Adjustment to Total Resources Disposition of Canceled Payables

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Adjustment to Total Resources Disposition of
Canceled Payables

• Michele Crisman
• USSGL Staff

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OMB Guidance1

• "Legitimately incurred obligations that have not
  been disbursed (i.e. paid) at the time a Treasury
  Appropriation Fund Symbol (TAFS) is canceled
  cannot be disbursed from the canceled obligated
  or unobligated balances of the canceled TAFS.
  After a TAFS is canceled, any obligations or
  adjustments to obligations that would have been
  properly chargeable to that TAFS may be disbursed
  from an unexpired TAFS that is available for
  obligation for the same purpose as the closed
  TAFS .
• Payment of obligations against canceled TAFSs
  from unexpired TAFSs are limited to one percent
  of the appropriation in the unexpired TAFS. No
  more than one percent of an unexpired TAFS may be
  used to pay any combination of canceled
  obligations. This is a single, cumulative limit
  .
• Antideficiency Act provisions continue to apply
  to canceled TAFSs. The authority to pay
  obligations against closed TAFSs from one percent
  of unexpired TAFSs cannot be used to exceed the
  original appropriation.
• When you cancel obligations under the
  provisions of Public Law 101510 (31 U.S.C.
  15511557), a tracking process should be
  maintained. You must maintain proper U.S.
  Standard General Ledger (USSGL) controls for
  obligations pertaining to canceled appropriations
  to prevent overpayment. The Treasury's Financial
  Management Service provides USSGL accounting
  instructions.
• 1OMB Circular No. A-11, Section 130.14, dated
  July 2007. (See site for specific provisions.)

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The Issue

• When a valid bill is presented for a canceled
  payable the current treatment is

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The Issue Contd

• Rule
• USSGL 4201, Total Actual Resources Collected,
  should only be used in a closing entry.
• The current treatment violates this rule.

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The Proposal

• Create USSGL 4208, Adjustments to Total
  Resources Disposition of Canceled Payables.
• USSGL 4208 facilitates compliance with the rule.

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Illustration
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration1. Pay outstanding payable from
current year-appropriation. Remove the canceled
payable from canceled TAFS and reestablish the
account payable in the current year2.
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated
4/24/08.
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Illustration 2. Pay the invoice for the valid
account payable related to TAFS XX00 (canceled
appropriation).2
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration C2. To record the closing of
expended authority paid.2
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration Closing EntriesC1. To record
the consolidation of actual net funded resources
and reductions for withdrawn funds.2
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration C4. To record the closing of
unobligated balances to expiring authority.2
2For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration C5. To record the closing of
fiscal-year activity to unexpended
appropriations.2
2.For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration C6. To record the closing of
revenue, expense, and other financing accounts to
cumulative results of operations.2
2.For further details see the draft Accounts
Payable in a Canceled TAFS scenario dated 4/24/08.
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Illustration
2For further details see the draft Accounts
Payable In A Canceled TAFS scenario dated 4/24/08.
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Questions???