GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
PREPARED BY:
CREDIT REFORM SUBCOMMITEE AND
GENERAL LEDGER AND ADVISORY BRANCH
FISCAL ACCOUNTING OPERATIONS
BUREAU OF THE FISCAL SERVICE
U.S. DEPARTMENT OF THE TREASURY
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 2 of 153 August 2017
Overview
This guide is designed for those who:
Formulate and execute Federal credit program budgets, including accounting for assets, liabilities, net position, income, and
expenses, and budgetary resources;
Version Number
Date
Description of Change
Effective
USSGL TFM
1.0
07/2004
Original Version
S2-04-01
2.0
09/2012
Updated case study (account numbers and titles, Transaction
Codes, crosswalks) in accordance with T/L S2-12-03. Added
MAT, cohorts, changed disbursement schedule. Added new
Appendix 2.
S2-12-01
3.0
08/2017
Updated Transaction Codes, financial statements and
appendices.
2017-06
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 3 of 153 August 2017
Prepare agency financial statements;
Audit the agency financial statements;
Manage or provide service to participants in loan guarantee programs;
Design and maintain computer systems for financial programs;
Instruct others in basic accounting and reporting for loan guarantee programs without collateral.
The guide is illustrative, rather than authoritative, and is categorized as “other accounting literature” in the hierarchy of accounting
principles for Federal entities.
1
It supersedes the original and subsequent loan guarantee scenarios. Users may download the guide
from the Bureau of the Fiscal Service (FS) Web site at www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl/ussgl_htm.
In order to understand and gain the most from the guide, users must have a working knowledge of the following:
Budgetary and proprietary accounting, reporting, and terminology;
The United States Standard General Ledger (USSGL) accounts for basic annual operating appropriations and revolving funds;
and
The Federal Credit Reform Act and other requirements established by the Act;
The concepts of Federal credit program accounting and reporting, fund structures, and terminology.
This guide is a study in accounting and reporting for a discretionary loan guarantee program under the Federal Credit Reform Act of
1990, as amended, for loan guarantees obligated after September 30, 1991. Loan guarantees are any guarantee, insurance, or other
pledge for the payment of all or a part of the principal or interest on any debt obligation of a non-Federal borrower to a non-Federal
lender, except for the insurance of deposits, shares, or other withdrawals in financial institutions. Loans that are financed by the
Federal Financing Bank pursuant to agency loan guarantee authority are treated as direct loans rather than loan guarantees.
2
Transactions are presented over a 3-year period for a fictitious Federal agency with a single annual loan guarantee program with no
risk categories. Transactions for fiscal year 2 show the disposition of the upward re-estimated subsidy accrued in fiscal year 1, as well
1
See §II.4, Instructions for Annual Financial Statements, OMB Circular A-136.
2
OMB Circular No. A-11, Section 185.3(e)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 4 of 153 August 2017
as additional transactions to demonstrate the use of cohorts, borrowing authority, negative subsidy rates, and interest accruals in
relation to inter-governmental eliminations and downward re-estimates. Transactions for fiscal year 3 show the disposition of the
downward re-estimated subsidy accrued in fiscal year 2 and repayment of debt. Common transactions and reports are covered in
addition to transactions unique to Federal credit program accounting. However, since accounting for certain accruals and undelivered
orders with advances are not unique to credit reform accounting, they are not presented. In addition, transactions involving collateral
are excluded, since they are covered in a separate guide. Entries are made in general journal form, using USSGL accounts, and are
summarized in trial balances for each year.
The transactions covered are:
Formulation, apportionment, and allotment of the budget;
Receipt of subsidy and administrative expense appropriations;
Payment of administrative expenses;
3
Commitment to make loan guarantees;
Transfer of subsidy from the program to the financing fund;
Transfer of negative subsidy from the financing fund to the general fund
Collection of guarantee fees;
Payment of interest supplements;
Payment of default claims;
Assuming defaulted guaranteed loans and interest for direct collection
Collection of loan principal and interest on defaulted guaranteed loans;
Modification of guarantee terms, with resulting adjustment to program level;
Collection of interest from Treasury;
Accrual of interest from borrowers;
Accrual of inter-governmental interest;
Write-off of bad debts without receiving collateral;
3
The illustration is for the payment of administrative expenses without prior obligation through undelivered orders or accounts payable. Though administrative
expenses will usually be obligated before payment, there is nothing about the transactions unique to credit program accounting, and they are not shown.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 5 of 153 August 2017
Recording the interest accumulation factor on the loan guarantee liability and loan assets;
Recording of data on guaranteed loans supplied by third-party lenders;
Accrual, receipt and disbursement of upward and downward subsidy re-estimates and related interest; and
Closing entries.
While financing funds may borrow money if there is not enough Fund Balance With Treasury to meet requirements for disbursements,
in general, financing funds obtain money for disbursements primarily from:
Offsetting collections, including those from the program fund (for basic and upward re-estimated subsidy);
Treasury (for interest); and
Non-Federal sources (such as guarantee fees from program participants or collections of defaulted guaranteed loan
principal and interest from borrowers).
The yearend agency reports are listed below:
Balance Sheet;
Statement of Net Cost;
Statement of Changes in Net Position;
Statement of Budgetary Resources;
Financing Footnote
Fund Balance with Treasury Footnote
Program and Financing Schedule (Schedule P); and
Credit Program Footnote (including the Schedule of Changes in the Allowance for Subsidy).
An SF 132: Apportionment and Reapportionment Schedule report is furnished at the beginning of each year. These SF132s represent
single year funding of subsidy.
This guide includes two appendices. Appendix 1 discusses basic differences encountered in mandatory programs. Appendix 2
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 6 of 153 August 2017
provides a listing of key references related to credit program accounting. If the references change, this document will be updated
accordingly and published on the USSGL Website at https://www.fiscal.treasury.gov/fsreports/ref/ussgl/creditreform/casestud.htm
Users may send questions to the USSGL Website at www.fiscal.treasury.gov/fsreports/ref/ussgl/form-issues.htm by using the online
USSGL Issue Form. This Website also provides a list of the General Ledger and Advisory Branch representatives and their telephone
numbers.
Listing of USSGL Accounts Used in This Scenario
Program Fund
Account Number
Budgetary
411500
411700
411800
412000
420100
445000
451000
459000
461000
465000
480100
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 7 of 153 August 2017
487100
490200
490200
Proprietary
101000
131000
217000
310000
310100
310700
331000
570000
579100
610000
610000
619900
680000
680000
719000
729000
Financing Fund
4
This relates to downward re-estimates and negative subsidies.
5
This relates to upward and downward re-estimates.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 8 of 153 August 2017
Account Number
Account Title
Budgetary
404700
Anticipated Transfers to the General Fund of the U.S. Government – Current Year Authority
406000
Anticipated Collections From Non-Federal Sources
407000
Anticipated Collections From Federal Sources
412000
Anticipated Indefinite Appropriations
412500
Loan Modification Adjustment Transfer Appropriation
414100
Current Year Borrowing Authority Realized
414200
Actual Repayment of Borrowing Authority Converted to Cash
414300
Current Year Decreases to Indefinite Borrowing Authority Realized
414500
Borrowing Authority Converted to Cash
414800
Resources Realized from Borrowing Authority
415100
Actual Capital Transfers to the General Fund of The U.S. Government, Current Year
420100
Total Actual Resources – Collected
422100
Unfilled Customer Orders Without Advance
426100
Actual Collection of Business-Type Fees
426200
Actual Collection of Loan Principal
426300
Actual Collection of Loan Interest
427100
Actual Program Fund Subsidy Collected
427300
Interest Collected From Treasury
428300
Interest Receivable from Treasury
445000
Unapportioned Authority
451000
Apportionments
459000
Apportionments - Anticipated Resources - Programs Subject to Apportionments
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 9 of 153 August 2017
461000
Allotments - Realized Resources
480100
Undelivered Orders – Obligations, Unpaid
490200
Delivered Orders – Obligations, Paid [Other]
Proprietary
101000
Fund Balance With Treasury
131000
Accounts Receivable [Subsidy Receivable From Program Fund]
134100
Interest Receivable - Loans [Defaulted Guaranteed Loans]
135000
Loans Receivable [Defaulted Guaranteed Loans]
139900
Allowance for Subsidy [Defaulted Guaranteed Loans]
214100
Accrued Interest Payable – Loans
218000
Loan Guarantee Liability
251000
Principal Payable to the Bureau of the Fiscal Service
299000
Other Liabilities without Related Budgetary Obligations [Re-estimate payables]
310100
Unexpended Appropriations – Appropriations Received
310700
Unexpended Appropriations – Used
331000
Cumulative Results of Operations
6
531200
Interest Revenue – Loans Receivable/Uninvested Funds [Treasury] and Non-Federal [Borrower]
531300
Interest Revenue – Subsidy Amortization [Defaulted Guarantee Loans]
570000
Expended Appropriations
576600
Nonexpenditure Financing Sources – Transfers Out – Capital Transfers
577600
Nonbudgetary Financing Sources Transferred Out
6
Cumulative Results of Operations must be zero after closing because the financing fund cannot have a net cost of operations or net position. Under FCR the net
cost is captured in the program fund, so cumulative results of operations is always zero. OMB A-11, Section 185, Exhibit E illustrates that the financing fund is
designed to break even and thus have a zero results of operations.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 10 of 153 August 2017
579100
Adjustment to Financing Sources – Credit Reform
631000
Interest Expenses on Borrowing From Bureau of the Fiscal Service and/or Federal Financing Bank
634000
Interest Expense Accrued on the Liability for Loan Guarantees
801000
Guaranteed Loan Level
801500
Guaranteed Loan Level - Unapportioned
802000
Guaranteed Loan Level - Apportioned
804000
Guaranteed Loan Level - Used Authority
804500
Guaranteed Loan Level - Unused Authority
805000
Guaranteed Loan Principal Outstanding
805300
Guaranteed Loan New Disbursement by Lender
806500
Guaranteed Loan Collections, Defaults and Adjustments
807000
Guaranteed Loan Cumulative Disbursements by Lenders
Conceptual Framework
Pre-closing equation: 801000 = 801500 + 802000 + 804000 + 804500
805000 = 805300 - 8065000
Post-closing equation: 801000 = 804000 + 804500
805000 = 807000
Miscellaneous Receipt Account
Account Number
Account Title
Budgetary
No Entries
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 11 of 153 August 2017
Proprietary
101000
Fund Balance With Treasury
131000
Accounts Receivable [Subsidy Receivable From Financing Fund]
298500
Liability for Non-Entity Assets Not Reported on the Statement of Custodial Activity
575600
Nonexpenditure Financing Sources – Transfers In – Capital Transfers
577500
Nonbudgetary Financing Sources Transferred In
599300
Offset to Non-Entity Collections – Statement of Changes in Net Position
599400
Offset to Non-Entity Accrued Collections – Statement of Changes in Net Position
Scenario Assumptions
This guide uses numbers and titles for USSGL accounts. When necessary, titles for USSGL accounts are expanded by using brackets
to capture, clarify, or add specific information, for illustrative purposes only. For example, administrative expense, “[Administrative
Expense]” is included after the title for USSGL 610000 account, “Operating Expenses/Program Costs.” In the same manner, for
interest supplement expense, “[Interest Supplement],” is included after the title for the USSGL 610000 account. The USSGL TFM
Supplement, Section II, contains definitions for USSGL accounts.
Entries are in general journal form, using USSGL accounts, and are summarized in trial balances for each year. Note that the financing
fund is used only in the transactions for Post-Credit Reform scenarios, and the liquidating fund is used only in the transactions for Pre-
Credit Reform scenarios.
USSGL accounts that, by themselves, do not directly provide the reporting that is illustrated, are supplemented with additional detail.
The entries made and the method chosen to illustrate the detail provide only one-way of accounting. Agencies may have other ways of
structuring their ledgers and making journal entries to accomplish the same result.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 12 of 153 August 2017
USSGL Scenario
Loan Guarantee Program
Fiscal Year 1
The loan guarantee Agency has been authorized to guarantee loans beginning in fiscal year 1. It has authority to guarantee 80 percent
of the principal and related interest of $100,000 in loans. The agency has a single, discretionary loan guarantee program with no risk
categories.
7
For fiscal year 1, Congress has authorized annual appropriations for basic subsidy, modified subsidy, and administrative
expenses and provided that the program is subject to the Federal Credit Reform Act of 1990, as amended.
Transactions To Be Recorded in the Program and Financing Fund
1. The agency’s subsidy model indicated that, for the $100,000 of loan guarantees, a 21.5
percent subsidy was indicated as follows:
• Present value of expected defaults is 20 percent, or $20,000;
• Present value of guarantee fees to be collected is (.5) percent or $500 (all anticipated this year), and
7
Programs that have risk categories must maintain separate financing fund accounting for each risk category. While annual appropriations for basic and modified
subsidy, which are common in discretionary loan guarantee programs, are illustrated, some programs may have multi-year or no-year authority appropriations
provided for these purposes in their underlying legislation. Accounting for these types of appropriations is essentially the same as it would be for basic operating
appropriations or revolving fund. See Appendix 2 for examples
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 13 of 153 August 2017
• Present value of interest supplements to be paid to third-party lenders as loans are guaranteed, to buy down interest
rates, is 2 percent or $2,000.
2. The agency has appropriated administrative expenses for fiscal year 1 in the amount of $5,000.
3. The agency estimates the following financing fund collections for the year:
• $21,500 of subsidy from the program fund;
• $1,200 of interest from Treasury on unused balances in the financing fund;
• $510
8
for program participants for guarantee fees; and
• $50 for principal and $200 for interest on defaulted guaranteed loans.
4. The agency expects to use financing fund resources as follows:
• $3,500 for payment of default claims (80% Guarantee of $4,375 Default); and
• $2,000 for payment of interest supplements.
Based on the above information the agency has prepared the following requests for apportionment:
8
Note that this is higher than the $500 of fees in the subsidy model, because $500 is the present value of the fees, and $510 is the actual amount of fees expected
to be collected.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 14 of 153 August 2017
Loan Guarantee Agency
Fiscal Year 1
9
9
OMB Circular A-11 Exhibits 185N through 185U shows examples of various SF132s
SF 132 Apportionment/Reapportionment Schedule
BUDGETARY RESOURCES
Program
Fund
Financing
Fund
Budget authority:
Appropriations, discretionary:
1100
Appropriation
26,500
Spending authority from offsetting collections,
mandatory:
1840
Anticipated Collections, Reimbursements, and Other Income
23,460
1920
Total Budgetary Resources
26,500
23,460
APPLICATION OF BUDGETARY RESOURCES
Category B (by project)
6011
Direct Loan Subsidy
21,500
6012
Default
3,500
6013
Administrative Expense
5,000
6014
Interest Supplements
2,000
6182
Unapportioned Balance of Revolving Fund
17,960
SF 132 Apportionment/Reapportionment Schedule
6190
Total Budgetary Resources Available
26,500
23,460
GUARANTEED LOAN LEVELS AND APPLICATIONS
8100
Program Level, Current Year
100,000
8211
Guarantee Loan Program
100,000
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 15 of 153 August 2017
Illustrative Transactions for Year 1
1-1 To record the enactment of appropriations.
Program Fund
10
DR
CR
TC
Budgetary Entry
411500 Loan Subsidy Appropriation
21,500
411700 Loan Administrative Expense Appropriation
5,000
445000 Unapportioned Authority
26,500
Proprietary Entry
A104
101000 Fund Balance With Treasury
26,500
310100 Unexpended Appropriations – Appropriations Received
26,500
10
Note that these entries maybe done as two separate steps as warrant and signing of appropriations bill do not always coincide.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 16 of 153 August 2017
Financing Fund
DR
CR
TC
Budgetary Entry
406000 Anticipated Collections from Non-Federal Sources
407000 Anticipated Collections from Federal Sources
445000 Unapportioned Authority
Proprietary Entry
None
760
22,700
23,460
A140
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 17 of 153 August 2017
Memorandum Accounts - Loan Guarantee Level
11
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
801000 Guaranteed Loan Level
100,000
801500 Guaranteed Loan Level – Unapportioned
100,000
G102
1-2 OMB approved the agency’s request for apportionment, and the agency recorded the apportionment.
Program Fund
11
Although the agency is guaranteeing 80 percent of the loans made by third-party lenders, Federal budget rules provide that the 100 percent figure would still be
used as the loan level even if the guarantee was for less than 100 percent. The figure also would be 100 percent of principal only even if defaulted interest was
guaranteed as well. See OMB Circular A-11, Preparation, Submission and Execution of the Budget (June 2003), §185.11(c).
DR
CR
TC
Budgetary Entry
445000 Unapportioned Authority
26,500
451000 Apportionments
26,500
A116
Proprietary Entry
None
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 18 of 153 August 2017
Financing Fund
12
DR
CR
TC
Budgetary Entry
445000 Unapportioned Authority
5,500
459000 Apportionments - Anticipated Resources-Programs Subject to
Apportionment
5,500
A118R
Proprietary Entry
None
Memorandum Accounts - Loan Guarantee Level
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
801500 Guaranteed Loan Level - Unapportioned
802000 Guaranteed Loan Level – Apportioned
100,000
100,000
G104
12
$5,500 needed to pay defaults and interest supplements, $3,500 and $2,000 is apportioned.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 19 of 153 August 2017
1-3 Issued a blanket authorization to allot anticipated resources as they were realized, not to exceed the amount of the apportionment.
Program Fund
DR
CR
TC
Budgetary Entry
451000 Apportionments
26,500
461000 Allotments - Realized Resources
26,500
A120
Proprietary Entry
None
Financing Fund
13
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
13
Note that in accordance with §145.6 of OMB Circular A-11, only realized resources may be obligated.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 20 of 153 August 2017
1-4. The agency paid administrative expenses of $4,000 for salaries and $950 for rent to GSA. It placed no undelivered orders nor
made accruals before payment.
Program Fund
14
This transaction can vary depending upon Agency treatment of Administrative Expenses.
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
4,950
490200 Delivered Orders – Obligations, Paid [Other]
4,950
B106
Proprietary Entry
14
610000 (NF) Operating Expenses/Program Costs [Administrative Expenses]
101000 Fund Balance With Treasury
310700 Unexpended Appropriations – Used
570000 Expended Appropriations610000 (F) (TP 47-Main-XXXX) Operating
Expenses/Program Costs
570000 Expended Appropriations
4,000
4,000
950
4,000
4,000
950
B134
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 21 of 153 August 2017
1-5 The agency agreed to make $90,000 in guarantees, subject to the third-party lenders and their borrowers meeting conditions placed
on them.
Program Fund
15
Obligated subsidy to be transferred to financing fund.
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
480100 Undelivered Orders – Obligations, Unpaid
19,350
19,350
B306
Proprietary Entry
None
15
$90,000 in loan commitments x 21.5 percent subsidy = $19,350.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 22 of 153 August 2017
Financing Fund
To recognize the subsidy to be transferred from the program fund.
DR
CR
TC
Budgetary Entry
422100 Unfilled Customer Orders Without Advance
19,350
407000 Anticipated Collections From Federal Sources
Proprietary Entry
None
19,350
C101
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 23 of 153 August 2017
Financing Fund
To record allotment of realized subsidy.
16
DR
CR
TC
Budgetary Entry
459000 Apportionments - Anticipated Resources
- Programs Subject to Apportionments
461000 Allotments - Realized Resources
Proprietary Entry
None
5,500
5,500
A122
16
Note that the unfilled customer order from the program fund constitutes a realized resource. Only the $5,500 apportioned in transaction 1-2 can be allotted.
Also note that there is no cash related to this authority at this time. If a disbursement needed to be made prior to the cash being received, borrowing authority
would need to be used to make the disbursement. See year 2 for an example.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 24 of 153 August 2017
Memorandum Accounts - Loan Guarantee Level
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
17
802000 Guaranteed Loan Level – Apportioned
804000 Guaranteed Loan Level – Used Authority
90,000
90,000
G106
17
Some Agencies add an allotment step in the memorandum entry. The end result for all Agencies should be for USSGL Account 804000 to be increased to
reflect the use of existing authority.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 25 of 153 August 2017
1-6. Third-party lenders disbursed $87,000 of the guaranteed loans, and the agency transferred subsidy from the program to the
financing fund.
Program Fund
18
To record payment of subsidy to financing fund.
DR
CR
TC
Budgetary Entry
480100 Undelivered Orders – Obligations, Unpaid
490200 Delivered Orders – Obligations, Paid [Other]
18,705
18,705
A146
Proprietary Entry
610000 Operating Expenses/Program Costs
[Basic and Modified Subsidy Expense]
101000 Fund Balance With Treasury
310700 Unexpended Appropriations - Used
570000 Expended Appropriations
18,705
18,705
18,705
18,705
B134
18
$87,000 in guaranteed loans disbursed x the 21.5 percent subsidy rate = $18,705.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 26 of 153 August 2017
Financing Fund
19
DR
CR
TC
Budgetary Entry
427100 Actual Program Fund Subsidy Collected
422100 Unfilled Customer Orders Without Advance
18,705
18,705
Proprietary Entry
101000 Fund Balance With Treasury
218000 Loan Guarantee Liability
18,705
18,705
C103
Memorandum Accounts - Loans Disbursed
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
805000 Guaranteed Loan Principal Outstanding
805300 Guaranteed Loan New Loan Disbursements by Lender
87,000
87,000
G108
19
Note that no additional allotment is made, because the full $5,500 that OMB apportioned was allotted in transaction 1-5.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 27 of 153 August 2017
1-7. The agency collected fees of $480 from the program participants as a condition of making the guarantees
20
.
Financing Fund
To record collection of fees.
DR
CR
TC
Budgetary Entry
426100 Actual Collection of Business-Type Fees
406000 Anticipated Collections from Non-Federal Sources
Proprietary Entry
101000 Fund Balance With Treasury
218000 Loan Guarantee Liability 480
480
480
480
480
C117
20
Some fees may be collected and deferred before earned/ loan disbursed. To record collection of fees before earned, debit USSGL Account 426100 and credit
USSGL Account 406000 for the budgetary entry and debit USSGL account 101000 and credit USSGL Account 232000 (C116) for the proprietary entry. Once
loan is disbursed or fees are earned, debit USSGL Account 232000 and credit USSGL Account 218000(C118).
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 28 of 153 August 2017
1-8. The agency paid interest supplements of $1,940 to the third party-lenders. It had made no previous accrual.
Financing Fund
To record interest supplements
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
490200 4902000 Delivered Orders – Obligations, Paid [Other]
Proprietary Entry
218000 Loan Guarantee Liability
101000 Fund Balance With Treasury
490200 Delivered Orders – Obligations, Paid [Other] 480
1,940
1,940
1,940
1,940
B104
*****Though separated here for purposes of illustration, agencies would normally record transactions 1-6 - 1-8
simultaneously.******
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 29 of 153 August 2017
1-9. The agency paid third-party lender claims of $3,500 to honor 80% guarantee of $4,375 of defaulted loan principal.
Financing Fund
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
490200 4902000 Delivered Orders – Obligations, Paid [Other]
Proprietary Entry
218000 Loan Guarantee Liability
101000 Fund Balance With Treasury
490200 Delivered Orders – Obligations, Paid [Other] 480
3,500
3,500
3,500
3,500
B104
Memorandum Accounts - Loans Disbursed
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
806500 Guaranteed Loan Collections, Defaults, and Adjustments
805000 Guaranteed Loan Principal Outstanding
4,375
4,375
G110
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 30 of 153 August 2017
1-10. The agency acquired receivables for loans of $3,500 and interest of $1,250 in conjunction with the defaults. The agency will
attempt to collect this money directly from the borrowers. The present value of cash flows related to the loans is estimated to be
$3,000.
21
Financing Fund
To establish accounts receivable for defaulted loan.
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
134100 (N) Interest Receivable -Loans [Defaulted Guaranteed Loans]
135000 (N) Loans Receivable [Defaulted Guaranteed Loans]
139900 (N) Allow. for Subs. [Defaulted Guaranteed Loans]
218000 (N) Loan Guarantee Liability 1,750
3,000
1,250
3,500
1,750
3,000
C428
* * * * * Though separated here for illustrative purposes, agencies would normally record transactions 1-9 and 1-10
simultaneously. * * * * *
21
The present value of defaulted guaranteed loans and remaining guaranteed loans must be split. This can be done on agency determined schedule but at a
minimum, year end.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 31 of 153 August 2017
1-11. The agency collected principal of $40 and interest of $200 on the loans acquired in transaction 1-10.
Financing Fund
22
DR
CR
TC
Budgetary Entry
426200 Actual Collection of Loan Principal
426300 Actual Collection of Loan Interest
406000 Anticipated Collections From Non-Federal Sources
Proprietary Entry
101000 Fund Balance With Treasury
134100 Interest Receivable - Loans [Defaulted Guaranteed Loans]
135000 Loans Receivable [Defaulted Guaranteed]
40 48
40
200
240
240
200
40
C109
22
If interest receivable at the time of default had been recorded as part of loans receivable, the entire $240 would be credited to 135000. See transaction 1-10.
Note – the principal and interest breakdown are for illustration purposes only. According to the Debt Collection Improvement Act (DCIA), unless there is some
other contractual agreement, the payments must be applied to penalties, administrative costs, additional interest, financing interest and finally principal. If DCIA
was applied in this example, no principal would be paid as there is a balance $1,250 in interest.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 32 of 153 August 2017
1-12. After consultation and agreement with OMB, the agency decided to exercise a clause in the program’s legislation allowing it to
modify the terms of the guarantees because of economic downtrends. (OMB Circular A-11 185.7) In this example a positive subsidy
between the calculation of the NPV of the remaining pre-modification ($21,500) cash flows and the calculation of the NPV of
remaining post-modification cash flows ($20,500) resulted in the Government incurring an additional $1,000 subsidy cost due to the
modification. The agency also calculated a modification adjustment transfer of $10.
The agency submitted a new request for apportionment (SF-132) for the financing fund, showing the reduced loan guarantee level, and
OMB approved it.
,
Since the agency had already apportioned subsidy monies in the program fund, a new request for apportionment of
program fund resources may not be required.
23
23
A new request for apportionment of program fund resources is normally not required, but in some instances it should be done in order to comply with the Data
Act and the change in Category B items.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 33 of 153 August 2017
Loan Guarantee Agency
Fiscal Year 1
SF 132 Apportionment/Reapportionment Schedule
BUDGETARY RESOURCES
Financing Fund
Program Fund
Budget authority:
Appropriations, discretionary:
1100
Appropriation
26,500
Appropriations, mandatory:
1250
Anticipated Appropriation
10
Spending authority from offsetting collections, mandatory:
1800
Collected
19,425
1801
Change in Uncollected Payments, Federal Sources
645
1840
Anticipated Collections, Reimbursements, and Other Income
3,390
1920
Total Budgetary Resources
23,470
APPLICATION OF BUDGETARY RESOURCES
Category B (by project)
6011
Direct Loan Subsidy
20,500
6012
Default
3,500
6013
Admin Expense
5,000
6014
Interest Supplements
2,000
6015
Modifications
1,000
6182
Unapportioned Balance of Revolving Fund
17,970
6190
Total Budgetary Resources Available
23,470
GUARANTEED LOAN LEVELS AND APPLICATIONS
8100
Program Level, Current Year
24
95,349
8211
Guarantee Loan Program
95,349
24
20,000/ 21.5%= 95,349
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 34 of 153 August 2017
1-12. Transactions for 1–12 are following:
Program Fund
To transfer funds to financing funds for modification
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
490200 Delivered Orders – Obligations, Paid [Other] 1,000
Proprietary Entry
610000 (N) Operating Expenses/Program Costs
[Basic and Modified Subsidy Expense] 1,000
101000 Fund Balance With Treasury 1,000
310700 Unexpended Appropriations - Used
570000 Expended Appropriations 1,000
1,000
1,000
1,000
1,000
1,000
1,000
B106
B134
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 35 of 153 August 2017
Financing Fund
To record collection from program fund.
DR
CR
TC
Budgetary Entry
427100 Actual Program Fund Subsidy Collected
407000 Anticipated Collections From Federal Sources
Proprietary Entry
101000 Fund Balance With Treasury
218000 Loan Guarantee Liability 1,000
1,000
1,000
1,000
1,000
C103
Financing Fund
To record new SF132 entry
DR
CR
TC
Budgetary Entry
412000 Anticipated Indefinite Appropriation
445000 Unapportioned Authority
Proprietary Entry
None
10
10
A102
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 36 of 153 August 2017
Program Fund
To record warrant received for modification adjustment transfer
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
729000 (N) Other Losses
579100 Adjustment to Financing Sources – Credit Reform
10
10
A206
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 37 of 153 August 2017
Financing Fund
DR
CR
TC
Budgetary Entry
25
412500 Loan Modification Adjustment Transfer
26
412000 Anticipated Indefinite Appropriation
Proprietary Entry
101000 Fund Balance with Treasury
27
310100 Unexpended Appropriations - Received
579100 Adjustment to Financing Sources – Credit Reform
218000 Loan Guarantee Liability
310700 Unexpended Appropriations – Used
570000 Expended Appropriations
10
10
10
10
10
10
10
10
A202
A104
D147R
B134
25
This warrant must be specifically requested by an agency in order to be processed by Treasury.
26
The use of USSGL Account 412500 is required per OMB Circular A-11 Section 185.7 (b) for the Financing Fund.
27
For FY 2012 – use 579000 for 310100 and do not do the 310700/570000 entry. The correction for FY 2013 is needed to properly reflect warrants in the
intergovernmental elimination process
.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 38 of 153 August 2017
Memorandum Accounts - Loan Guarantee Level
28
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
802000 Loan Guarantee Level - Apportioned
4,651
G102R
801000 Guaranteed Loan Level
4,651
G104R
28
Original loan level, $100,000, less revised loan level, $95,349 = $4,651.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 39 of 153 August 2017
1-13. Treasury credited $1,160 to the financing fund for interest the fund earned on its unused Fund Balance With Treasury during the
year.
Financing Fund
DR
CR
TC
Budgetary Entry
427300 Interest Collected From Treasury
407000 Anticipated Collections from Federal Sources
Proprietary Entry
101000 Fund Balance With Treasury
531200 (F) TP 020 Main 1880 Interest Revenue – Loans Receivable /
Uninvested Funds
1,160
1,160
1,160
1,160
C109
C420
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 40 of 153 August 2017
1-14. The agency accrued loan interest of $5 on the defaulted guaranteed loan principal.
Financing Fund
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
134100 (NF) Interest Receivable- Loans [Defaulted Guaranteed Loans]
531200(NF) Interest Revenue – Loans Receivable / Uninvested Funds
5
5
C420
1-15. The agency determined that it could not collect $10 of loan principal and $20 of loan interest and wrote off the receivables
.
29
29
This determination of uncollectibility would be made only after attempting to collect the receivables under provisions of the DCIA.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 41 of 153 August 2017
Financing Fund
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
139900 (NF) Allow. for Subsidy [Defaulted Guar. Loan Assets
134100 (NF) Interest Receivable -Loans
135000 (NF) Loans Receivable [Defaulted Guaranteed]
30
20
10
D414
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 42 of 153 August 2017
1-16. The agency accrued interest of $1,160 on its loan guarantee liability and $5 on the subsidy amortization present value calculated
at reestimate of its loans. Note: The interest accumulation factor
30
must equal the amount of interest income received from Treasury–
$1,160 (see transaction 1-13).
Financing Fund
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
531300 (NF) Interest Revenue – Subsidy Amortization
139900 (NF) Allowance for Subs. [Defaulted Guar. Loan Assets]
634000(NF) Interest Exp Accrual on Liability for Loan Guarantee
218000(NF) Loan Guarantee Liability
5
1,160
5
1,160
E118
E122
30
The FCRA requires that the rates for discounting cashflows, financing account borrowing, and financing account interest earnings be identical and based on the
Treasury rate in effect during the period of loan disbursement. If your loans disburse in segments over several years, several interest rates will be applicable to an
individual loan or group of loans. The correct interest rates are provided for you in the OMB Credit Subsidy Calculator available from your OMB representative.
For loan guarantee financing accounts, the interest rate for cash accumulations relate to each loan guarantee is determined by the date that the commercial lender
disburses the loan being guaranteed. Because commercial lenders may not report to your in a timely manner, you can use an estimated fourth quarter amount for
disbursements and collections when you report to Treasury at the end of the fiscal year, adjusting this estimate as actual lender data is accumulated.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 43 of 153 August 2017
1-17. Third-party lenders reported that they had collected $10,000 on guaranteed loans in the cohort.
Financing Fund
Memorandum Accounts for Loans Disbursed
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
806500 Guaranteed Loan Collections, Defaults, and Adjustments
805000 Guaranteed Loan Principal Outstanding
10,000
10,000
G110
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 44 of 153 August 2017
1-18. At year-end the agency determined that an upward subsidy expense re-estimate related to the loan guarantee of $23 was
required. Since the loans were over 90% disbursed an interest rate re-estimate is required as well as a technical re-estimate. The
breakdown was as follows:
Interest Rate Reestimate (13)
Technical Reestimate 33
Interest on Technical Reestimate 3
Total Reestimate 23
Program Fund
31
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
680000 (NF) Future Funded Expenses
[Subsidy Expense - Re-estimates – Technical]
217000 (F) (Agency Main gtd) Subsidy Payable to Financing Account
32
36
23
B420
680000 (NF) Future Funded Expenses
[Subsidy Expense – Re-estimates – Interest Rate]
13
B420
31
The interest rate re-estimate is a reporting requirement for the credit supplement of the President’s budget and the credit footnote of the agencies statements.
Agencies may have other ways of tracking the breakdown than what is presented here.
32
The Trading Partner should be the agency and the Trading Partner Main should be the Guarantee Financing Fund when the re-estimate is due. For example,
Department of Energy would use Trading Partner 089 and Trading Partner Main 4486.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 45 of 153 August 2017
Financing Fund
33
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
131000 (F) (TP Agency Main) Accounts Receivable
[Subsidy Receivable from Program Fund]
34
23
139900 (NF) Allow. for Subs. [Defaulted Guar. Loans Rec.]
218000 (NF) Loan Guarantee Liability
7
30
C438
In requesting SF132 and in President’s budget the Interest Rate Re-estimate and Technical Re-estimate are added together. If this
amount is positive in total, it is an upward re-estimate. The interest is looked at by itself and includes any financing account
adjustments. If this amount is positive in total, it is an upward re-estimate. If either of the pieces are negative, that piece is a
downward re-estimate (See year 2 for downward re-estimate entries)
33
The agency must determine the present value breakdown between the defaulted guarantee loan and the remaining guarantees outstanding as only a total re-
estimate is calculated and approved by OMB.
34
Use appropriate Trading Partner. For example, Department of Energy would use Trading Partner 089 and Trading Partner Main 0209.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 46 of 153 August 2017
Pre-Closing Entries
1-19
Financing Fund
To close anticipated resources
DR
CR
TC
Budgetary Entry
445000 Unapportioned Authority
406000 Anticipated Collections from Non-Federal Sources
407000 Anticipated Collections from Federal Sources
1,230
40
1,190
F112
Proprietary Entry
None
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 47 of 153 August 2017
Year 1
Pre-Closing Adjusted Trial Balance
Program Fund
Debit/(Credit)
Financing Fund
Debit/(Credit)
Accounts
Budgetary
411500 Loan Subsidy Appropriation
21,500
411700 Loan Administrative Expense Appropriation
5,000
412500 Loan Modification Adjustment Transfer Appropriation
10
422100 Unfilled Customer Orders Without Advance
645
426100 Actual Collections of Business-Type Fees
480
426200 Actual Collections of Loan Principal
40
426300 Actual Collections of Loan Interest
200
427100 Actual Program Fund Subsidy Collected
19,705
427300 Interest Collected From Treasury
1,160
445000 Unapportioned Authority
(16,740)
459000 Apportionments - Anticipated Resources - Programs Subject to Apportionment
-
461000 Allotments - Realized Resources
(1,200)
(60)
480100 Undelivered Orders - Obligations, Unpaid
(645)
490200 Delivered Orders – Obligations, Paid [Other]
(24,655)
(5,440)
Total
0
0
Proprietary
101000 Fund Balance With Treasury
1,845
16,155
131000 (F TP Main) Accounts Receivable (Subsidy Recv.)
23
134100 (NF) Interest Receivable – Loans
1,035
135000 (NF) Loans Receivable
3,450
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 48 of 153 August 2017
Pre-Closing Adjusted Trial Balance (Continued)
139900 (NF) Allowance for Subsidy
(1,718)
217000 (F TP Main) Subsidy Payable to the Financing Account
(23)
218000 (NF) Loan Guarantee Liability
(18,945)
310100 Unexpended Appropriations - Appropriations Received
(26,500)
(10)
310700 Unexpended Appropriations - Used
24,655
10
531200 (F TP 020 Main 1880) Interest Revenue - Loans Receivable/Uninvested Funds
(Treasury)
(1,160)
531200 (NF) Interest Revenue- Loans Receivable/Uninvested Funds
(5)
531300 Interest Revenue - Subsidy Amortization (Int. on PV Assets)
(5)
570000 Expended Appropriations
(24,655)
(10)
579100 Adjustment to Financing Sources - Credit Reform
(10)
10
610000 (NF) Operating Expenses/Program Costs (Admin.)
4,000
610000 (F TP 047 Main XXXX) Operating Expenses/ Program Costs (Admin.)
950
610000 Operating Expenses/Program Costs (Subsidy)
19,705
634000 Interest Expense Accrued on the Liability for Loan Guarantees (Int. on PV of LGL)
1,160
680000 Future Funded Expenses (Subs. Reest. Tech.)
36
680000 Future Funded Expenses (Subs. Reest. Int.)
(13)
729000 Other Losses
10
Total
0
0
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 49 of 153 August 2017
Pre-Closing Adjusted Trial Balance (Continued)
Debit(Credit)
Loan Guarantee Level
Memorandum Accounts
801000 Guaranteed Loan Level
95,349
801500 Guaranteed Loan Level - Unapportioned
802000 Guaranteed Loan Level - Apportioned
(5,349)
804000 Guaranteed Loan Level - Used Authority
(90,000)
804500 Guaranteed Loan Level - Unused Authority
Total
0
Loans Disbursed
Memorandum Accounts
805000 Guaranteed Loan Principal Outstanding
72,625
805300 Guaranteed Loan New Disbursements by Lender
(87,000)
806500 Guaranteed Loan Collections, Defaults, and Adjustments
14,375
807000 Guaranteed Loan Cumulative Disbursements by Lenders
Total
0
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 50 of 153 August 2017
1-20 The agency made closing entries.
Program Fund
To consolidate net cash resources
DR
CR
TC
Budgetary Entry
490200 Delivered Orders – Obligations, Paid
420100 Total Actual Resources – Collected
24,655
1,845
F302
411500 Loan Subsidy Appropriation
411700 Loan Administrative Expense Appropriation
Proprietary Entry
None
21,500
5,000
To close unobligated authority
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
465000 Allotments - Expired Authority
Proprietary Entry
None
1,200
1,200
F312
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 51 of 153 August 2017
To close financing sources and expenses
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
570000 Expended Appropriations
579100 Adjustments to Financing Sources
331000 Cumulative Results of Operations
680000 Future Funded Expenses
[Re-estimated Subsidy Expense - Interest Rate]
610000 Operating Expenses/Program Costs
[Administrative Expenses]
610000 Operating Expenses/Program Costs
[Basic and Modified Subsidy Expense]
680000 Future Funded Expenses
[Re-estimated Subsidy Expense – Technical]
729000 Other Losses
24,655
10
23
13
4,950
19,705
36
10
F336
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 52 of 153 August 2017
To consolidate unexpended appropriations
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
310100 Unexpended Appropriations – App. Received
310000 Unexpended Appropriations - Cumulative
310700 Unexpended Appropriations - Used
26,500
1,845
24,655
F342
Financing Fund
To consolidate net cash resources
DR
CR
TC
Budgetary Entry
490200 Delivered Orders – Obligations, Paid
420100 Total Actual Resources – Collected
426100 Actual Collection of Business-Type Fees
426200 Actual Collection of Loan Principal
426300 Actual Collection of Loan Interest
427100 Actual Program Fund Subsidy Collected
427300 Interest Collected From Treasury
412500 Loan Modification Adjustment Transfer Appropriation
Proprietary Entry
None
5,440
16,155
480
40
200
19,705
1,160
10
F302
F314
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 53 of 153 August 2017
To close unobligated authority
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
445000 Unapportioned Authority
Proprietary Entry
None
60
60
F308
To close financing sources and expenses
35
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
531200 Interest Revenue –
Loans Receivable/Uninvested Funds [Treasury]
531300 Interest Revenue – Subsidy Amortization
570000 Expended Appropriations
634000 Interest Exp Accrual on Liability for Loan Guarantee
[Interest Accumulation Factor on PV of LGL]
579100 Adjustments to Financing Sources
1,160
20
10
1,160
10
F336
35
Note that the cumulative results of operations from this activity are zero. The financing fund cannot have a net position after closing. Assets must equal
liabilities.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 54 of 153 August 2017
To consolidate unexpended appropriations
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
310100 Unexpended Appropriations – Appropriations Received
310700 Unexpended Appropriations – Used
10
10
F342
Memorandum Accounts
Loan Guarantee Level
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
802000 Guaranteed Loan Level – Apportioned
804500 Guaranteed Loan Level - Unused Authority
804500 Guaranteed Loan Level – Unused Authority
36
801000 Guaranteed Loan Level
5,349
5,349
5,349
5,349
F346
F352
36
Since loan authority was available only for one year, there are no unused amounts to carry forward
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 55 of 153 August 2017
Loans Disbursed
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
805300 Guaranteed Loans New Disbursements by Lenders
807000 Guaranteed Loan Cumulative. Disbursements by Lenders
807000 Guaranteed Loan Cumulative. Disbursements by Lenders
806500 Guaranteed Loans Collections, Defaults, and Adjustments
87,000
14,375
87,000
14,375
F348
F350
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 56 of 153 August 2017
Year 1
Post-Closing Trial Balance
Program Fund
Debit/(Credit)
Financing Fund
Debit/(Credit)
Accounts
Budgetary
411500 Loan Subsidy Appropriation
-
420100 Total Actual Resources – Collected
1,845
16,155
422100 Unfilled Customer Orders Without Advance
645
445000 Unapportioned Authority
(16,800)
465000 Allotments - Expired Authority
(1,200)
480100 Undelivered Orders - Obligations, Unpaid
(645)
Total
0
0
Proprietary
101000 Fund Balance With Treasury
1,845
16,155
131000 (F TP Main) Accounts Receivable (Subs. Recv.)
23
134100 (NF) Interest Receivable – Loans
1,035
135000 (NF) Loans Receivable
3,450
139900 (NF) Allowance for Subsidy
(1,718)
217000 (F TP Main) Subsidy Payable to the Financing Account
(23)
37
Post-Closing Trial Balance (Continued)
218000 Loan Guarantee Liability
(18,945)
310000 Unexpended Appropriations - Cumulative
(1,845)
331000 Cumulative Results of Operations
23
Total
0
0
37
This amount will eliminate on the Balance Sheet.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 57 of 153 August 2017
Post-Closing Trial Balance (Financing Fund Only)
Debit
Credit
Loan Guarantee Level
Memorandum Accounts
801000 Guaranteed Loan Level
90,000
801500 Guaranteed Loan Level - Unapportioned
-
802000 Guaranteed Loan Level - Apportioned
-
804000 Guaranteed Loan Level - Used Authority
90,000
804500 Guaranteed Loan Level - Unused Authority
-
Total
0
0
Loans Disbursed
805000 Guaranteed Loan Principal Outstanding
72,625
805300 Guaranteed Loan New Disbursements by Lender
-
806500 Guaranteed Loan Collections, Defaults, and Adjustments
-
807000 Guaranteed Loan Cumulative Disbursements by Lenders
72,625
Total
0
0
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 58 of 153 August 2017
Loan Guarantee Agency
September 30, FY-1
BALANCE SHEET
Program
Fund
Elim
Financing
Fund
Total
Assets:
Intragovernmental
1.
Fund Balance with Treasury (101000E)
1,845
16,155
18,000
3.
Accounts Receivable (131000E)
(23)
23
6.
Total Intragovernmental (calc.)
1,845
(23)
16,178
18,000
11.
Direct Loan and Loan Guarantees, Net (134100E, 135000E, 139900E)
2,767
2,767
15.
Total Assets (calc.)
1,845
(23)
18,945
20,767
Liabilities:
17.
Accounts Payable (2170000E)
23
(23)
20.
Total Intragovernmental
23
(23)
22.
Loan Guarantee Liability (218000E)
18,945
18,945
28.
Total Liabilities (calc.)
23
(23)
18,945
18,945
Net Position:
31.
Unexpended Appropriations – All Other Funds (310100E, 310700E)
1,845
1,845
33.
Cumulative Results of Operations - All Other Funds (531200E,
570000, 579100, 610000E, 634000E, 680000E, 729000E)
(23)
(23)
35.
Total Net Position – All Other Funds (calc.)
1,822
1,822
36.
Total Net Position (calc.)
1,822
1,822
37.
Total Liabilities and Net Position (calc.)
1,845
18,965
20,787
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 59 of 153 August 2017
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-1
STATEMENT OF NET COST
Program
Fund
Financing
Fund
Total
Gross Program Costs:
1. Gross costs (610000E, 634000E, 680000E, 729000E)
24,688
1,180
25,868
2. Less: Earned Revenues (531200E, 531300E)
1,180
1,180
3. Net program costs (calc. 1-2)
24,688
8. Net cost of operations (calc. 5+6-7)
24,688
24,688
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 60 of 153 August 2017
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-1
STATEMENT OF CHANGES IN NET POSITION
Program Fund
Financing Fund
38
Total
Cumulative
Results of
Operations
Unexpended
Appropriations
Cumulative
Results of
Operations
Unexpended
Appropriations
Cumulative
Results of
Operations
Unexpended
Appropriations
Cumulative Results of Operations:
Budgetary Financing Sources:
5.
Appropriations Used (570000E)
24,655
10
24,665
13.
Other (579100E)
10
(10)
14.
Total Financing Sources
24,665
24,665
15.
Net Cost of Operations (+/-)
24,688
24,688
16.
Net Change (calc. 14-15)
(23)
(23)
17.
Cumulative Results of Operations (calc.
3+16)
(23)
(23)
Unexpended Appropriations:
Budgetary Financing Sources:
21.
Appropriations Received (310100E)
26,500
10
26,510
24.
Appropriations Used (310700E)
(24,655)
(10)
(24,665)
38
Note that the column for unexpended appropriations would normally not be applicable, because the financing fund does not have appropriations. However,
positive modification adjustment transfers are indefinite appropriated funding.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 61 of 153 August 2017
STATEMENT OF CHANGES IN NET POSITION
25.
Total Budgetary Financing Sources (calc.
21..24)
1,845
1,845
26.
Total Unexpended Appropriations (calc.
20 + 25)
1,845
1,845
27.
Net Position (calc. 17 + 26)
(23)
1,845
(23)
1,845
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-1
39
STATEMENT OF BUDGETARY RESOURCES
Budgetary
Non-Budgetary
Financing
Account
Total
Budgetary Resources:
1290
Appropriations (discretionary and mandatory) (411500E, 411700E,
4125000E)
26,500
10
26,510
1890
Spending authority from offsetting collections (discretionary and
mandatory) ((426100,426200, 426300,427100,427300,422100E-422100B))
22,230
22,230
1910
Total budgetary resources
$26,500
$22,240
$48,740
39
Statement of Budgetary Resources is a combined report. Inter-entity eliminations are not allowed.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 62 of 153 August 2017
STATEMENT OF BUDGETARY RESOURCES
Status of Budgetary Resources:
2190
New obligations and upward adjustments (total) (480100E-480100B,
490100E-490100B, 490200E)
25,300
5,440
30,740
Unobligated balance, end of year:
2204
Apportioned, unexpired account (461000E)
1,200
60
1,260
2404
Unapportioned, unexpired accounts (445000E)
16,740
16,740
2500
Total budgetary resources
$26,500
$22,240
$48,740
Change in obligated balance
3012
New obligations and upward adjustments
25,300
5,440
30,740
3020
Outlays (gross) (-) (490200E)
24,655
5,440
30,095
3050
Unpaid obligations, end of year
645
0
645
3072
Change in uncollected pymts, Fed sources (+ or-) (422100E-
422100B)
(645)
(645)
3090
Uncollected pymts, Fed sources, end of year (-)
(645)
(645)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 63 of 153 August 2017
STATEMENT OF BUDGETARY RESOURCES
Memorandum (non add) entries
3200
Obligated balance, end of year (+ or -)
645
(645)
Budget Authority and Outlays, Net:
4175
Budget authority, gross (discretionary and mandatory)
26,500
22,240
48,740
4177
Change in uncollected, pymts, Fed sources (discretionary and mandatory)
(+ or -)
(21,585)
(21,585)
4178
Recoveries of prior year paid obligations (discretionary and mandatory)
(645)
(645)
4180
Budget authority, net (total) (discretionary and mandatory)
26,500
10
26,510
4185
Outlays, gross (discretionary and mandatory)
24,655
5440
30,095
4187
Actual offsetting collections (discretionary and mandatory) (-)
(21,585)
(21,585)
4190
Outlays, net (total) (discretionary and mandatory)
24,655
(16,145)
8,510
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 64 of 153 August 2017
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-1
40
FUND BALANCE WITH TREASURY FOOTNOTE
Program
Fund
Financing
Fund
Total
A. Fund Balance
3. Revolving Funds
16,155
16,155
4. General Funds
1,845
1,845
Total
1,845
16,155
18,000
B. Status of Fund Balance
1. Unobligated Balances
(a) Available (461000)
1,200
60
1,260
(b) Unavailable (445000)
16,740
16,740
2. Obligated Balances not yet disbursed
(a) Unpaid Obligations (480100)
645
645
(b) Uncollected customer payments from federal sources
(422100)
(645)
(645)
Total
1,845
16,155
18,000
40
Note: Footnotes are not supported by the USSGL crosswalks.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 65 of 153 August 2017
Loan Guarantee Agency
September 30, FY-1
Note 8: Credit Program Note
I. Defaulted Guaranteed Loans from Post – 1991 Guarantees:
Defaulted Guaranteed Loans Receivable, Gross (135000)
3,450
Interest Receivable (134100)
1,035
Less Allowance for Subsidy Cost (139900)
(1,718)
Value of Assets Related to Defaulted Guaranteed Loan Receivables, Net
$2,767
J. Guaranteed Loans Outstanding:
J1. Guaranteed Loans Outstanding:
Outstanding Principal of Guaranteed Loans, Face Value (805000)
$72,625
Amount of Outstanding Principle Guaranteed (805000* gtd %)
$58,100
J2. New Guaranteed Loans Disbursed (Current reporting year):
Principle of Guaranteed Loans, Face Value (805300)
$87,000
Amount of Principle Guaranteed (805300 * gtd %)
$69,600
K. Liability for Loan Guarantees:
K1. Liability for Loan Guarantees
Liabilities for Post-1991 Guarantees, Present Value (218000)
$18,945
L Subsidy Expense for Loan Guarantees by Program and Component
41
:
L1. Subsidy Expense for New Loan Guarantees
Interest Supplements
1,740
Defaults
17,400
Fees and Other Collections
(435)
Total
$18,705
41
The components of some of the disclosure in the Credit Program note cannot be derived from the standard USSGL accounts.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 66 of 153 August 2017
Note 8: Credit Program Note
L2. Modifications and Reestimates (Current reporting year):
Total Modifications
1,000
Interest Rate Reestimates (680000)
(13)
Technical Reestimates (680000)
36
Total Reestimates
1,023
L3. Total Loan Guarantee Subsidy Expense:
(equals 610000 + 680000 for subsidy & modification)
$19,728
M. Subsidy Rates for Loan Guarantees by Program and Component
42
Budget Subsidy Rates for Loan Guarantees for the Current Years Cohorts:
Percent
Defaults
20.0
Interest supplements
2.0
Fees and Other Collections
(0.5)
Total
21.5
N. Schedule for Reconciling Loan Guarantee Liability Balances (Post-
1991 Loan Guarantees)
43:
a. Interest supplement costs
1,740
b. Default costs (net of recoveries)
17,400
c. Fees and other collections
(435)
Total of the above subsidy expense components
$18,705
Adjustments:
a. Loan guarantee modifications
1,000
b. Fees received (426100)
480
c. Interest supplements used
(1,940)
42
This information is obtained from the subsidy model.
43
The information presented here is for the applicable sections of note 8 Direct Loans and Loan Guarantees, Non-Federal Borrowers in OMB’s Circular A-136,
Financial Reporting Requirements . A reconciliation of subsidy cost allowance for guaranteed defaults is not required in A-136 so it is not presented; however,
some organizations present it for consistency with the presentation of direct loans.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 67 of 153 August 2017
Note 8: Credit Program Note
d. Foreclosed property and loans acquired
3,000
e. Claim payment to lenders
(3,500)
f. Interest accumulation on liability balance (634000)
1,160
g. Other (412500)
10
Ending balance of the loan guarantee liability before reestimates
18,915
Add or subtract subsidy reestimates by component:
a. Interest rate reestimate (prorated based 1399 & 2180 pieces)
(17)
b. Technical/default reestimate (prorated based 1399 & 2180 pieces)
47
Total of the above reestimate components
30
Ending balance of the loan guarantee liability before reestimates (218000)
$18,945
O. Administrative Expense
44
Loan guarantee programs (610000)
$4,950
44
Since the agency operates only a loan guarantee program, and the administrative expense is already set forth in the Statement of Net Cost, Section O could be
omitted in the guide per OMB Circular A-136. It is provided here for illustrative purposes only.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 68 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
Program Fund
Financing Fund
SF133
Line
Sch P
Line
SF133
Line
Sch P
Line
BUDGETARY RESOURCES
All accounts:
0702 Loan Guarantee Subsidy
19,350
0704 Loan Guarantee Modification
1,000
0709 Administrative Expenses
4,950
0711 Default Claim Payments on Principal
3,500
0715 Interest Supplement
1,940
0900 Total new obligations (490200E)
25,300
5,440
Unobligated balance:
1000 Unobligated balance brought forward, October 1
-
-
Budget Authority:
Appropriations:
Discretionary:
1100 Appropriation Discretionary (411500E, 411700E)
26,500
26,500
1160 Appropriation – Discretionary (total)
26,500
26,500
Mandatory:
1200 Appropriation (412500E)
10
10
1260 Appropriation – Mandatory (total)
10
10
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 69 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
Spending Authority from Offsetting Collections:
Mandatory:
1800 Collected (426100E,426200E,426300E,427100E,427300E)
21,585
21,585
1801 Change in uncollected payments, Federal sources (+ or -) (422100E)
645
645
1850 Spending authority from offsetting collections, mandatory
(total)
22,230
22,230
1930 Total budgetary resources available
26,500
2,240
22,240
Memorandum (non-add) entries:
Unobligated Balance
1940 Unobligated balance expiring (-) (465000E)
1,200
1941 Unexpired unobligated balance, end of year (445000E, 461000E)
16,800
CHANGE IN OBLIGATED BALANCE
Unpaid obligations:
3000 Unpaid obligations, brought forward, Oct 1
3010 New Obligations, unexpired accounts (480100E, 480200E)
25,300
25,300
5,440
5,440
3020 Outlays (gross) (-) (480200E)
(24,655)
(24,655)
(5,440)
(5,440)
3050 Unpaid obligations, end of year (480100E)
645
645
3060 Uncollected pymts, Fed sources, brought forward, Oct 1 (-)
-
-
3070 Change in uncollected pymts, Fed sources, unexpired accounts (+ or -)
(422100E)
(645)
(645)
3090 Uncollected pymts, Fed sources, end of year (-) (422100E)
(645)
(645)
Memorandum (non-add) entries:
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 70 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
3100 Obligated balance, start of year (+ or -)
-
-
3200 Obligated balance, end of year (+ or -) (422100E)
645
645
BUDGET AUTHORITY AND OUTLAYS, NET
Discretionary:
Gross budget authority and outlays:
4000 Budget authority, gross (411500E, 411700E)
26,500
26,500
4010 Outlays from new discretionary authority (480200E)
24,655
24,655
4020 Outlays, gross (total)
24,655
24,655
4070 Budget authority, net (discretionary)
26,500
26,500
4080 Outlays, net (discretionary)
24,655
24,655
Mandatory:
Gross budget authority and outlays:
4090 Budget authority, gross (This line is calculated. Equals the sum of
mandatory budget authority [Lines 1200 through 1252, 1270 through 1273,
1400 through 1430, 1600 through 1631, and 1800 through 1842 (SF 133).
Lines 1200 through 1239, 1270 through 1273, 1400 through 1420, 1600
through 1622, and 1800 through 1827 (Sch P)].)
22,240
22,240
4110 Total outlays, gross (480200E)
45
5,440
5,440
4120 Federal sources (-) (427100E)
(19,705)
(19,705)
4122 Interest on uninvested funds (-) (427300E)
(1,160)
(1,160)
4123 Non-Federal sources (-) (426100E, 426200E, 426300E)
(720)
(720)
4130 Offsets against gross budget authority and outlays (total) (-)
(21,585)
(21,585)
45
Financing funds are not required to breakdown outlays by New and Balance authority
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 71 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
4140 Change in uncollected pymts, Fed sources, unexpired
accounts(+/-) (422100E)
(645)
(645)
4150 Additional offsets against budget authority only (total)
(645)
(645)
4160 Budget authority, net (mandatory) (This line is calculated. Equals the
total new budget authority (gross) on line 4090 plus the amounts on lines
4120 through 4124 and on lines 4140, 4141 and 4143 (SF 133). Line 4090
plus the amounts on lines 4120 through 4124 and on lines 4140 and 4142
(Sch P).)
10
10
4170 Outlays, net (mandatory) (This line is calculated. Equals line 4110
plus the amounts on lines 4120 through 4124.)
(16,145)
(16,145)
4180 Budget authority, net (discretionary and mandatory) (This line is
calculated. Equals sum of lines 4070 and 4160.)
26,500
26,500
10
10
4190 Outlays, net (discretionary and mandatory) (This line is calculated.
Equals sum of lines 4080 and 4170.)
24,655
24,655
(16,145)
(16,145)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 72 of 153 August 2017
FISCAL YEAR 2
In fiscal year 1, the agency accrued an upward adjustment of subsidy expense. Although the expense was recognized in fiscal year 1,
budgetary resources to fund it were not provided until the following year, fiscal year 2. The examples of transactions for the second
year dispose of the upward subsidy re-estimate accrued at the end of the preceding year. Additionally, in order to provide a more
realistic understanding of the complexities of accounting for guaranteed loans, new transactions for negative subsidy are introduced
and borrowing authority issues are presented. At the end of year 2 a downward reestimate will be included.
By adding new authority in year two the concept of Cohorts is introduced. See A-11 for additional insights into the implications of
Cohorts.
Other transactions included in year one would recur in year 2 and subsequent years. These transactions have not been included
because they provide limited additional value to the case study.
TRANSACTIONS YEAR 2
The agency received one year legislative authority to guarantee 75 percent of the principal and related interest of $100,000 of loans.
The transactions for these loans will be related to Cohort 2. The previous year’s loans will be Cohort 1.
1. The agency’s subsidy model indicated that, for the $100,000 of loan guarantees, a (5.0) percent subsidy was indicated as follows
(all cohort 2):
Present value of expected defaults is 3.46 percent, or $3,460
Present value of guarantee fees to be collected is (8.46) percent or $8,460 (to be collected during life of loan)
No interest supplements as interest rates are low
2. The agency has appropriated administrative expenses for fiscal year 2 in the amount of $10,000. (There are no cohorts in the
program fund.)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 73 of 153 August 2017
3. The agency receives approval for upward re-estimates by OMB for $25. This is an increase of $2 from what was estimated at the
end of the fiscal year (all cohort 1)
4. The agency estimates the following financing fund transactions for the year:
$1,000 for guarantee fees (cohort 2)
$5,000 in negative subsidy (cohort 2)
$45,000 in defaults (cohort 1)
$25 in upward re-estimate collections (cohort 1)
$500 in interest expense on debt (cohort 1)
$115 in interest expense on debt (cohort 2)
$250 in interest income on uninvested cash (cohort 1)
$60 in interest income on uninvested cash (cohort 2)
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FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 74 of 153 August 2017
Loan Guarantee Agency
Fiscal Year 2
SF 132 Apportionment/Reapportionment Schedule
BUDGETARY RESOURCES
Program
Fund
Financing
Fund
Budget authority:
Unobligated balance:
1000
Unobligated balance brought forward, Oct 1
16,800
Appropriations, discretionary:
1100
Appropriation
10,000
Appropriations, mandatory:
Spending authority from offsetting collections,
mandatory:
1250
Anticipated appropriation (+ or -)
25
Borrowing authority, mandatory:
1400
Borrowing authority (414100)
32,790
Spending authority from offsetting collections,
mandatory:
1840
Anticipated Collections, Reimbursements, and Other Income
(406000 & 407000)
1,335
1920
Total Budgetary Resources
10.025
50,925
APPLICATION OF BUDGETARY RESOURCES
Category B (by project)
6012
Administrative Expense
10,000
6013
Reestimate
25
6014
Negative Subsidy
5,000
6015
Default Claims
45,000
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 75 of 153 August 2017
SF 132 Apportionment/Reapportionment Schedule
6016
Treasury Interest
46
615
6182
Unapportioned Balance of Revolving Fund
47
310
6190
Total Budgetary Resources Available
10,025
50,925
GUARANTEED LOAN LEVELS AND APPLICATIONS
Guaranteed loan limitation
8100
Loan Guarantee Program Level, Current Year
100,000
8211
Guarantee Loan Program
100,000
46
OMB Circular No. A-11, Section 185.19, for financing accounts, additional interest payment amounts to Treasury (i.e. Amounts exceeding your estimate on
the most recent approved apportionment) are automatically apportioned.
47
There should be no unobligated balances remaining if borrowing authority for a cohort is being used unless there is a timing issue where the authority/cash is
received after the obligation/disbursement needs to be made. As is the case with the interest on uninvested cash.-
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 76 of 153 August 2017
2-1 OMB approved and authorized both requests for apportionment. To record SF 132.
48
Program Fund-Year 2
DR
CR
TC
Budgetary Entry
411700 Loan Administrative Expense Appropriation
10,000
412000 Anticipated Indefinite Appropriations
445000 Unapportioned Authority
445000 Unapportioned Authority
451000 Apportionments
459000 Apportionments – Anticipated
Proprietary Entry
101000 Fund Balance With Treasury
310100 Unexpended Appropriations – Appropriation Received
25
10,025
10,000
10,025
10,000
25
10,000
A104
A116
A118
A110
48
Indefinite appropriations are not available until warrant is processed. Per §2025.10, of the TFM, the requirement to request
appropriations by letter includes Indefinite appropriations—Appropriations of an unspecified amount of money.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 77 of 153 August 2017
Financing Fund-Cohort 1
DR
CR
TC
Budgetary Entry
407000 Anticipated Collections from Federal Sources
414100 Current-Year Borrowing Authority Realized
445000 Unapportioned Authority
445000 Unapportioned Authority
49
451000 Apportionments
459000 Apportionments – Anticipated
275
28,735
45,500
29,010
45,225
275
A140
F112R
49
Unobligated balance carryforward and borrowing authority are available for apportionment.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 78 of 153 August 2017
Financing Fund -Cohort 2
DR
CR
TC
Budgetary Entry
406000 Anticipated Collections from Non-Federal Sources
407000 Anticipated Collections from Federal Sources
414100 Current-Year Borrowing Authority Realized
445000 Unapportioned Authority
445000 Unapportioned Authority
50
451000 Apportionments
459000 Apportionments – Anticipated
Memorandum Entry
801000 Guaranteed Loan Level
801500 Guaranteed Loan Level – Unapportioned
801500 Guaranteed Loan Level – Unapportioned
802000 Guaranteed Loan Level – Apportioned
1,000
60
4,055
5,115
100,000
100,000
5,115
4,055
1,060
100,000
100,000
A140
A152
A116
A118
G102
G104
50
Borrowing authority is available for apportionment.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 79 of 153 August 2017
2-2 To record warrants received for re-estimate.
Program Fund - Year 2
DR
CR
TC
Budgetary Entry
411800 Re-estimated Loan Subsidy Appropriation
412000 Unapportioned Authority
459000 Apportionments – Anticipated
451000 Apportionments
Proprietary Entry
101000 Fund Balance With Treasury
310100 Unexpended Appropriations - Received
25
25
25
25
25
25
A104
A122
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 80 of 153 August 2017
2-3. To record allotment of authority.
Program Fund- Year 2
DR
CR
TC
Budgetary Entry
451000 Apportionments
461000 Allotments - Realized Resource
Proprietary Entry
None
10,025
10,025
A120
Financing Fund – Cohort Year 1
DR
CR
TC
Budgetary Entry
451000 Apportionments
461000 Allotments - Realized Resources
Proprietary Entry
None
45,225
45,225
A120
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 81 of 153 August 2017
Financing Fund – Cohort Year 2
DR
CR
TC
Budgetary Entry
451000 Apportionments
461000 Allotments - Realized Resources
Proprietary Entry
None
4,055
4,055
A120
2-4. The agency transferred the re-estimated subsidy from the program fund to the financing fund. The reestimate for the prior year
was for $23. Since the reestimate for the President’s Budget increased it by $2, the incremental amount was recorded in the current
year as an adjustment to the Guarantee Liability. The unfunded expense of $23 was reversed from the Program Fund for Year 1 and
the actual funded expense of $25 is recorded in the unexpired program fund which funds the reestimate from current reestimate
appropriation.
Program Fund - Year 1
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
680000 Future Funded Expenses [Subsidy Expense – Re-estimates – Interest
Rate]
217000 Subsidy Payable to Financing Account
680000 Future Funded Expense [Subsidy Expense – Re-estimates –Technical]
13
23
36
B420R
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 82 of 153 August 2017
Program Fund - Year 2
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
490200 Delivered Orders – Obligations,
Paid [Re-est. Subsidy and Interest]
Proprietary Entry
610000 Operating Expense/Program Costs[Re-estimated Subsidy]
101000 Fund Balance With Treasury
310700 Unexpended Appropriations – Used
570000 Expended Appropriations
25
25
25
25
25
25
A512
A146
B134
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 83 of 153 August 2017
Financing Fund - Cohort 1
DR
CR
TC
Budgetary Entry
427100 Actual Program Fund Subsidy Collected
407000 Anticipated Collections from Federal Sources
Proprietary Entry
101000 Fund Balance With Treasury
131000 Accounts Receivable
[Subsidy Receivable from Program Fund]
21800 Loan Guarantee Liability
459000 Apportionments - Anticipated Resources
- Programs Subject to Apportionment
461000 Allotments
25
25
25
25
23
2
25
C103
A122
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 84 of 153 August 2017
2-5. The agency makes an expenditure transfer of administrative expense reimbursement to its S&E fund
Program Fund – Year 2
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
490200 Delivered Orders - Obligations, Paid
51
Proprietary Entry
610000 Operating Expenses/Program Costs (Admin)
101000 Fund Balance With Treasury
310700 Unexpended Appropriations – Used
570000 Expended Appropriations
10,000
10,000
10,000
10,000
10,000
10,000
B107
A146
B107
51
Depending upon Agency treatment as described in Footnote 20, Agencies may use either USSGL Accounts 480200 or 490200.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 85 of 153 August 2017
2-6 Agency converts $28,735 of borrowing authority to cash
.
52
Financing Fund - Cohort 1
DR
CR
TC
Budgetary Entry
414800 Resources Realized From Borrowing Authority
414500 Borrowing Authority Converted to Cash
Proprietary Entry
101000 Fund Balance With Treasury
251000 Principal Payable to the Bureau of the Public Debt
28,735
28,735
28,735
28,735
A156
52
Agencies may borrow an estimated amount or on as needed basis
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 86 of 153 August 2017
2-7 Agency pays 35,000 to honor 80% guarantee of 43,750 of defaulted principal funded by borrowing authority.
Financing Fund - Cohort 1
DR
CR
TC
Budgetary Entry
461000 Allotments - Realized Resources
490200 Delivered Orders - Obligations, Paid [Default Guarantee]
Proprietary Entry
218000 Loan Guarantee Liability
101000 Fund Balance With Treasury
35,000
35,000
35,000
35,000
B104
Memorandum Accounts - Loans Disbursed
DR
CR
TC
Memorandum Entry
806500 Guaranteed Loan Collections, Defaults, and Adjustments
43,750
805000 Guaranteed Loan Principal Outstanding
43,750
G110
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 87 of 153 August 2017
2-8. The agency acquired receivables for loans of $35,000 and interest of $1,250 in conjunction with the defaults. The agency will
attempt to collect this money directly from the borrowers. The present value of cash flows related to the loans is estimated to be
$30,000.
Financing Fund – Cohort 1
To establish accounts receivable for defaulted loan.
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
134100 Interest Receivable -Loans [Defaulted Guaranteed Loans]
135000 Loans Receivable [Defaulted Guaranteed Loans]
139900 Allow. for Subs. [Defaulted Guaranteed Loans]
218000 Loan Guarantee Liability
1,250
35,000
6,250
30,000
D150
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 88 of 153 August 2017
2-9 Agency makes a commitment for loan guarantees of $80,000 with a negative subsidy of $4,000. The agency is guaranteeing 75%
of the loan. Negative Subsidy is funded with borrowing authority. Collection of guarantee fee also made at this time.
Financing Fund - Cohort 2
DR
CR
TC
Budgetary Entry
426100 Collection of fees
406000 Anticipated Collections – Non-Federal
459000 Apportionments – Anticipated
461000 Allotments – Realized Resources
461000 Allotments – Realized Resources
480100 Undelivered Orders – Negative Subsidy
Proprietary Entry
800
800
4,000
800
800
4,000
C117
A122
B306
101000 Fund Balance With Treasury
218000 Loan Guarantee Liability
Memorandum Entry
802000 Guaranteed Loan Level Apportioned
804000 Guaranteed Loan Level – Used Authority
800
80,000
800
80,000
C117
G106
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 89 of 153 August 2017
2-10 Third party lenders notified agency of disbursing $2,000 of Cohort 1 loans and $60,000 of Cohort 2 loans.
53
Program Fund – Year 1
DR
CR
TC
Budgetary Entry
480100 Undelivered Orders – Unpaid
490200 Delivered Orders – Paid
Proprietary Entry
430
430
A146
610000 Program Expense – Subsidy
101000 Fund Balance With Treasury
310700 Unexpended Appropriations – Used
570000 Expended Appropriations
430
430
430
430
B134
53
Original subsidy rate for each cohort must be used in calculating subsidy transfer amount – Cohort 1 2,000 x 21.5% = 430. Cohort 2 60,000 x (5%) = 3,000.
Note – Since one cohort cannot pay for another cohort’s obligation, there is not enough cash in Cohort 2 to cover the negative subsidy payment. Only cash is
$800 in fees collected. Therefore, the borrowing authority must be converted to cash.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 90 of 153 August 2017
Program Fund – Year 2
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
579100 Adjustment to Financing Sources
3,000
619900 Adjustment to Subsidy Expense
3,000
D150
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
427100 Actual Subsidy Collections
422100 Unfilled Customer Order
Proprietary Entry
430
430
C103
101000 Fund Balance with Treasury
218000 Loan Guarantee Liability
Memorandum Entry
805000 Guaranteed Loan Principal Outstanding
805300 Guaranteed Loan New Disbursements
430
2000
430
2000
G108
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 91 of 153 August 2017
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
414800 Resources Realized from Borrowing Authority
414500 Borrowing Authority Converted to Cash
480100 Undelivered Orders – Negative Subsidy
490200 Delivered Orders – Negative Subsidy
Proprietary Entry
2,200
3,000
2,200
3,000
A156
A146
101000 Fund Balance with Treasury
251000 Debt Outstanding
218000 Loan Guarantee Liability
579100 Adjustments to Financing Sources
577600 Non-budgetary Financing Sources Trans Out
101000 Fund Balance with Treasury
Memorandum Entry
805000 Guaranteed Loan Principal Outstanding
805300 Guaranteed Loan New Disbursements
2,200
3,000
3,000
60,000
2,200
3,000
3,000
60,000
A156
D147
E509
G108
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 92 of 153 August 2017
Miscellaneous Receipt Account (negative subsidy TAFS)
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
101000 Fund Balance With Treasury
3,000
577500 Non-budgetary Financing Sources Trans In
599300 Offset to Non-Entity Collections Stmt of Changes in Net Position
54
298500 Liability for Non-Entity Assets
47
3,000
3,000
3,000
C155
C147
54
These SGLs are always Federal with trading partner 099
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 93 of 153 August 2017
2-11 Agency accrues interest on Fund Balance with Treasury for November reporting period. Therefore, there will only be an accrual
for cohort 1. Other methodologies are acceptable per OMB approval.
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
428300 Interest Receiviable from Treasury
407000 Anticipated Collections from Federal Sources
459000 Apportionments – Anticipated
461000 Allotments – Realized Resources
Proprietary Entry
134000 Interest Receivable – Uninvested Cash
531200 Interest Revenue – Loans/Uninvested
193
193
193
193
193
193
C416
A122
C402
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 94 of 153 August 2017
2-12 Agency accrues interest on debt outstanding from The Bureau of the Fiscal Service (FS) for November using FS reports. There
will be an accrual for both cohorts and interest rates can be different.
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
461000 Allotments – Resources Realized
490100 Delivered Orders – Unpaid
Proprietary Entry
83
83
B418
631000 Interest Expense
214100 Interest Payable
83
83
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
461000 Allotments – Resources Realized
490100 Delivered Orders – Unpaid
Proprietary Entry
10
10
B418
631000 Interest Expense
214100 Interest Payable
10
10
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 95 of 153 August 2017
2-13 Agency is notified by cohort 1 borrowers that the remaining amounts of the loan are no longer needed. Agency cancels
remaining commitment and deobligates remaining subsidy
55
Program Fund – Year 1
DR
CR
TC
Budgetary Entry
487100 Downward Adjustment Prior Year Undelivered
215
465000 Expired Authority
Proprietary Entry
None
215
D120
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
461000 Allotments – Realized Resources
56
215
422100 Unfilled Customer Order
Proprietary Entry
None
Memorandum Entry
804000 Guaranteed Loan Level- Used Authority
801000 Guaranteed Loan Level
1,000
215
1,000
F109
F344
55
The original subsidy rate is used in determining the amount of subsidy to de-obligate with the commitment cancelation.
56
Amount of unfilled order cancellation could have been anticipated in the SF132 in which case the amount would debit 407000.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 96 of 153 August 2017
2-14 After consultation and agreement with OMB, the agency decided to exercise a clause in the program’s legislation allowing it to
modify the terms of cohort 1 guarantees. The modification caused a savings for the program of $1,000 and a modification adjustment
transfer of $30.
The agency submitted a new request for apportionment (SF-132) for the financing fund.
Loan Guarantee Agency
Fiscal Year 2
SF 132 Apportionment/Reapportionment Schedule
BUDGETARY RESOURCES
Financing
Fund
Budget authority:
Unobligated balance:
1000
Unobligated balance brought forward, Oct 1
16,800
Borrowing authority, mandatory:
1400
Borrowing authority (414100)
32,790
Spending authority from offsetting collections,
mandatory:
1800
Collected
1,255
1801
Change in Uncollected Payments, Federal Sources
(237)
1840
Anticipated Collections, Reimbursements, and Other Income
(406000 & 407000)
317
1842
Anticipated capital transfers and redemption of debt
(spending authority from offsetting collections) (-)
57
(30)
1920
Total Budgetary Resources
50,895
APPLICATION OF BUDGETARY RESOURCES
Category B (by project)
6014
Negative Subsidy
5,000
57
Amounts could come from prior year balances if there is enough remaining to cover. In that instance the amounts would be shown on line 1042.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 97 of 153 August 2017
SF 132 Apportionment/Reapportionment Schedule
6015
Default Claims
40,000
6016
Treasury Interest
615
6017
Modification
1,000
6182
Unapportioned Balance of Revolving Fund
4,280
6190
Total Budgetary Resources Available
50,895
GUARANTEED LOAN LEVELS AND APPLICATIONS
Guaranteed loan limitation
8100
Loan Guarantee Program Level, Current Year
100,000
8211
Guarantee Loan Program
100,000
SF132 entries
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
461000 Allotments
58
4,000
445000 Unapportioned Authority
445000 Unapportioned Authority
404700 Anticipated Transfers to General Fund of the U.S. Government-
Current Year Authority
59
30
4,000
30
F308
A142
58
Reduce allotments $5,000 for reduction in estimated defaults and increase $1,000 for modification. Net reduction of $4,000
59
Use 404800 if funds are anticipated from prior year authority
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 98 of 153 August 2017
After approved SF132 is received, SF1151 request transferring modification adjustment transfer from financing fund to treasury
general fund (TAS xxx2814, where xxx is agency id) at the same time payment is made to the general fund (agency’s negative subsidy
account).
Modification Savings
Program Fund – Year 2
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
579100 Adjustments to Financing Sources
619900 Adjustments to Subsidy Expense
1,000
1,000
D150
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
461000 Allotments
1,000
49020000 Delivered Orders-Paid [Modification]
Proprietary Entry
218000 Loan Guarantee Liability
101000 Fund Balance With Treasury
577600 Nonbudgetary Financing Sources Transfers Out
579100 Adjustments to Financing Sources
1,000
1,000
1,000
1,000
1,000
A512
B104
F336R
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 99 of 153 August 2017
Miscellaneous Receipt Account (negative subsidy TAS)
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
101000 Fund Balance With Treasury
577500 Nonbudgetary Financing Sources Transfers In
599300 Offset to Non-Entity Collections
298500 Liability for Non-Entity Assets not report on SOC
1,000
1,000
1,000
1,000
C155
C147
Modification Adjustment Transfer
Program Fund – Year 2
To record negative modifications for subsidy cost and adjustment transfers related to Direct Loans and Loan Guarantee liabilities in
the program account.
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
579100 Adjustments to Financing Sources
719000 Other Gains
30
30
A208
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 100 of 153 August 2017
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
404700 Anticipated Transfers to General Fund of The U.S. Government- Current
Year Authority
415100 Actual Capital Transfers to General Fund of The U.S. Government-
Current Year 60
30
Proprietary Entry
218000 Loan Guarantee Liability
101000 Fund Balance With Treasury
576600 Nonexpenditure Financing Sources -Transfers Out –Capital
579100 Adjustments to Financing Sources
30
30
30
30
30
B119
B104
F336R
60
Use 404800/415200 if funds paid from prior year authority
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 101 of 153 August 2017
Miscellaneous Receipt Account (xxx2814 TAS)
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
1010000 Fund Balance With Treasury
575600 Nonexpenditure Financing Sources Transfers In Capital Transfer
599300 Offset to Non-Entity Collections
298500 Liability for Non-Entity Assets not report on SOC
30
30
30
30
C196
C147
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 102 of 153 August 2017
2-15 Year-end interest earned on Cash and interest expense to BPD calculated using Financing Account Interest Calculator (FAIC) as
follows. Cohort 1 earned $323 and expense $500; Cohort 2 earned $62 and expense $85.
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
427300 Interest Collected From Treasury
428300 Interest Receivable From Treasury
407000 Anticipated Federal Collections
323
193
130
459000 Anticipated Apportionments
461000 Allotments
461000 Allotments
490100 Delivered Orders – Unpaid
490200 Delivered Orders – Paid
Proprietary Entry
101000 Fund Balance With Treasury
134000 Interest Receivable
531200 Interest Income
214100 Interest Payable
631000 Interest Expense
101000 Fund Balance with Treasury
57
417
83
323
83
417
57
500
193
130
500
A122
C109
B109
B112
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 103 of 153 August 2017
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
459000 Anticipated Apportionments
461000 Allotments
62
62
A122
427300 Interest Collected From Treasury
407000 Anticipated Federal Collections
461000 Allotments
490100 Delivered Orders – Unpaid
490200 Delivered Orders – Paid
Proprietary Entry
1010000 Fund Balance With Treasury
531200 Interest Income
214100 Interest Payable
631000 Interest Expense
101000 Fund Balance with Treasury
62
52
10
62
10
52
62
85
62
62
C109
B109
B112
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 104 of 153 August 2017
2-16 Agency determines that there will no further obligations. Agency returns borrowing converted to cash and not obligated for
cohort 1 and reduces borrowing authority for cohort 2 as required in A-11. Calculations below are based on timing.
Financing Fund – Cohort 1
Cash beginning of year 16,155
Upward reestimate 25
Default payment (35,000)
Subsidy collected 430
Modification & adjustment (1,030)
Interest Income 323
Interest Expense (500)
Borrowings needed for payment 18,820 600 177
Total Borrowings used 19,597
Total Borrowings converted 28,735
Return 9,138 excess borrowings converted to cash
DR
CR
TC
Budgetary Entry
461000 Allotments – Realized Resources
445000 Unapportioned Authority
4,785
4,353
414200 Actual Repayments of Borrowing Authority Converted
Proprietary Entry
251000 Principal Payable to the Bureau of the Public Debt
101000 Fund Balance With Treasury
9,138
9,138
9,138
B120
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 105 of 153 August 2017
Financing Fund – Cohort 2
Negative Subsidy Obligations 4,000
Less: Fees collected (800)
Interest Income 85
Interest Expense (62)
Borrowing Authority needed 3,200 (23)
Total Borrowing Authority needed 3,177
Borrowing Authority provided 4,055
Withdraw 878 of borrowing authority
DR
CR
TC
Budgetary Entry
461000 Allotments – Realized Resources
414300 Current year decreases to borrowing authority
878
878
A148
Proprietary Entry
None
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 106 of 153 August 2017
2-17 The modeling team reestimated the cost for Cohort year 1 and 2. There was a technical downward reestimate for year 2 of 50
and technical upward for year one of 20. There was no interest reestimate. Cohorts are accounted for separately in the financing
funds. Budgetary information is reported in GTAS by Cohort in fourth quarter (required for fourth, but can be more often).
Cohort 1(Cohort only exists in Financing Fund)
Program Fund Year 2
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
680000 Future Funded Expenses
[Subsidy Expense - Re-estimates – Technical]
217000 Subsidy Payable to Financing Account
20
20
B420
Financing Fund Cohort 1
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
131000 Accounts Receivable
[Subsidy Receivable from Program Fund]
218000 Loan Guarantee Liability
20
20
C438
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 107 of 153 August 2017
Cohort 2 (Cohort only exists in Financing Fund)
Program Fund - Year 2
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
579100 Adjustment to Financing Sources
– Downward Reestimate or Negative Subsidy
680000 Future Funded Expenses
[Subsidy Expense - Re-estimates – Technical]
50
50
D146
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
218000 Loan Guarantee Liability
579100 Adjustment to Financing Sources
– Downward Reestimate or Negative Subsidy
577600 Nonbudgetary Financing Sources Transferred Out
299000 Other Liabilities Without Budgetary Obligations
50
50
50
50
D147
D148
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 108 of 153 August 2017
Miscellaneous Receipts Fund (Downward Reestimate TAS)
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
131000 Accounts Receivable
577500 Nonbudgetary Financing Sources Transferred In
599400 Offset to Non-entity Collections
298500 Liability for Non-Entity Assets Not
Reported on the Statement of Custodial Activity
50
50
50
50
C420
C405
2-18 The agency accrued interest on its loan guarantee liability and on the present value of its loans.
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
139900 Allowance for Subs. [Defaulted Guar. Loan Assets]
531300 Interest Revenue – Subsidy Amortization
634000 Interest Exp Accrual on Liability for Loan Guarantee
218000 Loan Guarantee Liability
293
116
293
116
E118
E122
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 109 of 153 August 2017
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
634000 Interest Exp Accrual on Liability for Loan Guarantee
218000 Loan Guarantee Liability
23
23
E122
Pre-Closing Entries
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
407000 Anticipated Federal Collections
445000 Unapportioned Authority
73
73
A140
Proprietary Entry
None
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 110 of 153 August 2017
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
407000 Anticipated Federal Collections
459000 Anticipated Apportionments
25
175
406000 Anticipated Non-Federal Collections
Proprietary Entry
None
200
A140
Miscellaneous Receipts Fund Downward Reestimate
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
298500 Liability for Non-Entity Assets Not
Reported on the Statement of Custodial Activity
101000 Fund Balance w Treasury
4,000
4,000
F124
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 111 of 153 August 2017
Miscellaneous Receipts Fund Other Repayments of Investments and Recoveries (xxx2814)
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
298500 Liability for Non-Entity Assets Not
Reported on the Statement of Custodial Activity
101000 Fund Balance w Treasury
30
30
F124
Year 2
Pre-Closing Adjusted Trial Balance
Program Fund
Accounts
Year 1
(Expired)
Debit/(Credit)
Year 2
(Unexpired
during Year 2)
Debit/(Credit)
Total
Debit/(Credit)
Budgetary
411700 Loan Administrative Expense Appropriation
10,000
10,000
411800 Reestimated Loan Subsidy Appropriation
25
25
420100 Total Actual Resources – Collected
1,845
1,845
465000 Allotments – Expired Authority
(1,415)
(1,415)
480100 Undelivered Orders - Obligations, Unpaid
(215)
(215)
487100 Downward Adjustments of Prior-Year Unpaid Undelivered
Orders - Obligations, Recoveries
215
215
490200 Delivered Orders - Obligations, Paid (Admin)
(10,000)
(10,000)
490200 Delivered Orders - Obligations, Paid (Subsidy)
(430)
(430)
490200 Delivered Orders - Obligations, Paid (Reestimate)
(25)
(25)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 112 of 153 August 2017
Pre-Closing Adjusted Trial Balance (Continued)
Accounts
Year 1
(Expired)
Debit/(Credit)
Year 2
(Unexpired
during Year 2)
Debit/(Credit)
Total
Debit/(Credit)
Proprietary
101000 Fund Balance With Treasury
1,415
1,415
217000 Subsidy Payable to the Financing Account
(20)
(20)
310000 Unexpended Appropriations - Cumulative
(1,845)
(1,845)
310100 Unexpended Appropriations – Appropriations Received
(10,025)
(10,025)
310700 Unexpended Appropriations - Used
430
10,025
10,445
331000 Cumulative Results of Operations
23
23
570000 Expended Appropriations
(430)
(10,025)
(10,445)
579100 Adjustment to Financing Sources – Credit Reform
4,080
4,080
610000 Operating Expenses/Program Costs (Admin)
10,000
10,000
610000 Operating Expenses/Program Costs (Subsidy)
430
25
455
619900 Adjustment to Subsidy Expense
(4,000)
(4,000)
680000 Future Funded Expenses (Technical)
(36)
(30)
(66)
680000 Future Funded Expenses (Interest)
13
13
719000 Other Gains
(30)
(30)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 113 of 153 August 2017
Pre-Closing Adjusted Trial Balance
Financing Fund
Accounts
Year 1 Cohort
Debit/(Credit)
Year 2 Cohort
Debit/(Credit)
Total
Debit/(Credit)
Budgetary
414100 Current-Year Borrowing Authority Realized
28,735
4,055
32,790
414200 Actual Repayment of Borrowing Authority Converted
To Cash
(9,138)
(9,138)
414300 Current –Year Decreases to Indefinite Borrowing
Authority Realized
(878)
(878)
414500 Borrowing Authority Converted to Cash
(28,735)
(2,200)
(30,935)
414800 Resources Realized From Borrowing Authority
28,735
2,200
30,935
415100 Actual Capital Transfers to the General Fund of the
U.S. Government, Current-Year Authority
(30)
(30)
420100 Total Actual Resources – Collected
16,155
800
16,155
426100 Actual Collections of Business-Type Fees
800
800
427100 Actual Program Fund Subsidy Collected
455
455
427300 Interest Collected From Treasury
323
85
408
480100 Undelivered Orders - Obligations, Unpaid (Negative
Subsidy)
(1,000)
(1,000)
490200 Delivered Orders – Obligations, Paid (Defaulted Gty)
(35,000)
(35,000)
490200 Delivered Orders - Obligations, Paid (Treas. Interest)
(500)
(62)
(562)
490200 Delivered Orders – Obligations, Paid (Modification)
(1,000)
(1,000)
490200 Delivered Orders - Obligations, Paid (Negative
Subsidy)
(3,000)
(3,000)
Proprietary
101000 Fund Balance With Treasury
23
23
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 114 of 153 August 2017
Pre-Closing Adjusted Trial Balance (Continued)
131000 Accounts Receivable
20
20
134100 Interest Receivable – Loans
2,285
2,285
135000 Loans Receivable
38,450
38,450
139900 Allowance for Subsidy
(7,655)
(7,655)
218000 Loan Guarantee Liability
(13,503)
2,227
(11,276)
251000 Principal Payable to the Bureau of the Fiscal Service
(19,597)
(2,200)
(21,797)
299000 Other Liabilities Without Related Budgetary
Obligations
(50)
(50)
531200 Interest Revenue – Loans Receivable / Uninvested
Funds
(323)
(85)
(408)
531300 Interest Revenue – Subsidy Amortization
(293)
(293)
576600 Nonexpenditure Financing Sources – Transfers-Out-
Capital Transfers
30
30
577600 Nonbudgetary Financing Sources Transferred Out
1,000
3,050
4,050
579100 Adjustment to Financing Sources – Credit Reform
(1,030)
(3,050)
(4,080)
631000 Interest Expenses on Borrowing From the Bureau of
the Fiscal Service and/or the Federal Financing Bank
500
62
562
634000 Interest Expense Accrued on the Liability for Loan
Guarantees
116
23
139
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 115 of 153 August 2017
Preclosing Trial Balance (Miscellaneous Receipt Account)
Debit/(Credit)
Accounts
131000 Accounts Receivable
50
298500 Liability for Non-Entity Assets Not Reported on the Statement of Custodial Activity
(50)
575600 Nonexpenditure Financing Sources - Transfers-In - Capital Transfers
(30)
577500 Nonbudgetary Financing Sources Transferred In
(4,050)
599300 Offset to Non-Entity Collections - Statement of Changes in Net Position
4,030
599400 Offset to Non-Entity Accrued Collections - Statement of Changes in Net Position
50
Total
0
Pre-Closing Adjusted Trial Balance (Financing Fund Only)
Cohort 1
Debit/(Credit)
Cohort 2
Debit/(Credit)
Total
Debit/(Credit)
Loan Guarantee Level
Memorandum Accounts
801000 Guaranteed Loan Level
89,000
100,000
189,000
802000 Guaranteed Loan Level – Apportioned
(20,000)
(20,000)
804000 Guaranteed Loan Level – Used Authority
(89,000)
(80,000)
(169,000)
Total
0
0
0
Loans Disbursed
Memorandum Accounts
805000 Guaranteed Loan Principal Outstanding
30,875
60,000
90,875
805300 Guaranteed Loan New Disbursements by Lender
(2,000)
(60,000)
(62,000)
806500 Guaranteed Loan Collections, Defaults, and Adjustments
43,750
43,750
807000 Guaranteed Loan Cumulative Disbursements by Lenders
(72,625)
(72,625)
Total
0
0
0
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 116 of 153 August 2017
2-19. The agency made closing entries.
Program Fund - Year 1
DR
CR
TC
Budgetary Entry
490200 Delivered Orders
420100 Total Resources
480100 Undelivered Orders
430
215
430
F314
487100 Downward Adjustment of Undelivered Orders
Proprietary Entry
310000 Unexpended Appropriations
310700 Unexpended Appropriations – Used
570000 Expended Appropriations
610000 Operating Expenses/Program./Costs
680000 Future Funded Expenses
331000 Cumulative Results of Operations
430
430
23
215
430
430
23
F332
F342
F336
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 117 of 153 August 2017
Program Fund - Year 2
DR
CR
TC
Budgetary Entry
490200 Delivered Orders
411700 Loan Administrative Appropriation
411800 Reestimated Appropriation
10,025
10,000
25
Proprietary Entry
310100 Unexpended Appropriations – Approp. Received
310700 Unexpended Appropriations – Used
570000 Expended Appropriations
610000 Operating Expenses/Program./Costs
680000 Future Funded Expenses
331000 Cumulative Results of Operations
619900 Adjustments to Subsidy Expense
719000 Other Gains
579100 Adjustments to Financing Sources
10,025
10,025
30
20
4,000
30
10,025
10,025
4,080
F342
F336
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 118 of 153 August 2017
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
414500 Borrowing Authority Converted to Cash
414100 Borrowing Authority
28,735
28,735
F306
414200 Actual Repayment of Borrowing Auth Convert
415100 Actual Capital Transfers
490200 Delivered Orders
414800 Resources Realized from Borrowing Auth
420100 Total Actual Resources - Collected
427100 Actual Program Fund Subsidy Collected
427300 Interest Collected from Treasury
Proprietary Entry
531200 Interest Revenue – Loans
531300 Interest Revenue –Subsidy Amortization
579100 Adjustments to Financing Sources-Credit Reform
576600 Nonbudgetary Transfers Out-Capital Transfers
577600 Nonbudgetary Transfers Out
631000 Interest Expense – Debt
634000 Interest Expense – Gtd Liability
Memorandum Entry
805300 Guaranteed Loan New Disbursements
807000 Guaranteed Loan Cumulative
806500 Guaranteed Loan Collections, Defaults, Adjustments
9,138
30
36,500
323
293
1030
2,000
41,750
28,735
16,155
455
323
30
1000
500
116
43,750
F302
F336
F348
F350
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 119 of 153 August 2017
Financing Fund – Cohort 2
DR
CR
TC
Budgetary Entry
414300 Current-Year Decreases of Indef Borrow Auth
414500 Borrowing Authority Converted to Cash
414900 Borrowing Authority Carried Forward
414100 Borrowing Authority
878
2,200
977
4,055
F306
420100 Total Actual Resources - Collected
490200 Delivered Orders
414800 Resources Realized from Borrowing Auth
426100 Actual Collection of Business Type Fees
427300 Interest Collected from Treasury
Proprietary Entry
531200 Interest Revenue – Loans
579100 Adjustments to Financing Sources-Credit Reform
577600 Nonbudgetary Transfers Out
631000 Interest Expense – Debt
634000 Interest Expense – Gtd Liability
Memorandum Entry
802000 Guaranteed Loan Level – Apportioned
804500 Guaranteed Loan Level – Unused Authority
805300 Guaranteed Loan New Disbursements
807000 Guaranteed Loan Cumulative
23
3,062
85
3,050
20,000
60,000
2,200
800
85
3,050
62
23
20,000
60,000
F302
F336
F346
F348
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 120 of 153 August 2017
Miscellaneous Receipt Accounts
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
575600 Nonexpenditure Financing Sources - Transfers In - Capital Transfers
577500 Nonbudgetary Financing Sources Transferred In
599300 Offset to Non-Entity Collections – Statement of Changes in Net
Position
30
4,050
4,080
F336
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
577500Nonbudgetary Financing Sources Transferred In
599400 Offset to Non-Entity Accrued Collections – Statement of Changes in
Net Position
50
50
F336
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 121 of 153 August 2017
Year 2
Post-Closing Trial Balance
Program Fund
Financing Fund
Debit/(Credit)
Debit/(Credit)
Accounts
Budgetary
414900 Borrowing Authority Carried Forward
977
420100 Total Actual Resources - Collected
1,415
23
465000 Allotments - Expired Authority
(1,415)
480100 Undelivered Orders - Obligations, Unpaid
(1,000)
Total
0
0
Post-Closing Trial Balance (Continued)
Program Fund
Financing Fund
Miscellaneous Receipt
Debit/(Credit)
Debit/(Credit)
Debit/(Credit)
Accounts
Proprietary
101000 Fund Balance With Treasury
1,415
23
131000 Accounts Receivable
20
50
134100 Interest Receivable-Loans
2,285
135000 Loans Receivable
38,450
139900 Allowance for Subsidy
(7,655)
217000 Subsidy Payable to the Financing Account
(20)
218000 Loan Guarantee Liability
(11,276)
251000 Principal Payable to the Bureau of the Fiscal
Service
(21,797)
298500 Liability for Non-Entity Assets Not Reported on
the Statement of Custodial Activity
(50)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 122 of 153 August 2017
299900 Other Liabilities Without Related Budgetary
Obligations
(50)
310000 Unexpended Appropriations - Cumulative
(1,415)
331000 Cumulative Results of Operations
20
Total
0
0
0
Post-Closing Trial Balance (Financing Fund Only)
Debit
Credit
Loan Guarantee Level
Memorandum Accounts
801000 Guaranteed Loan Level
189,000
804000 Guaranteed Loan Level - Used Authority
(169,000)
804500 Guaranteed Loan Level - Unused Authority
(20,000)
Total
0
0
Loans Disbursed
Memorandum Accounts
805000 Guaranteed Loan Principal Outstanding
90,875
807000 Guaranteed Loan Cumulative Disbursements by Lenders
(90,875)
Total
0
0
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 123 of 153 August 2017
Loan Guarantee Agency
September 30, FY-2
BALANCE SHEET
Program
Fund
Elim
Financing
Fund
Misc.
Receipt
Total
Assets:
Intragovernmental
1.
Fund Balance with Treasury (101000E)
1,415
23
1,438
3.
Accounts Receivable (131000E)
(70)
20
6.
Total Intragovernmental (calc.)
1,415
(70)
43
50
1,438
11.
Direct Loan and Loan Guarantees, Net (134100E, 135000E,
139900E)
33,080
33,080
15.
Total Assets (calc.)
1,415
(70)
33,123
50
34,518
Liabilities:
17.
Accounts Payable (2170000E)
20
(70)
50
50
50
18.
Debt (251000)
11,276
11,276
20.
Total Intragovernmental
20
(70)
11,326
50
11,326
22.
Loan Guarantee Liability (218000E)
21,797
21,797
28.
Total Liabilities (calc.)
20
-70
33,123
33,123
Net Position:
31.
Unexpended Appropriations – All Other Funds (310100E,
310700E)
1,415
1,415
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 124 of 153 August 2017
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-2
STATEMENT OF NET COST
Program
Fund
Financing
Fund
Total
Gross Program Costs:
1. Gross costs (610000E, 631000E, 634000E, 680000E)
6,402
701
7,103
2. Less: Earned Revenues (531200E, 531300E, 719000E)
30
701
731
3. Net program costs (calc. 1-2)
6,372
6,372
8. Net cost of operations (calc. 5+6-7)
6,372
6,372
BALANCE SHEET
33.
Cumulative Results of Operations - All Other Funds (531200E,
570000E, 579100E, 610000E, 634000E, 680000E, 729000E)
(20)
(20)
35.
Total Net Position – All Other Funds (calc.)
36.
Total Net Position (calc.)
1,395
1,395
37.
Total Liabilities and Net Position (calc.)
1,415
-70
33,123
50
34,518
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 125 of 153 August 2017
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-2
STATEMENT OF CHANGES IN NET POSITION
Program Fund
Financing Fund
Misc. Recipt
Total
Cumulative
Results of
Operations
Unexpende
d
Appropriati
ons
Cumulative
Results of
Operations
Unexpende
d
Appropriati
ons
Cumulative
Results of
Operations
Unexpended
Appropriatio
ns
Cumulative
Results of
Operations
Unexpended
Appropriatio
ns
Cumulative Results of Operations:
Beginning Balances
1.
Cumulative Results of Operations
(331000B)
(23)
1,845
(23)
1,845
3.
Beginning Balances, as Adjusted
(23)
1,845
(23)
1,845
Budgetary Financing Sources:
5.
Appropriations Used (570000E)
10,455
10,455
8.
Transfers-In/Out Without Reimbursement
(576600E)
(30)
(30)
Other Financing Sources (Non
Exchange):
11.
Transfers In/Out w/out Reimbursement
(575600E, 577500E, 577600E)
(4,050)
4,080
30
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 126 of 153 August 2017
STATEMENT OF CHANGES IN NET POSITION
13.
Other (579100E, 599300E)
(4,080)
(4,080)
(4,080)
14.
Total Financing Sources
6,375
6,375
15.
Net Cost of Operations (+/-)
6,372
6,372
16.
Net Change (calc. 14-15)
(20)
(20)
17.
Cumulative Results of Operations
(calc. 3+16)
Unexpended Appropriations:
Budgetary Financing Sources:
21.
Appropriations Received (310100E)
10,025
10,025
24.
Appropriations Used (310700E)
(10,455)
25.
Total Budgetary Financing Sources
(calc. 21..24)
(430)
(430)
26.
Total Unexpended Appropriations
(calc. 20 + 25)
(430)
(430)
27.
Net Position (calc. 17 + 26)
(20)
(20)
1415
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 127 of 153 August 2017
Loan Guarantee Agency
For Fiscal Year Ended September 30, FY-2
STATEMENT OF BUDGETARY RESOURCES
Budgetary
Non-Budgetary
Financing
Account
Total
Budgetary Resources:
1000
Unobligated balance brought forward ((420100B, 422100B, 480100B)
1,200
16,800
18,000
1021
Recoveries of prior year unpaid obligations (487100E)
215
215
1290
Appropriations (discretionary and mandatory) (411700E, 4118000E)
10,025
10,025
1490
Borrowing authority (discretionary and mandatory) (414100E, 414200E,
414300E)
22,774
22,774
1890
Spending authority from offsetting collections (discretionary and
mandatory) (415100E, 426100E, 4271E, 427300E, 422100E)
988
988
1910
Total budgetary resources
$11,440
$40,562
$52,002
Status of Budgetary Resources:
2190
Obligations incurred- Direct (480100E-B, 490200B)
10,025
40,562
50,587
Unobligated balance, end of year:
2413
Expired unobligated balance, end of year (465000E, 445000E)
1,415
1,415
2500
Total budgetary resources
$11,440
$40,562
$52,002
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 128 of 153 August 2017
STATEMENT OF BUDGETARY RESOURCES
Change in obligated balance
3000
Unpaid obligations, brought forward, Oct 1 (480100B)
645
645
3012
New obligations and upward adjustments
10,025
40,562
50,587
3020
Outlays (gross) (-)
(10,455)
(39,562)
(50,017)
3042
Recoveries of prior year unpaid obligations (-)
215
215
3072
Change in uncollected pymts, Fed sources (+ or-)
645
645
3200
Obligated balance, end of year (+ or -)
1,000
1,000
Budget authority and outlays, net:
4175
Budget authority, gross (discretionary and mandatory)
10,025
23,762
33,787
4177
Change in uncollected pymts, Fed sources (discretionary and mandatory) (+ or -)
(1,663)
(1,663)
4178
Recoveries of prior year paid obligations (discretionary and mandatory)
645
645
STATEMENT OF BUDGETARY RESOURCES
4180
Budget authority, net (total) (discretionary and mandatory)
10,025
22,744
32,769
4185
Outlays, gross (discretionary and mandatory)
10,455
39,562
50,017
4187
Actual offsetting collections (discretionary and mandatory) (-)
(1.663)
(1,663)
4190
Outlays, net (total) (discretionary and mandatory)
10,455
37,899
48,354
4200
Distributed offsetting receipts (-)
(4,030)
(4,030)
4210
Agency outlays, net (discretionary and mandatory)
6,425
37,899
44,324
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 129 of 153 August 2017
Loan Guarantee Agency
for Fiscal Year Ended September 30, FY-2
FUND BALANCE WITH TREASURY FOOTNOTE
Program
Fund
Financing
Fund
Total
A. Fund Balance
3. Revolving Funds
23
23
4. General Funds
1.415
1,415
Total
1,415
23
1,438
B. Status of Fund Balance
1. Unobligated Balances
(a) Available (461000E)
(b) Unavailable (445000E, 465000E)
1,415
2. Obligated Balances not yet disbursed
(a) Unpaid Obligations (480100E)
1,000
1,000
(b) Borrowing authority not converted to cash (414900E)
(977)
(977)
Total
1,415
23
1,438
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 130 of 153 August 2017
Loan Guarantee Agency
September 30, FY-2
Note 8: Credit Program Note
I. Defaulted Guaranteed Loans from Post – 1991 Guarantees:
Defaulted Loans Receivable, Gross (135000E)
38,450
Interest receivable (134100E)
2,285
Less Allowance for Subsidy Cost (139900E)
(7,655)
Value of Assets Related to Defaulted Guaranteed Loan Receivables, Net
$33,080
J. Guaranteed Loans Outstanding:
J1. Guaranteed Loans Outstanding:
Outstanding Principle of Guaranteed Loans, Face Value (805000E)
$90,875
Amount of Outstanding Principle Guaranteed (805000* gtd %)
61
$69,700
J2. New Guaranteed Loans Disbursed(current reporting year):
Principle of Guaranteed Loans, Face Value (805300)
$62,000
Amount of Principle Guaranteed (805300 * gtd %)
62
$46,600
K. Liability for Loan Guarantees:
K1. Liability for Loan Guarantees
(Present Value Method for Pre-1992 Guarantees):
$11,276
Liabilities for Post -1991 Guarantees, Present Value (218000)
L Subsidy Expense for Loan Guarantees by Program and Component:
L1. Subsidy Expense for New Loan Guarantees (current reporting
year)
Interest Supplements
40
Defaults
2,476
61
Cohort 1 – 30,875 x 80% = 24,700 Cohort 2 – 60,000 x 75% = 45,000
62
Cohort 1 – 2,000 x 80% = 1,600 Cohort 2 – 60,000 x 75% = 45,000
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 131 of 153 August 2017
Note 8: Credit Program Note
Fees and Other Collections
(5,086)
Total
(2,570)
L2. Modifications and Reestimates (current reporting year):
Total Modifications
(1,000)
Technical Reestimates (680000, 610000)
(28)
Total Re-estimates
(1,028)
L3. Total Loan Guarantee Subsidy Expense
(equals 610000 + 680000 for subsidy & modification)
(3,598)
M. Subsidy Rates for Loan Guarantees by Program and Component:
Budget Subsidy Rates for Loan Guarantees for the Current Year’s Cohorts:
Percent
Defaults
3.46
Fees and Other Collections
(8.46)
Total
(5.00)
N. Schedule for Reconciling Loan Guarantee Liability Balances (Post-1991
Loan Guarantees):
Beginning balance of the loan guarantee liability, October 1
$ 18,965
Add: subsidy expense for guaranteed loans
disbursed during the reporting years by component:
a. Interest supplement costs
40
b. Default costs (net of recoveries)
2,476
c. Fees and other collections
(5,086)
Total of the above subsidy expense components
(2,570)
Adjustments:
a. Loan guarantee modifications
(1,000)
b. Fees received (426100)
800
c. Interest supplements used
d. Foreclosed property and loans acquired
30,000
e. Claim payment to lenders (490200)
(35,000)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 132 of 153 August 2017
Note 8: Credit Program Note
f. Interest accumulation on liability balance (634000)
139
g. Other (modification adjustment transfer
(30)
Ending balance of the loan guarantee liability before reestimates
11,304
Add or subtract subsidy reestimates by component:
b. Technical/default reestimate
(28)
Total of the above reestimate components
(28)
Ending balance of the loan guarantee liability (218000)
$11,276
O. Administrative Expense
Loan guarantee programs (610000)
$10,000
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
63
Program Fund
Financing Fund
SF133
Line
Sch P
Line
SF133
Line
Sch P
Line
BUDGETARY RESOURCES
All accounts:
0900 Total new obligations (490200E)
10,025
40,562
Unobligated balance:
1000 Unobligated balance brought forward, October 1 (445000E, 461000E)
16,800
16,800
Budget Authority:
63
For the program fund only the unexpired fund is reported on lines 0700 to 1941
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 133 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
Appropriations:
Discretionary:
1100 Appropriation Discretionary (411700E)
10,000
10,000
1160 Appropriation – Discretionary (total)
10,000
10,000
Mandatory:
1200 Appropriation (412500E)
25
25
10
10
1260 Appropriation – Mandatory (total)
25
25
10
10
Mandatory:
Borrowing Authority:
1400 Borrowing Authority (414100E, 414300E)
31,912
31,912
1422 Borrowing applied to repay debt (-) (414200E)
(9,138)
(9,138)
1440 Borrowing authority, mandatory (total)
22,774
22,774
Spending Authority from Offsetting Collections:
Mandatory:
1800 Collected (426100E, 427100E, 427300E)
1,663
1,663
1801 Change in uncollected payments, Federal sources (+ or -) (422100E)
(645)
(645)
1850 Spending authority from offsetting collections, mandatory
(total)
988
988
1900 Budget Authority (total)
10,025
10,025
23,762
23,762
1930 Total budgetary resources available
10,025
40,562
Memorandum (non-add) entries:
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 134 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
Unobligated Balance
1940 Unobligated balance expiring (-)
1941 Unexpired unobligated balance, end of year
-
CHANGE IN OBLIGATED BALANCE
Unpaid obligations:
3000 Unpaid obligations, brought forward, Oct 1 (422100E)
645
3010 New Obligations, unexpired accounts (480100E, 490200E)
10,025
10,025
40,562
40,562
3020 Outlays (gross) (-) (490200E)
(10,455)
(10,455)
(39,562)
(39,562)
3041 Recoveries of prior year unpaid obligations, expired accounts (-)
(487100E)
215
215
3050 Unpaid obligations, end of year (480100E)
1,000
1,000
3060 Uncollected pymts, Fed sources, brought forward, Oct 1 (-) (422100E)
(645)
(645)
3070 Change in uncollected pymts, Fed sources, unexpired accounts (+ or -)
(422100E)
(645)
(645)
3090 Uncollected pymts, Fed sources, end of year (-)
Memorandum (non-add) entries:
3100 Obligated balance, start of year (+ or -)
3200 Obligated balance, end of year (+ or -) (480100E)
645
645
BUDGET AUTHORITY AND OUTLAYS, NET
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 135 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
Discretionary:
Gross budget authority and outlays:
4000 Budget authority, gross
10,000
10,000
4010 Outlays from new discretionary authority
10,000
10,000
4011 Outlays from discretionary balances
430
430
4020 Outlays, gross (total)
10,430
10,430
4070 Budget authority, net (discretionary)
10,000
10,000
4080 Outlays, net (discretionary)
10,430
10,430
Mandatory:
Gross budget authority and outlays:
4090 Budget authority, gross (This line is calculated. Equals the sum of
mandatory budget authority [Lines 1200 through 1252, 1270 through 1273,
1400 through 1430, 1600 through 1631, and 1800 through 1842 (SF 133).
Lines 1200 through 1239, 1270 through 1273, 1400 through 1420, 1600
through 1622, and 1800 through 1827 (Sch P)].)
25
25
23,762
23,762
4100 Outlays from new mandatory authority
64
(490200E)
25
25
4110 Total outlays, gross (490200E)
25
25
39,562
39,562
4120 Federal sources (-) (427100E)
(455)
(455)
4122 Interest on uninvested funds (-) (427300E)
(408)
(408)
4123 Non-Federal sources (-) (426100E)
(800)
(800)
4130 Offsets against gross budget authority and outlays (total) (-)
(1,663)
(1,663)
64
Financing funds are not required to breakdown outlays by New and Balance authority
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 136 of 153 August 2017
SF 133: Report on Budget Execution and Budgetary Resources &
Budget Program and Financing Schedule (Schedule P)
ACTUAL COLUMN FOR YEAR 1 REPORTING
4140 Change in uncollected pymts, Fed sources, unexpired accounts(+/-)
(422100E)
645
645
4150 Additional offsets against budget authority only (total)
(645)
(645)
4160 Budget authority, net (mandatory) (This line is calculated. Equals the
total new budget authority (gross) on line 4090 plus the amounts on lines
4120 through 4124 and on lines 4140, 4141 and 4143 (SF 133). Line 4090
plus the amounts on lines 4120 through 4124 and on lines 4140 and 4142
(Sch P).)
22,744
22,744
4170 Outlays, net (mandatory) (This line is calculated. Equals line 4110
plus the amounts on lines 4120 through 4124.)
37,899
37,899
4180 Budget authority, net (discretionary and mandatory) (This line is
calculated. Equals sum of lines 4070 and 4160.)
10,025
10,025
22,744
22,744
4190 Outlays, net (discretionary and mandatory) (This line is calculated.
Equals sum of lines 4080 and 4170.)
10,455
10,455
37,899
37,899
FISCAL YEAR 3
This fiscal year will only deal with the liquidating of the downward re-estimates and repayment of debt. All other items have been
addressed in previous fiscal years. No financial statements or footnotes will be prepared for this fiscal year.
OMB approved the downward re-estimate of $50 on cohort 2. Since there is no carry forward authority, the cohort will need to
borrow to pay the downward re-estimate. The loan on cohort 1 is expected to repay $10,000.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 137 of 153 August 2017
Loan Guarantee Agency
Fiscal Year 3
SF 132 Apportionment/Reapportionment Schedule
BUDGETARY RESOURCES
Financing
Fund
Budget authority:
Unobligated balance:
1000
Unobligated balance brought forward, Oct 1
-
Borrowing authority, mandatory:
1400
Borrowing authority (414100)
50
Spending authority from offsetting collections,
mandatory:
1840
Anticipated Collections, Reimbursements, and Other Income
1,000
1842
Anticipated Redemption of Debt
(2,000)
1920
Total Budgetary Resources
8,050
APPLICATION OF BUDGETARY RESOURCES
Category B (by project)
6012
Payment to Receipt Account
50
6013
Treasury Interest
340
6182
Unapportioned Balance
7,660
6190
Total Budgetary Resources Available
80,050
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 138 of 153 August 2017
3-1 Agency receives approved SF132 reflecting downward re-estimate amounts. Along with the budgetary authority, the agency
allots, obligates and pays the downward re-estimate to the miscellaneous receipt account.
Financing Fund – Cohort 2
To record borrowing authority and obligate (See previous entries for apportionment and allotment entries)
65
DR
CR
TC
Budgetary Entry
414100 Current Year Borrowing Authority Realized
480100 Undelivered Orders - Obligations, Unpaid
Proprietary Entry
None
50
50
A152
B316
See year 2 for borrowing entries as they are the same no matter what the agency is borrowing for.
Financing Fund – Cohort 2
To pay downward re-estimate
DR
CR
TC
Budgetary Entry
480100 Undelivered Orders – Obligations, Unpaid
490200 Delivered Orders- Obligations, Paid
Proprietary Entry
299000 Other Liabilities Without Related Budgetary Obligations
101000 Fund Balance With Treasury
50
50
50
50
A146
A141
65
This transaction shows the net effect of USSGL account 480100.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 139 of 153 August 2017
Program Fund
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
66
680000 Future Funded Expenses (Subsidy Expense –Re-estimates – Technical)
579100 Adjustement to Fianancing Sources – Downward Reestimate or
Negative Subsidy
579100 Adjustement to Fianancing Sources – Downward Reestimate or
Negative Subsidy
619900 Adjustment to Subsidy Expense
50
50
50
50
D146R
D150
Miscellaneous Receipt
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
101000 Fund Balance With Treasury
131000 Accounts Receivable
599400 Offset to Non-Entity Accrued Collections – Statement of Changes in Net
Position
599300 Offset to Non-Entity Collections – Statement of Changes in Net
Position
50
50
50
50
A195
D585R
66
Reverse Year 2 transaction 680000/579100 then record Year 3 579100/619900.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 140 of 153 August 2017
3-2 Agency receives SF132 showing anticipated repayments of debt. Note: SF132 is not required to show repayments of debt, but A-
11 suggests including if known.
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
445000 Unapportioned Authority
404700 Anticipated Transfers to the General Fund of the U.S. Government-
Current Year Authority
Proprietary Entry
None
2,000
2,000
A142
See year 1 for anticipated collections and actual collection entries and year 2 for interest payments on debt.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 141 of 153 August 2017
3-3 At year end agency determines that it has excess cash of $1,000. This amount will not be needed for future defaults and the
agency repays treasury debt.
Financing Fund – Cohort 1
DR
CR
TC
Budgetary Entry
404700 Anticipated Transfers to the General Fund of the U.S. Government–
Current Year Authority
414600 Actual Repayments of Debt, Current -Year Authority
Proprietary Entry
251000 Principal Payable to the Bureau of the Fiscal Service
101000 Fund Balance With Treasury
1,000
1,000
1,000
1,000
B120
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 142 of 153 August 2017
APPENDIX 1:
ACCOUNTING FOR MANDATORY LOAN GUARANTEE PROGRAMS
INTRODUCTION
The scenarios presented in this guide were for common transactions undertaken by a discretionary loan guarantee program. This
appendix discusses two key differences between discretionary and mandatory loan guarantee programs, and shows how the entries in
the guide would differ for a mandatory program with typical funding characteristics.
BASIC DIFFERENCES BETWEEN DISCRETIONARY AND MANDATORY PROGRAMS
In a discretionary program, Congress sets a funding level, and program agencies make loans up to the amount that can be supported
from subsidy in their program fund. Usually, annual or multi-year appropriations provide program fund subsidy, although Congress
can give no-year (permanent indefinite) appropriations should it choose to do so.
Annual appropriation authority expires at the end of the fiscal year that it funds, and multi-year appropriations expire at the end of the
last year of their period of availability. For example, appropriations good for three years expire at the end of the third year funded.
Agencies cannot place any new obligations against expired authority, generally, they have five years after the date of expiration to fill
obligations and pay liabilities before both the obligated and unobligated authority is canceled and cannot be used for any purposes.
Congress sometimes provides for different periods of expiration.
67
67
The legislation providing for this is Public Law 101-510, a separate part of the Defense Appropriation Act of 1990, applying more broadly to most Federal
agencies. The USSGL Board has published a document entitled Budgetary Accounting in the Federal Government that is available through its Web site at
www.fiscal.treasury.gov/fsreports/ref/ussgl/ussgl/ussgl_htm
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 143 of 153 August 2017
The government also operates mandatory (entitlement) loan guarantee programs, in which Congress usually authorizes permanent
indefinite appropriations for subsidy. If the amount of subsidy requested by qualified loan applicants, who meet the program criteria
established by Congress, exceeds the subsidy monies by drawing additional appropriations. Congress may mandate that the agency
concur with the additional funding or may place a cap on the total funding. These no-year appropriations do not have a date of
expiration, and agencies may use unobligated subsidy appropriation authority as long funded as the programs remain authorized by the
Congress.
Congress may provide appropriations for administrative expenses that have annual, multi-year, or no-year expiration. Most
commonly, both discretionary and mandatory loan guarantee programs have annual administrative expense appropriations. Thus, no
differences in accounting for administrative expenses will be presented. However, multi-year administrative expense appropriations
in other than the last year covered, and no-year administrative expense appropriations, would be accounted for in the same manner as
will be shown for no-year appropriations of subsidy authority.
Another difference between discretionary and mandatory loan guarantee programs is that when downward adjustments to subsidy are
called for during the subsidy re-estimation process to properly value loan guarantees at the estimated value of their cash-flows,
discretionary programs must generally return the excess money in their financing fund to Treasury by transferring it to a designated
miscellaneous receipt account. Mandatory programs generally may recycle this excess by transferring it back to their program
account. While these are the typical situations, Congress may also provide do the following:
Provide for recycling of downward reestimates for a discretionary program; or
Provide that agencies cannot recycle downward re-estimates in a mandatory program and must return them to Treasury.
Recording and reporting downward reestimates of subsidy for both a discretionary and a mandatory program is discussed in Appendix
2 (recall that the agency in the guide illustrated accrual and disposition of an upward adjustment).
Both discretionary and mandatory loan guarantee programs generally have the same transactions. Agencies must formulate budgetary
resources, apportioned by OMB, and allot and account for them as follows:
Making loans based on a combination of program fund subsidy and financing fund borrowing from Treasury;
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 144 of 153 August 2017
Making collections from Federal and non-Federal sources and using the collections to repay the principal and interest on the
loan from Treasury;
Reestimating to determine the present value of the loans and interest receivable and adjusting the accounts as required;
Closing the books at yearend; and so forth.
Where there are differences in the type of subsidy appropriations provided and disposition of downward re-estimates, the journal
entries to record the same transaction usually will differ as well. The next section discusses those differences.
DIFFERENCES IN JOURNAL ENTRIES
FOR MANDATORY PROGRAMS
The transactions illustrated for the discretionary loan guarantee program guide are virtually the same as those are undertaken in a
mandatory program. However, four of the journal entries would be different. The transactions involved, and the budgetary and
proprietary entries a mandatory program with no-year subsidy authority, but with the same amount of funding and other parameters as
the discretionary program, would make are set forth below.
68
Note that only certain entries in fiscal year 1 are affected. There would
be no change from the discretionary program entries in fiscal year 2.
Changes from entries illustrated for the discretionary program are highlighted in bold type. For each transaction presented, only the
fund entities (including memorandum accounts) for which there is a change are presented. If a fund entity (including memorandum
accounts) present for a transaction in the discretionary program guide is not present in the transactions illustrated below, a mandatory
program would make the same entries for those fund entities. A discussion of changes follows the revised entries for each transaction.
68
It is important to note these assumptions, because they form the basis for changes to be discussed. It is possible that variations, even within the assumptions,
could exist and that entries could differ still further. For example, OMB might decide on a lesser amount of subsidy funding than the agency anticipated in its
request and if needed, increase the amount later (see transactions 1-1 and 1-2). The more specific assumption in this appendix is that the nature of transactions
and amounts between the discretionary and mandatory programs is the same.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 145 of 153 August 2017
1-1. The agency prepares the budget formulation.
Program Fund
DR
CR
TC
Budgetary Entry
412000 Anticipated Indefinite Appropriations
411700 Loan Administrative Expense Appropriation
445000 Unapportioned Authority
Proprietary Entry
101000 Fund Balance With Treasury
310100 Unexpended Appropriations - Received
21,500
5,000
5,000
26,500
5,000
A102
A104
Explanation of difference
Because the program fund has permanent indefinite authority for its subsidy, agencies must anticipate the amount of the
appropriations they will receive in order to prepare the budget formulation. The agency normally will not realize the appropriations
until OMB has approved the amount. Accordingly, the agency must make two changes in the program fund entry. First, it uses the
account for anticipated appropriations, 412000, instead of the account for realized subsidy appropriations, 411500. Second, because
the subsidy money is not realized at this point, it records only the amount of the administrative expense appropriation, which is an
annual appropriation, as the amount of Fund Balance With Treasury. Note that there is no change for the financing fund or
memorandum account entries.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 146 of 153 August 2017
1-2. OMB approved the agency’s requests for apportionment without change, and the agency recorded the apportionment.
Program Fund
DR
CR
TC
Budgetary Entry
411500 Loan subsidy Appropriation
412000 Anticipated Indefinite Appropriations
445000 Unapportioned Authority
451000 Apportionments
Proprietary Entry
101000 Fund Balance With Treasury
310100 Unexpended Appropriations - Received
21,500
26,000
21,500
21,500
26,500
21,500
A104
A116
Explanation of Difference
There are two differences here. First, because the subsidy appropriation was anticipated and not realized until OMB concurred with
the amount, the agency makes an entry to realize the appropriation. Second, along with the realization, the agency must record the
related Fund Balance With Treasury. Note that the combination of entries 1-1 and 1-2 yields the same account balances for both the
discretionary and mandatory programs.
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 147 of 153 August 2017
1-12. After consultation and agreement with OMB, the agency decided to exercise a clause in the program’s legislation allowing it to
modify the terms of some of the guarantees because of economic downtrends. This reduced the present value of those guarantees by
$1,000.
69
The agency transferred the $1,000 from the program fund to the financing fund.
Explanation of Difference
Here the basic transaction is the same–the agency is making modifications to loan guarantee terms that cost the government $1,000.
However, some of the related procedures are different. In the discretionary program, the agency had to reduce the loan guarantee
level. This was because the subsidy appropriation was annual, so the agency had to use subsidy to modify loan guarantees and could
not use the subsidy to making new guarantees (recall that an agency can only make the amount of loan guarantees that its subsidy
monies can support).
In a mandatory program in which an agency can draw additional monies, with OMB approval, from a permanent indefinite
appropriation, there is no need to reduce the program level. The agency can recover the $1,000 subsidy by drawing an additional
$1,000 from the appropriation subsidy. This is not illustrated because, we know from the discretionary program guide, the agency did
not use the full amount of subsidy, even reduced by the $1,000 used for modifications, to make loans. However, the agency would not
make the entry to reduce the loan level, unless OMB directed the agency to reduce it.
69
Before making the modifications, the agency must be certain that it has sufficient unobligated resources for subsidy in the program fund. In this guide, the amount of
unobligated resources, as represented by allotments related to the subsidy, amounted to $2,150 ($21,500 from transaction 1-3 less $19,350 from transaction 1-5).
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 148 of 153 August 2017
TRIAL BALANCES AND FINANCIAL STATEMENTS
Pre- and post-closing trial balances, financial statements, and the quantitative portion of the credit program note for the mandatory
program would be the same as for the discretionary program for both fiscal years, with the exception that the guaranteed loan level
probably would remain at $100,000 instead of having been reduced to $95,349. The pre-closing trial balance of memorandum
accounts for the loan guarantee level would thus be:
Pre-Closing Adjusted Trial Balance (Financing Fund Only)
Total
Debit/(Credit)
Loan Guarantee Level
Memorandum Accounts
801000 Guaranteed Loan Level
100,000
801500 Guaranteed Loan Level - Unapportioned
0
802000 Guaranteed Loan Level - Apportioned
(10,000)
804000 Guaranteed Loan Level - Used Authority
(90,000)
804500 Guaranteed Loan Level - Unused Authority
0
Total
0
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 149 of 153 August 2017
1-19 The agency made the following closing entries.
Memorandum Accounts - Loan Guarantee Level
DR
CR
TC
Budgetary Entry
None
Proprietary Entry
None
Memorandum Entry
802000 Guaranteed Loan Level – Apportioned
804500 Guaranteed Loan Level - Unused Authority
10,000
10,000
F346
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 150 of 153 August 2017
Pre-Closing Adjusted Trial Balance (Financing Fund Only)
Total
Debit/(Credit)
Loan Guarantee Level
Memorandum Accounts
801000 Guaranteed Loan Level
100,000
801500 Guaranteed Loan Level - Unapportioned
0
802000 Guaranteed Loan Level - Apportioned
0
804000 Guaranteed Loan Level - Used Authority
(90,000)
804500 Guaranteed Loan Level - Unused Authority
(10,000)
Total
0
Narrative descriptions about funding and loan levels authorized would be different, but are not illustrated for either program. (The
narrative about program level and nature of subsidy funding would be different, because the program loan level was reduced in the
discretionary program but not in the mandatory program, and the subsidy appropriation in the mandatory program was no-year
authority, as opposed to annual authority in the discretionary case.)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 151 of 153 August 2017
APPENDIX 2: REFERENCES
This appendix lists some key references and Web sites for readers who want to obtain additional information.
OFFICE OF MANAGEMENT AND BUDGET
OMB Bulletin 01-09, Form and Content of Agency Financial Statements for Audit
OMB Circular A-11, Preparation, Submission, and Execution of the Budget
OMB Circular A-136, Financial Reporting Requirements- Revised
OMB Credit Model
Office of Federal Financial Management (202) 395-3993
Web site: www.whitehouse.gov/omb
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 152 of 153 August 2017
FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD
Statement of Federal Financial Accounting Standards (SFFAS)
SFFAS No. 1, Selected Assets and Liabilities
SFFAS No. 2, Accounting for Direct Loans and Loan Guarantees
SFFAS No. 3, Inventory and Related Property
SFFAS No. 7, Accounting for Revenue and Other Financing Sources and concepts for Reconciling Budgetary Financial
Accounting
SFFAS No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees
SFFAS No. 19, Technical Amendments to Accounting Standards for Direct Loans and Loan Guarantees in SFFAS No. 2
Statement of Federal Financial Accounting Concepts No. 2, Entity and Display (as amended by SFFAS No. 7)
Accounting and Auditing Policy Committee, Technical Release No. 3: Preparing and Auditing Direct Loan and Loan Guarantee
Subsidies Under the Federal Credit Reform Act
FASAB Staff at (202) 512-7350
Web site: www.fasab.gov
Bureau of the Fiscal Service U.S. Standard General Ledger (codified in Treasury Financial Manual)
Budgetary Accounting in the Federal Government
Illustrative Cases in Accounting for Credit Programs (Financial Reports and Advisory Division)
GUIDE FOR BASIC ACCOUNTING AND REPORTING
FOR LOAN GUARANTEE PROGRAMS
WITHOUT COLLATERAL
IN FEDERAL CREDIT PROGRAM
Loan Guarantee Page 153 of 153 August 2017
Present Value Monograph
General Ledger and Advisory Branch (Bureau of the Fiscal Service, Treasury)
OMB Circular No. A-11, (July 2016 ) Section 185.20, Capital transfer, including transfers of unobligated balances in
liquidating accounts to the general fund (i.e., liquidating account sweeps), and redemption of debt are not obligations and
therefore do not need to be apportioned on lines 6001-6173.
OMB Circular No. A-11, July 2016) Section 185.19, for financing and liquidating accounts, additional amounts for interest
payments to Treasury (i.e., amounts exceeding your estimate on the most recent approved apportionment) are automatically
apportioned.
The permutations to credit reform accounting for loan guarantees are endless. In future iterations of the case study, additional
years and transactions could be added to build upon what is presented here.