1. General Ledger Overview October 2014

2. Background
Historically, 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) accounts
Agencies are allowed to expand the basic SGL chart of accounts to accommodate agency specific needs
More standardization as USDA agencies converted to FMMI
Defines proprietary, budgetary, and memorandum accounts to be used in agencies' accounting systems 3

4. SGL Account Types Assets Liabilities Net Position Budgetary Resources
Appropriations, Collections, Borrowing Authority, Contract Authority, Interagency Work Agreements
Status of Budgetary Resources
Unapportioned, Apportioned, Allotted, Committed, Obligated, Expended, Expired, Canceled

5. Budgetary vs Proprietary Accounting
Budgetary Accounting
Facilitates the controlling and accounting for budget authority and funds. It has four main purposes:
Record the appropriation receipts and status of appropriations
Delegate budget authority
Record valid obligations
Control the use of budgetary resources
Proprietary Accounting
Facilitates the accounting for assets, liabilities, net position, revenues, and expenses. It has two main purposes:
Determine result of operations from revenues and expenses
Determine financial position

6. Accounting Equations Budgetary
Budgetary Resources = Status of Budgetary Resources
Proprietary
Assets = Liabilities + Net Position
Expanded as:
Assets = Liabilities + Net Position + Revenues – Expenses + Gains - Losses

7. Accounting Events 7

8. FMMI General Ledger
The 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 balance
By keeping the G/L up-to-date, the FI module enables USDA to report its financial status
When postings are made, FMMI automatically posts the document to the appropriate G/L accounts
FMMI also records all financial activities in “real-time,” which means that when a transaction is processed, it is immediately posted to the General Ledger
For instance, a FMMI user based in Kansas City could view a customer invoice posted in Minneapolis just seconds afterwards.

9. FMMI Organizational Hierarchy

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 Cost
Every transaction resulting in a financial impact posts to the FI module
The account balances of each G/L Account (USSGL + sub-account) are housed in the FI module
The FI module houses three special ledgers
Ledger 95: Holds data for the Trial Balance by Fund
Ledger 96: Holds data for the FACTS I reporting
Ledger 97: Holds data for the FACTS II reporting
The FI module is a source of many financial reports

11. FMMI G/L Structure
The 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 accounting
The USSGL contains five major sections:
Chart of Accounts
Accounting Descriptions
Accounting Transactions
USSGL Attributes
Report Crosswalks

12. Chart of Accounts
The 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: 2190
Account Title: Other Liabilities with Related Budgetary Obligations
Normal Balance: Credit
Definition: 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 Accounts
FMMI 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 Report
Account 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 analysis
This adjustment is processed as a direct entry using the Create Parked G/L Account Document transaction
The 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.

19. G/L Overview Questions (Cont
G/L Overview Questions (Cont.) (Match the G/L Account to the G/L Classification)
G/L Account
G/L Classification
A. 1000
B. 2000
C. 3000
D. 4000
E. 5000
F. 6000
G. 8000
H. 9000
Expense ___
Liabilities ___
Net Cost ___
Assets ___
Memorandum Accts (Credit Reform) ___
Budgetary Accounts ___
Revenue & Other Financing Sources ___
Agency Statistical/ Memorandum Accounts ___

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) Supervisor
2) Program Budget Office

22. G/L Overview Answers
Fill in the Blank: Ledger _96_ holds data for FACTS I reporting
True / 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.

23. G/L Overview Answer (Cont
G/L Overview Answer (Cont.) (Match the G/L Account to the G/L Classification)
G/L Account
G/L Classification
A. 1000
B. 2000
C. 3000
D. 4000
E. 5000
F. 6000
G. 8000
H. 9000
Expense _F_
Liabilities _B_
Net Cost _C_
Assets _A_
Memorandum Accts (Credit Reform) _G_
Budgetary Accounts _D_
Revenue & Other Financing Sources _E_
Agency Statistical/ Memorandum Accounts _H_

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