Discussion 3 ( FAM)

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Apportionments

OMB divides appropriations into apportionments

A government-wide Standard Form (SF) 132, the Apportionment and Reapportionment Schedule, is the authorizing or supporting document for the apportionment entry

One appropriation can have numerous apportionments

Budget

Debit $1,000 GL 445000 Unapportioned Authority

Credit $1,000 GL 451000 Apportionments

No Proprietary entry

Note – apportionments can be by fiscal quarter (A) or for activity/another reason (Category B)

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Allocations / Allotments

Allocations are at the lower level – sometimes at the Fund (Appropriation) / Bureau level

Allotments – many agencies will require spending at the allotment level; many obligations will require an allotment

Budget

Debit $1,000 GL 451000 Apportionments

Credit $1,000 GL 461000 Allotments – Realized Resources No Proprietary entry

Source: https://tfm.fiscal.treasury.gov/v1/supplements/ussgl/ussgl_part_2/sec3/sec3_transactions_2018.pdf

Note Treasury site source of other entries in this slide deck

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Obligations (Orders)

Entry for a formal agreement to buy goods/ services from a specific vendor at a specific cost – assuming no commitments (470000)

Also used for grants or travel

Budget Entry

Debit $1,000 GL 461000 Allotments - Realized Resources

Credit $1,000 GL 480100 Undelivered Orders - Obligations, Unpaid

No Proprietary entry, unless prepaid (e.g., advances for travelers)

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Obligations (Orders) – With Advances

Entry for a formal agreement to buy goods and services from specific vendor at specific cost

Provide money up front – such as a travel advance

Budget Entry

Debit $1,000 GL 461000 Allotments - Realized Resources

Credit $1,000 GL 480200 Undelivered Orders - Obligations, Prepaid/Advanced

Proprietary Entry

Debit $1,000 GL 141000 Advances and Prepayments

Credit $1,000 GL 101000 Fund Balance With Treasury

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An agency may receive an advance (payment) from another agency prior to performing any work or providing any goods. E.g., DHS advanced Justice $1,000 for an Inter-agency agreement. Justice makes the following entry:

Budgetary Entry

Debit 422200 Unfilled Customer Orders With Advance $1,000

Credit 421000 Anticipated Reimbursements and Other Income $1,000 OR

Credit 422100 Unfilled Customer Orders Without Advance $1,000

Proprietary Entry

Debit 101000 Fund Balance With Treasury $1,000

Credit 231000 Liability for Advances and Prepayments $1,000

Source: C182 at https://tfm.fiscal.treasury.gov/v1/supplements/ussgl/ussgl_part_2/sec3/sec3_transactions_2021.pdf

Receiving Advance – Interagency

An agency (performing agency) may also receive funds after doing the work

E.g. DHS has an agreement to do work for the Department of Justice. After DHS does the work, Justice pays $5,000 for an Inter-agency agreement. DHS makes the following entry after doing the work and receiving payment – this assume that DHS anticipated the money

Budgetary Entry

Debit 425200 Reimbursements and Other Income Earned - Collected

Credit 421000 Anticipated Reimbursements and Other Income

Proprietary Entry

Debit 101000 Fund Balance With Treasury

Credit 510000 Revenue From Goods Sold OR

Credit 520000 Revenue From Services Provided

Source: A708 at https://tfm.fiscal.treasury.gov/v1/supplements/ussgl/ussgl_part_2/sec3/sec3_transactions_2021.pdf

Revenue - Interagency

Receiving Goods and Services

Budget Entry

Debit 480100 Undelivered Orders - Obligations, Unpaid

Credit 490100 Delivered Orders - Obligations, Unpaid

Proprietary Entry

Debit 610000 Operating Expenses/Program Costs

Credit 211000 Accounts Payable

Note many other accounts can be debited, depending on the item purchased, including if the item is an asset, which would result in debiting an asset account, such as 175000

Actual payment will generally be via treasury, so the cash will not be credited until Treasury pays

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Disbursement in Transit

Budget Entry

None

Proprietary Entry

Debit $1,000 GL 211000 Accounts Payable

Credit $1,000 GL 212000 Disbursements in Transit

No Budget Entry

Note – entry is for situation in which Treasury will attempt to pay vendor, “reclassify payable schedules for disbursements to "in-transit" until the payment schedule is confirmed”

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Disbursements

Budget Entry

Debit $1,000 GL 490100 Delivered Orders - Obligations, Unpaid

Credit $1,000 GL 490200 Delivered Orders - Obligations, Paid

Proprietary Entry

Proprietary Entry

Debit $1,000 GL 212000 Disbursements in Transit

Credit $1,000 GL 101000 Fund Balance With the Treasury

Note – entry is for situation in which Treasury will attempt to pay vendor

Also – note that payment will most likely be electronic

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Disbursement – with Advance

Budget Entry

Debit $1,000 GL 480200 Undelivered Orders - Obligations, Prepaid/Advanced

Credit $1,000 GL 490200 Delivered Orders - Obligations, Paid

Proprietary Entry

Debit $1,000 GL 610000 Operating Expenses/Program Costs”*

Credit $1,000 GL 141000 Advances and Prepayments

Note many other accounts can be debited, depending on the item purchased

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Stakeholders

Stakeholders

A person, group or organization that has interest or concern in an organization For agencies includes vendors/suppliers, employees, customers, Congress, citizens

Example of a negative impact on stakeholders would be if Congress decides to cut costs and plans a round of layoffs. This negatively affects the community of workers in the area and therefore the local economy (e.g., DC). http://www.businessdictionary.com/definition/stakeholder.html#ixzz29tqaVx53

Employees are a major stakeholder in federal agencies

Unions of federal employees are another stakeholder

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Union Information

Unions have an important role in the federal government

Unions will review policies, negotiate with management, and can support employees on various important matters

Union membership overall is higher among government employees – “Public-sector workers had a union membership rate (34.4 percent) more than five times higher than that of private-sector workers (6.4 percent).”

Federal union rate = 27.4%

Source: http://www.bls.gov/news.release/union2.nr0.htm

https://www.bls.gov/news.release/union2.t03.htm

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Union Information

While overall union membership down in the USA, federal union membership has increased in recent years

Employees at many different levels can be eligible – in some agencies, GS-14s (second highest non-executive level) are eligible

Unions also have important role for grappling many recent challenges for federal employees (e.g., furloughs for sequester)

Executive Order changed Union abilities, though a court overruled many sections of executive order (example of separation of powers)

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Upcoming Assignment Information

Week 3 – Due on Sep 8, 2020

Complete Discussion for Week 3

Quiz 1 – see more on the next slides

Week 4 – Due on Sep 15, 2020

Complete Discussion for Week 4

Budget assignment – see slides for more information

Homework 2 – very important assignment for preparing for Quiz 2

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Quiz Information

Closed book, closed notes (including slides), closed internet research

Must finish first time taking exam – once students view, must complete within two hours – must finish in less than 2 hours after initial viewing the exam (do not open until you are ready to complete)

Multiple choice

Obtain and submit the exam in LEO

The HW assignment is helpful in studying for the exam

Covers readings, audio files / slides for Weeks 1-2

Some topics may include:

FASAB and GAAP

No-year / single-year / multi year appropriations

CFO Act

Branches of the government

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Budget Proposal

Grading

Analysis and Evaluation

25 points

Meets Presentation Requirements

10 points

Basic Content in Place

25 points

Advanced Content in Place

20 points

Format including APA and Works Cited Specifications

10 points

Clarity, mechanics, formatting

10 points

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Budget Proposal

Requirements

Format

MS Word – cannot be PDF - penalty if PDF or any format other than MS Word

Separate cover page

Include 3-5 pages of content (not including cover page or references)

One page for sources – must have two separate sources

Include page numbers and headers

Must be well-written – free of grammatical, typographical, and other errors

Single spaced and double spaced between paragraphs

Content

Select the FY 2021 budget request for a US federal entity, including overall amount

Provide justifications/reasons for the budgeted amounts

If you cannot find the FY 2021 budget, make a budget for FY 2021 based on the budget for 2020 (change amounts for agency needs)

Must include comparative data (e.g., 2020 and 2021)

Provide details about least five appropriations (funds), providing information about the requested amount, mission/goal (e.g., agency XYZ asks for $10,000,000 for a new building. The building will help in the ___ mission) 

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Budget Proposal – Generic Example

Introduction

The xxx AGENCY, HAS .

XYZ Overall Budget Request

The Budget Summary includes the

The Smithsonian budget requests fall under two general budget categories:

Xyz is for___

Xyz appropriation is for__

to the program budget (). The majority of this amount is for the benefit of two program areas. This includes (detailed explanation with amounts)

Mission C is for ___, in order to____

Xyz appropriation is for__ This includes (detailed explanation with amounts)

Add more explanation, analysis of why the programs will be helpful for the nation, and more details.

References (separate page)

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