all applicable footnotes.

Significant Entities—These entities consist of the CFO Act entities and additional entities identified by Treasury that are material to the FR. Entities are deemed material to the FR if they have data that feeds to Closing Package statement line items or note disclosures that are greater than $1 billion. See Appendix 5a for the complete list of Significant Entities.

Special Fund Receipt Accounts—Receipt accounts credited with funds from collections that are identified 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 “F” preceding the last four digits of the fund symbol identifies a suspense account.

Trading Partner Agency Identifier (TPAID)—The three-digit bulk file attribute used to identify the reporting agency’s trading partner (see Appendix 5a and 5b).

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 bulk file attribute used to identify the trading partner agency (see Appendix 5a and 5b). This consists of the Trading Partner Agency Identifier (TPAID) and the Trading Partner Main Account (TPMA).

Trading Partner Main Account (TPMA)—The four-digit bulk file attribute used in conjunction with the Trading Partner Agency Identifier (TPAID) to identify the reporting agency’s trading partner.

Treasury Account Symbol (TAS)—An identification code assigned by the Department of the Treasury. TAS represents individual appropriations, receipts, and other fund accounts.   

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. A TAFS is a subset of TAS. A TAFS has budgetary USSGL accounts and is used to report budgetary authority.

United States Standard General Ledger (USSGL) Data—The USSGL provides a uniform Chart of Accounts and technical guidance to be used in standardizing federal agency accounting. See the USSGL website for more information.

Section 4704FR Reporting and Submission Dates

See Figure 2 for the FR reporting and submission dates regarding GTAS, GFRS, intragovernmental activity/transactions, legal representation letters, management representation letters, and subsequent events.

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

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

Agencies must submit unaudited interim financial statements 21 business days after the end of third quarter. Agencies must submit unaudited notes (and may also, but are not required to, submit other supplemental disclosure information, e.g. RSI, RSSI, OI) 45 business days after the end of third quarter. All applicable documents are transmitted through MAX.gov. 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 Fiscal Service in accordance with Fiscal Service requests. Fiscal Service will also be requiring agencies’ assistance with completing the analysis of notes that present a greater risk of failing to meet the prescribed disclosure requirements. Examples of these notes are:

  • Cash and Other Monetary Assets,
  • Loans Receivable and Loan Guarantees,
  • Government Sponsored Enterprises,
  • Federal Debt Securities Held by the Public and Accrued Interest,
  • Other Liabilities,
  • Federal Employee and Veteran Benefits Payable,
  • Contingencies,
  • Social Insurance,
  • Inventories and Related Properties,
  • Property, Plant, and Equipment,
  • Disclosure Entities and Related Parties, and
  • Tax Expenditures.

Agencies should submit to Fiscal Service contact information for internal representatives who are considered technical experts in the subject matter areas listed above, and will be the point of contact for close collaboration throughout interim analysis and preparation of the FR. Contact information (name, phone number, email address, and subject matter area(s) of expertise) should be submitted to Fiscal Service at financial.reports@fiscal.treasury.gov no later than 21 business days after the end of the third quarter. Fiscal Service will provide the agency technical experts as identified by the agency the Significant Disclosures template, a copy of the final published version of the above listed note(s) from the prior-year FR (Word document), as well as auditor comments on each note (if applicable) received throughout the prior-year FR preparation process. Agency technical experts are required to provide feedback on the Significant Disclosures template on items of significance that occurred during the FY that should be carefully considered by Fiscal Service for disclosure in the FR during its analysis and compilation process. In addition, agencies are required to provide current-year updates, i.e., changes to existing wording, addition of new material information, etc., to the prior-year note Word document using the Track Changes feature in Microsoft Word. Auditor comments received on the above notes listed during the prior-year FR preparation process are provided to agency technical experts to use as a guide for understanding auditor perspectives and expectations during review of the FR. The intention is to use this understanding to resolve in advance any issues for the current FY that can be anticipated based on auditor feedback on prior-year disclosures in the FR. Agency participation in this collaboration initiative will be measured on agency fifth quarter scorecards for the current FY. Agencies should be aware that Fiscal Service will resend items noted above as a follow up within one week of closure of the GFRS window, and the requirements will be the same as the third quarter collaboration process.

Section 4705—Closing Package Requirements

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

Significant Entities must:

  • Submit a GTAS ATB. GTAS will crosswalk the ATB data to populate a Reclassified Balance Sheet, Statement of Net Cost, and Statement of Operations and Changes in Net Position line items using the USSGL Reclassified Crosswalk. These reclassified financial statement lines need to be verified by agencies in GTAS and GFRS (refer to Figure 1 for report names). Statements of Social Insurance information and the Statement of Changes in Social Insurance Amounts are reported in GFRS Module GF006; FR Notes (see Figure 1 and refer to subsection 4705.20 for details). Reference the Reclassified Crosswalks on the USSGL website for additional guidance.

Significant Entities and their auditors should review the 5th quarter Scorecard to determine if a prior-year journal voucher was processed. If so, then the Significant Entity should identify the reason for the journal voucher as well as how to prevent the adjustment in the current year.

Additionally, Significant Entities and their auditors should review any prior-year non-IGT journal vouchers Treasury processed on their data and identify the reason for the journal voucher as well as how to prevent the adjustment in the current year.

Note: The Statements 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 Significant Entity, if applicable, must provide an opinion 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 supplementary 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).
  • Complete the "AFR to CP Reconciliation Template" (see Appendix 2).
  • Provide explanations for any data that has changed by Fiscal Service's established threshold or more between previously reported FY and current FY that are equal to 10% and over $1 billion dollars. Explanations must clearly present the reason or justification for the change in data.
  • Provide Fiscal Service with an electronic copy of the interim unaudited financial statements (the third-quarter financial statements), notes, RSI, RSSI, and OI, if the statements are not available on OMB’s MAX federal community website. Notify Fiscal Service of any additional updates to the financial statements as they are made available on MAX.gov website (see subsection 4704.10).
  • Comply with the intragovernmental Closing Package requirements that can be found in Section 4706.

Contact Fiscal Service to determine the reporting procedures for any adjustments to the Closing Package data after November 16, 2018. For contact information, see the GFRS Contacts page.

4705.10—GFRS Access

GFRS requires a user ID and password or Personal Identify Verification (PIV) card.

For users who do not have a Treasury Enterprise ID (ISIM ID) and password, please visit the Fiscal Service Identity Manager website to self-enroll. Follow the enrollment instructions on the website to obtain your user ID and password. For more information on GFRS access, please contact a Treasury Support Center (TSC) agent at 877-440-9476, Option 1, and then Option 4 or send inquiries to GFRS@stls.frb.org.

4705.15—Closing Package Reportable Data

4705.15a—The Closing Package

Figure 1 depicts the Closing Package process. Fiscal Service uses the entities’ Closing Packages to prepare the FR.

All entities (Significant or Other) must submit GTAS ATB data to Fiscal Service as well as complete GFRS FR Notes and Other FR Data for FY reporting. Other Entities are not required to complete module GF008 Completions and Approvals, and they are not subject to subsection 4705.45-Audit Requirements for the Closing Package. In addition, CFOs or designees, of the Significant Entities and Other Entities must respond in a timely manner to Fiscal Service’s request for concurrence with planned changes to entity submitted Financial Data, Notes to the FR Financial Statements, and Other FR Data. These requests are based on Fiscal Service’s review of entities’ submitted data for compliance with this chapter and conformity with entities’ general purpose financial statements.

Figure 1: Closing Package Process

 

 

GFRS Module GF006

GFRS Module GF007

GFRS Module GF008

Reclassified Financial Statement

Federal Trading Partner Data

Notes to the FR Financial Statements

Other FR Data

Completions and Approvals

Agencies verify reclassified Balance Sheet, Statement of Net Cost, and Statement of Operations and Changes in Net Position generated from GTAS ATB based on USSGL crosswalk on the “Reconciliation Reports- Reclassified Balance Sheet, Statement of Net Cost, and Statement of Operations and Changes in Net Position” in GTAS and the GFRS report titled "GTAS Closing Package Lines Loaded Report," and the "AFR to CP Reconciliation Template."*

*These reports will be submitted as attachments in GFRS Module 8.

Agencies verify federal trading partner data on the “Reconciliation Reports- Reclassified Balance Sheet, Statement of Net Cost, and Statement of Operations and Changes in Net Position” in GTAS and the GFRS report titled "GTAS Closing Package Lines Loaded Report."

Agencies enter data into predefined notes to the Closing Package, including, when applicable, the Statement of Changes in Social Insurance Amounts and Statements of Social Insurance.

Agencies enter other required data.

Examples:
Stewardship, Investments, Deferred Maintenance and Repairs,
Tax Burden.

 

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

See Appendix 2 for details.

See Appendix 5a and 5b for details.

See Appendix 3 for details.

See Appendix 4 for details.

 

4705.15b—FR Notes

Both Significant Entities and Other Entities must submit FR Notes data through GFRS.

All entities submit FR Notes data based on the amounts from the reclassified financial statements, compiled in GFRS from ATB data submitted via GTAS. The reclassified financial statements are based on the Reclassified USSGL crosswalks and are populated by GTAS ATB data. See Appendix 3 for the format of the FR Notes.

Significant Entities and Other Entities 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 entity 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). This must be detailed enough to provide an adequate audit trail. See Appendix 3 for details.
  • Amounts of items based on disclosure standards (for example, dedicated collections, commitments, and contingencies). See Appendix 3 for the FR Notes requirements.

4705.15c—Federal Trading Partner Notes

Federal trading partners and amounts for each federal Closing Package line item reported based on the reclassified financial statements will be derived from GTAS ATB data. Amounts identified as federal should be net of intradepartmental eliminations with the following exceptions:  

  • For U.S. Office of Personnel Management only, intradepartmental imputed costs reported with a trading partner code of unknown, and
  • Regular expenditure transfers from Trust Fund accounts and Fiduciary Fund accounts to other general appropriated funds.

Identifying the trading partner enables analysis and elimination of federal activity/balances based on reciprocal categories at the governmentwide level. See Appendix 5a and 5b for a complete list of Agency Identifiers and FR entities.

All General Fund activity will be reported to the appropriate reclassified financial statement line within RC 30–RC 48 activities. The General Fund activity based on the USSGL and federal/non-federal attributes will be reported to the appropriate Closing Package line within RC 30–RC 48 (see Appendices 1, 6, and 7 for the appropriate reclassification of reclassified financial statement lines) using a federal/non-federal attribute domain value of “G.” See Appendix 9 for more details on transactions with the General Fund.

4705.15d—Other FR Data

Significant Entities and Other Entities must disclose information relating to “Other FR Data” as it applies to the entity. Other FR Data can include stewardship information, social insurance disclosures, and supplementary information, such as deferred maintenance. See Appendix 4 for the format of Other FR Data.

4705.20—Reclassification of Significant Entities’ Financial Statements

Significant Entities must submit GTAS ATB data. GTAS will then create the reclassified financial statements based on the USSGL crosswalks for the three reclassified financial statements. The USSGL crosswalks for the Balance Sheet, Statement of Net Cost, and Statement of Operations and Changes in Net Position can be found in the USSGL guidance (Section VI-Crosswalks to Reclassified Statements). Fiscal Service will provide each Significant Entity with the “AFR TO CP Reconciliation Template” via the GTAS website. Significant Entities must complete the template with amounts from their audited AFR as well as their reclassified reconciliation statements while providing explanations for any differences. Appendix 2 includes a description of how to reconcile between the GTAS ATB data and the reclassified financial statements to the agency audited financial statements. Auditors of the Significant Entities should review the completed “AFR to CP Reconciliation” to ensure that the information agrees with the Reclassified Financial Statements as well as the audited AFR, and that the explanations provided for the differences appear reasonable. 

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.

Significant Entities 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 entity, the amounts could be immaterial at the entity level, or the entity may find it useful to include more detail than the Closing Package reports. Agencies must submit ATB data to GTAS for the Closing Package lines, regardless of materiality.   

4705.20a—Custodial Activity

SFFAS No. 7, paragraph 353, states:

Disposition of revenue to Other Entities: custodial transfers—Revenue, primarily non-exchange 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 non-exchange 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.

It is noted that Buy/Sell transactions should never occur with the General Fund as they do not engage in exchange activity in the Buy/Sell subcategory.

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.

Significant Entities 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 non-exchange revenue from the Statement or Note on Custodial Activity to the Closing Package line items on the Statement of Operations and Changes in Net Position. From the Sources of Collections section of the Custodial Statement or Note (with the exception of customs duties, excise taxes, and taxes collected by the Department of the Treasury, the Department of Labor, and the Department of Homeland Security), reclassify all non-exchange 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 Operations and Changes in Net Position when reporting in GTAS or 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 Operations and Changes in Net Position when reporting in GTAS or GFRS. If the collecting agency retains a portion of the custodial revenue, the agency must report this revenue as non-federal, “N” at the time of collection from the public. If the revenue is transferred between intradepartmental funds, those transactions should be reported as federal “F” in its reclassified Statement of Net Cost or Statement of Operations and Changes in Net Position when reporting in GTAS or GFRS and must use its own trading partner AID. The agency must ensure the amounts reported with its own trading partner AID eliminate appropriately.

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 website.

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. SFFAS No. 43 modified the definition of these funds by clarifying that at least one source of fund, 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 benefits 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 which can be presented as consolidated or combined (preferably combined) and labeled accordingly. The standard further requires the disclosure of condensed information on assets, liabilities, and net cost for all funds from dedicated collections. The disclosure may be presented as combined or consolidated (preferably combined) amount, and the presentation must be labeled accordingly. If an agency decides to present the Balance Sheet net position as consolidated, it may disclose a crosswalk from the consolidated to combined net position amounts in the Funds from Dedicated Collection Note. The crosswalk will be concurrence to process a journal voucher at the governmentwide level, converting the Balance Sheet net position from consolidated to combined.

Significant Entities must ensure that funds from dedicated collections are denoted on the SMAF in GTAS as an “E” for the Reporting Type Code. This will crosswalk the funds from dedicated collections amounts and activity to the applicable Closing Package line items. Additional note disclosure information on Funds from Dedicated Collections is required in the Closing Package, Appendix 3, and Note 22, to be completed by both Significant and Other 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—Criminal Debt

Criminal debt primarily consists of fines and restitution that result from a wide range of criminal activities, including domestic and international terrorism, drug trafficking, firearms activities, and white-collar fraud. When an individual is sentenced in a federal criminal case, the judge may order the defendant to pay certain financial obligations, which may include a case assessment, fine, restitution, penalty, bail bond forfeiture, or interest. The Department of Justice’s Executive Office for U.S. Attorneys (EOUSA) is responsible for establishing policies and procedures for the collection of criminal monetary penalties. The U.S. Attorneys are responsible for the enforcement of judgments, fines, penalties, and forfeitures imposed in their respective districts. There are 93 U.S. Attorneys stationed throughout the 50 states, Puerto Rico, the Virgin Islands, Guam, and the Northern Mariana Islands. The U.S. Attorneys publish the Annual Statistical Report that contains statistical tables displaying both national and district caseload data, covering the many priorities of the U.S. Attorneys in both criminal prosecution and civil litigation. The data supporting the Annual Statistical Report is obtained from the Department of Justice (Justice) Consolidated Debt Collection System (CDCS). The CDCS is the system of record for debts being collected by Justice on behalf of others, including federal agencies. The system is used by the U.S. Attorneys' Offices, Justice’s other litigating divisions, and contracted Private Counsel Offices to monitor and track delinquent civil and criminal debts owed to the federal government. The funds collected in federal restitution are disbursed back to the appropriate federal agencies, while funds collected in bond forfeitures, fines and assessments are deposited into the Crime Victims Fund. Funds collected from penalties and certain costs are deposited in the General Fund of the U.S. Government. The U.S. Courts assist Justice with the receipt and distribution of financial obligations ordered in a criminal judgment and serve as a conduit between the defendant and Justice. The majority of payments made to satisfy criminal restitution are received at the Clerk of Court offices. The Clerk of Court offices have the payee details from the criminal judgment to ensure proper disbursement of payments.  

Non-exchange revenues include income taxes, excise taxes, employment taxes, duties, fines, penalties, and other inflows of resources arising from the government’s power to demand payments from the public. Non-exchange revenue should be recognized when a specifically identifiable, legally enforceable claim to resources arises, to the extent that collection is probable (more likely than not) and the amount is reasonably estimable (SFFAS No. 7, par. 48). For accounts receivable resulting from non-exchange transactions, recognition is based on the completion of the assessment process that establishes an identifiable, legally enforceable claim to cash or other assets (SFFAS No. 7, par. 53). Assessments recognized as accounts receivable include court actions determining an assessment (SFFAS No. 7, par. 54). Federal accounting standards require that an allowance for uncollectible amounts be established to reduce the gross amount of receivables to its net realizable value (SFFAS No. 1, par. 45).

Public Access to Court Electronic Records (PACER) is an electronic public access service that allows registered users to obtain case and docket information online from federal appellate, district, and bankruptcy courts. The Judgment in a Criminal Case form issued by a court is a public record filed with the Clerk of Courts. The criminal judgment form and related case documents can be obtained via PACER. The Judgment in a Criminal Case form includes a schedule for Criminal Monetary Penalties, which details if any assessments, fines, or restitution have been established in the final judgment in a criminal case, and lists the payees and amount of restitution ordered for each payee. This schedule also indicates if the fine or restitution are subject to interest. The Judgment in a Criminal Case form also includes the Schedule of Payments, which lists the specific details as to when payments are to commence and the frequency of when payments are due. When a federal agency is listed as a payee in the Judgment in a Criminal Case form, the legally enforceable claim to cash or other assets is established.

Significant Entities and Other Entities that are owed restitution as the result of a judgment in a criminal case are required to complete supplemental information in GFRS Module GF006, FR Notes (see Appendix 3, Note 3).

4705.20d—Social Insurance

The Statements 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 Statements of Social Insurance and the Statement of Changes in Social Insurance Amounts data in GFRS Module GF006, FR Notes. The information related to the Statements 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 Statements of Social Insurance and the Statement of Changes in Social Insurance Amounts. As such, Significant Entities cannot enter information related to the Statements of Social Insurance and the Statement of Changes in Social Insurance Amounts into a separate financial statement module. Since the Statements 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 Significant Entity, if applicable, must provide an opinion as to its consistency with the comparative, audited consolidated, department-level financial statements, Significant Entities must enter the information related to the Statements 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 2018 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds) and from HHS (the 2018 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 2 for due dates).

4705.20e—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 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 Significant Entities are required to enter this fiduciary liability line item in the Reclassified Balance Sheet. Agencies must make sure to report the TASs that are fiduciary to Fiscal Service to ensure the data crosswalks properly.

However, both Significant Entities and Other Entities with fiduciary activity must enter the entity fiduciary activity note disclosure information in the GFRS Module GF006, FR Notes (see Appendix 3, Note 27).

Significant Entities must ensure that fiduciary activities are denoted on the SMAF in GTAS as a “F” for Reporting Type Code.

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 4706.15, 4706.25, and 4706.50.

4705.20f—Reporting of Government Account Series (GAS) Investments with Fiscal Service Purchased by Agencies Using Fiduciary or Non-fiduciary Funds

Treasury GAS securities purchased using a non-fiduciary fund is normally classified as intragovernmental. The investments in GAS securities by non-fiduciary funds and the associated USSGL accounts should be reported with a federal/non-federal attribute domain value of “F” with a corresponding federal trading partner of 020 for Treasury.

Treasury GAS securities purchased using a fiduciary fund is classified as public/non-federal. The investments in GAS securities by a fiduciary fund and the associated USSGL accounts should be reported with a federal/non-federal attribute domain value of “N” and no trading partner.

4705.20g—Department Code Reporting for General Fund Activities

Agencies use a federal/non-federal indicator value of “G” strictly for recording transactions with the General Fund of the U.S Government (General Fund). Do not confuse the General Fund with the Department of the Treasury. They are not synonymous and agencies must distinguish one from the other when designating an appropriate trading partner code. The General Fund has an AID of 099, a FR Entity code of 9900, and a federal/non-federal indicator of G. The Department of the Treasury has an AID of 020, a FR Entity code of 2000, and a federal/non-federal indicator of F.

In addition, agencies must not use the General Fund as a trading partner for any buy/sell transactions. The General Fund does not engage in Buy/Sell or exchange activity.

General Fund Receipt Accounts (GFRAs) are credited with all funds from collections that are not identified by law for another account for a specific purpose. Agencies should refer to the General Fund Receipt Account Guide on the USSGL website for examples of how to record trading partner codes in GFRAs. 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 of the details of all the accounting events in the GFRAs. This is because the General Fund derives a majority of its data through transactions performed within the CARS. Therefore, in order to prevent Intragovernmental differences with the General Fund, agencies must notify the General Fund of any applicable non-CARS reported data attributed to their agency by the eighth business day following the end of a quarter. This information must be sent via email to GeneralFund@fiscal.treasury.gov using the General Fund Agency Submission Form. The form as well as instructions can be found on the General Fund website. The information submitted on the form will include, but is not limited to, a general description of the type of transactional data being sent, the USSGLs involved, and the applicable amounts by USSGL.

Some examples of activities with the General Fund 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 298000G, 298500G, 599000G, 599100G, 599300G, and 599400G. Accrual data associated with these USSGL accounts must be sent to the General Fund via email to GeneralFund@fiscal.treasury.gov. See the paragraph above for a description of the data that must be sent.
  • Warrant/appropriation activity—USSGL accounts applicable to this activity include USSGL accounts 310100G, 310600G, and 310700G. Accrual data associated with these USSGL accounts, for example the accrual of offsetting collection receipts, which necessitate the return of appropriations, must be sent to the General Fund via email to GeneralFund@fiscal.treasury.gov. See the paragraph above for a description of the data that must be sent.
  • Other activities associated with the General Fund—USSGL accounts applicable to this activity include but are not limited to tax related accounts (580000 Series USSGLs) and USSGL accounts 192100G, 259000G, etc. Accrual data associated with these USSGL accounts must be sent to the General Fund via email to GeneralFund@fiscal.treasury.gov. See the paragraph above for a description of the data that must be sent.
  • Fund Balance with Treasury—USSGL accounts applicable to this activity includes USSGL accounts 101000G and 109000G.
  • 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 G).

Agencies engaged in activity with the Department of the Treasury as a trading partner should use AID 020 and a FR Entity code of 2000. Transactions with the Department of Treasury include activities such as Judgment Fund transactions, investments, borrowings, transfers not associated with a GFRA, and buy/sell activity. Agencies should contact Fiscal Service, via email at GovernmentwideIGT@fiscal.treasury.gov, if they are unsure about what the correct trading partner assignment is for a particular transaction.

Agencies that record activities with the General Fund must properly record the activity at the governmentwide level to assist with the preparation of the FR. Refer to USSGL guidance (Section VI-Crosswalks to Reclassified Statements) 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.

4705.20h—Non-reciprocating Activities

Z (Federal)—This is an attribute domain value of a USSGL account balance that results from transactions that are federal in nature but no reciprocal balances will be reported by any other federal entity. The attribute is limited to Reciprocal Category 29.

An example of a non-reciprocating activity is as follows:

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

4705.25—Special Basis of Accounting

Significant Entities 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 year-end of September 30, are collectively referred to as converting agencies in GFRS. Converting agencies must perform additional steps 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 will reclassify their audited financial statement line items to their reclassified lines with a manual adjustment in GTAS.

Significant Entities that may need to perform this additional step are:

(1) Significant Entities 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) Significant Entities with a year-end other than September 30:

  • Farm Credit System Insurance Corporation,
  • Federal Deposit Insurance Corporation, and
  • National Credit Union Administration.

For the Significant Entities with a year-end other than September 30, a crosswalk with a 12-month set of FY 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 two exceptions (detailed below) applies. The parent agency is the trading partner entity for activity involving these TAS. For more detail on how to report trading partner information, please refer to Appendix 5a and 5b.  

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

  1. The parent is the Executive Office of the President.
  2. Funds transferred from the Judiciary to the Department of Justice’s (DOJ) 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, and is the trading partner entity. Please refer to Appendix 5a and 5b for details on reporting trading partner information.

GTAS requires the parent agency and the child agency to come to an agreement on which agency will report the TAS in the bulk file submission.

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 entities.

Note: General Fund activities must report via GTAS ATB to be crosswalked to a reclassified financial statement line with a Reciprocal Category 30–48 designation for identifying General Fund activity at the governmentwide level. See Appendix 7 for a complete list of reciprocal categories and the financial statements to which they relate.

4705.40—CFO Closing Package Data Verification

Significant Entity CFOs must certify the accuracy of the data in the Closing Package for the IG to provide an opinion no later than 6 p.m., Eastern Time (ET), November 16, 2018. The file must be submitted in Excel format, or in a format required by each entity’s IG.

4705.45—Audit Requirements for the Closing Package

For Significant Entities, an audit opinion is required for the reclassified financial statement for the current FY, based on the reclassified financial statement lines populated from GTAS data and entity-entered data in GFRS. This includes the intragovernmental activity and balances contained in the GTAS Intragovernmental Module. 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. 19-01, Section 13.15 and USSGL guidance (Section VI-Crosswalks to Reclassified Statements), as amended and as it relates to the reclassified financial statements. Significant Entities with a year-end 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 Significant Entities contribute. For additional guidance, refer to the audit of the reclassified financial statements section of OMB Bulletin No. 19-01, Section 13.15 and USSGL guidance (Section VI-Crosswalks to Reclassified Statements), as amended.

The intragovernmental activity and balances contained in the GFRS report “GTAS Closing Package Lines Loaded Report” are included within the scope of the opinion on the reclassified financial statements. The IG audit opinion should provide assurance that the GFRS report “GTAS Closing Package Lines Loaded Report” contains the appropriate and accurate Trading Partner code assignments for the intragovernmental balances. Significant Entities should also ensure amounts generated in the GFRS report “GTAS Closing Package Lines Loaded Report” are accurate and consistent with GTAS balances. Significant Entities should thoroughly review information provided as Other FR Data in the Closing Package, which is not subject to audit coverage, to ensure consistency with the applicable data.

Each applicable Significant Entity must provide the following seven 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 opinion except the GF007 Other FR Data Report and the Management Representation Letter. The information reported in GF007 Other FR Data Report is considered either Required Supplementary Information, Required Supplementary Stewardship Information, or Other Information based upon the requirement of FASAB. 

  1. GTAS Reclassified Financial Statements*–“Reconciliation Reports-Reclassified Balance Sheet, Statement of Net Cost, and Statement of Operations and Changes in Net Position” attached to GF008,
  2. Statements of Social Insurance and the Statement of Changes in Social Insurance Amounts, if applicable,
  3. Federal Trading Partner Data–Generated from GTAS ATB (“GTAS Closing Package Lines Loaded Report“-GFRS Reports Screen Module-GF005G),
  4. "AFR to CP Reconciliation Template” attached to GF008,
  5. GF006 FR Notes Report,
  6. GF007 Other FR Data Report, and
  7. Management Representation Letter (MRL) on the Closing Package, or a combined Closing Package and general purpose MRL, which includes the Summary of Uncorrected Misstatements (SUM) identified in the entity’s Closing Package audit, and uncorrected misstatements identified in the entity’s audited financial statement SUM, which is attached to the entity’s general purpose financial statement MRL (see subsection 4705.50 for additional information on MRL’s and 4705.55 for instructions for entities with a year-end other than September 30).

*Please note that for the purpose of reconciling an agency’s AFR financial statement lines to the GTAS produced Reclassified Financial Statements, limit adjustments related to rounding discrepancies. In each submitted reconciliation "AFR to CP Reconciliation Template," it is sufficient to note small differences as rounding issues. Treasury will not approve manual adjustments in GTAS for rounding.

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, Fiscal Service, and upload to OMB via MAX.gov (see Figure 2 for due dates).

4705.50—Management Representation Letter

In accordance with OMB Circular No. A-136, Section V.5., the written representations from agencies’ management and accompanying SUM are required for the audits of entity general purpose financial statements and the Closing Package financial statements used to compile the FR. Agencies should attach in Excel format a comprehensive SUM that includes uncorrected misstatements from the general purpose financial statement audit, and uncorrected misstatements from the Closing Package financial statement audit. The Closing Package MRL may be combined with the representations required for the audit of the general purpose financial statements in one MRL rather than two separate letters. If the agency combines their two MRLs, the attached comprehensive SUM should include an additional column identifying the effect of the current-year’s uncorrected misstatements on the Closing Package line items. Please refer to 4705.55 (Closing Package Summary of Uncorrected Misstatements (SUM) Process), guidance in OMB Circular No. A-136, Section V.5, OMB Bulletin No. 19-01, Section 8 (Written Representations from Management), Section 13 (Audit of the Closing Package Financial Statements), Appendix E (Illustrative Written Representations from Management for the Closing Package Financial Statements), and Appendix F (Illustrative Written Representations from Management for the General Purpose Financial Statements).

4705.55—Closing Package Summary of Uncorrected Misstatements (SUM) Process

Significant Entities must include a Closing Package SUM as a part of their Management Representation Letter on the Closing Package. Significant Entities may elect to submit a combined Closing Package and general purpose financial statement MRL, which would include uncorrected misstatements identified in the audit of the entity’s financial statements and any additional uncorrected misstatements identified in the Closing Package audit (as stated in subsection 4705.45 and 4705.50). Significant Entities with a year-end 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 Operations and Changes in Net Position, Statements of Social Insurance, and Statement of Changes in Social Insurance Amounts (if applicable). If there are no uncorrected misstatements, a representation to this effect is required in the MRL.

Agencies are required to provide the adjusting entries to correct the misstatements. A summary of uncorrected misstatements and adjusting entries must be submitted in Excel format and 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), General Fund (G), Non-reciprocating (Z), or Non-Federal (N) attribute 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. 
  • Uncorrected misstatements identified in the audit of the entity’s financial statements and any additional uncorrected misstatements identified in the Closing Package audit. Explanations must be provided for any difference between the two SUMs to facilitate the consolidation of the FR.

Please refer to the example below for reporting the adjusting entries for the summary of uncorrected misstatements to Fiscal Service.


For additional guidance, see the OMB Bulletin No. 19-01, as amended, and OMB Circular No. A-136, revised, on the OMB website and GAO/President’s Council on Integrity and Efficiency Financial Audit Manual (FAM), Section 595C, on the GAO website.

4705.60—Legal Representation Letter Process

4705.60a—Legal Letter Reporting Requirements

Significant Entity IGs must submit an interim and final Legal Representation Letter prepared by the entity General Counsel summarizing and evaluating legal actions against the entity. Significant Entity IGs must submit the interim and final Legal Representation Letters and Management Schedules to Fiscal Service, DOJ, and GAO (see Figure 2 for due dates). When preparing the Legal Representation Letters, General Counsel should reference guidance found in OMB Bulletin No. 19-01. All pending and threatened litigation and unasserted claims above a $500 million threshold must be reported using the applicable form (according to the type of case or group of cases reported) found on DOJ’s website. Legal Representation Letter files sent by email must be PDF files (zipped files are not accepted). The entity’s Legal Representation Letter must be accompanied by a Management Schedule prepared by management that summarizes the content of the Legal Representation Letter as disclosed in the entity’s financial statements. Management Schedules must be in Excel format. Please refer to the following example of a Management Summary Schedule.

The entity’s Legal Representation Letter must categorize cases, including cases to be paid from the Judgment Fund, as having a probable, reasonably possible, remote, or “unable to determine” chance of a negative outcome, as appropriate, for the agency consistent with American Bar Association guidance. Significant Entities 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, Accounting for Liabilities of the Federal Government, as amended. To ensure accurate reporting, contingencies detailed in the Legal Representation Letter must be consistent with the disclosures in the agency’s Closing Package submission. If a discrepancy greater than ten percent is identified between the Closing Package submission and the agency’s Management Schedule, agencies will be required to provide an explanation (see Appendix 3 Section B and C for guidance on reporting legal contingencies). For guidance, refer to OMB Bulletin No. 19-01, as amended, as it relates to Legal Representation Letters.

Agencies should refer to SFFAS No. 5, when assessing the likelihood of loss from a contingency. Agencies should avoid excessive and misusage of the term “unable to determine” in assessing the likelihood of loss. This term should only be used to categorize cases for which the Legal Counsel is unable to express an opinion. If the likelihood of a loss of a case is notated on the Management Schedule as being “unable to determine”, agencies should provide a note disclosure with the information that was evaluated that lead to that assessment. If a note disclosure is not provided, the agency should provide justification as to why a disclosure is not necessary. Agencies may be asked to provide written documentation of their internal process for using the “unable to determine” status for legal cases.

The Export-Import Bank of the U.S., Smithsonian Institution, and calendar year-end entities (Farm Credit System Insurance Corporation, Federal Deposit Insurance Corporation, and National Credit Union Administration) are not required to submit an interim Legal Representation Letter. The aforementioned entities are required to submit a final Legal Representation Letter and the accompanying Management Schedule. The final Legal Representation Letter will be all inclusive of existing, pending, or threatened litigation and unasserted claims as of September 30. The Legal Representation Letter including signatures as well as the accompanying Management Schedule must be submitted electronically to DOJ, Fiscal Service, and GAO (see Figure 2 for dates). Submit the legal representation letter in PDF and the Management Schedule in Excel format (Subsequent event reporting requirements are applicable to ALL entities).

4705.60b—Other Required Information for Legal Representation Letters

Significant Entity IGs must provide GAO, DOJ, and Fiscal Service information relating to subsequent events. Agencies are required to report subsequent events that resulted in a change in the likelihood of loss or the amount of loss, or both, from the effective date of the final Legal Representation Letter through a date to be determined. All agency IGs must submit details of the subsequent events via email to GAO, DOJ, and Fiscal Service (see Figure 2 for due dates).

Subsequent event information is based on the entity’s materiality threshold. For additional guidance, see OMB Bulletin No. 19-01, as amended, and OMB Circular No. A-136, revised, on the OMB website.

4705.65—Treaties and Other International Agreements

For accounting purposes, Treaties and other international agreements may be understood as falling into three broad categories:

  1. No commitment to spend money,
  2. Commitment to spend money, or
  3. Potential obligation to spend money in the event of adverse judgment in binding dispute settlement mechanism.

Treaties and other international agreements are negotiated against the backdrop of the Antideficiency Act (ADA), which prohibits the authorization or creation of an expenditure or obligation in excess of the amount available unless authorized by law. In many cases, such treaties and other international agreements establish frameworks that govern cooperative activities with other countries, but leave to the discretion of the parties whether to engage in any such activities. In other cases, the agreements may contemplate specific cooperative activities, but obligations to engage in them are made subject to the availability of funds, such that failure to engage in the activities would not involve a breach of the agreement or result in the U.S. incurring any financial liability or penalty. Cooperative activities relevant to these treaties and other international agreements often involve actions that agencies undertake as part of their regular operations, funded by their regular budgets.

A small number of treaties and other international agreements fall in the second category, involving specific obligations by the U.S. to pay money to other countries or international organizations. Examples of such agreements include:

  • Agreements establishing international organizations, under which the U.S. undertakes obligations to pay assessed dues to the organization,       
  • Grant agreements under which the U.S. provides foreign assistance funds to other countries, and
  • Claims settlement agreements under which the U.S. agrees to pay specific sums of money to settle claims.
Such agreements may not be entered into without specific statutory authority to undertake the obligation to spend money. As a result, the responsible reporting entity establishes a liability for assessments received and unpaid, as well as for pledges made and accepted by an international organization. These liabilities may either be fully funded or established against future funding.
 

The last category often encompasses those treaties or other international agreements in which the U.S. has agreed to a binding dispute settlement to resolve disagreements that may arise in respect of the treaty or other international agreement. Dispute settlement mechanisms do not necessarily result in the U.S. spending money; however, a tribunal’s binding dispute settlement decision may obligate the U.S. to spend money. When a claim is filed against the U.S. under a treaty or other international agreement that provides for binding dispute settlement, the responsible reporting entity must establish a contingent liability and, if applicable, include a required note disclosure in its financial statement footnotes, in accordance with accounting standards, as appropriate. This is carried out, captured, and reported in the annual legal letter processes.

Agencies negotiating and concluding treaties and other international agreements on behalf of the U.S. Government must follow requirements outlined in the Circular 175 Procedure (C-175 Procedure) developed by the Department of State (State), reflected at 11 Foreign Affairs Manual (FAM) 720 et seq. Per the C-175 Procedure, a request for authorization to negotiate and conclude a treaty or other international agreement takes the form of an action memorandum addressed to the Secretary of State, or other principal to whom such authority has been delegated. The action memorandum may request the authority to negotiate, authority to conclude, or authority to negotiate and conclude a treaty or other international agreement. In addition, the action memorandum must indicate whether a proposed treaty or other international agreement embodies a commitment to furnish funds, goods, services, or other measurable future financial obligations beyond or in addition to those authorized in an approved budget; and if so, what arrangements are being planned or carried out by the agency concerning consultation with OMB for such commitment. State will not authorize such commitments without confirmation that the relevant budget approved by the President requests or provides funds adequate to fulfill the proposed commitment, or that the President has made a determination to seek the required funds. All provisions of the C-175 Procedure apply whether a proposed treaty or other international agreement is to be concluded in the name of the U.S. Government, or in the name of a particular agency of the U.S. Government.

In accordance with auditing standards, agency external financial statement auditors must develop test procedures to assess the adequacy of internal controls surrounding the establishment of a liability or note disclosure, as well as to confirm the accuracy of amounts presented. In addition, agency auditors or attorneys must conduct a review of potential risk for contingent liabilities arising from treaties and other international agreements that have not yet resulted in litigation. If at any point throughout the duration of the treaty or other international agreement, litigation should arise from a triggering event (SFFAS No. 5, paragraph 26), State, or other U.S. Government agency the agreement was concluded in the name of, would follow federal guidance and internal procedures for reporting any relevant information in its legal letters. Significant Entities 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, as amended.

4705.70—Other Required Information for Subsequent Changes to Published Financial Statements

Significant Entity CFOs also must provide Fiscal Service information regarding any subsequent changes to their MRL’s and published financial statements. The subsequent events email should indicate “no changes”, or “changes” due to the written representation from management or subsequent events affecting the agency financial statements (general purpose and Closing Package). Subsequent event information is based on the entity’s materiality threshold. Do not include legal contingencies or items submitted in GFRS, Note 1 (see Figure 2 for due dates and OMB Circular No. A-136, Section V.5 for wording requirements). Send this information via email to Fiscal Service, OFAS, OMB, and GAO.

Section 4706—Intragovernmental Quarterly and Year-end 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.

Note: The Federal Reserve System, which includes the Board of Governors, is not considered a consolidated entity in governmentwide reporting entity under federal accounting standards (please note the Board of Governors is considered federal for tax purposes, however, for governmentwide reporting, they are considered non-federal). Therefore, payments made to or collections received from the Federal Reserve System would be reported in the financial statements of the federal government and its component reporting entities (refer to Appendix 5b for list of Disclosure Entities, SFFAS No. 47). All activity with the Board of Governors of the Federal Reserve System must be reported as non-federal “N” activity.

4706.15—Additional Intragovernmental Reconciliation Requirements

The intragovernmental transactions reconciliation and resolution requirements are stated in OMB Circular No. A-136, revised (see the OMB website).

4706.20—Federal Intragovernmental Transactions Accounting Scenarios

Agencies can refer to the USSGL website to see accounting scenarios for selected federal intragovernmental activities.

4706.25—Non-fiduciary Transactions

For non-fiduciary transactions, OMB requires reporting agencies to reconcile and confirm intragovernmental activity as well as balances quarterly for the following reciprocal groupings:

  • Services provided and reimbursables. Examples include, but are not limited to, legal, consulting, investigative, financial management, grants management, technology, reimbursables, and other similar services.
  • Cost of products sold. Examples include, but are not limited to, supplies, manufactured items, inventory, office space, and equipment/vehicle rentals.
  • Transfers, appropriations used, and collections for others, as well as unusual assets and liabilities related to appropriations. Examples include, but are not limited to, 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, or previously capitalized assets/inventory from other federal entities must follow the Capital Asset scenario located at Intragovernmental Capital Asset and Inventory Buy/Sell Transactions on the USSGL website.

Agencies that participate in Assisted Acquisitions must follow the Assisted Acquisition scenario located at Assisted Acquisition Guidance on Fiscal Service’s website.

4706.30—Intragovernmental Transactions Reconciliation and Resolution Process

Agencies must use three-digit trading partner AID for all intragovernmental transactions. When agencies report “appropriations transfers” within their departments, they should use their three-digit trading partner code. Since FY 2015, agencies must also use the trading partner main account on any TAS with the FY 2015 year of appropriation. Effective FY 2019 all trading partner main accounts, including no-year TAS, are required.

4706.30a—Fiscal Service Intragovernmental Activity

Agencies are expected to work with their respective trading partners to reconcile and resolve intragovernmental differences. Appendix 10 discusses the reconciliation and resolution process which includes the root cause, Corrective Action Plan (CAP), and dispute resolution processes.

Significant Entities and selected Other Entities (as designated by “**” in Appendix 5a and 5b) are required to explain and certify all Material Differences Reports Parts I, II, and III-Z each quarter, and year-end with the exception of the fourth quarter where explanations are not required. Agencies will use the Intragovernmental Module in GTAS to view and explain as well as certify their Material Differences.

The Material Differences Window, which is used to explain and certify differences will open after the GTAS Bulk File Submission Window closes. These dates are set by Fiscal Service. The Intragovernmental key dates as well as the GTAS reporting window schedule can be found on the GTAS website.

Agencies must provide detailed explanations for Material Differences Reports Parts I, II, and III-Z. Detailed explanations should include but are not limited to the following:

  • the reason the difference exists,
  • what is being done to reconcile the difference, and
  • the expected completion date of eliminating the difference.

If an agency is not able to provide the detailed information listed above, Fiscal Service may follow up for a response. Fiscal Service will use their own discretion when analyzing explanations and follow up from clarification, if needed.

Agencies will also be able to obtain the following quarterly reports from GTAS:

  • Material Differences Report Part I (if applicable). This report displays differences equal to or greater than $100 million in all reciprocal categories (except RC 29, which is included on Part III). Agencies will use subsection 4706.30b as guidance to select the explanation and the detailed information that must be provided.
  • Material Differences Report Part II (if applicable). This report displays differences equal to or greater than $10 million and less than $100 million in all reciprocal categories (except RC 29) with the following FR Entities that are not required to report at this time:
     
    • 0000 (Congress: House and Senate),
    • 0100 (Architect of the Capitol),
    • 0200 (U.S. Capitol Police),
    • 0300 (Library of Congress),
    • 0800 (Congressional Budget Office),
    • 0900 (Other Legislative Branches),
    • 1000 (The Judiciary), 2300 (U.S. Tax Court), and
    • 9999 (Unknown Trading Partners/Unidentified).

While a type of difference like those listed in subsection 4706.30b is not required for Material Differences Report Part II, a detailed explanation of the difference is expected. Agencies may select “Part II Differences” as the type of difference when explaining in the Intragovernmental Module of GTAS.

  • Material Differences Report Part III-Z. This report displays amounts reported in RC 29 with the federal/non-federal domain value of Z for non-reciprocating federal activity. While a type of difference, like the types listed in subsection 4706.30b, is not required for Material Differences Report Part III, agencies may select “Part III Differences” as the type of the difference. However, agencies are expected to provide Fiscal Service with an explanation of why this non-reciprocating federal activity is reported. If an explanation of “non-reciprocating activity” is not considered acceptable, and Fiscal Service may follow up for clarification to ensure the non-reciprocating federal activity reported is used for the appropriate purpose.  
  • Comparative Status of Disposition Report. Available after all of Part I Material Differences are certified and the Material Differences Window is closed. Contains comparative reporting between the agency and its trading partners by Reciprocal Category in Part I. CFOs use this report to address and resolve inconsistencies in amounts and explanations between the agency and its trading partners.

With agencies explaining and certifying material differences, the assurance for Fiscal Service that agencies comply during the IGT reconciliation and resolution process is established using three functions:

  • 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 and resolution in accordance with OMB Circular No. A-136, revised and Appendix 10, 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.

Note: Recurring differences should be limited to those situations that have been confirmed by the Fiscal Service through the dispute resolution process.

4706.30b—Reporting Agency’s Explanation of Reporting in Material Differences Reports Part I

An explanation of Part I reporting should be based on each identified difference in terms of 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.), 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 reported the activity in the current-year. The total of these amounts must be identified. Explain whether an adjustment should be made.

(3)  Prior-year timing difference—occurs when a reporting agency has reported activity in a prior FY and the trading partner reported the activity in the current FY. 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 than their trading partner to account for activity. The method of accounting must be identified and explained as well as attempt to provide the dollar amount of the difference caused by the differing methodologies.

(5)  Accrual methodology difference—occurs when the reporting agency uses a different accrual method than their trading partner to account for activity. The method of accrual must be identified and explained as well as attempt to provide the dollar amount of the difference caused by the differing methodologies.

(6)  Agency Verified—intended to indicate that an agency has verified its reported amounts and that the agency’s documents are in agreement with its quarterly source documentation; and the agency has confirmed that the policy and guidance related to transactions and balances have been followed. It also indicates the agency has reconciled this amount with its trading partner and knows why the difference, if any, exists. Selecting "Agency Verified" indicates that the trading partner accepts the onus for adjusting its amount to clear any difference going forward. Both agencies cannot have Agency Verified where a difference exists. Agencies should provide amounts and a detailed explanation to support the selection of Agency Verified.

(7)  Unidentified—occurs when the reporting agency cannot validate the amount of the difference or the trading partner at the time of reporting. The total of unidentified reporting amounts must be identified and explained as to why they are unidentified.

Note: Unidentified also can include instances where differences are due to existing guidance that is currently under review in order to ensure elimination at the governmentwide level between trading partners when applied correctly (for example, judgment fund and FICA transactions).

4706.30c—Intragovernmental Transactions Metrics and Scorecards

Fiscal Service has implemented scorecards and metrics to track reporting differences governmentwide by agency. Scorecards will be updated quarterly and disseminated to Significant Entities and Other Entities as determined by Fiscal Service. The purpose of the metrics is to monitor progress on resolving or explaining material intragovernmental differences. Refer to Appendix 10, subsection 2.4, for further information on the timeline for these scorecards and metrics as well as related agency requirements.

4706.40—Year-end Intragovernmental Reconciliation Process Related to Closing Package Reporting

Significant Entities and Other Entities should reconcile their intragovernmental balances and resolve intragovernmental differences with all available information before submitting their Closing Package data and GTAS ATB, respectively. Additionally, Significant Entities and their auditors should review the 5th quarter Scorecard to determine if a prior-year journal voucher was processed. If so, then the Significant Entity should identify the reason for the journal voucher as well as how to prevent the adjustment in the current year.

In preparation for the year-end submission, agencies should validate and reconcile their data monthly to resolve intragovernmental differences in certain reciprocal categories, prior to their data submissions in GTAS.

The data to reconcile consists of:

  • RC 07, Appropriation of Unavailable Trust or Special Fund Receipts (represented by GTAS Edit 33-UCAD Reciprocal Category 7 Transferred-In and Edit 34-UCAD Reciprocal Category 7 Transferred-Out),
  • RC 08, Non-expenditure Transfers of Unexpended Appropriations and Financing Sources (represented by GTAS Edit 35-UCAD Reciprocal Category 8 Transferred-In and Edit 36-UCAD Reciprocal Category 8 Transferred-Out),
  • RC 11, Non-expenditure Transfers of Financing Sources–Capital Transfers (represented by GTAS Edit 40-UCAD Reciprocal Category 11 Capital Transfers-In and Edit 41-UCAD Reciprocal Category 11 Capital Transfers-Out), Appropriations Received as Adjusted (represented by GTAS Edit 50-Normal Warrants Edit), and
  • RC 40, Fund Balance with Treasury (represented by GTAS Edit 1-Fund Balance with Treasury).

Reconciling data (reported as BETC in Central Accounting Reporting System) against Agency Reported Adjusted Trial Balance Data (reported in GTAS) can be done two ways. They are listed below. 

  • In GTAS, navigate to the MY ATB STATUS module and click on the Failed Edits Tab, click on View Details. This view is defaulted to Failed Fatal Edits (for example, Edit 1). Click on Proposed Analytical to review any Failed Proposed Analytical Edits (for example, Edits 33, 34, 35, 36, 40, 41, and 50).
  • Navigate to Run Reports Module, select Validations/Edits for Report Type, select either Failed Edits Detail or Failed Edits Summary (depending on needs), select applicable reporting period information, run the report by Either User ID or Specified TAS, scroll down past Fatal Edits to find Proposed Analytical Edit Failures.

If no Failed Edits or Proposed Analytical Edits appear after GTAS ATB upload, then the data and ATB Data are reconciled and no further action is necessary.

4706.45Year-end CFO Procedures for Intragovernmental Transactions/Balances

Significant Entities must comply with the following instructions using the comparative, audited consolidated and department-level financial statements:

  • Provide responses to the representations outlined in the detailed “CFO Representation” instructions found in Appendix 8 for each intragovernmental issue, and
  • Ensure the data in the Intragovernmental Closing Package Material Differences Reports are consistent with the information reported in the federal program entity’s financial statements.

Fiscal Service provides the CFO Representations Form for Federal Intragovernmental Activity and Balances (see Appendix 8). Fiscal Service posts this form on the GFRS website.

Provide an electronic file of the CFO’s Representations for Federal Intragovernmental Transactions and Balances along with any supporting documentation to the agency's IG, Fiscal Service, and GAO (see Figure 2 for due dates).

Section 4707—GTAS Requirements

GTAS requires reporting proprietary and budgetary USSGL account balances. Details can be found by visiting the GTAS website.

4707.05—GTAS System Access

To obtain system access, users may contact the GTAS Treasury Support Center

4707.10—GTAS Reportable Data

GFRS compiles the data from the GTAS submissions for all entities into a set of reclassified financial statements that are included in the consolidated FR. All entities must prepare and submit FR Notes using the amounts from the reclassified financial statements populated by GTAS ATB. All agencies must submit all changes to the reclassified financial statements through GTAS.

4707.10a—GTAS Super Master Account File

The GTAS Super Master Account File (SMAF) contains the valid TAS balances and attributes for budgetary as well as proprietary ATB submission.

4707.10b—Adjusted Trial Balance

Agencies must prepare and submit pre-closing GTAS ATB at the TAS level using USSGL accounts and attributes. Non-executive agencies that have not adopted the USSGL must crosswalk their general ledger accounts to the USSGL accounts before transmission.

The GTAS ATB must include USSGL accounts with the required attributes, and USSGL account balances must reflect the pre-closing adjusting entries needed to produce financial statements. The total sum of debit balances must equal the total sum of credit balances in the GTAS ATB. Report amounts in dollars and cents.

Significant Entities and Other Entities must use the same USSGL data on the GTAS ATB that they use to prepare the current FY audited entity consolidated financial statements due to OMB. For detail on the specific requirements for the submission, please refer to the GTAS website. 

4707.10c—Reporting Instructions for General Fund Receipt Accounts

Agencies that classify amounts on their Classification Transactions and Accountability (CTA) report in General Fund Receipt Accounts symbols using their three-digit agency trading partner AID also must submit a GTAS ATB, and must prepare agency financial statements that include the General Fund receipt activity.

4707.10d—Treasury Managed Trust Fund Accounts

Fiscal Service’s Funds Management Branch provides the lead program agency a monthly GTAS ATB for the Treasury managed trust fund activity located at Fiscal Service for each of the Treasury managed trust funds listed in Figure 3. The monthly GTAS ATB prepared by Fiscal Service contains collection and disbursement transactions that are recorded in the Treasury managed trust funds as well as investment activity and balances. The monthly GTAS ATB will be provided to the lead program agencies no later than the fifth workday after the end of the applicable month. The program agencies are responsible for recording appropriated amounts from the trust funds and reporting the final Treasury managed trust fund ATB in GTAS. 

Fiscal Service uses USSGL accounts from the USSGL Supplement for FY 2018 reporting, with the proper attributes. The lead program agencies identified in Figure 3 must include the Treasury managed trust fund ATB data in their GTAS Submission. Please email the Funds Management Branch with questions regarding the Treasury managed trust fund accounts at UTF@fiscal.treasury.gov

4707.10e—Parent/Child Reporting

The reporting in GTAS is similar to the reporting for the quarterly file submissions. Refer to subsection 4705.30.

4707.10f—GTAS ATB Reports Transmission Methods

Each GTAS ATB preparer can submit the ATB data using the bulk file transfer method in GTAS. Agencies must submit GTAS ATB for each active TAS (these include TAS with no transactional activity but are active for CARS). For specific detail on GTAS ATB submissions, please refer to the GTAS website.

4707.10g—Proprietary Balances in Canceled Accounts

GTAS will establish a default TAS (“C” domain value for availability type). The system-generated “C” TAS will have three components: the three-digit Agency Identifier, availability type “C,” and a four-digit main account. The GTAS system will provide a “C” TAS on the GTAS Super Master Accounts File for each fund family represented on the SMAF. Agencies may choose one or more “C” TAS on the SMAF to report assets. 

If an entity is using a default fund symbol of its own creation, they must use the new “C” account in its place. However, if agencies are using a current-year fund symbol, an “X” fund, or some variation of an active account, they may continue. Entities may also decide on their own when to move these assets from the original purchasing fund, but must be accomplished no later than the agency’s final GTAS submission for period 12 of the fifth FY after the availability has expired.   

Figure 2:  Reporting and Submission Dates

August 9, 2018 Fiscal Service will provide the agency technical experts the Significant Disclosures Template, final published version of note(s) from the prior-year FR identified as presenting a greater risk of failing to meet prescribed disclosure requirements, as well as auditor comments on each of these note(s) (if applicable) from the prior-year FR preparation process. See subsection 4704.10 for complete details.

*August 23, 2018

Significant Entity IGs must submit the interim Legal Representation Letters and management schedules to Fiscal Service, DOJ, and GAO.

September 4, 2018

The window opens for Closing Package data submission in GFRS for Modules GF006 to GF008, as applicable.

September 7, 2018 Agency technical experts are required to provide feedback on the Significant Disclosures template as well as any narrative updates from prior-year FR. See subsection 4704.10 for complete details.
September 21, 2018 SSA and HHS report the draft Social Insurance data for Social Security and Medicare, respectively, in the GFRS Closing Package.

October 4, 2018

GTAS opens for September 30, 2018, ATB submission.

October 18, 2018

GTAS expenditure TAS must be certified by 5 p.m. ET.

October 26, 2018

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

November 8, 2018 The GTAS Period 12 Revision window closes at 5 p.m. ET.

November 14, 2018

GTAS Period 12 Extension window closes at 2 p.m. ET.

November 15, 2018 Year-end Material Differences Reports (MDRs) are available in GTAS to be explained and certified. The Raw Data File is also available in GTAS.

November 16, 2018

1. GFRS window for Closing Package submissions closes for Significant Entities.

2. Agencies will get updates from 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.

4. AFR to CP Reconciliation Template.

November 16, 2018

1. GFRS Notes and other FR data submissions are due for Other Entities by 6 p.m. ET.

2. IG opinion on the Closing Package for Significant Entities, including the Trading Partner Data, is due by 6 p.m. ET.

3. IGs must submit copies of documents listed under subsection 4705.45 and the Closing Package auditors’ report to GAO, Fiscal Service, and OMB via the MAX.gov website by 6 p.m. ET.

4. Significant Entity IGs must submit the final Legal Representation Letters and management schedules to Fiscal Service, DOJ, and GAO by 6 p.m. ET.

5. Significant Entities must submit a Closing Package Management Representation Letter in conjunction with the Closing Package Schedule of Uncorrected Misstatements (SUM) via email to Fiscal Service and GAO. Upload the required documents to OMB via the MAX.gov website. (Significant Entities may elect to submit a combined Closing Package and General Purpose MRL and SUM. Please see subsections 4705.45 and 4705.50.)

November 30, 2018 Agency technical experts are required to provide feedback on the Significant Disclosures template as well as any narrative updates from prior-year FR. See subsection 4704.10 for complete details.
November 30, 2018
Agency CFOs submit their Representations for Federal Intragovernmental Activity and Balances to agency’s IG, Fiscal Service, and GAO. All year-end MDRs must be certified in GTAS.
December 3, 2018 Significant Entities receive the Comparative Status of Disposition from GTAS.

December 7-14, 2018

Agency FR review period. Comments are due at noon on December 14, 2018.

January 23, 2019

Significant Entity IGs must provide Fiscal Service information relating to subsequent events that occurred from the effective date of their final Legal Representation Letters through January 18, 2019. Send this information via email to Fiscal Service, DOJ, and GAO.

February 5, 2019

Significant Entity CFOs must provide Fiscal Service information about subsequent changes to Management Representation Letters and financial statements that have occurred from the date of the financial statements audits (general purpose and Closing Package) and up through February 4, 2019. Send this information by noon via email to Fiscal Service, OMB, and GAO.

February 14, 2019

Financial Report of the U.S. Government is published.

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

Intragovernmental Key Dates may be found on the GFRS website.

GTAS Deadlines may be found on the GTAS website.

Figure 3: 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)

Sports Fish Restoration and Boating

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

South Dakota Wildlife Restoration

U.S. Army Corps of Engineers

Patient-Centered Outcomes Research

Independent Agency

 

Contacts

Direct inquiries and deliver documents required by this chapter to:

Jaime Saling, Director
Financial Reports and Advisory Division
Fiscal Accounting
Bureau of the Fiscal Service
PO Box 1328
Parkersburg, WV 26106-1328
Telephone: 304-480-6485
Fax: 304-480-5176
Email: financial.reports@fiscal.treasury.gov

Also, deliver documents required by this chapter to:

Carolyn Voltz, CPA
Government Accountability Office
441 G Street, NW, Room 5X23
Washington, DC 20548
Telephone: 202-512-5422
Email: uscfs@gao.gov

Carol S. Johnson, Policy Analyst
Office of Management and Budget
Office of Federal Financial Management
725 17th Street, NW
Washington, DC 20503
Telephone: 202-395-3993
Email: csjohnson@omb.eop.gov
MAX.gov website 

Legal Letters:

Department of Justice
Email: Legal.Letters@usdoj.gov

 

Appendices Listing

Appendix No.

Title

1

Reclassified Financial Statements  

2

Financial Report Consolidation

3

Governmentwide Financial Report System FR Notes and Instructions

4

Governmentwide Financial Report System-Other FR Data and Instructions

5a

Federal Trading Partner Codes for Governmentwide Financial Report System (GFRS), and the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS)

5b Determination of Consolidation Entity included in the governmentwide General Purpose Federal Financial Reports (GPFFR), Disclosure Entity included in the governmentwide GPFFR, or Related Party for the Governmentwide Financial Report System (GFRS) and the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS)
6

Reciprocal Categories Crosswalk to Financial Statements

7

Federal Intragovernmental Transactions (IGT) Categories of Reciprocal U.S. Standard General Ledger (USSGL) Proprietary Accounts

8

CFO Representations for Federal Intragovernmental Activity and Balances Instructions

9

Recording Intragovernmental Transactions (IGT) with the General Fund of the U.S. Government

10

Intragovernmental Transaction (IGT) Guide

Appendices are available in the PDF version only.