11

NOAA Financial Reporting NOAA Financial Reporting Fluctuation (“Flux”) Fluctuation (“Flux”)

AnalysisAnalysis

Presented byPresented by

NOAA’s Finance OfficeNOAA’s Finance Office

22

Increased Auditing of Financial Increased Auditing of Financial Statement and Footnote Statement and Footnote FluctuationsFluctuations

How It Will Affect You:How It Will Affect You:NOAA Budget Office, as well as Line/Staff Offices, will be asked to provide NOAA Budget Office, as well as Line/Staff Offices, will be asked to provide explanations of changes in activity that resulted in material changes to explanations of changes in activity that resulted in material changes to financial statements and footnotes, including:financial statements and footnotes, including:

• Explain material changes in program/operating expensesExplain material changes in program/operating expenses

• Explain material changes in outlaysExplain material changes in outlays

• Explain material changes in obligations (direct vs. reimbursable)Explain material changes in obligations (direct vs. reimbursable)

• Explain material changes in undelivered ordersExplain material changes in undelivered orders

• Explain material changes in apportionments/allotments (recent additions)Explain material changes in apportionments/allotments (recent additions)

• Explain material changes in reimbursable activityExplain material changes in reimbursable activity

• Explain material changes in stewardship dataExplain material changes in stewardship data

33

Increased Auditing of Financial Increased Auditing of Financial Statement and Footnote Statement and Footnote FluctuationsFluctuationsWhat is Material?

• NOAA is required to explain fluctuations in excess of 10% or $12M by the established DoC/OFM due dates.

– NOTE: DoC/OFM reserves the right to request explanations for fluctuations below the threshold (NOAA may be the majority of the Department-wide flux).

44

Fluctuation Analysis Fluctuation Analysis (most)(most)

begins withbegins withStandard General Ledger Standard General Ledger

(SGL) Account Reporting in (SGL) Account Reporting in Financial Statement Line Financial Statement Line

Items or FootnotesItems or Footnotes

55

Financial Statement and Financial Statement and Footnote Fluctuations & SGL Footnote Fluctuations & SGL AccountingAccounting• Explain material changes in program/operating expensesExplain material changes in program/operating expenses

– USSGL Account 6100USSGL Account 6100– Statement of Net CostStatement of Net Cost

• Explain material changes in outlaysExplain material changes in outlays– USSGL Accounts included:USSGL Accounts included:

• 4802 (E-B) & 4882 (E)4802 (E-B) & 4882 (E)• 4902 (E) & 4982 (E)4902 (E) & 4982 (E)

– Statement of Budgetary Resources (SBR) & SF 133 Report on Budget Execution and Budgetary Statement of Budgetary Resources (SBR) & SF 133 Report on Budget Execution and Budgetary ResourcesResources

• Explain material changes in obligations (Direct vs. Reimbursable)Explain material changes in obligations (Direct vs. Reimbursable)– USSGL Accounts included:USSGL Accounts included:

• 4801, 4881, 4831, 4802, 4882, 4832 (All are E-B) *No PY downwards4801, 4881, 4831, 4802, 4882, 4832 (All are E-B) *No PY downwards• 4901, 4981, 4931, 4902, 4982 (All are E-B) *No PY downwards4901, 4981, 4931, 4902, 4982 (All are E-B) *No PY downwards

– Statement of Budgetary Resources (SBR) & SF 133 Report on Budget Execution and Budgetary Statement of Budgetary Resources (SBR) & SF 133 Report on Budget Execution and Budgetary ResourcesResources

• Explain material changes in undelivered ordersExplain material changes in undelivered orders– USSGL Accounts included:USSGL Accounts included:

• 4801, 4881, 4831, 4871, 4802, 4882, 4832, 4872 (All are E-B)4801, 4881, 4831, 4871, 4802, 4882, 4832, 4872 (All are E-B)– Statement of Budgetary Resources (SBR) & SF 133 Report on Budget Execution and Budgetary Statement of Budgetary Resources (SBR) & SF 133 Report on Budget Execution and Budgetary

ResourcesResources

66

What Can Cause What Can Cause Fluctuations?Fluctuations?

• Events that can cause fluctuations Events that can cause fluctuations (examples):(examples):– Changes in the appropriation (impact on Changes in the appropriation (impact on

obligation, expense &/or outlay flux)obligation, expense &/or outlay flux)– Increased capitalized property (impact on 6100 Increased capitalized property (impact on 6100

flux)flux)– Increase of items accrued in one year and Increase of items accrued in one year and

outlayed in the next (impact on outlay flux)outlayed in the next (impact on outlay flux)– Increase in CY UDOs expended in following Increase in CY UDOs expended in following

year (impact on 6100 &/or outlay flux)year (impact on 6100 &/or outlay flux)

77

Fluctuation Analysis for SGL Account Fluctuation Analysis for SGL Account 6100 – Program and Operating 6100 – Program and Operating ExpensesExpenses• USSGL account 6100 – USSGL account 6100 – Program and Operating Program and Operating

Expenses Expenses fluctuation analysis (proprietary activities)fluctuation analysis (proprietary activities)– Does not compare to the Outlays, Obligations or Undelivered Does not compare to the Outlays, Obligations or Undelivered

fluctuation analyses (budgetary activities) because different fluctuation analyses (budgetary activities) because different USSGL accounts are used in each of these fluctuation USSGL accounts are used in each of these fluctuation analyses.analyses.

• A CBS query provides a comparison of current & prior A CBS query provides a comparison of current & prior year USSGL account 6100 balances broken out by year USSGL account 6100 balances broken out by object class, program codes & FCFY. LOs must use object class, program codes & FCFY. LOs must use the query results provided by the 6100 Expense the query results provided by the 6100 Expense query for this fluctuation analysis.query for this fluctuation analysis.– Other queries used by LOs could include accounts with Other queries used by LOs could include accounts with

activity not part of the USSGL account 6100. Additionally, activity not part of the USSGL account 6100. Additionally, queries that contain or do not contain budgetary or queries that contain or do not contain budgetary or proprietary accounts could also cause problems when proprietary accounts could also cause problems when compared to the 6100 Expense fluctuation analysis for compared to the 6100 Expense fluctuation analysis for multiple reasons (see notes below).multiple reasons (see notes below).

88

Fluctuation Analysis for SGL Account Fluctuation Analysis for SGL Account 6100 – Program and Operating 6100 – Program and Operating ExpensesExpenses

Brief summary of what the 6100 Expense Flux would Brief summary of what the 6100 Expense Flux would include/exclude:include/exclude:

• Includes current FY change in 49X1 Unpaid ExpendituresIncludes current FY change in 49X1 Unpaid Expenditures

• Includes current FY 49X2 Paid ExpendituresIncludes current FY 49X2 Paid Expenditures

• Excludes current FY change in 17XX & 18XX capitalized Excludes current FY change in 17XX & 18XX capitalized property transactions, including 1720 CWIP transactionsproperty transactions, including 1720 CWIP transactions

• Excludes current FY interest expenses (63XX accounts) Excludes current FY interest expenses (63XX accounts) & employer benefit contributions (64XX)& employer benefit contributions (64XX)

• Excludes all undelivered orders (48XX accounts)Excludes all undelivered orders (48XX accounts)

99

Fluctuation Analysis for Fluctuation Analysis for OutlaysOutlays

• The Outlays fluctuation analysis is based on the outlays line The Outlays fluctuation analysis is based on the outlays line item on the Statement of Budgetary Resources, which is item on the Statement of Budgetary Resources, which is populated by USSGL accounts 49X2 and 48X2 (budgetary cash populated by USSGL accounts 49X2 and 48X2 (budgetary cash paid activities)paid activities)– Does not compare to the USSGL account 6100 fluctuation analysis Does not compare to the USSGL account 6100 fluctuation analysis

(proprietary activities) or the Obligations fluctuation analysis (proprietary activities) or the Obligations fluctuation analysis (budgetary activities) requests because different USSGL accounts (budgetary activities) requests because different USSGL accounts are used in each of these fluctuation analyses.are used in each of these fluctuation analyses.

• A CBS query provides a comparison of current & prior year A CBS query provides a comparison of current & prior year USSGL accounts 49X2 – Expended Obligations Paid and the USSGL accounts 49X2 – Expended Obligations Paid and the change in USSGL accounts 48X2 – Paid Undelivered Orders change in USSGL accounts 48X2 – Paid Undelivered Orders broken out by object class, program codes & FCFY. LOs must broken out by object class, program codes & FCFY. LOs must use the query results provided by the Outlays query for this use the query results provided by the Outlays query for this fluctuation analysis.fluctuation analysis.– Other queries used by LOs could include accounts with activity not Other queries used by LOs could include accounts with activity not

part of the Outlays financial statement line item. Additionally, part of the Outlays financial statement line item. Additionally, queries that contain or do not contain budgetary or proprietary queries that contain or do not contain budgetary or proprietary accounts could also cause problems when compared to the Outlay accounts could also cause problems when compared to the Outlay fluctuation analysis for multiple reasons (see notes below).fluctuation analysis for multiple reasons (see notes below).

1010

Fluctuation Analysis for Fluctuation Analysis for OutlaysOutlays

Brief summary of what the Outlays Flux would include/exclude:Brief summary of what the Outlays Flux would include/exclude:

• Includes current FY change inIncludes current FY change in– 48X2 Paid Undelivered Orders; does not include downward PY recovery 48X2 Paid Undelivered Orders; does not include downward PY recovery

accountsaccounts– Includes current FY change in 17XX and 18XX capitalized property Includes current FY change in 17XX and 18XX capitalized property

transactions (including 1720 CWIP transactions), paid transactions onlytransactions (including 1720 CWIP transactions), paid transactions only

• Includes current FY 49X2 Paid Expenditures; does not include Includes current FY 49X2 Paid Expenditures; does not include downward PY recovery accountsdownward PY recovery accounts

• Includes current FY 6XXX expenses, paid transactions onlyIncludes current FY 6XXX expenses, paid transactions only

• Excludes current FY change in 49X1 Unpaid ExpendituresExcludes current FY change in 49X1 Unpaid Expenditures

• Excludes 48X1 Unpaid Undelivered Orders & 49X1 Unpaid Excludes 48X1 Unpaid Undelivered Orders & 49X1 Unpaid ExpendituresExpenditures

1111

Fluctuation Analysis for Fluctuation Analysis for ObligationsObligations

• An Obligations fluctuation analysis is currently being developed An Obligations fluctuation analysis is currently being developed based on the “obligations incurred” line item on the Statement of based on the “obligations incurred” line item on the Statement of Budgetary Resources, which is populated by USSGL accounts Budgetary Resources, which is populated by USSGL accounts 49XX and 48XX (budgetary activities)49XX and 48XX (budgetary activities)– Does not compare to the USSGL account 6100 fluctuation analysis Does not compare to the USSGL account 6100 fluctuation analysis

(proprietary activities) or the Outlays fluctuation analysis (budgetary (proprietary activities) or the Outlays fluctuation analysis (budgetary cash paid activities) requests because different USSGL accounts are cash paid activities) requests because different USSGL accounts are used in each of these fluctuation analyses.used in each of these fluctuation analyses.

• A CBS query provides a comparison of current & prior year A CBS query provides a comparison of current & prior year

changes in USSGL accounts 49X2 – Expended Obligations Paid and changes in USSGL accounts 49X2 – Expended Obligations Paid and the Change in 48X1 – Unpaid Undelivered Orders, 48X2 – Paid the Change in 48X1 – Unpaid Undelivered Orders, 48X2 – Paid Undelivered Orders and 49X1 – Unpaid Expenditures broken out Undelivered Orders and 49X1 – Unpaid Expenditures broken out by object class, program codes & FCFY. LOs must use the query by object class, program codes & FCFY. LOs must use the query results provided by the Obligations query for this fluctuation results provided by the Obligations query for this fluctuation analysis.analysis.– Other queries used by LOs could include accounts with activity not part Other queries used by LOs could include accounts with activity not part

of the Obligations financial statement line item. Additionally, queries of the Obligations financial statement line item. Additionally, queries that contain or do not contain budgetary or proprietary accounts could that contain or do not contain budgetary or proprietary accounts could also cause problems when compared to the Obligations fluctuation also cause problems when compared to the Obligations fluctuation analysis for multiple reasons (see notes below).analysis for multiple reasons (see notes below).

1212

Fluctuation Analysis for Fluctuation Analysis for ObligationsObligations

Brief summary of what the Obligations Flux would Brief summary of what the Obligations Flux would include/exclude:include/exclude:

• Includes current FY change in 48X1 Unpaid Undelivered Includes current FY change in 48X1 Unpaid Undelivered Orders & 48X2 Paid Undelivered OrdersOrders & 48X2 Paid Undelivered Orders• Does not include downward PY recovery accountsDoes not include downward PY recovery accounts

• Includes current FY change in 49X1 Unpaid Includes current FY change in 49X1 Unpaid Expenditures & 49X2 Paid ExpendituresExpenditures & 49X2 Paid Expenditures• Does not include downward PY recovery accountsDoes not include downward PY recovery accounts

• Includes current FY change in 17XX and 18XX Includes current FY change in 17XX and 18XX capitalized property transactions, including 1720 CWIP capitalized property transactions, including 1720 CWIP transactions, except PY recovery amountstransactions, except PY recovery amounts

• Includes current FY 6XXX expensesIncludes current FY 6XXX expenses

1313

Fluctuation Analysis for Fluctuation Analysis for Undelivered OrdersUndelivered Orders

• An Undelivered Orders fluctuation analysis is currently being An Undelivered Orders fluctuation analysis is currently being developed based on the Statement of Budgetary Resources, which developed based on the Statement of Budgetary Resources, which is populated by USSGL accounts 48XX (budgetary undelivered is populated by USSGL accounts 48XX (budgetary undelivered activities)activities)– Does not compare to the USSGL account 6100 fluctuation analysis Does not compare to the USSGL account 6100 fluctuation analysis

(proprietary activities), the Outlays fluctuation analysis (budgetary cash (proprietary activities), the Outlays fluctuation analysis (budgetary cash paid activities) or the Obligations fluctuation analysis (budgetary paid activities) or the Obligations fluctuation analysis (budgetary expended and unexpended activities – cash paid and accrued) requests expended and unexpended activities – cash paid and accrued) requests because different or only part USSGL accounts are used in each of these because different or only part USSGL accounts are used in each of these fluctuation analyses.fluctuation analyses.

• A CBS query provides a comparison of current & prior year changes A CBS query provides a comparison of current & prior year changes

in USSGL accounts 48XX – Undelivered Orders balances broken out in USSGL accounts 48XX – Undelivered Orders balances broken out by object class, program codes & FCFY. LOs must use the query by object class, program codes & FCFY. LOs must use the query results provided by the Undelivered Orders query for this results provided by the Undelivered Orders query for this fluctuation analysis.fluctuation analysis.– Other queries used by LOs could include accounts with activity not part Other queries used by LOs could include accounts with activity not part

of the Undelivered Orders financial statement line item. Additionally, of the Undelivered Orders financial statement line item. Additionally, queries that contain or do not contain budgetary or proprietary accounts queries that contain or do not contain budgetary or proprietary accounts could also cause problems when compared to the Undelivered Orders could also cause problems when compared to the Undelivered Orders fluctuation analysis for multiple reasons (see notes below).fluctuation analysis for multiple reasons (see notes below).

1414

Fluctuation Analysis for Fluctuation Analysis for Undelivered OrdersUndelivered Orders

Brief summary of what the Undelivered Brief summary of what the Undelivered Orders Flux would include/exclude:Orders Flux would include/exclude:

• Includes current FY change in 48X1 Unpaid Undelivered Includes current FY change in 48X1 Unpaid Undelivered Orders & 48X2 Paid Undelivered OrdersOrders & 48X2 Paid Undelivered Orders• Includes downward PY recovery accountsIncludes downward PY recovery accounts

• Excludes current FY change in 49X1 Unpaid Excludes current FY change in 49X1 Unpaid Expenditures & 49X2 Paid ExpendituresExpenditures & 49X2 Paid Expenditures

• Excludes current FY change in 17XX and 18XX Excludes current FY change in 17XX and 18XX capitalized property transactions, including 1720 CWIP capitalized property transactions, including 1720 CWIP transactionstransactions

• Excludes current FY 6XXX expensesExcludes current FY 6XXX expenses

1515

ExamplesExamplesofof

“Flux” Explanations“Flux” Explanations

1616

Example – Outlay Example – Outlay FluctuationFluctuation

Outlay fluctuation on the SBR:Outlay fluctuation on the SBR:For FY07 Qtr 2, NOAA had a For FY07 Qtr 2, NOAA had a

decrease of ($287,198) million decrease of ($287,198) million in outlays, when compared to in outlays, when compared to

FY06 Qtr 2.FY06 Qtr 2.

1717

Example – Outlay Example – Outlay FluctuationFluctuation

• Explanation that “needs work” (in Millions):Explanation that “needs work” (in Millions):– There was a decrease of $8,000 that can be attributed to There was a decrease of $8,000 that can be attributed to

the fact that NOAA received a decrease in appropriations the fact that NOAA received a decrease in appropriations in FY07, when compared to FY06. As a result, there was a in FY07, when compared to FY06. As a result, there was a decrease in outlays.decrease in outlays.

• Good Explanation (in Millions):Good Explanation (in Millions):– There was a decrease of $8,000 for the Suitland Facility. There was a decrease of $8,000 for the Suitland Facility.

The decrease is due to the completion of the NOAA The decrease is due to the completion of the NOAA Satellite Operations Facility (NSOF) construction contract Satellite Operations Facility (NSOF) construction contract in the 2nd Qtr of FY 2006 which resulted in GSA billing the in the 2nd Qtr of FY 2006 which resulted in GSA billing the Reimbursable Work Authorizations funded by NOAA, for Reimbursable Work Authorizations funded by NOAA, for costs disbursed. Further, the activities on contracts costs disbursed. Further, the activities on contracts established … Consequently, there were increases in the established … Consequently, there were increases in the disbursements against these contracts during the 2nd Qtr disbursements against these contracts during the 2nd Qtr of FY 2006.of FY 2006.

1818

Helpful Tips in Explaining Helpful Tips in Explaining FluctuationsFluctuations

• Please note that all 3 of the following elements must be Please note that all 3 of the following elements must be addressed when writing each line item flux explanation:addressed when writing each line item flux explanation:– 1) What caused the change1) What caused the change– 2) Where the change occurred2) Where the change occurred– 3) When the change occurred 3) When the change occurred

• A breakdown of the “total amount change” must be A breakdown of the “total amount change” must be explained. For example, if the total amount change is $5 explained. For example, if the total amount change is $5 million, a breakdown should be explained as follows:million, a breakdown should be explained as follows:– An increase of $3 million was due to…An increase of $3 million was due to…– A decrease of $2 million was due to…A decrease of $2 million was due to…– An increase of $2 million is as a result of…An increase of $2 million is as a result of…– An increase of $1.5 million was due to…An increase of $1.5 million was due to…– An increase of $.5 million was due to…An increase of $.5 million was due to…– Total amount change of $5 million Total amount change of $5 million

1919

How Can I Learn More?How Can I Learn More?

• OMB Circular A-136 Financial Reporting Requirements: OMB Circular A-136 Financial Reporting Requirements: http://www.whitehouse.gov/omb/circulars/a136/a136_revisehttp://www.whitehouse.gov/omb/circulars/a136/a136_revised_2006.pdfd_2006.pdf

• DOC FY 2007 Performance and Accountability Report (PAR) DOC FY 2007 Performance and Accountability Report (PAR) http://www.osec.doc.gov/bmi/budget/FY07PAR.htmhttp://www.osec.doc.gov/bmi/budget/FY07PAR.htm

• NOAA System Closing DatesNOAA System Closing Dateshttp://www.corporateservices.noaa.gov/%7Ecbs/glinfo.htmhttp://www.corporateservices.noaa.gov/%7Ecbs/glinfo.htm

• USSGLUSSGLhttp://fms.treas.gov/ussgl/index.htmlhttp://fms.treas.gov/ussgl/index.html

2020

End of PresentationEnd of Presentation

Next – Additional Information Next – Additional Information on U.S. Standard General on U.S. Standard General

Ledger (SGL)Ledger (SGL)

2121

United StatesUnited StatesStandard General Ledger Standard General Ledger

(USSGL)(USSGL)• Federal Financial Management Improvement Act of 1996

(FFMIA) – required to implement & maintain financial management systems that comply with the USSGL at the transaction level.

• Provides a uniform Chart of Accounts & technical guidance to be used in standardizing federal agency accounting– The USSGL Supplement (released annually) is composed of five

major sections:• Chart of Accounts• Account Descriptions• Accounting Transactions• USSGL Attributes• Report Crosswalks

2222

United StatesUnited StatesStandard General Ledger Standard General Ledger

(USSGL)(USSGL)• Includes both Proprietary & Budgetary Accounts

that are self-balancing (total debits = total credits)– TWO sets of books

• Proprietary – traditional accounting classifications (assets, liabilities, revenues & expenses)

• Budgetary – accounts to track resources and execution of federal funds

• NOAA is required to use USSGL’s standard report crosswalks for each financial statement line item

2323

Understanding the USSGLUnderstanding the USSGL10101010 Fund Balance with TreasuryFund Balance with Treasury11xx/12xx 11xx/12xx CashCash13xx13xx ReceivablesReceivables 1410 1410 Advances and PrepaymentsAdvances and Prepayments

15xx15xx Inventory; Seized, Forfeited and Foreclosed Property; Inventory; Seized, Forfeited and Foreclosed Property; Commodities:Commodities:

Stockpile MaterialsStockpile Materials16xx16xx InvestmentsInvestments17xx-18xx17xx-18xx General Property, Plant and Equipment (1720 CWIP)General Property, Plant and Equipment (1720 CWIP)19xx19xx Other AssetsOther Assets21xx21xx Accrued Liabilities – OtherAccrued Liabilities – Other22xx22xx Accrued Liabilities – Payroll and BenefitsAccrued Liabilities – Payroll and Benefits23xx-24xx23xx-24xx Unearned RevenueUnearned Revenue25xx25xx DebtDebt26xx26xx Actuarial LiabilitiesActuarial Liabilities29xx29xx Other LiabilitiesOther Liabilities3xxx3xxx Net PositionNet Position

2424

Understanding the USSGLUnderstanding the USSGL

4xxx4xxx BudgetaryBudgetary44504450 Unapportioned AuthorityUnapportioned Authority46104610 Allotments – Realized ResourcesAllotments – Realized Resources47004700 CommitmentsCommitments

48XX48XX Undelivered Orders, includesUndelivered Orders, includesupward & downward adjustmentsupward & downward adjustmentsof prior year Undelivered Ordersof prior year Undelivered Orders

49XX49XX Delivered Orders, includes Delivered Orders, includes upward & downward adjustmentsupward & downward adjustmentsof prior year Delivered Ordersof prior year Delivered Orders

2525

Understanding the USSGLUnderstanding the USSGLNON-CASH UDOsNON-CASH UDOs

4801 4801 Undelivered Orders - Obligations, UnpaidUndelivered Orders - Obligations, Unpaid 4831 4831 Undelivered Orders - Obligations Transferred, UnpaidUndelivered Orders - Obligations Transferred, Unpaid4871 4871 Downward Adjustments of Prior-Year Unpaid Undelivered Orders - Obligations, Downward Adjustments of Prior-Year Unpaid Undelivered Orders - Obligations, RecoveriesRecoveries4881 4881 Upward Adjustments of Prior-Year Undelivered Orders - Obligations, Unpaid Upward Adjustments of Prior-Year Undelivered Orders - Obligations, Unpaid

CASH UDOsCASH UDOs4802 4802 Undelivered Orders - Obligations, Prepaid/AdvancedUndelivered Orders - Obligations, Prepaid/Advanced 4832 4832 Undelivered Orders - Obligations Transferred, Prepaid/Advanced Undelivered Orders - Obligations Transferred, Prepaid/Advanced 4872 4872 Downward Adjustments of Prior-Year Prepaid/Advanced Undelivered Orders - Downward Adjustments of Prior-Year Prepaid/Advanced Undelivered Orders -

Obligations, Refunds Collected Obligations, Refunds Collected 4882 4882 Upward Adjustments of Prior-Year Undelivered Orders – Obligations, Upward Adjustments of Prior-Year Undelivered Orders – Obligations, Prepaid/AdvancedPrepaid/Advanced

NON-CASH DOsNON-CASH DOs4901 4901 Delivered Orders - Obligations, UnpaidDelivered Orders - Obligations, Unpaid 4931 4931 Delivered Orders - Obligations Transferred, UnpaidDelivered Orders - Obligations Transferred, Unpaid4971 4971 Downward Adjustments of Prior-Year Unpaid Delivered Orders - Obligations, Downward Adjustments of Prior-Year Unpaid Delivered Orders - Obligations, RecoveriesRecoveries4981 4981 Upward Adjustments of Prior-Year Delivered Orders - Obligations, UnpaidUpward Adjustments of Prior-Year Delivered Orders - Obligations, Unpaid

CASH DOsCASH DOs4902 4902 Delivered Orders - Obligations, PaidDelivered Orders - Obligations, Paid 4972 4972 Downward Adjustments of Prior-Year Paid Delivered Orders - Obligations, Downward Adjustments of Prior-Year Paid Delivered Orders - Obligations, refunds Collectedrefunds Collected4982 4982 Upward Adjustments of Prior-Year Delivered Orders - Obligations, PaidUpward Adjustments of Prior-Year Delivered Orders - Obligations, Paid

2626

Understanding the USSGLUnderstanding the USSGL5xxx 5xxx Revenue & Other Revenue & Other Financing Financing SourcesSources

6xxx 6xxx Expenses Expenses

6100 6100 Operating Operating Expenses/Program Expenses/Program Costs Costs

7xxx 7xxx Gains/Losses/Miscellaneous Gains/Losses/Miscellaneous

ItemsItems

8xxx8xxx Memorandum AccountsMemorandum Accounts

2727

Problem Areas Requiring Problem Areas Requiring ClarificationClarification

• The Difference Between Budgetary and Proprietary The Difference Between Budgetary and Proprietary AccountingAccounting

• The Difference Between Obligations and ExpensesThe Difference Between Obligations and Expenses

• Fluctuation Analyses:Fluctuation Analyses:– Fluctuation Analysis for SGL Account 6100 – Program Fluctuation Analysis for SGL Account 6100 – Program

and Operating Expensesand Operating Expenses– Fluctuation Analysis for OutlaysFluctuation Analysis for Outlays– Fluctuation Analysis for ObligationsFluctuation Analysis for Obligations– Fluctuation Analysis for Undelivered OrdersFluctuation Analysis for Undelivered Orders

2828

The Difference Between The Difference Between Budgetary and Proprietary Budgetary and Proprietary

AccountingAccounting• DoC’s financial statements reflect both proprietary & budgetary

accounting transactions

• Under the proprietary accrual method of accounting, revenues are recognized when earned; expenses & property capitalizations are recognized when incurred, without regard to the receipt or payment of cash

• The proprietary accrual basis of accounting provides a matching of costs to the production of goods & services

• Budgetary accounting was designed to recognize the obligation of funds according to legal requirements, which, in many cases, is made prior to the occurrence of an proprietary accrual-based transaction

• Budgetary accounting is essential for compliance with legal constraints & controls over the use of federal funds

2929

The Difference Between The Difference Between Obligations and ExpensesObligations and Expenses

Budgetary Accounting+ Change in Undelivered Orders

(48XX)+ Change in Unpaid Delivered

Orders (Accruals) (49X1)+ Change in Paid Delivered Orders

(Disbursements) (49X2)

= **CY Obligations**

Proprietary Accounting- Change in Capitalized

Property (17XX/18XX)+ Change in Accruals (2XXX)

+ Disbursements (1010)

= **CY Expenses** (6XXX/7XXX)

• NOTE #1 – CY Obligations ties to SF 133, Line 8NOTE #1 – CY Obligations ties to SF 133, Line 8

• NOTE #2 – Not all obligations are expenses. For example:NOTE #2 – Not all obligations are expenses. For example:– Delivered Orders – not all expensed, some capitalized (capitalized property, Delivered Orders – not all expensed, some capitalized (capitalized property,

loans, etc.)loans, etc.)– Undelivered Orders – not included in expenses; are included in CY obligationsUndelivered Orders – not included in expenses; are included in CY obligations

3030

Questions?Questions?Mark P. MillerMark P. Miller301-444-2704301-444-2704

Mark.P.Miller@noaa.govMark.P.Miller@noaa.gov