Discussion 3 ( FAM)
Read the slides and listen to the audio file (and read the audio file summary that has one update from file)/content/enforced/512569-026953-01-2208-OL1-6380/Week 3 lecture note x, which contain key information for this class, including upcoming assignment
/content/enforced/512569-026953-01-2208-OL1-6380/Federal Financial Management class 3 ACCT350 rev.pptx
ead your agency’s budget submission posted on their website. Post three highlights from their most recent budget. Start a new thread and include the name of your agency in your posting!
PLEASE USE THE ATTACHED Resources!!!!
Read the 6 page explanation “The Congressional Budget Process: A Brief Overview”
https://fas.org/sgp/crs/misc/RS20095
Learn more about financial expectations and reporting; read pages 1 through 16 of the 186 page document OMB Circular No. A-136, Financial Reporting Requirements (updated) presented by The Office of Management and Budget (OMB), with the Chief Financial Officers Council (CFOC), updating existing OMB guidance for agency and government-wide financial reporting.
https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A136/a136_revised_2017
Review the brief web page presentation and click on links about the Federal Budget Process
https://budget.house.gov/
Briefly review the GAO web site “Principles of Federal Appropriations Law”, also known as the Red Book at
http://www.gao.gov/legal/red-book/overview
66 page document irrelevanthttps://www.gpo.gov/fdsys/pkg/BILLS-107hr3763enr/pdf/BILLS-107hr3763enr
Learn more about the federal budget process at
https://www.usa.gov/budget
Federal Financial Management
2
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)
2
3
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
Note Treasury site source of other entries in this slide deck
3
4
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)
4
5
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
5
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
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
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
8
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”
9
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
10
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
11
12
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
12
13
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
13
14
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)
14
15
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
15
16
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
16
17
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
17
18
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)
18
19
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)
19
Federal Financial Management
2
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)
2
3
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
Note Treasury site source of other entries in this slide deck
3
4
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)
4
5
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
5
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
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
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
8
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”
9
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
10
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
11
12
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
12
13
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
13
14
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)
14
15
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
15
16
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
16
17
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
17
18
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)
18
19
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)
19