6509.11m_10.doc
Upcoming SlideShare
Loading in...5
×
 

6509.11m_10.doc

on

  • 653 views

 

Statistics

Views

Total Views
653
Views on SlideShare
653
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

6509.11m_10.doc 6509.11m_10.doc Document Transcript

  • 6509.11m_10 Page 1 of 35 FOREST SERVICE HANDBOOK NATIONAL HEADQUARTERS (WO) WASHINGTON, DC FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE Amendment No.: 6509.11m-2007-1 Effective Date: September 6, 2007 Duration: This amendment is effective until superseded or removed. Approved: JESSE KING Date Approved: 08/27/2007 Chief Financial Officer Posting Instructions: Amendments are numbered consecutively by Handbook number and calendar year. Post by document; remove the entire document and replace it with this amendment. Retain this transmittal as the first page(s) of this document. New Document 6509.11m_10 35 Pages Superseded Document(s) by Issuance Number and Effective Date Digest: 10 - Establishes code and caption for, “Accruing Earned Revenue”, and sets policy and procedural direction to ensure that all revenue is accrued properly. 11 - Establishes code and caption for, “Monthly Accrual of Unbilled Earned Revenue from Timber Harvests,” and sets forth procedural direction to determine and record an accrual for this revenue flow. 12 - Incorporates direction previously issued in interim directive 6509.11k-2006-8, section 56.76a (Purchaser Road Credit (PRC) and Specified Road Credits (SRC)). Establishes code and caption for “Monthly Accrual of Purchaser Road Credit and Specified Road Credit.” With minor clerical changes, the text sets forth procedural direction to determine and record an accrual for this revenue flow.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 2 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE Digest--Continued: 13 - Establishes code and caption for, “Annual Accrual of Permit Fees for Special Uses, Grazing, and Minerals”, and sets forth procedural direction to determine and record an accrual for this revenue flow. 14 - Establishes code and caption for, “Quarterly Accrual of Revenue for Plant-A-Tree and Character Licensing of Smokey Bear and Woodsy Owl,” and sets forth procedural direction to determine and record an accrual for this revenue flow. 15 - Establishes code and caption for, “Annual Accrual of Revenue Collected by Third Party Vendors,” and sets forth procedural direction to determine and record an accrual for this revenue flow. 16 - Establishes code and caption for, “Quarterly Accrual of Reimbursable Revenue for Incident- Related Agreements,” and sets forth procedural direction to determine and record an accrual for this revenue flow. 17 - Incorporates direction previously issued in interim directive, 6509.11k-2006-11. Establishes code and caption for, “Annual Accrual of Reimbursable Revenue for Non-Incident-Related Agreements,” and sets forth procedural direction to determine and record an accrual for this revenue flow.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 3 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE Table of Contents 10.1 - Authority............................................................................................................................4 10.4 - Responsibility....................................................................................................................4 10.5 - Definitions.........................................................................................................................5 11 - MONTHLY ACCRUAL OF UNBILLED EARNED REVENUE FROM TIMBER HARVESTS.............................................................................................................6 12 - MONTHLY ACCRUAL OF PURCHASER ROAD CREDIT AND SPECIFIED ROAD CREDIT...................................................................................................................9 13 - ANNUAL ACCRUAL OF PERMIT FEES FOR SPECIAL USES, GRAZING AND MINERALS...........................................................................................................13 14 - ANNUAL ACCRUAL OF REVENUE FOR PLANT-A-TREE AND CHARACTER LICENSING OF SMOKEY BEAR AND WOODSY OWL....................................15 15 - ANNUAL ACCRUAL OF REVENUE COLLECTED BY THIRD PARTY VENDORS ..............................................................................................................................18 16 - QUARTERLY ACCRUAL OF REIMBURSABLE REVENUE FOR INCIDENT- RELATED ............................................................................................................20 17 - ACCRUAL OF REIMBURSABLE REVENUE FOR NON-INCIDENT RELATED AGREEMENTS.....................................................................................................24 17.1 - General Information about Accruing Revenue for Non-Incident Reimbursable Agreements....................................................................................................................24 17.2 - Methodology for Determining Revenue Accruals for Non-Incident Reimbursable Agreements....................................................................................................................27 17.21 - Actual Unbilled Expenditures Recorded in PCAS Agreements................................27 17.22 - Statistically Estimated Unbilled Expenditures Not Recorded in PCAS Agreements ....................................................................................................................................30 17.23 - Actual Unbilled Expenditures Not Recorded in PCAS Agreements.........................32 17.24 - Agreement/Project Specific Entries for Sensitive PCAS Agreements......................34 17.25 - Separate Project-Level Accrued Revenue Entry for Non-PCAS Agreements..........35 View slide
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 4 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE The Federal Government’s standard accrual-basis accounting requires all Federal agencies to recognize earned revenue when goods and services are sold, regardless of when the money is collected. Recording accrual entries quarterly for revenue flows material to the agency, ensures that sufficient revenue of the accounting period is included in the agency’s standard general ledger and on the quarterly financial statements to match with the expenses of the period; and to display the net results of operations. Materiality for any one revenue flow is defined as 3% of total agency revenue. The related materiality analysis occurs annually at the ASC-B&F in October based on the previous fiscal year’s actual revenue flows and their respective amounts. The materiality determination is effective for the entire fiscal year. 10.1 - Authority 1. Financial Accounting Standards Advisory Board Statements of Federal Financial Accounting Standards No. 7, “Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting” (http://www.fasab.gov). 2. United States Treasury Financial Management Service. “United States Standard General Ledger - Treasury Financial Manual, Section 1 Chart of Accounts, Section II Account Descriptions, and Section III Accounting Transactions” (http://www.fms.treas.gov/ussgl/). 3. Office of Management and Budget. “OMB Circular A-136, Financial Reporting Requirements” (http://www.whitehouse.gov/OMB). This circular provides guidelines for Federal financial processes. 4. Office of Management and Budget. “OMB Circular A-123, Management’s Responsibility for Internal Control, Appendix A, Internal Control Over Financial Reporting (http://www.whitehouse.gov/OMB). This circular describes the internal controls required over Federal financial reporting. 10.4 - Responsibility 1. Director of Budget and Finance, Albuquerque Service Center (ASC-B&F). It is the responsibility of the Director of Budget and Finance, Albuquerque Service Center (ASC- B&F) to calculate, process, and record national-level accruals for revenues as set forth in this chapter. Quarterly quality assurance monitoring shall test the accuracy of estimation techniques and recommend changes for improvement when needed. Materiality determinations shall occur in October of each year based on the previous fiscal year’s actual revenue flows and their respective amounts, and shall remain effective for the entire fiscal year. 2. Washington Office Deputy Chiefs, Regional Foresters, Station Directors, Area Director, Forest Products Laboratory Director, International Institute of Tropical Forestry Director, and Forest Supervisors. It is the responsibility of the Washington Office View slide
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 5 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE Deputy Chiefs, Regional Foresters, Station Directors, Area Director, Forest Products Laboratory Director, International Institute of Tropical Forestry Director, and Forest Supervisors to ensure the quality and integrity of financial data processed in their areas of responsibility, including: a. Ensuring that all billing information is entered in the Financial Transaction Request System or the interfacing databases such as Timber Information Management (TIM) by the third working day preceding the end of each month, and by the cutoff date published in the Fiscal Year Budget and Finance Annual Closing Procedures and Calendar (available on the following website: http://fsweb.r3.fs.fed.us/asc/bfm. After the cutoff date, fax the billing information to the ASC-B&F as instructed in the Annual Closing Procedures. b. Ensuring compliance with all procedures in this chapter. c. Using express overnight mail service during the last week of September to expedite the mailing of deposits to the Treasury-designated lockbox bank to ensure that all collections are recorded before fiscal yearend, September 30. 10.5 - Definitions Automated Timber Sale Accounting System (ATSA). An automated database that tracks activity on timber sale contracts and permits, including harvest volumes, and related deposits and earnings. Balance Voucher (BV). An accounting document in the Foundation Financial Information System designed to record accounting adjustments and a variety of original internal business transactions. IPAC. The U. S. Department of the Treasury’s automated network for “Intra- governmental Payments and Collections,” designed to eliminate the need for Federal entities to issue paper checks to each other. MMS. MMS is the acronym for the Minerals Management Service, a bureau of the U. S. Department of the Interior. MMS administers subsurface minerals leases such as oil, natural gas, and coal, for all the Federal land management agencies. National Finance Center (NFC). The U. S. Department of Agriculture’s accounting service center in New Orleans, LA. Over-the-Counter (OTC). The term used for a sale in which the customer is face-to-face with the sales person, usually in a front office setting.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 6 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE Revenue. An inflow of resources that the Government demands, earns, or receives by donation. Revenue comes from two sources: exchange transactions and nonexchange transactions. Exchange revenues arise when a Government entity provides goods and services to the public or to another Government entity for a price. Another term for “exchange revenue” is “earned revenue.” Nonexchange revenues arise primarily from exercise of the Government’s power to demand payments from the public (e.g., taxes, duties, fines, and penalties) but also include donations. Amounts of earned revenue and related accounts receivable, must be recorded in the accounting system, and displayed on financial statements, for the fiscal year in which revenue was earned and reportable. (Federal Accounting Standards Advisory Board, Statement of Federal Financial Accounting Standards 7: Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting). Transaction Code. A 2-digit alpha-numeric code in the Foundation Financial Information System that classifies the accounting transaction as a miscellaneous order, payment, customer billing, cash receipt, accounting adjustment, and so forth. Transaction Code is superior to Transaction Type. Every accounting and budgetary transaction has both a transaction code and a transaction type. Transaction Type. A 2-digit alpha-numeric code in the Foundation Financial Information System that classifies the accounting transaction into more detail; subordinate to the Transaction Code. Every accounting and budgetary transaction has both a transaction code and a transaction type. Unbilled Account Receivable. A Forest Service term describing amounts due from customers for which a bill has not been issued. United States Standard General Ledger (USSGL). Accounting guidelines issued by the U. S. Department of the Treasury, including a chart of accounts and standard account postings for mandatory use by all Federal government entities. 11 - MONTHLY ACCRUAL OF UNBILLED EARNED REVENUE FROM TIMBER HARVESTS Historically called the “TSA Receivable Estimate Accrual,” the monthly accrual of unbilled earned revenues from timber harvest activities is required because the actual figures needed to issue the billings are not available until the Timber Sale Accounting (TSA) system closes on approximately the 15th of the subsequent month. The accrued earned revenues are estimated amounts due from timber purchasers for timber harvested and removed during the current month. Because the actual earned revenue amounts for unbilled receivables are not available and formally recorded until the subsequent month, an accrual must be estimated and recorded each month-end in FFIS. The accrual is only for the current month’s estimate of unbilled earned revenues, not the total amount due from the timber purchaser.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 7 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE Descriptions of the activities generating the revenue and the quarterly accrual methodology are as follows: 1. Activities Generating Revenue. The value of timber harvested sometimes exceeds the amount the purchaser has paid in advance on the timber sale contract. In these cases, estimated amounts are accrued because actual amounts won’t be available and posted to the FFIS system until the subsequent month when the TSA system closes. 2. Monthly Accrual Methodology. On a monthly basis, an estimated amount of unrecorded revenue related to timber harvest is determined by calculating a seasonally adjusted average of revenues, as described in the “Monthly Unbilled Revenue Accrual,” which may be found under Operations Interfaces on the following website: http://fsweb.r3.fs.fed.us/asc/bfm/programs/financial-operations/receivables- collections/timber-sales/policies-procedures The average revenue is calculated using actual monthly revenue to be billed, identified by the TSA system on previous months’ TSA reports. The source document for the actual amounts to be billed is a report produced by the TSA system, report number TSA 992-01, “Accounts Receivable/Accrued Earnings”, more specifically the column headed “Closing Minus Balance.” The ASC-B&F records the accrual entry in FFIS using a multiple line standard voucher (transaction code SV) to enter increases to the various revenue accounts and an increase to accounts receivable. FFIS automatically reverses the accrual entry at the beginning of the subsequent month and the ASC-B&F reviews and approves the reversal by the 10th day of that month. See the data table in exhibit 01 for the transaction codes, transaction types, standard general ledger postings and voucher information used for the accrual of unbilled earned revenue from timber harvests.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 8 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 11 - Exhibit 01 Accrued Unbilled Earned Revenue: Accrual Entry’s Information and Postings Trans Revenue Source Entry Fund Code(s) Code/ Standard General Vendor Code; Budget No. Trans Ledger Postings Code Object Type Proprietary: 1. 5008 - National Forest SV/U1 Debit: 1312 Fund Revenue Accounts Receivable Credit: 5100 5896 - National Revenue from Goods Grasslands Revenue Sold CWF2 - Cooperative Budgetary: FS Work, Non-Agreement None ACCRUAL 0105 Based CWKV - Cooperative Proprietary: 2. Work, Knutson- SV/U1 Debit: 1312 Vandenburg Accounts Receivable BDBD - Brush Disposal Credit: 5900 Other SFSF - Salvage Sale Revenue Fund Budgetary: TPBP - Botanical None Products SSCC - Stewardship Contracting
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 9 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 12 - MONTHLY ACCRUAL OF PURCHASER ROAD CREDIT AND SPECIFIED ROAD CREDIT Prior to April 1999, the Forest Service granted Purchaser Road Credit (PRC) to timber purchasers. Under the terms of certain timber sales contracts, timber purchasers were allowed to construct roads, bridges, and culverts to gain access to the timber they purchased. If the Forest Service had a use for the roads upon contract completion, the timber purchaser was given a credit, referred to as a PRC, for the value of the roads. The PRC was established in the Automated Timber Sale Accounting System when the forest accepts the road. See paragraphs 1, 2, 3, and 4 below for direction about the accounting entries. 1. On applicable timber sale contracts, the timber purchaser can use the PRCs to offset payments for timber harvested. As the timber purchaser uses the PRCs instead of cash payments for timber harvested, the amount in Unearned Revenue is reduced and current year revenue is recognized. If all PRCs have not been applied when the contract is closed, they are cancelled and the amounts are removed from the Unearned Revenue account and recorded in the Earned Revenue account. 2. After April 1999, the use of PRCs for new contracts is prohibited and the method of accounting for the costs changed from recording PRCs to recording Specified Road Credit (SRC) as revenue. Accrual amounts for PRC and SRC assets and revenues are based on reports from the Automated Timber Sale Accounting System (TSA), provided by the Washington Office Financial Management Staff. The funds used to record these entries are CMEX and CNEX because these reimbursable fund accounts allow the Forest Service to record revenue without augmenting an appropriation. The TSA source reports are titled as follows: “Detail for Cost Established,” “Summary for Cost Established,” “Detail for Established Credit,” and “Summary for Established Credit.” Accrual entries are recorded on a monthly basis and both monthly and yearend entries reverse. a. PRCs Established. Use the TSA Report 940-01 “PRC Road Credit Established for FY XX” to obtain current year information on road construction costs incurred by the timber contractor. Currently, few PRC contracts remain active from the period prior to April 1999. For PRCs established, accrual entries are recorded with a Standard Voucher document as summarized in exhibit 01. b. PRCs Applied. In the current fiscal year, the “effective” portion of PRCs established will be used by timber contractors in lieu of cash to pay for timber they have harvested. Obtain the amount of applied PRCs from the TSA Report 926-01
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 10 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE “FY XX Yearend TSPIRS Report (All Contracts)”, column “FY XX PROCUNIT”. For PRCs applied, accrual entries are recorded with a Standard Voucher document as summarized in exhibit 02. c. Unapplied PRCs from Closed Contracts. During the current fiscal year, timber contracts are closed which may have PRCs that have not been applied by the contractor toward timber the contractor has harvested. Through April FY 2006, the remaining unapplied PRCs were recorded as Donated Revenue, but effective with month-end May 2006, are reported as Earned Revenue. The TSA Report 926-01 “FY XX Yearend TSPIRS Report (Closed Contracts Only)” column “FY XX C3701” provides information. Note: This is a separate report from the one used for Applied PRCs. For unapplied PRCs from closed contracts, accrual entries are recorded with a Standard Voucher document as summarized in exhibit 03. d. Established SRCs. Any road construction costs under timber contracts after April 1999 are recognized as revenue upon the acceptance of the roads by the Forest Service. TSA Report 940-01 “SRD Cost Established for FY XX” provides the information on the road construction costs incurred by the timber contractor during the current fiscal year. Details about the accounting entries and postings are provided in exhibit 04.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 11 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 12 - Exhibit 01 PRCs Established - Accrual Entry’s Information and Postings Trans Revenue Fund Code(s) Code/ Standard Asset Vendor Source Code; Trans General Ledger Recorded Code Budget Object Type Postings SV/NT Proprietary: Prism, CNEX - Construction Debit: 1712 Culverts, and External Reimbursable Improvements to Surface Land Or SV/TI Debit: 1740 Bridges FS 0210 Other Structures/ ACCRUAL CMEX - Construction Facilities External Reimbursable SV/NT, Credit: 2320 All Assets SV/TI Deferred Credits N/A Budgetary: N/A None 12 - Exhibit 02 PRCs Applied - Accrual Entry’s Information and Postings Trans Revenue Source Fund Code(s) Code/ Standard General Vendor Code; Budget Trans Ledger Postings Code Object Type Proprietary: CNEX - Construction Debit: 2320 Deferred External Reimbursable Credits SV/RV Credit: 5100 Revenue FS 0210 Or from Goods Sold ACCRUAL CMEX - Construction Budgetary: External Reimbursable None
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 12 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 12 - Exhibit 03 Unapplied PRCs from Closed Contracts – Accrual Entry’s Information and Postings Trans Revenue Source Fund Code(s) Code/ Standard General Vendor Code; Budget Trans Ledger Postings Code Object Type Proprietary: CNEX – Construction Debit: 2320 Deferred External Reimbursable Credits SV/RV Credit: 5100 Revenue FS 0210 Or from Goods Sold ACCRUAL CMEX – Construction Budgetary: External Reimbursable None 12 - Exhibit 04 Established SRCs - Accrual Entry’s Information and Postings Trans Revenue Fund Code(s) Code/ Standard General Asset Vendor Source Code; Trans Ledger Postings Recorded Code Budget Object Type SV/TM Proprietary: Prism, CNEX – Debit: 1712 Culverts, and Construction Improvements to Surface External Land Reimbursable SV/TB Debit: 1740 Bridges FS 0210 Other Structures/ ACCRUAL Or Facilities SV/TM, Credit: 5100 All Assets CMEX – SV/TB Revenue from Construction Goods Sold External Reimbursable N/A Budgetary: N/A None
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 13 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 13 - ANNUAL ACCRUAL OF PERMIT FEES FOR SPECIAL USES, GRAZING AND MINERALS During the year, local Forest Service offices generate bills for special uses, grazing, and minerals based on the terms of the respective permit, and collect fees in advance based on the standard period of occupancy, January 1 through December 31. The permit billing and management subsystems, the Special Uses Data System (SUDS) and INFRA-Range (accessed using I-Web) stay open at month-end for October through August. For month-end September, however, an accrual of permit fees for special uses, grazing, and minerals is required for fiscal years in which SUDS and INFRA-Range close a few days before September 30. During the few days prior to yearend, if any permit changes occur affecting the amount of revenue billed and/or unbilled, then an accrual is necessary to ensure that all permit fee revenue is correctly recorded during the period. Descriptions of the activities generating the revenue and the quarterly accrual methodology are as follows: 1. Activities Generating Revenue. Local Forest Service offices issue permits for the following activities: a. Grazing for various types of animals on designated tracts of National Forest System lands and National Grasslands. b. Special uses such as electricity transmission lines or oil and gas pipelines crossing the forest. Many communications companies have special use permits for the placement of antennas, microwave towers, and relay stations on mountain tops. 2. Annual Accrual Methodology. a. After SUDS and/or INFRA Range close for the fiscal year, if any changes occur in the fees or billings for special uses, grazing, or minerals, then the local Forest Service offices must fax the information to the ASC-B&F Special Uses/Grazing section at the fax number shown in the Fiscal Year Budget and Finance Annual Closing Procedures (available on the following website: http://fsweb.r3.fs.fed.us/asc/bfm). b. ASC-B&F uses the information to prepare and record an accrual in FFIS prior to the close of business at yearend. c. FFIS creates the reversal entry at the beginning of the subsequent month and the ASC-B&F reviews and approves the reversal by the 10th day of that month. d. The local Forest Service office must input the changes into SUDS and/or INFRA Range during the subsequent month.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 14 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE See exhibit 01 for the transaction codes, transaction types, and standard general ledger postings used for the accrual of permit fees for special uses and grazing. 13 - Exhibit 01 Annual Accrual of Permit Fees for Special Uses and Grazing: Information and Postings Trans Fund Code(s) Code/ Standard General Vendor Revenue Source Trans Ledger Postings Code Code; Budget Object Type Proprietary: 5008 - National Forest SV/U1 Debit: 1312 Accounts Fund Revenue Receivable FS 0105 Credit: 5100 Revenue ACCRUAL 5896 - National from Goods Sold Grasslands Revenue Budgetary: None
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 15 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 14 - ANNUAL ACCRUAL OF REVENUE FOR PLANT-A-TREE AND CHARACTER LICENSING OF SMOKEY BEAR AND WOODSY OWL The character licensing of Smokey Bear and Woodsy Owl receives earned revenues quarterly with each 3-month remittance period specified in the license agreement. Descriptions of the activities generating the revenue and the annual accrual methodology are as follows: 1. Activities Generating Revenue. a. Plant-A-Tree. Forest Service’s Plant-A-Tree program is a publicized offer to the public. For a contribution of $10, a remitter may have a tree planted in memory of a loved one, or to honor a person, or a special occasion such as a birthday; the Forest Service issues a certificate to the contributor, commemorating the event. The monies finance tree planting projects on National Forest System lands. b. Smokey Bear and Woodsy Owl Character Licensing. The Forest Service has statutory authority to issue licenses to private businesses to reproduce the images of Forest Service’s characters, Smokey Bear and Woodsy Owl (FSH 6509.11g, chapter 60). The two types of character licenses are as follows: (1) A single-use license fee is due when the license is signed. (2) A regular-use license fee is a percentage of the licensee’s sales of Smokey Bear or Woodsy Owl products. According to the license agreement, fees are due every 3 months. 2. Annual Accrual Methodology. Annual accruals are processed for Plant-a-Tree contributions and Smokey Bear and Woodsy Owl royalty revenue because the amount of the receipts is relatively small and the accrual reporting is too great an administrative burden for more frequent accruals. a. Plant-A-Tree. No accrual is necessary for contributions from individuals because they are recorded in daily business during the month using FTRS which is open and available through the last day of each month. For private companies that make routine contributions, an accrual is recorded for the amount estimated by the Washington Office Forest Management Staff. In the absence of an estimate from the Forest Management, the accrual estimate shall be an average of the previous 12 calendar months of actual contributions. b. Smokey Bear and Woodsy Owl Character Licensing.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 16 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE (1) Single-Use Licenses. ASC-B&F OTC team shall contact the license administrators to determine if there are any unpaid one-time use fees, or fees the administrators have collected and not submitted for deposit. The amount of earned revenue to be accrued for single-use licenses is the amount of unbilled fees plus fee revenue on hand. (2) Regular-Use Licenses. The ASC-B&F OTC team shall review all open licenses and update the spreadsheet that: (a) lists each license with its respective historical revenues, (b) summarizes actual royalty income received, and (c) calculates a quarterly average of actual earned revenue. See exhibit 01 for the transaction codes, transaction types, and standard general ledger postings used for the accrual of revenue from Plant-A-Tree and character licensing of Smokey Bear and Woodsy Owl.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 17 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 14 - Exhibit 01 Accruing Revenue from Plant-A-Tree and Character Licensing Of Smokey Bear and Woodsy Owl: Information and Postings Trans Revenue Entry Fund Code(s) Code/ Standard General Vendor Source Trans Ledger Postings Code Code; Type Budget Object CWFS - Cooperative Work, Proprietary: Plant-a-Tree Forest Service (CWFS was SV/MS Debit: 1312 used in FY 2006 and prior Accounts years.) Receivable Credit: 5900 CWF2 - Cooperative Work, Other Revenue Non-Agreement Based Budgetary: (CWF2 is used in FY 2007 None and subsequent years.) Proprietary: Smokey LPSB - Smokey Bear SV/MS Debit: 1312 FS 0105 And Licensing Accounts ACCRUAL Woodsy, Receivable Royalties LPFL - Woodsy Owl Credit: 5900 Receivable Licensing Other Revenue Budgetary: None
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 18 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 15 - ANNUAL ACCRUAL OF REVENUE COLLECTED BY THIRD PARTY VENDORS To improve customer service to forest visitors, Forest Service enters into agreements with non- government third parties to sell Forest Service maps and recreation passes. These third parties are local businesses such as sporting goods stores, gas stations, outfitter/guides, and convenience stores who want to sell Forest Service recreation passes or maps as a convenience for their customers. The arrangement is advantageous to the Forest Service because the private businesses have longer daily business hours and are open on weekends. Third party vendors are encouraged to purchase the recreation passes and maps, paying for them in advance. However, because some small businesses (often sole proprietorships) cannot afford such an outlay, instead of advance payment being collected, the Forest Service enters into consignment arrangements with the small businesses. Descriptions of the activities generating the revenue and the annual accrual methodology are as follows: 1. Activities Generating Revenue. Private businesses local to the Forest Service office enter into consignment agreements with the Forest Service for the sale of Forest Service maps, recreation passes, Christmas tree tags, and other such items. The businesses periodically remit the collections to the Forest Service in accordance with the provisions of their agreement. Units shall instruct vendors to remit all collections in a timely manner that allows the Forest Service office to record the actual revenue. 2. Annual Accrual Methodology. Annual accruals are processed for third party vendor revenue because the amount of the receipts is relatively small, and the accrual reporting is too great an administrative burden for more frequent accruals. a. Units shall minimize the amount of receipts held by third party vendors by establishing the vendors’ remittance dates as weekly at a minimum and every 14 days as a maximum. b. At yearend, units shall calculate the revenue accrual using the respective vendor’s average daily collection amount, calculated from the last 2 months of receipts that the vendor remitted to the Forest Service. Multiply the vendor’s average daily collection amount times the number of days in the accrual period. Units shall submit the accrual information to the ASC-B&F Receivables and Collections group in accordance with the instructions in the Fiscal Year Budget and Finance Annual Closing Procedures and Calendar, posted annually on the following website: http://fsweb.r3.fs.fed.us/asc/ bfm.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 19 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE c. ASC-B&F OTC team shall record the accrual entries submitted by field units. Two examples of the transaction codes, transaction types, and standard general ledger postings are shown in exhibit 01, one for the accrual of recreation receipts and one for map sale revenue collected by third party vendors. 15 - Exhibit 01 Accruing Revenue For Receipts Collected By Third Party Vendors: Information and Postings Trans Revenue Source Entry Fund Code(s) Code/ Standard General Vendor Code; Budget No. Trans Ledger Postings Code Object Type Proprietary: 1. FDFD Recreation Fees, SV/MS Debit: 1312 Forest Service Accounts Receivable Credit: 5900 Other Revenue Budgetary: FS 0105 None ACCRUAL Proprietary: 2. MAPS - Reproduction SV/MS Debit: 1312 and Sale of Maps to the Accounts Public Receivable Credit: 5900 Other Revenue Budgetary: None
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 20 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 16 - QUARTERLY ACCRUAL OF REIMBURSABLE REVENUE FOR INCIDENT- RELATED Forest Service is the performing agency for many reimbursable agreements pertaining to incident response. The term “incident” applies to wildland fires, hurricane relief assignments, and other such emergency-related work projects. Descriptions of the activities generating the revenue and the quarterly accrual methodology are as follows: 1. Activities Generating Revenue. a. Cooperative Protection Agreements, Non-Federal. This section pertains to non- Federal cooperative protection agreements. Annually, Forest Service reviews existing Cooperative Protection agreements established for incident support. New cooperative agreements are negotiated if required to maintain readiness. Until an incident occurs and the agreement is exercised, Forest Service records no financial obligation for these agreements. Each agreement’s provisions document a timeline for billings and cite the Federal statutes that authorize the cooperative fire activity. The ASC-B&F Incident Finance (IF) team makes payments and is the agency staff that generates billings for these agreements. The process steps to exercise a cooperative agreement are as follows: (1) A wildland fire incident occurs and the Dispatch Center generates a fire job code in the interagency FireCode system. If the incident occurs within State (cooperator) jurisdiction and the agreement’s “Forest Service Assist” block is checked, the letters “PN” are used in the first two positions of the 6-position fire job code. Job code positions 3 through 6 are a unique alpha-numeric identifier assigned to the incident. The PN designation signifies that the incident is on non-Federal land or is under non- Federal jurisdiction according to agreements in place. Not all PNxxxx fire job codes are reimbursable; Dispatch Centers must ensure that they correctly encode the “Reimbursable/Billable” block in the FireCode system. (2) ASC-B&F IF team distributes a spreadsheet monthly of all fire job codes to the Regional Incident Administrative Coordinators so that field units can validate and identify all reimbursable or cost share job codes. (3) ASC-B&F IF team monitors all fire job codes identified by the field to determine if the expenses are reimbursable based on the appropriate agreement.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 21 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE (4) ASC-B&F IF team obtains a financial management report quarterly, listing all expenses for each fire job code. Reimbursable expenditures are summarized and prepared for billing. If the fire job code was established in appropriated fund WFSU, an expenditure accounting adjustment is required to position the expenses correctly for billing purposes in reimbursable fund WFEX. Beginning July 1, 2006, State “PNxxxx” job codes have reimbursable fund WFEX in their underlying accounting, therefore no accounting adjustment is necessary. (5) ASC-B&F IF team records quarterly, in FFIS, the initial bills for the preliminary amounts summarized in step 1 (a) (4) above, however the bills are not mailed to cooperators. The entries serve as accruals of estimated revenue during the Forest Service’s process of confirming the charges. Until all expenses are recorded in the FFIS accounting system, the preliminary bills continue to be modified quarterly to keep the accrued revenue current. (6) ASC-B&F IF team distributes the incident expense summaries to the field where the designated officer, dispatchers, and/or fire manager will review, approve, sign, and return the summaries to the ASC-B&F IF team. When the amounts are confirmed, the ASC-B&F IF team modifies the existing bill’s amount, if necessary; encloses supporting documentation (based on the agreement requirements); and mails it to the cooperator. (7) The Cooperator uses written communication to inform the local Forest Service unit about any disputed charges, as outlined by the dispute clause in the agreement. The Forest Service field unit shall investigate the disputed charges, negotiate with the cooperator, and request ASC-B&F IF team adjust the billing as appropriate. (8) The ASC-B&F IF team’s final billing occurs in a timely fashion. b. Federal Emergency Management Agency (FEMA) Agreements. Forest Service’s business relationship with FEMA is described in the National Response Plan (see http://www.dhs.gov/xprepresp/committees/editorial_0566.shtm), and documented in an interagency cooperative agreement. The Forest Service is the primary, or lead agency for the National Response Plan’s Emergency Support Function #4 (ESF4), the firefighting function. FEMA issues FEMA Form 90-129, Mission Assignment (MA), to the Forest Service, identifying the work to be performed and specifying a dollar limitation. However, FEMA does not expect Forest Service to be the sole agency spending the authorized funds. Forest Service records no unfilled customer order, based on the MA, because it is impossible to determine how much of the MA limitation will be expended by the Forest Service. The process for billing FEMA follows the steps outlined in paragraph 1 (a) (1) above, with the following exceptions:
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 22 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE (1) Forest Service field Fire Staff requests ASC-B&F IF team establish the number of job codes required for the emergency. The first position of the 6-position job code is “F” to signify “FEMA.” (2) ASC-B&F IF team obtains a financial management report from FFIS showing expenses by job code. ASC-B&F IF team analyzes the report and identifies the actual reimbursable expenses. Examples of items not reimbursable are base time and agency-provided medical care. (3) Once all the expenses have been identified, ASC-B&F IF completes, reviews, and signs the Mission Assignment Reimbursement Request Transmittal form. ASC-B&F IF team uses Treasury’s Intra-Governmental Payment and Collection network, (IPAC) to bill FEMA. In addition, ASC-B&F IF team mails supporting documentation to FEMA. (4) ASC-B&F IF team bills FEMA incidents monthly as charges occur. Final bills are issued in a timely manner when each mission assignment is closed out and all expenses are recorded in FFIS. 2. Quarterly Accrual Methodology. ASC-B&F IF team prepares and enters a quarterly, high level self-reversing revenue accrual. The accrual amounts are determined using a financial management report which retrieves actual expenses from the Financial Data Warehouse. The quarterly revenue accrual amount represents unbilled expenses incurred after the previous billing cycle. For example, the billing cycle cuts off on the 20th of the last month in the quarter, the revenue accrual would cover expenses incurred from the 21st through the end of the last month in the quarter. For FEMA MAs, the revenue accrual amount is for unbilled delivered orders. For the accrual transaction code, transaction type, and standard general ledger postings see exhibit 01.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 23 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 16 - Exhibit 01 Accruing Reimbursable Revenue for Non-Federal Cooperative Fire Agreements and Incident-Related Agreements: Information and Postings Trans Revenue Source Fund Code(s) Code/ Standard General Ledger Vendor Code; Budget Trans Postings Code Object Type Proprietary: WFEX - Wildland Fire SV/PJ Debit: 1310 Accounts External Reimbursements Receivable Credit: 5200 Revenue From Services Provided FS 0250 Budgetary: ACCRUAL Debit: 4251 Reimbursable and Other Income Earned, Receivable Credit: 4210 Anticipated Reimbursable and Other Income
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 24 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17 - ACCRUAL OF REIMBURSABLE REVENUE FOR NON-INCIDENT RELATED AGREEMENTS Forest Service uses the FFIS Project Cost Accounting System (PCAS) for the non-incident related agreements’ accounting. PCAS automates the processes for billing, liquidation of advances, and the assessment/adjustment of indirect costs. Agreements with an approved exception (such as complex agreements with multiple partners) are managed in a non-PCAS environment. Revenue is recorded as earned on both PCAS and non-PCAS agreements when a reimbursable billing document (transaction codes BP or BD) is recorded or when an advance is liquidated (transaction code PS) upon performance of work. The majority of revenue recognition is initially achieved by these billing or advance liquidation transactions. Advances are liquidated monthly as work is performed, evidenced by paid and unpaid expenditures. For reimbursable collections, the frequency of billing varies depending on the identity of the Forest Service’s cooperator and the terms of the agreement. A revenue accrual is necessary only when unbilled expenditures exist at fiscal quarter-end reporting periods for which a billing will not be issued. Accounts with unbilled expenditures occur under the following circumstances: 1. Non-federal partners not billed at least quarterly; 2. Federal partners under an approved exception to bill less frequently than quarterly; or 3. Agreements where a billing will not be produced at the quarterly interval for reasons such as: (a) System constraints when the billing parameters and billing interval conflict, (b) High level payment accruals not recorded at the agreement level, (c) Early PCAS cutoff date at fiscal yearend. 17.1 - General Information about Accruing Revenue for Non-Incident Reimbursable Agreements The complete accounting procedure for non-incident reimbursable agreements is set forth in FSH 6509.11k, chapter 50. The following is a summary of billing requirements, important to note because billed expenditures are not subject to a revenue accrual: 1. USDA and Non-USDA Federal Cooperators. Unless the agreement is an approved exception, billing is required at least quarterly. Exceptions are approved on a case-by- case basis by the ASC-B&F Reimbursable and Collection Agreements (RACA) Branch Chief with consultation as necessary with WO Financial Management Policy staff. 2. Non-Federal Cooperators. A monthly billing cycle is Forest Service’s preferred billing frequency for agreements with non-federal partners. However, when monthly
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 25 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE billings are not possible, a less frequent billing cycle may be negotiated, with a billing required annually at the end of each fiscal year. Agreement terms must address the applicable billing frequency. To achieve the necessary recognition of revenue, when a billing is issued less frequently than quarterly, a revenue accrual must be recorded each quarter-end financial statement reporting period by the ASC-B&F RACA Branch. 3. Both Federal and Non-Federal Cooperators. At the end of each fiscal year, the USDA sets a cut-off date for PCAS processes to accommodate the Intradepartmental Transaction Reconciliation System (ITRS) reconciliation of agreements between USDA agencies. This early PCAS cycle would result in the billing for expenditures recorded after the cut- off date, otherwise subject to 4th quarter billing, to be delayed until the first PCAS bill cycle of the subsequent fiscal year. If the cut-off date is more than 5 days from the end of the fiscal year, the Director of ASC-B&F shall determine if the anticipated reimbursable revenue amount is material, based on a documented analysis of expenditures during this period and other contributing factors. If expenditures are deemed material or if the accrual for these unbilled expenditures could be easily incorporated into the accrual for another reimbursable revenue accrual category, a manual revenue accrual must be calculated and recorded; otherwise, no revenue accrual will be required. An example of the transaction code, transaction type, and standard general ledger postings are shown in exhibit 01.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 26 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.1 - Exhibit 01 Accruing Reimbursable Revenue for Non-Incident-Related Agreements: Information and Postings Trans Revenue Sample Code/ Standard General Vendor Code Source Fund Code(s) Trans Ledger Postings Code; Type Budget Object NFEX - National Forest System External Reimbursements YE/UB Proprietary: For non-Federal 0250 SPEX - State and Private Debit: 1310 partners, Forestry External Accounts Receivable “FS ACCRUAL” Reimbursements Credit: 5200 Revenue From FREX - Forest Research, Services Provided The Common External Reimbursements Budgetary: Agreement Number Debit: 4251 (CAN) CMEX - Construction, Reimbursable and for USDA agencies. External Reimbursements Other Income Earned, Receivable The Vendor Code WFEX - Wildfire Credit: 4221 representing the Management, External Unfilled Customer parent-level Agency Reimbursements (non- Orders Without Location Code (ALC) incident related) Advance for non-USDA agencies. LAEX - Land Acquisition, Land & Water, External Reimbursements
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 27 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.2 - Methodology for Determining Revenue Accruals for Non-Incident Reimbursable Agreements The accrued revenue for non-incident reimbursable agreements is composed of 5 possible categories, depending on the make-up of the whole body of active agreements on the financial statement cut-off date. Those 5 possible segments are as follows: 1. A summary-level accrued revenue entry equal to the actual unbilled expenditures recorded in individual PCAS agreements (sec. 17.21). 2. A summary-level accrued revenue entry equal to the estimated accrued unbilled expenditures recorded at a high level (BFY/Fund/Program) and not to individual PCAS agreements. The accrued expenditures are estimated using the statistical methodology described in Chapter 20, as executed by ASC B&F Service-Wide Accounts Maintenance (SWAM) Branch (sec. 17.22). 3. A summary level accrued revenue entry equal to the unbilled actual expenditures recorded temporarily at yearend by the ASC-B&F Budget Execution staff, based on advice from field units. The temporary recognition of these actual expenditures is described in the Budget and Finance Annual Closing Procedures (sec. 17.23). 4. Separate agreement/project-specific accrued revenue entries for certain sensitive PCAS agreements (sec. 17.24). 5. Separate project level accrued revenue entries for non-PCAS agreements (sec. 17.25). Specific details describing the steps for determining revenue accrual amounts and data elements are available in the ASC-B&F RACA Branch’s Operating Procedures. The defining features of each category are set forth in the following subsections. 17.21 - Actual Unbilled Expenditures Recorded in PCAS Agreements The amount of unbilled expenditures in each of the 3 sub-categories (described below) may be immaterial in and of themselves, but the analysis method captures all subcategories and incorporates all costs to achieve the most complete accrual. A summary level accrual shall be recorded for unbilled expenditures in non-incident-related PCAS reimbursable accounts, at the end of each financial statement reporting period, as follows: 1. For all agreements in PCAS with billing cycles that don’t coincide with Forest Service financial statement reporting dates. PCAS billing cycle codes are displayed in exhibit 01.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 28 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 2. For any of the cycles where a bill will not be issued because the Last Bill Date falls within the affected bill cycle interval causing the agreement to be overlooked by the PCAS billing cycle. A revenue accrual is needed if ASC-B&F employees did not mitigate the occurrence of these timing issues by manually creating a bill or changing the PCAS bill cycle so that PCAS creates the bill. 3. For unbilled expenditures recorded at the agreement level detail in late September, after the PCAS cut-off date but before September 30. The cut-off date is determined each year by USDA Office of the Chief Financial Officer (OCFO) and published in the USDA yearend close-out instructions. Additional information about the accrual entry is displayed in exhibit 02.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 29 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.21 - Exhibit 01 PCAS BILLING CYCLE CODES PCAS Accrual Needed for Reimbursable Revenue Cycle Billing Frequency Yes or No Code M Monthly No Q Quarterly (end of December, March, No June, September) S Semi-annual Yes, accrue at December and June financial statement (end of March, September) reporting dates A Annual Yes, accrue at December, March, and June financial (end of September) statement reporting dates E End of Project Yes, accrue at December, March, June, and September financial statement reporting dates 17.21 - Exhibit 02 Additional Information About the Summary Level Entry for Unbilled Expenditures in PCAS Agreements Accounting Level Timing Reversal The related revenue accrual The entry of accrued revenue The revenue accrual shall be shall be recorded in region occurs 2-3 days prior to the reversed within the first 10 days 17 unit 01 at the BFY/fund/ end of the quarter for the first of the subsequent accounting program level. three quarters. For the fourth period. For the 4th quarter or quarter, the entry occurs Period 13 accrual, the reversal is between the PCAS cut-off made in the 1st accounting period date and the end of the of the new fiscal year. quarter.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 30 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.22 - Statistically Estimated Unbilled Expenditures Not Recorded in PCAS Agreements A summary-level accrued revenue entry shall be prepared for the amount of accrued expenditures unpaid that is estimated using a statistical accrual methodology, managed by ASC- B&F Service-Wide Accounts Maintenance (SWAM) Branch (Chapter 20). The accrual is recorded at a high level (BFY/Fund/Program) and not to individual PCAS agreements Accrued revenue shall be recorded for unbilled estimated accrued expenditures in non-incident- related reimbursable accounts, at the end of each financial statement reporting period, as follows: 1. A high-level statistical methodology generates accrued estimated expenditures at the end of each quarter. When this methodology produces an entry in reimbursable funds, a manual accrual of revenue related to those estimated accrued expenditures must be recorded. The manual entry is necessary because the estimated accrued expenditures are not recorded at the agreement level detail which would allow PCAS to perform the billing process. 2. The accrual for unbilled estimated accrued expenditures undergoes a materiality analysis by fund and program before it is recorded. Therefore, the funds related to the PCAS agreements must be in sufficient amounts to pass that materiality analysis, otherwise, those funds will have no estimated expenditures accrued and there will be no related accrued revenue. 3. The revenue accrual is contingent upon the level of accounting detail provided in the backup support to the statistical accrual analysis. For example, accruals for non-Federal reimbursables can be identified by the program codes NFXN, FRXN, and so forth. These accruals are recorded at vendor summary code level, FS ACCRUAL. For Federally funded reimbursables, citing program codes NFXF, FRXF, and so forth, job code level detail is required to enable the determination of the funding customer. Federal revenue must be recorded at vendor level detail to enable intra-governmental elimination entries. Additional information about the accrual entry is displayed in exhibit 01.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 31 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.22 - Exhibit 01 Additional Information About the Summary Level Accrued Revenue Entry for Statistically Estimated Unbilled Expenditures Not in PCAS Agreements Accounting Level Timing Reversal The related revenue accrual The entry of The revenue accrual shall be reversed shall be recorded in region 17 accrued revenue within the first 10 days of the subsequent unit 01 at the occurs 1-3 days accounting period. For the 4th quarter or BFY/fund/program level. prior to the end of Period 13 accrual, the reversal is made in the quarter. the 1st accounting period of the new fiscal year.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 32 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.23 - Actual Unbilled Expenditures Not Recorded in PCAS Agreements This summary level revenue accrual entry occurs only when the Forest Service makes fiscal year-end entries to temporarily recognize actual expenditures that weren’t recorded in the standard way in time for yearend cut-off. At fiscal yearend, some actual expenditures are not recorded in the standard way because of the timing of the transactions and the related computer systems’ yearend cut-off dates. These unbilled actual expenditures are transactions such as the following: 1. Purchase card purchases (goods and services delivered) that haven’t appeared yet in the Purchase Card Management System (PCMS), 2. The current year portion of unfinished travel that crosses accounting periods, 3. Rejected Integrated Acquisition System (IAS) transactions, and 4. Employee cash awards not processed in time for entry into the standard accounting system. In accordance with the Annual Yearend Closing Instructions, units submit documentation for these transactions and the ASC-B&F Budget Execution staff records them using standard vouchers. Depending on volume, Budget Execution may record these expenditures at the region, unit, job code level or the region, unit, program code level. Any of these expenditures recorded at the job code level will have their related revenue accrual prepared using the methodology in section 17.21 instead of section 17.23. However, if any of the expenditures are recorded to a high level such as BFY/fund/program, a manual revenue accrual equal to those expenditures is recorded if deemed material. The manual entry is necessary because the expenditures are not recorded at the agreement level detail which would allow PCAS to perform the billing process. The ASC B&F RACA Branch Chief shall coordinate with other ASC B&F staffs regarding the volume of these actual expenditures and the program accounting codes affected, to determine if any revenue accrual is necessary. If so, a summary-level revenue accrual entry equal to the actual unbilled expenditures shall be recorded at a high level (BFY/Fund/Program) and not to individual PCAS agreements. Additional information about the accrual entry is displayed in exhibit 01.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 33 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.23 - Exhibit 01 Additional Information About the Summary Level Revenue Accrual Necessary Due to Manual Temporary Entry of Actual Expenditures Accounting Level Timing Reversal The related revenue The entry of accrued revenue The revenue accrual shall be accrual shall be recorded occurs 1-3 days prior to the end of reversed within the first 10 days at the same accounting the quarter. If an obligation of the subsequent accounting level used for the recorded in Period 13 is materially period. For the 4th quarter or temporary entry of the significant to warrant a revenue Period 13 accrual, the reversal actual expenditures. accrual, the revenue accrual entry is made in the 1st accounting occurs prior to the Period 13 cut- period of the new fiscal year. off date.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 34 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.24 - Agreement/Project Specific Entries for Sensitive PCAS Agreements Accrued revenue shall be recorded for unbilled expenditures in that small portion of PCAS agreements that require entries to be recorded at the agreement-level detail. These agreement- specific revenue accruals are essential to maintain special tracking and handling of high-profile, large-dollar agreements such as that with the Bureau of Land Management for conservation work mandated by the Southern Nevada Public Lands Management Act. Additional information about the accrual entry is displayed in exhibit 01. 17.24 - Exhibit 01 Additional Information About the Separate Agreement/Project-Specific Entries for Certain Sensitive PCAS Agreements Accounting Level Timing Reversal The related revenue accrual shall be The entry of accrued The revenue accrual shall recorded at project level detail revenue occurs 2-5 be reversed at the time the (Region/Unit and Job Code) with days prior to the end of actual billing is processed. agreement number in description field. the quarter.
  • WO AMENDMENT 6509.11m-2007-1 6509.11m_10 EFFECTIVE DATE: 09/06/2007 Page 35 of 35 DURATION: This amendment is effective until superseded or removed. FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK CHAPTER 10 - ACCRUING EARNED REVENUE 17.25 - Separate Project-Level Accrued Revenue Entry for Non-PCAS Agreements Accrued revenue shall be recorded for unbilled expenditures in that small portion of agreements that are not managed by the PCAS system. Additional information about the accrual entry is displayed in exhibit 01. 17.25 - Exhibit 01 Additional Information About the Separate Project Level Entry for Non-PCAS Agreements Accounting Level Timing Reversal The related revenue accrual shall The entry of accrued The revenue accrual shall be be recorded at project level detail revenue occurs 2 to 5 days reversed at the time the actual (Region, Unit, and Job Code). prior to the end of the manual billing is processed. quarter.