CURRENT YEAR OPERATIONS This exercise reviews the accounting activities of the Federal Finance and Accounting Agency (FFAA), a new Federal Agency created by Congress that begins operations in this fiscal year. FFAA was established to provide finan cial services to other Federal agencies. The exercise includes activities for FFAA's first year in operation. Review the events below for FFAA's first year in operation. Based on these events, determine the impact of each event and update the USSGL "T" ac counts provided. Federal Finance and Accounting Agency Year 1 Activities The events below are from the Federal Finance and Accounting Agency (FFAA). This is a new agency that began operations on Aug 1. Capitalization thresholds for this Agency are: $50,000 for Property Plant & Equipment; and $25,000 for bulk purchases (Operating Materials and Supplies). No. Date 1 Event/Transaction Aug 1 Congress passes and the President signs the Appropriations Act providing $800,000 for the Agency. The Treasury Department issues a Treasury Warrant for the approved appropriation of 2 Aug 6 3 4 Aug 15 $800,000. The Agency submits an apportionment request to OMB. OMB provides an apportionment to the Agency for $800,000 to cover the Agency's operations for the year. Aug 16 The Director of Budget issues allotments for $400,000 to the Agency operating locations. No. Date 5 6 7 8 9 10. Event/Transaction Aug 17 The Chief Financial Officer (CFO) obtains approval to conduct training to cover the new accounting standards. Training ex- pected to cost $5,000. Aug 18 The Director for Information Technology obtains approval to pur- chase new accounting computer equipment at an estimated cost of $60,000. Aug 19 The Procurement Department finalizes contracts to provide the training (Event #5) at a cost of $5,500 (additional funds are avail- able and approved) and for the computer equipment (Event #6) at a cost of $59,800. Aug 20 The Procurement Department completes an order for materials costing $38,000. Aug 22 The materials (Event #8) in the amount of $38,000 are received and accepted. An invoice is submitted with the delivery. Aug 31 The Agency pays a payroll for $62,100. The Agency personnel ex- penses for August are $62,100. This includes pay- roll/benefits/other retirement benefits. The pay period ends on the last day of the month. 11 Sep 1 The new accounting computer equipment (Event #6) arrives and is accepted by the Agency. Also, invoice is submitted with deliv- ery for $60,000. 12 Sep 3 Management Concepts provides the requested training (Event #5) for all personnel. The instructor provides an invoice at the com- pletion of the training event. 13 14 15 Sep 18 Payment is made for the invoices submitted for the training and the miscellaneous equipment (Events #11 & #12). Sep 25 Sep 29 Payment is made for the materials received on Aug 22 (Event #9). The Agency pays a payroll for $54,000. The Agency personnel ex- penses for September 1-29 are $54,000. This includes pay- roll/benefits/other retirement benefits. Proprietary Transactions SGL 1010 (Dr) Fund Balance with Treasury SGL 1511 (Dr) Operating Materials and Supplies Held SGL 1750 (Dr) Equipment SGL 2110 (Cr) Accounts Payable SGL 3101 (Cr) Unexpended Approp-Received SGL 5700 (Cr) Expended Approp SGL 6100 (Dr) Operating Expenses SGL 3107 (Dr) Unexpended Approp- Used