GTAS Governmentwide Treasury Account Symbol Adjusted Trial Balance

GTAS Governmentwide Treasury Account Symbol Adjusted Trial Balance System 1

Presentation highlights v v v v Change is coming New features Year-end transactions CGAC requirements Bulk file format Edits How to get ready Frequently Asked Questions 2

Change is coming! 3

Current Business Process Agency’s Financial Statements Federal Agency Standard General Ledger Central Accounting System Out lays FBw T FMS 2108 FACTS II SF 133 IFCS Program and Financing Schedule Combined Statement OMB 4 FACTS I IRAS GFRS

Issues with the current process l Lack of common structures l Inconsistent reporting 5

Issues with the current process – cont’d l Redundant reporting and time-consuming reconciliations Current business process: FACTS II users: IRAS users: FACTS I users: IFCS users: l submit 4 times a year submit once a year confirms data 4 times a year with the fiduciary agencies Timeliness 6

Three Types of Inconsistencies 1. Inconsistent data in Agency Statements vs. the Financial Report of the U. S. Government. (Solution: GFRS and GTAS) v 2. The “plug”: $30 billion Inconsistent data in agency financial statements vs. agency monthly reporting to Treasury and Warrant and NET transactions (Solution: GTAS) v v Non-expenditure transfers: $25 billion Buy-sell: $31 billion 3. Agency financial statement data not consistent with USSGL guidance (Solution: GTAS) Shared responsibility, in case you think it’s just an Fiscal Service 7 problem l

No Edits in IRAS Reports IRAS compares agency reporting and notifies both parties of mismatches. Agencies review their own data and claim they are correct. The out of balance condition remains. Minimal progress is made. 8

What IS FIRST? GFRS USSGL Database USSGL based Reporting: GTAS 9

Information Sharing—FIRST Steps l GWA Account Statement l UCAD l FACTS II Edit report 10

Business Process Changes with GTAS l Out with: FACTS II l FACTS I IFCS IRAS In with: v v v One quarterly trial balance for each TAS (budgetary and proprietary accounts combined, beginning and ending balances) = reduction in agency reporting Strong edits that check against central accounting data, USSGL rules, budgetary vs. proprietary rules Instant feedback 11

New Process Federal Agency’s Financial Statements Standard General Ledger Central Accounting System Edits GTAS FMS 2108 / Combined Statement SF 133 Treasury Annual Reporting GFRS OMB Program and Financing Schedule President’s Budget 12

What is new and different about GTAS? 13

New features of GTAS l 24 x 7 availability to all users for pre-work on trial balances l No online data entry – bulk files only l More than one user can be assigned to a TAS l Combined trial balances – budgetary and proprietary data l Always a full trial balance – no more supplementals! l More edits against the central accounting data l FACTS I fund family reporting goes away – all reporting by TAS now l Business Lines, BETC, and UCAD for new and improved editing 14

New Concepts: Business Line and BETC l Business Line- Indicates the type of activity being reported (e. g. funds held outside of Treasury, Borrowings from the Public, Investments in US Treasury Securities, and Investments in Agency Securities). It represents a BETC (or combination of BETC). l BETC (Business Event Type Code) refers to an 8 -character code that indicates the type of activity being reported (e. g. receipt, disbursement, etc. ). v Determines the transaction effect on the Treasury Account Symbol’s Fund Balance with Treasury. v BETC replaces transaction codes and standard sub-classes but at a more intuitive level of detail. 15

Examples of Business Line and BETC 16

Year-End Transactions 17

Two Types of Year-End Transactions • Cancellation of undisbursed balances • Balance adjustments related to indefinite appropriation authority 18

Current Cancellation Process Example: • • • Date – September 30, 2009 Account – 20 04 1801 Account Statement Balance = $1, 000 Process: FACTS II Submission SGL 1010 SGL 4350 2108 Column 4 • • • - $0 $1, 000 Note: The 2108 data is transmitted to FMS’s central accounting system and generates the cancellation transaction. Results: • Account Statement Balance = $0 19

Future Cancellation Process Example: • • • Date – September 30, 2009 Account – 20 04 1801 Account Statement Balance = $1, 000 Process: GWA/ATM Submission Application will display a list of accounts and balances to be cancelled User will select accounts User will certify selected accounts • • • - Note: GTAS will still require SGL information Results: • Account Statement Balance = $0 20

Cancellation Transaction GWA/ATM Screenshot Continuous Balance Updates Select one, two or all accounts 21

Current Indefinite Adjustment Process Example: • • • Date – September 30, 2009 Account – 20 X 1801 Account Statement Balance = $1, 000 - Obligated Balance = $100, Unobligated Balance = $900 • Process: FACTS II Submission SGL 1010 SGL credit 4391 2108 Column 4 • • • - $100 $900 The 2108 data is transmitted to FMS’s central accounting system and generates the indefinite adjustment transaction. Results: • Account Statement Balance = $100 22

Future Indefinite Adjustment Process Example: • • • Date – September 30, 2009 Account – 20 X 1801 Account Statement Balance = $1, 000 - Obligated Balance = $100, Unobligated Balance = $900 Process: GWA/ATM Submission User will select an account User will adjust the balance to reflect obligated balance • • - Note: GTAS will still require SGL information Results: • Account Statement Balance = $100 23

Indefinite Adjustment Transaction GWA/ATM Screenshot Derived by A group assigned 24

GWA Enrollment Procedures l l Supervisor must enroll first ( manual process ) All other users can enroll or modify their access via GWA Treasury Support Center: 1 -877 -440 -9476 25

Data Standardization and CGAC 26

FMS Transition to CGAC l CGAC - Common Governmentwide Accounting Classification Structure v v Standardization of financial data commonly used in federal accounting. http: //www. fsio. gov l GTAS will be CGAC only. l Other FMS applications will accept data in old and new formats for an undetermined amount of time. 27

CGAC: Component TAS Format Field Name Description Size Example Allocation The agency identifier of the agency receiving funds through an allocation transfer. Transfer Agency If Department Transfer does not apply, it shall be spaces. Current 2 digit Identifier department codes will be right justified and zero filled. 3 011 Agency Identifier of the Account Owner. Most current 2 digit department codes will be right justified and zero filled, although there are some exceptions. 3 014 Beginning Period In annual and multiyear accounts, identifies the first year of availability under law of Availability that an appropriation account may incur new obligations. If single/annual year account, shall be same as Ending Period of Avail. No X or F accounts. 4 2001 Ending Period of In annual and multi-year funds, identifies the last year of funds availability under Availability law that an appropriation account may incur new obligations. 4 2001 2002 Availability Indicator Identifies no-year “X” accounts, suspense/clearing “F” accounts, and Treasury’s Central Summary General Ledger “A” account. 1 X Main Account Represents the type of Fund and the purpose of the account within that Fund. 4 0300 Sub-Account Identifies an available receipt or other Treasury-defined subdivision of the main account 3 001 28

CGAC: Changes to USSGL Account Numbers and Attributes l USSGL Account Number: 6 digits v 2 additional digits will be zero filled v Future IRC Meeting to discuss expansion Source of Values Optional or Mandatory Business Name Definition USSGL Account Code Identifies any one of the standard general ledger account codes established by Treasury to support the consistent recording of financial events as well as the preparation of standard external reports required by the OMB and Treasury Mandatory USSGL Account Extension Code An agency-defined extension to the USSGL account for agencyspecific reporting needs (internal agency use only). Agency Optional l USSGL Attributes: Standardization of Attribute Names and Domain Values: Example: XXXX. XX XX Mandatory- GTAS Required Account Extension Code: Optional - not required by GTAS 29

The new bulk file format 30

GTAS Bulk File Format Differences between FACTS I and II current bulk files and new GTAS format: v v v Includes budgetary and proprietary attributes Public Law field will be removed No SMAF sequence number No record indicator No footnote sequence or text No OMB Function Code 31

GTAS Bulk File Format -cont’d Guidelines for submitting bulk files are as follows: v v v Bulk file only – no online data entry All text fields are left justified with trailing spaces unless otherwise specified. All numeric fields are right justified with leading zeroes. All amounts are right justified with leading zeroes and the last two positions are assumed cents. The Bulk Transfer File can contain multiple TAS sorted by TAS and business line. All field names are CGAC compliant. www. fiscal. treasury. gov /fsservices/gov/acctg/gtas_home. htm 32

Examples of a TAS Treasury No-Year TAS 2009 Fiscal Year 12 011 Period Allocation Transfer 020 ____ Agency ID Beg. Pd of Avail ____ X 1022 End. Pd of Availability Type Main Account 2009 _ 1022 000 Sub Account Annual Appropriation TAS 2009 12 011 Fiscal Year Period Allocation Transfer 020 Agency ID 2009 Beg. Pd of Avail End. Pd of Avail 33 Availability Type Main Account 000 Sub Account

GTAS Bulk File Format -cont’d Attributes of the USSGL Account Field Name PERIOD Domain Values Designates the period of the data being submitted EXCHANGE OR NONEXCHANGE Indicates whether the revenue is exchange revenue or nonexchange revenue. X = Exchange T = Nonexchange CUSTODIAL OR NONCUSTODIAL Indicates whether the balance being reported is custodial or noncustodial and whether it was reported by the agency in a Statement of Custodial Activity or a separate footnote of custodial activity. S = Custodial A = Non-custodial ENTITY OR NONENTITY Indicates whether the asset is Entity or Non-Entity - assets an entity has authority to use in its operations; Non-Entity - assets held by an entity but are not available to the entity. E = Entity O = Non Entity COVERED OR NOT COVERED Used for generation of the agency Balance Sheet. The attribute is part of the crosswalk to allocate the correct USSGL amounts to the associated lines on the Balance Sheet. C = Covered U = Not Covered 34

New Attributes of TAS Still under discussion… • Earmarked l Fiduciary l Non-Dedicated v v l Non-earmarked Non-fiduciary Trading Partner Bureau Code 35

New Attributes of the USSGL Account ? ? Still under discussion… • Program Assignment v v Indicates if a cost is assigned to a program or not Used for the Statement of Net Cost Ø Ø l RP = assigned to program NP = not assigned to program Production costs or Non-production costs v How are agencies breaking out these costs? 36

Edits, edits, and more edits 37

Types of Edits l Fatal v l Non-Fatal v l FACTS I & FACTS II SGL Tie Points Other Non-Fatal 38

Fatal edits in GTAS l Fatal Edits- Data will not be accepted if edits fail l All existing edits in FACTS II v l USSGL 1010 balance must equal the FBWT amount from Central Accounting System (Edit 7) All existing edits in FACTS I v Sum of 1000 series to 7000 series SGL accounts (excluding 4000 series) must equal zero 39

Non-Fatal Edits in GTAS l l Non-Fatal Edits- Data will still be accepted if edits fail Enforcing USSGL Guidance: v valid USSGL and attribute usage Budgetary Cash SGLs = Proprietary Cash SGLs SGL Tie-Points by fund type ü deposit fund, ü special fund, ü trust fund, ü General fund, ü Revolving fund, 40

Other Non-Fatal Edits in GTAS l Receivables –no more reporting in net amount v l If a TAS has 1369 F/N, then 1360 F/N must be reported in the TAS PP&E v If a TAS has amounts reported as accumulated depreciation/amortization for a type of PP&E, then the TAS must include amounts of gross cost for the type of PP&E: Example: Equipment If a TAS has 6710 N and/or 1759 N, then the TAS must have 1750 N And many more …. 41

Use of Central Accounting Data - UCAD l Concept Data in STAR/GWA = FACTS II = FACTS I For example: Warrants, Non-expenditure transfers, Expenditures transfers, etc Purpose l To improve interagency eliminations by reconciling transactions and balances directly to Treasury’s Central Accounting data (authoritative data) 42

UCAD – cont’d Benefits l To address the reporting inconsistencies v In agency financial statements vs. agency monthly reporting to the Treasury v Agency financial statement data not consistent with USSGL v One-to-one relationship from the Central Accounting System to year-end financial reporting l UCAD won’t resolve all intragovernmental differences, but it acts as a tool to reduce the differences that are reconcilable against the Central Accounting Data, the authoritative data. 43

UCAD –cont’d STAR/GWA Monthly Transactions (SF 224, Warrants, Transfers) Compare Quarterly Submissions GTAS 44

Error Message l Will be able to view a list every edit and see if you passed or not l Will be able to click on any edit whether you passed or failed and see what SGLs are involved and theory behind the Edit l Will be able to print out a full Edit Check Report 45

Edit Report 46

Transitional Process before GTAS l l l Monthly UCAD reports for the Appropriation Transfers and Non-expenditure transfers categories are available to the agencies via FACTS I/GFRS website Quarterly IRAS vs UCAD reports for the Appropriation Transfers and Non-expenditure transfers are available to the agencies Agencies are required to submit full ATBs by the 3 rd quarter, 2009, instead of just the “F” transactions (TFM, Section 4706. 30 b) Verifying agencies will be able to generate the UCAD reports from the Fiscal Service website on the 8 th work day of each month. In addition to the Material Differences Report, there will be a Part II that will consist of differences in UCAD vs. IRAS, TP “ 00” and “ 99” (TFM, Sections 4705. 75, 4706. 30 d, and 4706. 30 e) 47

UCAD reports – Transparency? l Monthly UCAD reports and IRAS vs UCAD reports for the Appropriation Transfers and Non-expenditure transfers 48

Summary UCAD Report 49

UCAD vs IRAS report 50

How to get ready! 51

Getting Ready for GTAS l Attend training: v v l l October 15 -16, 2009 March 16 -17 & August 17 -18, 2010 Review TFM Bulletin No. 2009 -03 Visit the website http: //www. fiscal. treasury. gov/fsservices/gov/acctg/gtas_home. htm v v l l l New GTAS edits and validations Visit frequently for updates Use only the bulk file upload option in FACTS I and II Prepare for all CGAC changes Submit test files to Fiscal Service Be ready to start testing in June, 2012 Go live in January, 2013! 52

Frequently Asked Questions 53

FAQs 1) Will the due dates be the same for FACTS I & II when GTAS is implemented? Ø Yes. There will be one set of due dates for both the budgetary and proprietary reporting. 2) Ø Will beginning balances be collected every quarter? No. Beginning balances will be collected one time because beginning balances should agree with the closing balances of the previous year. This is an edit in FACTS II and the same edit will be in GTAS. If beginning balances have to agree with the closing balances of the previous year, there’s no need to submit beginning balances every quarter. 3) Will the data in GTAS be populated in line items in GFRS? Ø Not initially. We will consider the option for future enhancement if audit coverage is extended to the SGL level. 4) Will independent agencies be reconciling intragovernmental differences when GTAS is implemented? Ø FMS will discuss the possible modifications to the process. 54

FAQs – cont’d 5) How will UCAD assist intragovernmental differences that relate to accrual basis? Ø UCAD will not resolve all intragovernmental differences. UCAD can only resolve the intragovernmental differences that relate to authoritative data such as transfers, fund balance with Treasury, and many others. The management of each agency should enforce the correct reporting methods according to the FASAB and FASB standards for accrual accounting. In addition, agencies must be compliant with USSGL standards. 6) Is Agency Account Extension Code required in GTAS? Ø No. The agency account extension code is an optional field and it is agency specific. 55

FAQs – cont’d 7) How will GTAS resolve Intragovernmental differences with buy/sell transactions, which are currently processed via IPAC? Ø FMS is working on an IPAC front-end that will allow agencies to share information. FMS has taken the lead, at the request of FSIO, to standardize an Inter-Agency agreement and will have a draft ready for Agency comments in September. However, FMS believes that its first priority should be USSGL compliance at all agencies. 8) Are there BETCs for Non-Federal Investments? Ø Yes. There’s a BETC for every type of transaction. 9) Since the Year-end Application in ATM will take care of the 2108 process in the future, will the agencies be required to submit trial balances for the related SGL accounts? Ø Yes. The agencies will still need to submit trial balances in GTAS for validation and edit purposes. 56

Additional Questions? Business questions: • • Rita Cronley Melinda Pope 202 -874 -9902 202 -874 -3017 Technical questions: • Beth Angerman 202 -439 -4608 http: //www. fiscal. treasury. gov/fsservices/gov/acctg/gtas_home. htm 57