TFM Bulletin Page

Bulletin No. 2006-03
Volume I

PDF File

Retention: April 30, 2007

To: Heads of Government Departments, Agencies, and Others Concerned

Subject: Using a U.S. Government Standard General Ledger (USSGL) Proprietary Account With a Nonexpenditure Transfer (NET) Request

1. Purpose

This Treasury Financial Manual (TFM) bulletin informs all Federal agencies that a NET request must include a USSGL proprietary account. Including USSGL proprietary accounts on NET requests will assist agencies in analyzing and reconciling NET data. Specifically, it will be helpful when preparing for the quarterly intragovernmental transactions reconciliation process, commonly referred to as the "F" file. (See I TFM 2-4700: Agency Reporting Requirements for the Financial Report of the United States Government.) Early implementation is strongly encouraged and may begin immediately.

The Department of the Treasury, in consultation with other Federal agencies, developed suggested improvements for intragovernmental accounting. In addition, the U.S. Chief Financial Officers Council intends to issue official intragovernmental business rules applicable to NETs.

2. Implementation Guidance

Because there can be mixed funding in a single Treasury Appropriation Fund Symbol (TAFS), the net position of a TAFS can include a combination of the following:

• Unexpended appropriations derived from general fund resources not earmarked by law for a specific purpose (for example, a warrant);
  
  AND
  
  
• Financing sources, such as Economy Act revenue, that impact cumulative results of operations.

Therefore, for budget authority NETs between TAFSs, the "Transfer From" entity determines the source of funds being transferred and records, in the comment field on the NET entry screen of the Governmentwide Accounting (GWA) System, a USSGL proprietary account that designates the funding as being derived from either of the following:

• For unexpended appropriations from general fund resources not earmarked by law for a specific purpose, use USSGL account 3103, "Unexpended Appropriations-Transfers-Out";
  
  OR
  
  
• For financing sources that impact cumulative results of operations, use USSGL account 5765, "Nonexpenditure Financing Sources-Transfers-Out."

The "Transfer To" entity then must use and record a USSGL proprietary account that corresponds to the account used by the "Transfer From" entity:

• For unexpended appropriations from general fund resources not earmarked by law for a specific purpose, use USSGL account 3102, "Unexpended Appropriations-Transfers-In," which corresponds to USSGL account 3103;
  
  OR
  
  
• For unexpended appropriations from general fund resources not earmarked by law for a specific purpose, use USSGL account 5755, "Nonexpenditure Financing Sources-Transfers-In," which corresponds to USSGL account 5765.

Failure of both entities to record the matching USSGL proprietary accounts will result in agencywide and/or Governmentwide elimination discrepancies. For additional guidance, see Attachment 1 (to this bulletin), GWA System NET Application Guide.

3. Rescission

This bulletin rescinds Appendix 3 to I TFM 2-2000: Warrant and Nonexpenditure Transfer (NET) Transactions, which is replaced by Attachment 1 (to this bulletin), GWA System NET Application Guide.

4. Effective Date

This bulletin is effective October 1, 2006. Starting October 1, 2006, agencies must include the USSGL proprietary accounts. Early implementation is strongly encouraged and may begin immediately.

5. Inquiries

Refer to the following sources of guidance in implementing this requirement:

Direct questions concerning the preparation and submission of NETs using the GWA System to:

Budget Reports Division
Financial and Budget Reports Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway
Hyattsville, MD 20782
Telephone: 202-874-9880
Fax: 202-874-9950
Web site: http://www.fms.treas.gov/tfm/vol1/v1p2c470.pdf

Direct questions concerning selection of the proper USSGL accounts to:

USSGL Division
Accounting Systems and Standards Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway
Hyattsville, MD 20782
Telephone: 202-874-9980
Web site: http://www.fms.treas.gov/ussgl

Direct questions concerning the quarterly intragovernmental transactions reconciliation process to:

Financial Reports Division
Financial and Budget Reports Directorate
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 509B
Hyattsville, MD 20782
Telephone: 202-874-9910
Web site: http://www.fms.treas.gov/tfm/vol1/v1p2c470.pdf

Richard L. Gregg
Commissioner
Date: April 3, 2006

Attachment 1 is available in PDF format only.