2 BackgroundHistorically, each federal agency developed its own accounting structure and reported to the federal government using its agency structure. Because each agency accounted for its funds differently, it was difficult to consolidate the data across the federal government. In order to provide consistent reports and to enhance financial control, the federal government adopted the United States Standard General Ledger (USSGL), which is a standard chart of accounts that must be used by all federal agencies.
3 Standard General Ledger (SGL) Provides basic general ledger (G/L) accountsAgencies are allowed to expand the basic SGL chart of accounts to accommodate agency specific needsMore standardization as USDA agencies converted to FMMIDefines proprietary, budgetary, and memorandum accounts to be used in agencies' accounting systems3
4 SGL Account Types Assets Liabilities Net Position Budgetary Resources Appropriations, Collections, Borrowing Authority, Contract Authority, Interagency Work AgreementsStatus of Budgetary ResourcesUnapportioned, Apportioned, Allotted, Committed, Obligated, Expended, Expired, Canceled
5 Budgetary vs Proprietary Accounting Budgetary AccountingFacilitates the controlling and accounting for budget authority and funds. It has four main purposes:Record the appropriation receipts and status of appropriationsDelegate budget authorityRecord valid obligationsControl the use of budgetary resourcesProprietary AccountingFacilitates the accounting for assets, liabilities, net position, revenues, and expenses. It has two main purposes:Determine result of operations from revenues and expensesDetermine financial position
6 Accounting Equations Budgetary Budgetary Resources = Status of Budgetary ResourcesProprietaryAssets = Liabilities + Net PositionExpanded as:Assets = Liabilities + Net Position + Revenues – Expenses + Gains - Losses
8 FMMI General LedgerThe General Ledger (G/L) is the record where each financial transaction that occurs in FMMI is document.In FMMI, the Financial Accounting (FI) module is responsible for ensuring that USDA’s G/L is kept accurate, up-to-date and in balanceBy keeping the G/L up-to-date, the FI module enables USDA to report its financial statusWhen postings are made, FMMI automatically posts the document to the appropriate G/L accountsFMMI also records all financial activities in “real-time,” which means that when a transaction is processed, it is immediately posted to the General LedgerFor instance, a FMMI user based in Kansas City could view a customer invoice posted in Minneapolis just seconds afterwards.
10 Financial Accounting Module (FI) The Financial Accounting (FI) module addresses USDA’s financial, budgetary, and statutory reporting requirements.Immediately after the user enters the appropriate data, FMMI displays updated information on the relevant accounts, account totals, and balances. It also has the capability to display information regarding the Balance Sheet and Statement of Net CostEvery transaction resulting in a financial impact posts to the FI moduleThe account balances of each G/L Account (USSGL + sub-account) are housed in the FI moduleThe FI module houses three special ledgersLedger 95: Holds data for the Trial Balance by FundLedger 96: Holds data for the FACTS I reportingLedger 97: Holds data for the FACTS II reportingThe FI module is a source of many financial reports
11 FMMI G/L StructureThe FMMI General Ledger follows the structure mandated by the United States Standard General Ledger (USSGL).The USSGL provides a uniform Chart of Accounts and technical guidance for standardizing federal accountingThe USSGL contains five major sections:Chart of AccountsAccounting DescriptionsAccounting TransactionsUSSGL AttributesReport Crosswalks
12 Chart of AccountsThe Chart of Accounts provides the basic structure for the USSGL, incorporating both proprietary and budgetary accounts.12
13 Chart of Accounts (Cont.) Example Account –Account Number: 2190Account Title: Other Liabilities with Related Budgetary ObligationsNormal Balance: CreditDefinition: The amount of liabilities for which there is a related budgetary obligation (USSGL account 49X1). This account does not close at year end.13
14 FMMI Chart of AccountsFMMI incorporates the United States Standard General Ledger (USSGL) and uses the USSGL's Chart of Accounts:G/L account numbers are assigned within the predefined ranges detailed above
15 FMMI G/L Account Structure FMMI uses the four-digit USSGL accounting numbering system. FMMI also captures a lower level of detail by expanding the standard numbering system by sub-account and RSC/BOC.This expanded numbering system allows subsidiary accounts to be created for USSGL accounts. These accounts roll up to the 4-digit USSGL accounts. FMMI
16 Finding the Chart of Accounts in FMMI The G/L Chart of Accounts can be found in FMMI by running an ECC report located under: General Ledger Management>Financial Reports>General Ledger Reports>G/L Chart of Accounts ReportAccount Definitions (Long Text) help us determine how to record events that should be captured in the accounting system.
17 Adjustments; Accruals; and Posting Models As part of the monthly activities, various transactions such as accruals and G/L adjustments are recorded and processed through the G/L Posting Model, as follows:A G/L Adjustment is a corrective action to an accounting error identified as a result of reconciliation or other detailed analysisThis adjustment is processed as a direct entry using the Create Parked G/L Account Document transactionThe accrual entry is processed as a direct entry by the General Ledger Processor, using the Create Accrual transaction.FMMI uses G/L posting models to derive dependent characteristics. It performs validations for each entered FI document line item, and if any of these validations fail, FMMI prompts the user to correct the relevant item.FMMI automatically creates the budgetary ledger postings from the proprietary postings derived by the posting model.
18 G/L Overview Questions Ledger ____ holds data for FACTS I reporting.True / False: In FMMI the General Ledger account number is a 12 digit number.Which FMMI module has the Chart of Accounts? _____________True / False: One purpose of Budgetary Accounting is to record the appropriation receipts and status of appropriations.
20 Where to Find More on the USSGL USSGL Main Page:USSGL Common Questions:20
21 Where to go for More Information Where to go with questions:1) Supervisor2) Program Budget Office
22 G/L Overview AnswersFill in the Blank: Ledger _96_ holds data for FACTS I reportingTrue / False: In FMMI the General Ledger account number is a 12 digit number. (FMMI G/L account numbers are 10 digits – page 15)Which FMMI module has the Chart of Accounts? _Financial Accounting - FI Module_True / False: One purpose of Budgetary Accounting is to record the appropriation receipts and status of appropriations.
24 General Ledger Overview Certification Provide this page to your supervisor as documentation of completing this required overview.I certify that I have completed the General Ledger (G/L) Overview.__________________(Employee’s Name)___________________(Employee’s Signature)24