Two Year Appropriation Change (Effective 10/1/2005, FY 2006) Operation and Administration Funding changed by Congress from No-Year to two year funding, 2006/2007 Funds impacted: 01, 08 and 16, only funding with BFY 2006 effected-all prior year, BFY 2005 and prior activity to remain accounted under no-year funding Collections (funds 21, 22, and 23) will continue to be recorded in deposit fund, 13X6540.012 Fee Authority Spending (funds 15, 20, 21, 32, 33, 34) will continue to be charged to 13X1250 No Year Funding – only prior year recovery amt can be funded through No-Year

Two Year Appropriation Changes T&A, purchase card, lockbox and credit card interfaces use the same short codes. Short code, i.e., 601/350002/1102 where 601 = year designator will remain the same and will be charged to 13 6/7 1250. In addition to the short code, all documents, e.g., purchase orders, travel orders, grants, etc., must contain the appropriate Treasury Account Symbol, e.g., 13X1250 for funds of the BFY 2005 and earlier and 13 6/71250 for the FY 2006 appropriation starting January 1, 2006 (no corrective action needed for documents processed between October 1 – December 31, 2005

Two Year Appropriation Changes (Coding Examples) 1) New Purchase/Travel order in FY 2006 against O&A funding: 13 6/7 1250 601/350001/1100 2) Decrease in Purchase/Travel order in FY 2006 against O&A funding with a origination of BFY 2005 or less: 13X1250 501/350001/1100  Creates additional recoveries for 13X1250 3) Increase in Purchase/Travel order in FY 2006 against O&A funding with a origination of BFY 2005 or less: 13X1250 601/350001/1100  <for expenditures exceeding obligations and for corrections of non-posted or misposted> 4) New Purchase/Travel order in FY 2006 against Fee Spending 13X1250 620/350001/1100 5) Decrease in Purchase/Travel order in FY 2006 against Deposit Spending with a origination of BFY 2005 (or less) 13X1250 520/350001/1100  Reduces budget authority – no PY Recovery

Two Year Appropriation Changes(Coding) 6) Coding for Prior Year Recoveries 13X1250 601/350001/1100  (as a general policy, recoveries should be made available only for domestic activities, preferably of large dollar amounts to reduce workload; funding must be provided through OFM prior to charging against this structure. 7) Coding for reimbursable funds (always use two year fund for new agreements) 13 6/71250 608/840401/1100 (Accounting will manage A-11 compliance to match customer and provider funding availability) 8) Coding for Trade Event Collections (No change) 13X6540.012 623/1GKY02/1202 Note: Financial Coding Data Base (E-Menu) is setup to provide 2006/2007 appropriation code for overseas transactions

Conversion Objective: To have all applicable no-year funds converted and reviewed by February 28, 2006 For 1st Quarter FY 2006, spending, funding and program reports was recorded against no-year accounts Effective January 1st, 2006, spending and funding starts to be recorded against two year funding with all 1st quarter activity to be moved to two-year funding by Denver Finance/State Department. No recoding of documents or advice of corrections need to be submitted for financial transactions made during Oct 1 – Dec 31st NFC Payroll PP25 – start of recording against two year funding – no change required in T&A reporting, NFC changes internally to start charging 13 6/7 1250 NFC Payroll PP 20 – 24 converted in January from no-year to two year funding At the conclusion of conversion, BFY 2006 and no-year funding balances will be zero (assuming no PY recovery amts have been funded) on reports

Conversion(Detail Changes) Bank Card charges for 1st quarter FY 2006 were moved from no-year to two year during January 2006 (Tran code BC and CJ) Obligations and payables were moved from no-year to two year during January 2006 (Tran code MO, TO, RC) All other expenditures will be moved via SV documents in February, with document number = original document number and description including “conversion to 6/7”

Conversion (State Department) New Allotments with two year appropriation, 13 6/7 1250 established for all O&A (01), reimbursable (08) and representation funds (16) established with the State Department State Department – started using the new Appropriation/allotment scheme starting January 5, 2006 For Cable issuances made for October 1 – December 31st, no corrective cable action needed FSN pay records converted to new appropriation/allotment effective pp 26 CAPPS pay records converted to new appropriation/allotment effective pp 25 State Dept, post by post converting to two year appropriation, will feed to ITA in interface and subsequently show in program reports Washington held authority (996) will be converted by ITA Accounting Operations in Denver

Reports (Program) Effective with all reports after January 1st, 2006, two year funding will be represented by BFY 2006/2007 with funds = 01CS6, 01EX6, 01MA6, 01IA6, 01TD6, 086 and 166 No-year funds will continue to be represented by BFY 2006, funds = 01CS, 01EX, 01MA, 01IA, 01TD, 08 and 16, these balances should be zero after the conversion assuming no PY recovery funding has been made available Until all no-year funding is converted (February 28, 2006) there will be a mixture of no-year funding and two year funding on several reports that will need to be consolidated to determine total spending

ITA503 Financial Summary Report as of 1/27/2006 2006 ACTIVITY AMOUNT WILL EQUAL ZERO WHEN CONVERSION IS COMPLETE FOR FUND 01MA ***IF PY RECOVERIES ARE FUNDED FOR NO-YEAR ACCOUNT DURING FY 2006, THIS COLUMN WILL REPRESENT THAT ACTIVITY***

ITA503 Financial Summary Report as of 1/27/2006 TWO YEAR FUNDING 2006/2007, 2006 ACTIVITY, FUND = 01MA6 WHEN FULLY CONVERTED ALL TWO YEAR FUNDING WILL RESIDE HERE; IN THE INTERIM YOU NEED TO ADD FUNDS = 01MA6 AND 01MA

ITA503 Financial Summary Report as of 1/27/2006 Example two 2006 ACTIVITY AMOUNT WILL EQUAL ZERO WHEN CONVERSION IS COMPLETE FOR FUND 01CS ***IF PY RECOVERIES ARE FUNDED FOR NO-YEAR ACCOUNT DURING FY 2006, THIS COLUMN WILL REPRESENT THAT ACTIVITY***

ITA503 Financial Summary Report as of 1/27/2006 Example two TWO YEAR FUNDING 2006/2007, 2006 ACTIVITY, FUND = 01CS6 WHEN FULLY CONVERTED ALL TWO YEAR FUNDING WILL RESIDE HERE; IN THE INTERIM YOU NEED TO ADD FUNDS = 01CS6 AND 01CS

ITA500 Financial Summary Report as of 1/27/2006 WHEN CONVERSION IS COMPLETE THIS AMOUNT WILL EQUAL ZERO; CURRENT MONTH ACTIVITY IS NOT RELIABLE DURING CONVERSION *** IF NO YEAR PY RECOVERY FUNDING IS ISSUED IN FY 2006, THIS IS WHERE ACTIVITY WILL BE RECORDED ***

ITA500 Financial Summary Report as of 1/27/2006 LIKE THE ITA503 ALL TWO YEAR 2006/2007 FUNDING WILL RESIDE HERE WHEN CONVERSION IS COMPLETE; FUND = 01MA6

ITA500 Financial Summary Report as of 12/31/2005 (SABIT) AID FUNDING REPORTS NOT IMPACTED BY CONVERSION

ITA102 Financial Detail Report EXAMPLE OF RECORDS BEING CONVERTED TO TWO YEAR FUNDING; PAYROLL AMOUNTS REVERSED OUT ON DOC NUMBER = PR0526J** THE AMOUNTS AT COST CATEGORY LEVEL WILL BE ZERO WHEN CONVERSION COMPLETE NOTE: SOME OF DETAIL RECORDS EXCLUDED DUE TO VOLUME

ITA102 Financial Detail Report EXAMPLES OF BANK CARD CHARGES BEING MOVED AT THE DETAIL LEVEL BEING ZEROED OUT AND MOVED TO TWO YEAR FUND DESCRIPTION FOR PV, MO, TO WILL INCLUDE “CONV TO 2006/2007”

ITA102 Financial Detail Report EXAMPLE OF PAYROLL CHARGES MOVED BETWEEN NO YEAR FUNDS ANDTWO YEAR FUNDS

FUND = 01CS6 (TWO YEAR FUND) ITA421 NFC Payroll Report FUND = 01CS6 (TWO YEAR FUND)

ITA143 ALL OUTSTANDING OBLIGATIONS HAVE BEEN CONVERTED WITH THE EXCEPTION OF THE STATE DEPT

NOTE: TRANSACTION ID MATCHES STATE DEPT OBLIGATION NUMBER ITA143 STATE DEPT OBLIGATIONS WILL BE A MIXTURE OF NO YEAR AND TWO YEAR FUNDS UNTIL POSTS HAVE CONVERTED NOTE: TRANSACTION ID MATCHES STATE DEPT OBLIGATION NUMBER