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TitleAccounting Handbook
LanguageEnglish
File Size747.2 KB
Total Pages172
Table of Contents
                            TABLE OF CONTENTS
	CHAPTER 1. OVERVIEW
	CHAPTER 2. ASSETS
	CHAPTER 3. CHAPTER. LIABILITIES AND EQUITY OF THE U.S. GOVERNMENT
	CHAPTER 4. REVENUES AND OTHER FINANCING SOURCES
	CHAPTER 5. FINANCIAL AND MANAGEMENT ACCOUNTING REPORTS
	CHAPTER 6. GENERAL ACCOUNTING
	CHAPTER 7. ACCRUAL ACCOUNTING
	CHAPTER 8. MANAGERIAL COST ACCOUNTING
	CHAPTER 9. FISCAL OPERATIONS
	CHAPTER 1. OVERVIEW
	CHAPTER 2. ASSETS
	CHAPTER 3. LIABILITIES AND EQUITY OF THE U.S. GOVERNMENT
	CHAPTER 4. REVENUES AND OTHER FINANCING SOURCES
	CHAPTER 5. FINANCIAL AND MANAGEMENT ACCOUNTING REPORTS
	EXTERNAL FINANCIAL REPORTS
		CHAPTER 6. GENERAL ACCOUNTING
Accounts
Review of Suspense  Monthly
6.1.5.2 What is the Department of Interior Guidance?
Bureaus/Offices will complete the following:
6.1.5.3 What are the Bureau/Office Responsibilities?
	6.1.5.5 What are the Categories of Intra-governmental Transactions?
6.1.5.10 What is the Reconciliation Process?
	6.3 Gifts and Donations
	Illustration I
		Illustration 2
	Illustration 1
	Reimbursable Cost Projections
		CHAPTER 7. ACCRUAL ACCOUNTING
		CHAPTER 8. MANAGERIAL COST ACCOUNTING
		CHAPTER 9. FISCAL OPERATIONS:
Additional requirements of DOI Bureaus/Offices are to:
      Develop a separate records retention and disposition schedule;
                        
Document Text Contents
Page 1

DEPARTMENT OF THE INTERIOR



ACCOUNTING HANDBOOK





TABLE OF CONTENTS





CHAPTER 1. OVERVIEW



1.1 What is the Purpose and Scope of the Accounting Handbook?

1.2 What Other Documentation Does This Handbook Reference?

1.3 Who Will Modify and Interpret the Handbook?

1.4 What is the Effective Date of this Handbook?

1.5 Where Can I Direct Questions and Comments?



CHAPTER 2. ASSETS

2.1 What is the Purpose of this Chapter?

2.2 What are the Authoritative Sources?

2.3 What are Assets and How are they Recognized?

2.4 What are the Requirements for the Ledgers?

2.5 What are the Specific Standards for Assets?

2.5.1 Cash

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2.5.2 Fund Balance with Treasury

2.5.3 Accounts Receivable and Losses on Accounts Receivable

2.5.3.1 What is a Method for Estimating the Allowance for Doubtful
Accounts and Loans Receivable?

2.5.3.2 What are the Bureau/Office Responsibilities?

2.5.3.3 What is the Criteria for Accounts Receivable Collectibility?

2.5.3.4 Loans Receivable

2.5.3.4.1 How are Loans Receivable Recorded?

2.5.3.4.2 What is the Criteria for Collectibility of Loans
Receivable?

2.5.4 Interest Receivable

2.5.5 Advances and Prepayments

2.5.6 Inventory

2.5.7 Property, Plant, and Equipment (PP&E)

2.5.8 Investments in Treasury Securities

2.5.9 Stewardship PPE

2.5.10 Intangible Assets

2.5.11 Other Assets



2.6 What are the Standards for Transfers of Assets Within the Federal
Government?

2.7 What are the Standards for Donated Assets?

2.8 What is the Procedure for Assets Held by Award Recipients?

CHAPTER 3. CHAPTER. LIABILITIES AND EQUITY OF THE U.S.
GOVERNMENT

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year) and the agency’s actual cash payments to the Fund (through the prior
year). Generally there is a two to three year timing difference between
these payments. The accrued FECA liability equals actual payments due,
but not yet paid due to timing differences.



 FECA Actuarial Liability



Represents estimated future payments for disabled workers presently in
the system. It includes the expected liability for death, disability, medical,
and other approved costs and is recorded as a liability to the public.



6.1.5.10 What is the Reconciliation
Process?



The following suggested methodology for reconciliations represents a modification of
the Financial Management Service recommended process and is a broad overview
that will require alteration to suit each agency’s situation/needs.



• Providing agency gives receiving agency balances by USSGL account.
• Receiving agency compares its balances to appropriate reciprocal USSGL account

balances of the providing agency.
• For fiduciary transactions, the fiduciary entities (BPD, FFB, DOL and OPM) will

make account balance information and other details available through the IFCS
for the receiving agencies to reconcile amounts to their records.

• For other Intra-governmental transactions, agencies should work together to
establish the data needs and availability to facilitate the reconciliations.

• Intra-governmental accounts are reconciled and differences are identified.



6.1.5.11 What are Reconciliation Differences?

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The following are common and potential differences resulting from the initial
reconciliation and the recommended adjustments to be made to prepare the final
reconciliation.



Beginning Balances Differences

Timing of Recording Accruals

Estimated Accruals

Unrecorded transactions



6.1.5.12 How Does the Timing of Recording Accruals Affect Eliminations?



When a providing agency generates bills for services or when IPAC transactions are
batch processed subsequent to the end of the period, there may be differences in
activity and balances due to the timing of the receiving agency recording the
transactions. Timing differences can also be caused by a receiving agency delay in
reclassifying IPAC transactions to the proper accounts. IPAC reports and bills
subsequent to the accounting period should be identified and reviewed, with the
appropriate adjustments made. Adjustments should be made to accounts
receivable/accounts payable for bills received after the end of the period that applied
to the period. Bureaus should communicate with each other to identify these timing
differences.



IPACs are sometimes recorded temporarily in a deposit account (cash/deposit liability
entry) and not transferred to the expenditure account in a timely manner. This results
in the cash being reconciled by transaction – at the IPAC number level but the
expenses and revenue not offsetting. In this scenario, the provider has recorded
revenue. However, the receiver cannot record the offsetting expense until the IPAC
is distributed from the deposit account to an expenditure account. This also
understates expenses and expenditures on the financial statements and budgetary
reports. The problem is also apparent at yearend when funding distribution does not
occur until the subsequent year. Because there is an IPAC cutoff around September
30th (for charge backs), and the cutoff for SF224 processing is the 10th business day in
October, charge backs and/or the remaining undistributed cash balances cannot be
moved without causing irreconcilable balances. In addition, under the FFS PCAS
process or the ABACIS accrual process, if unbilled receivables are not billed timely,

Page 171

Weighted-average: A periodic inventory costing method where ending inventory and
cost of goods sold are priced at the weighted-average cost of all items available for sale.
Write-off: An action to remove an amount from an entity's assets or financial resources.
A write-off of a loan occurs when an entity official determines, after all appropriate
collection tools have been used, that a debt is uncollectible. Active collection on an
account ceases and the account is removed from the entity's receivables.

Page 172

Appendix C, Budget Object Class Codes, references www.doi.gov/pfm/boct_04.pdf
for the DOI current FY Budget Object Class Table. The DOI budget object codes and
definitions are at www.doi.gov/pfm/boct_04_handbook.pdf.




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