AGA TODAY Newsletter

Federal Accounting Corner by Simcha Kuritzky, CGFM CPA

How Can One be in Two Places at Once

(when one's really on the SBR)?

A Source of Confusion

The spreadsheet that maps the SGL accounts to lines on the Statement of Budgetary Resources (and the related SF-133) lists anticipated accounts 4060, 4070, and 4210 on both lines 3C and 10C. Why? It does not mean that the accounts are counted on both lines simultaneously, because then total resources (line 7) would not equal total status (line 11), since the status account credited for the anticipation is still reported on line 9 or 10. There is a Debit/Credit indicator on the spreadsheet that is set to D on line 3C and C on line 10C. What this indicator means is that if the account has a net debit value, it is reported on line 3C, while a net credit is reported on line 10C. Similar logic is used to report debit 4391 balances on line 1A and credits on 6D, and debit 4310 balances on 4B and credits on 10C.

Fix the Data or Fix the Report

Let's focus on account 4210 Anticipated Reimbursements and Other Income. Suppose we have an appropriation that is augmented by fees collected from the public. For simplicity's sake, there are no apportionments, agreements or bills; we estimate collections at the beginning of the year and collect during the year. The associated entries are:

Estimate: dr. 4210 Anticipated Reimbursements and Other Income

A302, A119 cr. 4690 Unobligated Funds Not Subject to Apportionment

    Collect: dr. 4252 Reimbursements and Other Income Earned - Collected

    A304, A310, 1010 Fund Balance With Treasury

and C186 cr. 4210 Anticipated Reimbursements and Other Income

combined 5200 Revenue from Services Provided

The estimate increases resources on line 3C and available on line 9B. As collections take place, the amount moves from 3C to 3A1, and the agency is allowed to spend what is available (the spending entry, not shown here, moves amounts on line 9B to 8). What the dual definition of the SBR report says is that, should collections exceed the estimate, the negative balance on line 3C should be instead reported as a positive balance on line 10C. Essentially they are saying the agency should have posted the following entry for the collection once they were in excess of the estimate:

Collect: dr. 4252 Reimbursements and Other Income Earned - Collected

1010 Fund Balance With Treasury

cr. 4630 Funds Not Available for Commitment/Obligation

5200 Revenue from Services Provided

The effect of the dual definition is to say "Okay, you didn't post what you should have, but we'll make you report the data as if you had." The same logic applies to other anticipated collections (accounts 4060 and 4070), as well as anticipated recoveries (4310).

For account 4391 Adjustments to Indefinite No-Year Authority, the effect is to say that an upward adjustment is reported on line 1A like an appropriation, but downward is treated like a withdrawal (line 6D). Since account 4391 is permitted to have either a debit or credit balance, there is no implication that the agency failed to post what they should have.

Similar Problems

There are other examples of common problems with balances that could be addressed by a dual definition. If an expired or no-year fund has a negative balance on line 8 Obligations Incurred, report that balance on line 4A Actual Recoveries of Prior-Year Obligations. If account 4450 Unapportioned Authority or 4650 Allotments - Expired Authority have a balance on line 10C in an unexpired fund, report that amount on line 9A1. If 4510 Apportionments or 4610 Allotments - Realized Resources have a balance on 9A1 in an expired fund, report that amount on line 10C.

The best solution, of course, is for agencies to record the information correctly to begin with. However, two-day closes don't leave a lot of time for review and correction. It might be helpful if FACTS II corrected problems with obvious solutions and warned the agency to make the correcting entry by next quarter, rather than rejecting the submission and causing agency personnel to correct the problem in two different systems.

Comments, suggestions, and critiques are welcome. Send them to Simcha.Kuritzky@cgi-ams.com, and not to the AGA.