DOC

This scenario portrays transactions in a revolving fund

By Gilbert Carter,2014-08-12 08:39
12 views 0
This scenario portrays transactions in a revolving fund ...

    Revolving Fund Scenario

    This scenario portrays transactions in a revolving fund. Transactions highlight the following points:

    ; Start-up capital appropriated to a revolving fund from the general fund of the Treasury.

    ; Budget authority provided through offsetting collections.

    ; Cash shortfalls when budget authority remains unobligated.

    ; Appropriation transfers from an appropriated agency general fund.

    ; Availability of funds as applied to reimbursable agreements between ordering and performing entities.

    ; Posting of advances without orders.

    ; Purchasing and selling inventory held for resale.

    ; Adjusting entry to write an unfilled customer order from a federal source down to obligations against the order due to

    an expiring appropriation of the ordering entity.

    1. The agency’s annual Appropriations Act includes an authorization for the establishment of a new revolving fund. In addition, an appropriation of $100,000 is provided as initial start-up capital, no specific restrictions are made on the use of the appropriated funds. A warrant for $100,000 is issued to the revolving fund.

    Not Applicable REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

    . Budgetary Entry

    4119 Other Appropriations Realized 100,000

     4450 Unapportioned Authority 100,000

     A104

     Proprietary Entry

    1010 Fund Balance With Treasury 100,000

     3101 Unexpended Approps-Approps Rcvd 100,000

     Page 1 of 31 8/12/2010

    Revolving Fund Scenario

2. The agency’s annual Appropriations Act includes an authorization for a transfer from an agency no-year general fund to the

    revolving fund for an amount not to exceed $30,000. Revolving fund use of funds is unrestricted. The agency requests a non-expenditure appropriation transfer using an SF-1151 that is approved and processed by Treasury.

    Agency No-Year General Fund REVOLVING/PERFORMING

    TAFS DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry

    4450 Unapportioned Authority 30,000 4170 Transfer CY Authority 30,000

     4170 Transfer CY Authority 30,000 4450 Unapportioned Authority 30,000

     A251 A249

     Proprietary Entry Proprietary Entry

    3103 Unexpended Approps-Transfer Out 30,000 1010 Fund Balance With Treasury 30,000

     1010 Fund Balance With Treasury 30,000 3102 Unexpended Approps-Transfer In 30,000

3. The revolving fund anticipates $170,000 from spending authority from offsetting collections. In addition, agency budget submits a

    SF-132 Apportionment and Reapportionment Schedule to the Office of Management and Budget (OMB) requesting apportionment of

    this amount plus the $100,000 general fund appropriation and the $30,000 appropriation transfer.

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4210 Anticipated Reimbursements and Other Income 170,000 4450 Unapportioned Authority 170,000 A302 Proprietary Entry

    None.

     Page 2 of 31 8/12/2010

    Revolving Fund Scenario

4. The OMB approves the SF-132 as submitted. ($100,000 general fund appropriation + $30,000 appropriation transfer + $170,000

    anticipated from spending authority from offsetting collections.)

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4450 Unapportioned Authority 300,000

     4510 Apportionments 130,000 A116 4590 Apportionments Unavail Antic Resources 170,000 A118

     Proprietary Entry None.

    5. The agency head allots the available apportionment and approves automatic allotment of anticipated resources realized.

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4510 Apportionments 130,000 4610 Allotments Realized Resources 130,000 A120 Proprietary Entry

    None.

     Page 3 of 31 8/12/2010

    Revolving Fund Scenario

    6. The revolving fund incurs and pays for general operating expenses. Unrestricted appropriated funds used to cover obligation. (Note: In practice, a cost accounting system would apply these expenses to customer billings through a charge for overhead)

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4610 Allotments Realized Resources 25,000

     4902 Delivered Orders Obligations, Paid 25,000

     B107 Proprietary Entry 6100 Operating Expenses/Program Costs 25,000 B134 1010 Fund Balance With Treasury 25,000

    3107 Unexpended Appropriations Used 25,000

     5700 Expended Appropriations 25,000

7. The revolving fund purchases equipment. Equipment is determined to have a 5 year useful life and no salvage value. Unrestricted

    appropriated funds used.

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4610 Allotments Realized Resources 90,000

     4902 Delivered Orders Obligations, Paid 90,000

     Proprietary Entry

    1750 Equipment 90,000

     1010 Fund Balance With Treasury 90,000 B302 B134 3107 Unexpended Appropriations Used 90,000 E202 5700 Expended Appropriations 90,000

     Memorandum Entry 8802 Purchases of Capitalized Assets 90,000

     8801 Offset for Purchases of Capital Assets 90,000

     Page 4 of 31 8/12/2010

    Revolving Fund Scenario

8. The revolving fund accepts order #1. A $74,000 order for equipment from another federal entity’s annual TAFS without an

    advance. Automatic allotment of anticipated resources realized.

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry

    4610 Allotments Realized Resources 74,000 4221 Unfilled Customer Orders w/o Advance 74,000

     4801 Undelivered Orders Obligations, 4210 Antic Reimbursement & Other Income 74,000

     Unpaid 74,000 B204 A304

     4590 Apportionments Unavail Anticipated Resrces 74,000 A122

     4610 Allotments Realized Resources 74,000

     Proprietary Entry

    None.

    9. The revolving fund incurs obligations against order #1 for the purchase of equipment to fill that order. This obligation is for more than the $15,000 current Fund Balance With Treasury, however, obligation in excess of fund balance is acceptable practice if there is an adequate balance of spending authority from offsetting collections. Once invoiced, the invoice cannot be submitted for payment unless the current fund balance is sufficient to cover the payment.

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry None. 4610 Allotments Realized Resources 53,000 4801 Undelivered Orders Obligations, Unpaid 53,000 B204 Proprietary Entry None.

     Page 5 of 31 8/12/2010

    Revolving Fund Scenario

10. The revolving fund receives invoice for order #1. Since there are no restrictions on use, the revolving fund chooses to use

    remaining budget authority provided by general fund appropriation to cover part of the obligation. Spending authority from offsetting collections, which is not recorded as 3101, is used to cover the balance of the obligation. The invoice cannot be submitted for payment

    because the current fund balance of $15,000 is not sufficient to cover the payment.

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry None. 4801 Undelivered Orders Obligations, Unpaid 53,000

     4901 Delivered Orders Obligation, Unpaid 53,000

     Proprietary Entry 1521 Inventory Purchased for Resale 53,000 B304 2110 Accounts Payable 53,000 B134 E202 3107 Unexpended Appropriations Used 15,000

     5700 Expended Appropriations 15,000

     Memorandum Entry

    8802 Purchases of Capitalized Assets 53,000

     8801 Offset for Purchases of Capital Assets 53,000

     Page 6 of 31 8/12/2010

    Revolving Fund Scenario

11. The revolving fund accepts order #2. A $48,000 order for services from a non-federal entity advance required and received.

    Automatic allotment of anticipated resources realized.

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry

    Not applicable to non-federal entity. 4222 Unfilled Customer Orders with Advance 48,000

     4210 Antic Reimbursement & Other Income 48,000

     C182 4590 Apportionments Unavail Anticipated Resrces 48,000 A122 4610 Allotments Realized Resources 48,000

     Proprietary Entry

    1010 Fund Balance With Treasury 48,000

     2310 Advances from Others 48,000

    12. The revolving fund receives an advance in anticipation of an order for $13,000 from a non-federal source. OMB Circular A-11 (2003) Section 20.11(b).

    Deposit Fund XX 6500 REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry

    No entry. No entry.

     C108 Proprietary Entry Proprietary Entry 1010 Fund Balance With Treasury 13,000 No entry.

     2400 Liability for Deposit Funds, Clearing

     Accounts, and Undeposited

     Collections 13,000

     Page 7 of 31 8/12/2010

    Revolving Fund Scenario

    13. The revolving fund receives an advance of $20,000 from a federal source in anticipation of an order. OMB Circular A-11 (2003) Section 20.11(b).

    ORDERING FUND PERFORMING FUND CLEARING

    DR CR TC ACCOUNT DR CR TC

    XX F3885

     Budgetary Entry Budgetary Entry 4610 Allotments Realized Resources 20,000 No entry.

     4802 Undelivered Orders Obligations, 20,000

    Prepaid/Advanced Proprietary Entry

     B206 1010 Fund Balance With Treasury 20,000 C108

     2400 Liability for Deposit Funds, Clearing 20,000 Proprietary Entry

    1410 Advances to Others 20,000 Accounts, and Undeposited

     1010 Fund Balance With Treasury 20,000 Collections

    14. The revolving fund incurs and pays for general operating expenses. (Note: In practice, a cost accounting system would apply these expenses to customer billings through a charge for overhead)

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4610 Allotments Realized Resources 25,000

     4902 Delivered Orders Obligations, Paid 25,000 B107 Proprietary Entry

    6100 Operating Expenses/Program Costs 25,000

     1010 Fund Balance With Treasury 25,000

     Page 8 of 31 8/12/2010

    Revolving Fund Scenario

    15. The revolving fund delivers equipment as specified in order #1and invoices for $63,600, which includes the cost of equipment and overhead.

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry

    4801 Undelivered Orders Obligations, Unpaid 63,600 4251 Reimbursements & Other Income Ernd Rcvbl 63,600

     4901 Delivered Orders Obligations, Paid 63,600 4221 Unfilled Customer Orders w/o Advance 63,600

     Proprietary Entry Proprietary Entry

    1750 Equipment 63,600 1310 Accounts Receivable 63,600 2110 Accounts Payable 63,600 5100 Revenue From Goods Sold 63,600 B304 A310 B134 D612 3107 Unexpended Appropriations Used 63,600 6500 Cost of Goods Sold 53,000 E202 5700 Expended Appropriations 63,600 1521 Inventory Purchased for Resale 53,000

     Memorandum Entry

    8802 Purchases of Capitalized Assets 63,600

     8801 Offset for Purchases of Capital Assets 63,600

16. The revolving fund receives payment for order #1.

    ORDERING FUND REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC

     Budgetary Entry Budgetary Entry

    4901 Delivered Orders Obligations, Unpaid 63,600 4252 Reimbs & Other Income Ernd - Collected 63,600

     4902 Delivered Orders Obligations, Paid 63,600 4251 Reimbs & Other Income Ernd Rcvbl 63,600 C186 B110 Proprietary Entry Proprietary Entry

    2110 Accounts Payable 63,600 1010 Fund Balance With Treasury 63,600

     1010 Fund Balance With Treasury 63,600 1310 Accounts Receivable 63,600

     Page 9 of 31 8/12/2010

    Revolving Fund Scenario

17. The revolving fund pays invoice received in transaction #10.

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry 4901 Delivered Orders Obligations, Unpaid 53,000

     4902 Delivered Orders Obligations, Paid 53,000 B110 Proprietary Entry 2110 Accounts Payable 53,000

     1010 Fund Balance With Treasury 53,000

18. The revolving fund incurs and pays for general operating expenses. (Note: In practice, a cost accounting system would apply

    these expenses to customer billings through a charge for overhead)

    NOT APPLICABLE REVOLVING/PERFORMING

    DR CR TC FUND DR CR TC Not Applicable. Budgetary Entry

    4610 Allotments Realized Resources 25,000

     4902 Delivered Orders Obligations, Paid 25,000 B102 Proprietary Entry

    6100 Operating Expenses/Program Costs 25,000

     1010 Fund Balance With Treasury 25,000

     Page 10 of 31 8/12/2010

Report this document

For any questions or suggestions please email
cust-service@docsford.com