General Fund Reporting Entity USSGL Accounts

1. General Fund Reporting EntityUSSGL Accounts IRC Meeting April 26, 2012 Revised 4/30/12

2. Table of Contents • Overview • General Fund Accounts • General Fund Illustrations

3. Overview The General Fund is the central activity that tracks • Congressionally issued Budget Authority • Cash • Treasury issued Debt and Borrowings 2

4. Why the General Fund? • Financial Report (FR) of the U.S. Government • GAO Audit Finding • Unreconciled Differences • Process - FR preparation • General Fund Reporting and Analysis • Audited General Fund information that will be reported in the Governmentwide Financial Report System (GFRS) • Provides for a more complete accounting of the Government’s financial activity. • Enables a conventional FR consolidation process • Identifies the materiality of the unreconciled differences • Proper matching of reciprocal categories and identifies areas of improvement 3

5. Proposed General Fund Accounts 4

6. Proposed General Fund Accounts (con’t) Revised 4/30/12 5

7. General Fund Illustrations

8. General Fund Operating Cash - Collections Treasury’s General Account (TGA) FRB NY (operating cash) Agency Financial Institution (CashLink II) Deposit with Agency Location Code (ALC) Request for settlement of funds Confirmed deposit detail by ALC transcript Bank reported settled at the FRB Treasury’s Central Accounting Statement of Transactions • Posts deposits and updates fund balance • Compares Statement of Transactions and Accountability deposit amounts to banking system amounts • Generates Statement of Difference when Statement of Transactions deposit amounts do not equal banking deposit amounts SOD Deposits in Transit 7 Monthly reconciliation from Treasury’s Central Accounting System

9. General Fund Operating Cash – Check Payments Request for check payment Check payment Agency FMS Regional Finance Centers for Treasury Disbursing Officers by ALCs Payee Cashes check Treasury’s General Account (TGA) FRB NY (operating cash) Confirmed check issue data Bank reported settled at the FRB Statement of Transactions Treasury’sCentral Accounting • Posts classified payments and updates fund balance • Compares Statement of Transactions and Accountability payment amounts to RFC payments and IPAC amounts • Generates Statement of Difference when Statement of Transactions payment amounts do not equal RFC payment and IPAC amounts SOD Undistributed 8 Monthly reconciliation from Treasury’s Central Accounting System

10. Central Accounting/Agency Reconciliation Account 125000 The detailed source of data is from Agency and bank reporting. This account should maintain a zero balance. $100,000 $95,000 CTA * (FMS-224) Statement of Transactions Accountability Code Activity (Sections 2 or 3) CashLinkII (i.e. deposits) This example represents a collection. *Classification Transactions and Accountability (CTA) – system used by Agencies to report their monthly accounting activity to Treasury, FMS. The CTA FMS-224 monthly reports transmitted to Treasury serve as a basis for Treasury’s publication to Congress and the public regarding federal receipts and outlays. Note: For questions concerning the Statement of Differences, agencies should contact FMS, Cash Analysis Branch at (202)874-8270. 9

11. Central Accounting Control Account 199900 The detailed source of data is from Agency reporting. This account should maintain a zero balance. $100,000 $100,000 CTA * (FMS-224) Statement of Transactions Accountability Code Activity (Sections 2 or 3) CTA * (FMS-224) Statement of Transactions (Section 1) This example represents a collection. * Classification Transactions and Accountability (CTA) – system used by Agencies to report their monthly accounting activity to Treasury, FMS. The CTA FMS-224 monthly reports transmitted to Treasury serve as a basis for Treasury’s publication to Congress and the public regarding federal receipts and outlays. 10

12. Questions 11