AGA Today
Federal Accounting Corner by Simcha
Kuritzky, CGFM CPA
Appropriation
Corrections in the Journal and on the SF-224 (Part II)
Last month I covered transferring all
the activity in Fund 6 (symbol 9940006) to Fund 6M (symbol 994/50006)
due to a surprise change in funding. This month, I will show the updates
for a situation where the agency retroactively adjusts all their
journals to show the proper symbol.
Set Up
Agency X was anticipating a $1.1
billion appropriation in their Fund No. 6 (symbol 9940006). During the
continuing resolution, payroll disbursements were made by agency Y on
behalf of X and reported on the SF-224 Statement of Transactions using
Agency Location Code (ALC) Y in the amount of $100M, while agency X
disbursed $50 million in 9940006 under their own ALC. The appropriation
was actually for $900 million in a new multi-year fund, 994/50006. The
starting value of the agency's and Treasury's books follows.
| Agency's Journal: |
|
Treasury's Records: |
|
| Fund 6 - 9940006 |
|
Fund 9940006 |
|
| 1010A appropriations
|
$110M |
Disbursements, ALC X |
-50M |
| 1010D agency disbursements |
-50M |
Disbursements, ALC Y |
-100M |
| 1010P payroll disbursements |
-100M |
|
|
| all non-cash accounts |
-950M |
Fund 994/50006 |
|
| |
|
Warrants |
$900M |
Solution No. 2 – Retroactive
Adjustment
One solution is to force the original
Fund 6 to use the multi-year symbol. All the postings that had been in
Fund 6 are changed to show symbol 994/50006. This will result in correct
FACTS and FACTS II trial balance submissions, but will not correct all
the activity already reported to Treasury. The amounts reported by both
agencies X and Y have to be transferred to the correct symbol on the
SF-224 (by posting the normal disbursements account). This means that
the agency must post debit 1010D the $150 million of payroll and other
disbursements to back them out of the single-year fund on the SF-224,
and post the opposite into the multi-year fund. How this is accomplished
will depend on the system. We will assume they back out the postings
with the old symbol, then adjust their journals (but not the SF-224) to
show the new symbol, then post the other side of the adjustment entry.
| |
Start |
Adjustment old symbol |
Adjustment new symbol |
End |
| Fund 6: |
|
|
|
|
| |
|
-200M |
|
|
| 1010A |
$1100M |
|
|
$900M |
| 1010D |
-50M |
|
|
-50M |
| 1010P |
-100M |
|
|
-100M |
| |
|
50M |
150M |
|
| non-cash accts |
-950M |
|
|
-750M |
| |
|
|
|
|
| 9940006 |
|
|
|
|
| |
|
150M |
|
|
| Disbursements-ALC X |
-50M |
|
|
100M |
| Disbursements-ALC Y |
-100M |
|
|
-100M |
| |
|
|
|
|
| 994/50006 |
|
|
|
|
| Warrants |
900M |
|
|
900M |
| |
|
|
-150M |
|
| Disbursements-ALC X |
|
|
|
-150M |
Since agency X has no fund with the
single-year symbol any more, there is no place to represent the $100
million of payroll disbursements in the single-year fund. However, the
net value of zero (if you include both ALCs from Treasury's statements)
does agree with the agency's revised books (which shows nothing under
the single-year symbol).
Any future payroll postings that use
the incorrect single-year appropriation will have to be entered into
Fund 6 as an agency disbursement (using account 1010D) with the
multi-year symbol, and a transfer entry needs to be made (how is
dependent on the system) to reduce the disbursement under the
single-year appropriation symbol. If this is not easily done, the agency
may have to wait until Agency Y updates its records before correcting
the symbol in its journals.
Comments,
suggestions and critiques are welcome. Send them to
Simcha.Kuritzky@ams.com,
and not to AGA.
