Office of Management and Budget1 Teresa A. Tancre, CGFM Budget Review and Concepts Division Office of Management and Budget Fall 2010 FACTS II and The Budget MAX A-11 Review Class

Overview  FACTS II  US Standard General Ledger (USSGL)  SF 133 and Program and Financing Schedule (schedule P)  Budgetary Accounting Equations  Relationship of OMB accounts and Treasury Appropriation Fund Symbols (TAFS)  MAX A-11 (schedule P lines edit-checked against FACTS II data)  FACTS II revision window (OMB Circulars A-11 & A-136)  Backdated Treasury documents and budgetary accounting  Key dates for agencies  Additional miscellaneous information Office of Management and Budget2

What is the Purpose of FACTS II?  Federal Agencies' Centralized Trial-Balance System II  is a computer program that allows agencies to submit one set of accounting data.  This data includes mostly budgetary information that is required for the:  Report on Budget Execution and Budgetary Resources (SF 133),  Year-End Closing Statement (FMS 2108), and  much of the initial data that will appear in the prior year column of the Program and Financing Schedule (Schedule P) of the President's Budget. Office of Management and Budget3

What is the purpose of the US Standard General Ledger (USSGL) ?  The United States Standard General Ledger (USSGL) provides a uniform Chart of Accounts and 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 Office of Management and Budget4

5 How does FACTS II relate to the SF 133 and Schedule P?  Agencies report a combination of USSGL accounts and attribute domain values to get the budgetary accounting data crosswalked to the appropriate lines of SF 133 and Schedule P via FACTS II.  For FY 2010 FACTS II reporting,  There are sixteen agency-supplied attributes on the USSGL to SF 133 /Schedule P crosswalk. This includes the Year_of_Budget_Authority attribute.  There are six FACTS II-supplied attributes on the USSGL to SF 133/Schedule P crosswalk. This includes the P&F TAFS Status, SF 133 TAFS_Status, Availability_Type, Expiration_Flag, Fund_Type, and Financing_Account_Indicator attributes.

Budgetary Accounting Transactions USSGL = USSGL Account + FACTS II Attribute(s) Those who impact budgetary information in FACTII and MAX A-11 Users = Partnership and Communication Office of Management and Budget6

7 Treasury Reporting Requirements Account Structure Each Budget account may contain multiple Treasury accounts, while each Treasury account may contain multiple periods of availability Department of Transportation: Federal Aviation Administration OMB Account MAX A-11 reporting by agency budget Operations Annual Treasury Account Treasury Appropriation Fund Symbol (TAFS) Facilities, Engineering, and Development No-year 69-X-1303 Multi-year 69-09/ / / / FACTS II reporting by agency accounting No-year 69-X-1301

Office of Management and Budget8 What Schedule P lines are required to FACTS II actuals in MAX A-11? The following lines will be edit-checked in MAX A-11: Total new obligations Unobligated balance brought forward, October Expired unobligated balance transfer to unexpired account Adjustment to unobligated balance brought forward, October 1(+ or -) Recoveries of prior year unpaid obligations Capital transfer of unobligated balances to general fund (-) Unobligated balances applied to repay debt (-) Unobligated balance of borrowing authority withdrawn (-) Unobligated balance of contract authority withdrawn (-) Adjustment in unobligated balances for change in allocation Other balances withdrawn (-) Discretionary appropriation Discretionary appropriation (special fund) Discretionary appropriation (trust fund) Discretionary appropriations permanently reduced (-)

Office of Management and Budget9 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Discretionary unobligated balance of appropriations permanently reduced (-) Discretionary appropriations temporarily reduced (-) Discretionary appropriations applied to liquidate contract authority (-) Discretionary advance appropriation Mandatory appropriation Mandatory appropriation (special fund) Mandatory appropriation (trust fund) Mandatory appropriation (previously unavailable) Mandatory reappropriation Mandatory appropriations permanently reduced (-) Mandatory unobligated balance of appropriations permanently reduced (-) Mandatory appropriations precluded from obligation (-) Mandatory appropriations to repay debt (-) Mandatory appropriations applied to liquidate contract authority (-) Mandatory advance appropriation

Office of Management and Budget10 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Mandatory borrowing authority Mandatory contract authority Discretionary spending authority from offsetting collections (collected) Discretionary change in uncollected customer payments from Federal sources (+ or -) Discretionary capital transfer of spending authority from offsetting collections to general fund (-) Mandatory spending authority from offsetting collections (collected) Mandatory change in uncollected customer payments from Federal sources (+ or -) Mandatory capital transfer of spending authority from offsetting collections to general fund (-) Mandatory spending authority from offsetting collections to repay debt (-) Unobligated balance expiring (-) Unexpired unobligated balance carried forward, end of year

Office of Management and Budget11 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Other balances withdrawn (special and trust funds) Unobligated balance expiring (special and trust funds) Expired unobligated balance carried forward, start of year (special and trust funds) Expired unobligated balance carried forward, end of year (special and trust funds) Unobligated balance canceling (special and trust funds) Unpaid obligations brought forward, October 1 (gross) Adjustments to unpaid obligations brought forward, October 1(+ or -) Uncollected customer payments from Federal sources, brought forward, October 1(-) Adjustments to uncollected customer payments from Federal sources, brought forward, October 1 (+ or -) Obligations incurred, expired account

Office of Management and Budget12 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Other balances withdrawn (special and trust funds) Unobligated balance expiring (special and trust funds) Expired unobligated balance carried forward, start of year (special and trust funds) Expired unobligated balance carried forward, end of year (special and trust funds) Unobligated balance canceling (special and trust funds) Unpaid obligations brought forward, October 1 (gross) Adjustments to unpaid obligations brought forward, October 1(+ or -) Uncollected customer payments from Federal sources, brought forward, October 1(-) Adjustments to uncollected customer payments from Federal sources, brought forward, October 1 (+ or -) Obligations incurred, expired account

Office of Management and Budget13 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Change in uncollected customer payments from Federal sources, expired accounts (+ or -) Recoveries of prior year unpaid obligations, expired account (-) Unpaid obligations, end of year (gross) Uncollected customer payments from Federal sources, end of year (-) Outlays from new discretionary authority Outlays from discretionary balances Discretionary offsetting collections from Federal sources (-) Discretionary offsetting collections from interest on Federal securities (-) Discretionary offsetting collections from interest on uninvested funds (-) Discretionary offsetting collections from non-Federal sources (-) Discretionary offsetting collections from offsetting governmental collections (from non-Federal sources) (-) Discretionary offsetting collections credited to expired accounts

Office of Management and Budget14 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Outlays from new mandatory authority Outlays from mandatory balances Mandatory offsetting collections from Federal sources (-) Mandatory offsetting collections from interest on Federal securities (-) Mandatory offsetting collections from interest on uninvested funds (-) Mandatory offsetting collections from non-Federal sources (-) Mandatory offsetting collections from offsetting governmental collections (from non-Federal sources) (-) Mandatory offsetting collections credited to expired accounts Outlays, net (discretionary and mandatory) Total investments, start of year: Federal securities: Par value Total investments, end of year: Federal securities: Par value

Office of Management and Budget15 What Schedule P lines are required to FACTS II actuals in MAX A-11? (cont.) The following lines will be edit-checked in MAX A-11: Total investments, start of year: non-Federal securities: Market value Total investments, end of year: non-Federal securities: Market value Unavailable balance, start of year: Offsetting collections Unavailable balance, end of year: Offsetting collections

Office of Management and Budget16 MAX A-11, Financial Audit, and FACTS II Revision Window If an error is found… And if…Then… Before MAX A-11 agency lock-out Financial audit was complete Consult with your accounting office. Correct the amount in MAX A–11. Ensure that your accounting office revises the amount in FACTS II. Your accounting office must revise both material and non-material amounts in FACTS II. Work with your accounting office to determine the source of the problem and internally develop a plan to make sure the problem does not recur in the future. Your accounting office will also need to talk with the financial statement auditors to determine whether your financial statements for the next reporting cycle should be restated or a footnote to the financial statements is required for the changes made in FACTS II. For limited situations where there appears to be insufficient budgetary accounting to support the budget presentation, submit a PY FACTS II-related suppression request to OMB will review the suppression requests on a case-by-case basis. Agency requests should include affected Treasury Appropriation Fund Symbol, MAX A-11 edit error, the amount of the adjustment in actual dollars, agency contact information, and an action plan that explores the various options to improve the budgetary accounting.

Office of Management and Budget17 MAX A-11, Financial Audit, and FACTS II Revision Window (cont.) If an error is found… And if… Then… After FACTS II and MAX A-11 agency lock-out Financial audit was complete Consult with OMB representative. Submit a PY FACTS II-related suppression request to for any situation where appropriate revisions were not made in the FY 2010 FACTS II revision window. Refer to section (g) below. Submit a CY FACTS II-related suppression request to for any situation where the certified end of year unobligated and/or obligated balance(s) differ from the balances shown in MAX A-11. Refer to section (g) below. OMB will review the suppression requests on a case-by-case basis.

Office of Management and Budget18 MAX A-11, Financial Audit, and FACTS II Revision Window (cont.) NOTE: The primary purpose of the revision period is to make FACTS II consistent with the amounts in the prior-year column of the Budget. NOTE: Due to timing differences, subsequent changes whether material or non-material may be made to the budgetary information included in the Budget after the SBR has been published and audited. All subsequent changes whether material or non-material must be made in FACTS II during the revision period. See OMB Circular No. A-11, section (c) and OMB Circular No. A-136 section II.4.6.1

Office of Management and Budget19 Backdated Treasury Documents and Budgetary Reporting If an error is found… And if… Then… Before FACTS II and MAX A-11 agency lock-out Financial audit was ongoing or complete Consult with your accounting office. Submit a backdated Treasury document (Statement of Transactions, nonexpenditure transfer, or warrant) request to if the action impacts line P 4190 “Outlays (net)” or receipt data. Contact Budget Reports Division. If your request is accepted, line P 4190 or the receipt data will be centrally changed.Q If the action impacts any line P other than line P 4190, ensure that your accounting office revises the amount in FACTS II. Refer to section (c). Your accounting office must revise both material and non-material amounts in FACTS II. Work with your accounting office to determine the source of the problem and internally develop a plan to make sure the problem does not recur in the future. Your accounting office will also need to talk with the financial statement auditors to determine whether your financial statements for the next reporting cycle should be restated or a footnote to the financial statements is required for the changes made in FACTS II.

Office of Management and Budget20 Backdated Treasury Documents and Budgetary Reporting (con’t) If an error is found… And if… Then… After FACTS II and MAX A-11 agency lock-out Financial audit was complete Consult with OMB representative. Submit a backdated Treasury document (Statement of Transactions, nonexpenditure transfer, and/or warrant) request to If the action impacts line P 4190 “Outlays (net)” or receipt data, OMB will update MAX if the request is approved. If the action impacts any line P other than line P 4190, submit a PY FACTS II-related suppression request to for any situation where appropriate revisions were not made in the FY 2010 FACTS II revision window. Refer to section (g) below. If the action impacts any line P other than line P 4190, submit a CY FACTS II-related suppression request to for any situation where the certified end of year unobligated and/or obligated balance(s) differ from the balances shown in MAX A-11. Refer to section (g) below. OMB will review the suppression requests on a case-by-case basis.

Office of Management and Budget21 Activity in MAX A-11 After FACTS II Revision Window Has Closed  If the changes affect ending balances (e.g., changes to amounts of budget authority, obligations incurred, gross outlays, beginning balances), you will need to make changes in FACTS II by using the FACTS II Prior_Year_Adjustment attribute in the next fiscal year FACTS II reporting window. You should consult with the person who entered the data into FACTS II. If you both agree that the amount should have been revised in FACTS II, then the person who entered the information in FACTS II should adjust the appropriate beginning balances (whether material or non-material) using the FACTS II Prior_Year_Adjustment attribute in the next fiscal year FACTS II reporting window.

Office of Management and Budget22 Key Dates for Agencies FY 2012 BUDGET FACTS II closes for 4th quarter, FY 2010………… October 15 MAX database opens; FACTS II revision window opens November 1 Agency PY lock and FACTS II revision window closes………….…......November 12 Receipt PY revision window closes………………………………………...November 12 Economic assumptions released…………………………..…..…….………November 18 Agency baseline lock (discretionary and mandatory)…………….………....December 13 Refer to the Summary of Changes in Section 25 of OMB Circular No. A-11

Office of Management and Budget23 How can your agency prepare to meet the requirement to tie actuals to FACTS II? Review OMB Circular No. A-11 Section 82. Review differences from last year, if any, to prevent them from repeating. Go to Plan with your agency’s FACTS II/MAX A-11 users. Use the quarterly reports on OMB’s web-site to reconcile outstanding issues prior to certifying 4 th quarter FACTS II data. In MAX A-11, finish your PY column no later than November 12 th, so that you can concentrate on CY and BY later. The SBR audit plan should take this into account. Plan with your agency’s auditors. “Should” is not the same as “must”. SF 133, SBR, Schedule P “should” tie and differences should be disclosed in SBR footnote 33. See guidance.

Office of Management and Budget24 Resources  SF 133 Reports on Budget Execution and Budgetary Resources (with totals for budget agency and budget bureau)  Quarterly FY 2010 TAFS and amounts and how they would load into Schedule P  Differences between FACTS II and MAX A-11 FY 2009 actuals (year-end)  TAFS and amounts loaded into MAX from FACTS II FY 2010 actuals (will be based on 4 th qtr data)  OMB Circular No. A-11 (2010) – July 2010

Office of Management and Budget25 Resources (cont.)  USSGL budgetary guidance and contacts for each agency  FACTS II and USSGL info, including deadlines  FACTS II bulk transfer information (bookmark and subscribe for electronic notification of changes)  “Financial Audit Guide: Auditing the Statement of Budgetary Resources” (GAO G)

Office of Management and Budget26 Questions?