Tie-Points

1. Tie-Points Michele Crisman michele.crisman@fms.treas.gov

2. Tie-Points • What are tie-points? • Where are tie-points? • What are the benefits of tie-points? • Tie-Points Project

3. What are tie-points? • Tie-points are relationships among sets of various USSGL account balances.

4. Where are tie-points? • Within the proprietary series of accounts Example: Assets = Liabilities, Net Position, Expenses, Revenue & Gains/Loses • Within the budgetary series of accounts Example: Budgetary Resources = Status of Budgetary Resources • Between the budgetary and proprietary series of accounts Example: Accounts Payable = Delivered Orders-Obligations, Unpaid

5. Where are tie-points?(cont’d) • Between the proprietary series of USSGL accounts and the Treasury Central Accounts Example: Appropriations Received = Amounts Appropriated on the Account Statement • Between the budgetary series of USSGL accounts and the Treasury Central Accounts Example: Appropriation Transfers = Amounts Transferred in GWA NET and noted on the Account Statement

6. What are the benefits of tie-points? • Facilitates on-going validatation of trial-balance data • Facilitates early correction of reporting errors • Promotes an understanding of the USSGL • Provides a measure for the integrity of agency data at the agency and Governmentwide levels

7. What are the benefits of tie-points? • Highlights new USSGL issues • Facilitates explanation of valid exceptions • Provides standard edits for agencies’ financial systems or central data collection systems

8. Tie-Points Project • FMS gathered agencies’ tie-points from IRC members and compiled into a single workbook. • Agencies tested the tie-points with each main TAFS and documented reasons for variances. • FMS analyzed comments, which led to splitting the workbook into fund types (General, Special, Trust, Revolving and Deposit).

9. Fund Types Expenditure Account Symbols by Fund Group: • General Fund 0000-3999 • Revolving Fund 4000-4999 • Special Fund 5000-5999 • Deposit Fund 6000-6999 • Trust Fund 8000-8999

10. Tie-Point Workbook by Fund Type • USSGL by Fund Type • All Tie-Points • Supplemental tie-point • Valid exceptions

11. Tie-Points Project –Trial-Balance Tie-Point #2 Budgetary Cash = Proprietary Cash • 2A Direct Method • Budgetary Resources less disbursements = Cash and Federal Investments • 2B Indirect Method • FMS 2108 Yearend Closing Statement approach

12. Tie-Points Project - Example of Financial Statement Tie-Points • Appropriations received on Statement of Budgetary Resources = Appropriations received on Statement of Changes in Net Position • Net Cost on Statement of Net Cost = Net Cost on Statement of Changes in Net Position • Statement of Budgetary Resources – Total Budgetary Resources = Total Status of Budgetary Resources

13. Tie-Points Project - Next Steps: • Complete draft general and revolving fund trial balance tie-point workbooks • Analyze financial statement tie-points • Address USSGL issues arising from the project • Incorporate tie-points in FIRST

14. Tie-Points – More Information • http://fms.treas.gov/ussgl/tie-point_project/tiepoints.html • Michele Crisman – Project Lead Phone: (202) 874-1439 E-mail: michele.crisman@fms.treas.gov