Federal Financial Management

1. Federal Financial Management

2. 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 acct 445000 Unapportioned Authority Credit $1,000 GL acct 451000 Apportionments No Proprietary entry Note – apportionments can be by fiscal quarter (A) or for activity or another reason (Category B) Apportionments

3. Allocations at 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: Treasury at http://tfm.fiscal.treasury.gov/v1/supplements/ussgl/ussgl_part_2.html#Part 3 -note Treasury site source of other entries in this slide deck Allocations / Allotments

4. Entry for a formal agreement to buy goods/ services from a specific vendor at a specific cost 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) Obligations

5. 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 * Note – this entry does not show A/P items or disbursements in transit entries Obligations – With Advances

6. 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

7. 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”

8. 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

9. 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

10. Office of Management and Budget (OMB) created guidelines that encourage agencies to provide detailed analysis for planned spending: “draw on existing credible evidence in formulating their budget proposals and performance plans”” “propose new strategies to develop additional evidence relevant to addressing important policy challenges. Agency requests are more likely to be fully funded if they show a widespread commitment to evidence and innovation.” Memo at http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-17.pdf Very helpful Association of Government Accounting presentation at: http://www.youtube.com/watch?v=7RmApSe7qdY&feature=youtu.be Budget - Additional Information

11. Federal Credit Reform • SFFAS 18: Technical/Default Reestimate—This reestimate arises when there is a change in projected cash flows from outstanding loans or loan guarantees (e.g., as a result of deviations in assumed delinquencies, projected collections, etc.). This reestimate should be computed (as needed) each year as of the financial statement date - note focus on the fair value • FASAB GAAP now Requires using Net Present Value – similar to GAAP used in the for-profit sector 11

12. 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 Stakeholders

13. Unions have an important role in the federal government Approximately a quarter of federal employees are union members – over 1 million employees 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 (35.3 percent) more than five times higher than that of private-sector workers (6.7 percent). Source: http://www.bls.gov/news.release/union2.nr0.htm Union Information

14. 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) Union Information

15. Required readings

16. Complete Discussion for Week 3 – due on January 30, 2017 at midnight Quiz 1 will be due on January 30, 2017 – see more information on the next slides Complete Discussion for Week 4 – due on February 6, 2017 Budget assignment – due on February 6, 2017 – see slides for more information Upcoming Assignment Information

17. Closed book, closed notes (including slides), closed internet research Long answers – no multiple choice / True and False Obtain and submit the exam in LEO Finish in less than 2 hours after viewing 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 Quiz Information

18. Budget Proposal

19. Budget Proposal

20. 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)