FMM_2_12_3_EmployeeUserFees_5182010.pdf

TSA Financial Management Manual May 18, 2010

Part 2 - Chapter 12, Section 3 File 5000.10

EMPLOYEE USER FEES

1. PURPOSE

This section provides instructions on the proper accounting and reporting of collections for TSA employee user fees. This policy chapter addresses user fees charged to TSA employees for athletic facilities (HQ Fitness Center) and transportation benefits (HQ Parking).

2. POLICY REFERENCE

• 26 United States Code §132(f) – Establishes the requirement to include in employees’ taxable income qualified parking fringe benefits to the extent the fair market value of the benefit exceeds $175 per month.

• 26 United States Code §132(j)(4) – Excludes from employees’ taxable income the value of any on-premise athletic facility provided by an employer to his/her employees.

• OMB Circular A-11, Preparation, Submission and Execution of the Budget – Establishes Federal policy regarding the treatment of offsetting collections for user charges.

• TSA Management Directive 200.14, HQ Parking and Carpool Program – Provides TSA policy and procedures for the assignment, utilization, and management of parking at the TSA Headquarters (HQ) building garage.

3. DEFINITIONS

• Accountable Official

– A Federal government employee or agent who is responsible for or has custody of government/public funds.

Accounts Receivable

– An umbrella term for amounts owed to the U.S. Government by an individual, organization, or other entity. These receivables may result from amounts due for loans, sales of goods and services, fines, penalties, forfeitures, interest, overpayments, fees, duties, rents, royalties, claims, damages, and travel advances.

Automated Clearing House (ACH)

– A nationwide electronic funds transfer system governed by the National Automated Clearing House Association (NACHA) operating rules which provide for the interbank clearing of electronic payments for participating depository financial institutions. The ACH system connects banks to one another by way of the Federal Reserve Board or other ACH operators.

CA$HLINK II

– An electronic system used to manage the collection of U.S. Government funds and to provide deposit information to Federal agencies. CA$HLINK II links Federal agencies, Financial Institutions, the Federal Reserve Banks, and the Treasury fund managers through an electronic network.

Core Accounting System (CAS) – An Oracle Federal Financials-based system used by the U.S. Coast Guard and TSA. CAS hosts a suite of applications including: Finance and Procurement Desktop (FPD) for field level funds management and simplified http://www4.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000132----000-.html� http://www4.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000132----000-.html� http://www.whitehouse.gov/omb/circulars_default/� https://ishare.tsa.dhs.gov/PoliciesAndForms/Policies/Pages/TSAMDs.aspx�

TSA Financial Management Manual May 18, 2010 acquisitions, Workflow Imaging Network System for document imaging and processing, Contract Information Management System (CIMS) for contracts management, and Sunflower for property management.

• Clearing Accounts

– These are accounts established by Treasury to temporarily hold unidentified general, special, or trust fund collections that belong to the U.S. Government until the funds are classified to the proper receipt or expenditure account.

Delinquent Receivables

– These are accounts receivable that are not repaid within 30 days after the remittance is due. Delinquent receivables may incur interest, penalty, and administrative fees for non-payment.

Electronic Check Processing (ECP)

– A Treasury system used to clear checks using both ACH electronic debits and check truncation (aka Check 21). ECP makes a decision on each check whether to truncate and image the check or create an ACH debit. Most consumer checks will be converted to ACH debits, while most corporate checks will be truncated. Truncation under Check 21 does not convert a check into an ACH debit as conversion does; truncation simply accelerates the settlement process through the use of digital images.

Lockbox

– A collection and processing service offered by financial institutions to accelerate the flow of funds to a Treasury General Account. The offered service includes collecting the mail from a specified post office box; sorting, totaling, and recording the payments; and making the deposits. The financial institution forwards copies of all documentation to FINCEN to post the collections into CAS.

Revenue o Earned Revenue – Inflows of resources to a governmental entity which it has earned.

They arise from exchange transactions, which occur when each party to the transaction sacrifices value and receives value in return (i.e., when goods or services are exchanged).

– Inflow of resources arising from either exchange transactions (earned revenue) or nonexchange transactions (unearned revenue).

o Nonexchange Revenue – Inflows of resources to the U.S. Government that it demands (e.g., taxes, duties, fines, and penalties) or that it receives by donations.

• Treasury

– A general reference to the U.S. Department of Treasury and the various programs and/or systems employed by Treasury.

U.S. Coast Guard Finance Center (FINCEN)

– The TSA accounting service provider.

U.S. Government Standard General Ledger (USSGL) – The USSGL was established to support the consistent recording of financial events as well as the preparation of standard external reports that are required by agencies such as DHS, OMB, and Treasury.

TSA Financial Management Manual May 18, 2010

4. RESPONSIBILITIES

A. Office of Real Estate Services

The Office of Real Estate Services (RES) is responsible for the TSA Headquarters (HQ) building management and facilities support, including the operation of the HQ Fitness Center. RES contracts with the fitness center operator and is responsible for ensuring that the operator remits the collected employee user fees to RES on a weekly basis. RES is then responsible for submitting the collected fitness center fees to the Office of Financial Management (OFM) Claims Management Branch.

The fitness center contractor is responsible for operating the HQ fitness center, and for collecting and remitting fitness center fees to the RES.

B. Office of Property Management

The Office of Property Management is responsible for the assignment, utilization, and management of parking at the TSA HQ building garage; including issuing parking passes, maintaining parking records, collecting parking fees, and ensuring TSA employees do not receive both parking benefits and transit benefits. The Office of Property Management timely submits the collected parking fees to the OFM Claims Management Branch.

C. Office of Budget and Performance

The Office of Budget and Performance (OBP) is responsible for budget formulation and budget execution, including the timely allocation of budgetary authority to TSA program activities when fees are collected.

D. OFM Accounting Branch

The OFM Accounting Branch is responsible for working with FINCEN to ensure the timely and accurate posting of employee user fees to CAS.

E. OFM Claims Management Branch

The OFM Claims Management Branch is responsible for recording and depositing employee payments received from RES and the Office of Property Management.

F. OFM Funds Control & Program Support Branch

The OFM Funds Control & Program Support Branch is responsible for the accurate posting of budget execution transactions and preparing a monthly analysis of actual user fee collections.

G. Office of Revenue

The Office of Revenue coordinates with OBP to determine the amount of employee user fees to be posted in the CAS Budget Execution module.

TSA Financial Management Manual May 18, 2010

H. FINCEN

FINCEN is responsible for posting the receipt of employee user fees into CAS after coordinating any unresolved issues with the OFM Accounting Branch.

5. PROCEDURES

Within TSA, the key processes for handling employee user fees are as follows:

• Budget formulation and appropriation of funds

• Establishing accounts receivable

• Collecting and posting employee user fees

• Budget execution: allotment, sub-allotment, and allocation of funds

A. Budget Formulation and Appropriation of Funds

(1) Establishing Employee User Fees such as:

(a) Parking Benefits; or

(b) Fitness Center dues are due by the 1st day of each quarter and are prorated in monthly increments.

(2) Forecasting the Annual Fee Revenue

RES and the Office of Property Management are responsible for forecasting the annual revenue from fitness and parking fees, respectively. The forecasted amount of collections is provided to the OBP for inclusion in the annual TSA budget request.

(3) Recording Direct Appropriations

TSA does not receive direct appropriations for either program; however, to the extent user fees do not cover the full cost of the benefits provided, direct appropriations are allocated to cover any shortage.

(4) Recording Anticipated Collections

(a) Anticipated collections are recorded for the anticipated annual revenue from employee user fees. The amount recorded is based on the forecasts by RES and the Office of Property Management, included in the TSA budget request, and approved on the SF 132, Apportionment and Reapportionment Schedule. OBP notifies the OFM Funds Control & Program Support (FCPS) Branch of the amount to record as anticipated collections.

(b) FCPS Branch records the anticipated non-federal collections and apportionment for the anticipated employee user fees based on the SF 132, and supporting schedules provided by the OBP.

TSA Financial Management Manual May 18, 2010

(c) Anticipated Collections are reviewed Quarterly and compared to actual Collections realized. Additional Anticipated Resources are requested via SF 132 action if actual collections will exceed that amount forecast in Step 2.

Budgetary Entry To record anticipated collection of employee user fees

Account Description Debit Credit 4060 Anticipated Collections From Non-Federal Sources XX 4450 Unapportioned Authority XX

Proprietary Entry

None1

Budgetary Entry To record OMB apportionment to TSA

Account Description Debit Credit 4450 Unapportioned Authority XX 4590 Apportionments – Unavailable XX

Proprietary Entry

None1

Anticipated resources from non-federal sources are not available for obligation, and may not be allocated to TSA staff and program offices until collected.

(5) Recording Apportionment of Funds

(a) On a monthly basis, within three days of the month end close of the Core Accounting System (CAS) Budget Execution Module (BE), the FCPS Branch prepares an analysis which compares year to date fee collections vs. the fee allocations entered to determine the realized fee collection amount.

Budgetary Entry To record OMB apportionment to TSA

Account Description Debit Credit 4590 Apportionments – Unavailable XX 4510 Apportionments – Available XX

None1

1 No proprietary entry is recorded for anticipated collections of non-federal revenue (receivables from the public) until actually received.

TSA Financial Management Manual May 18, 2010

(b) On a monthly basis, the FCPS Branch prepares an analysis of actual fee collections and provides it to OBP and the Office of Revenue (OR). OBP coordinates with OR to determine the amounts for BE allocations.

B. Establishing Accounts Receivable

(1) Recognition of Accounts Receivable

(a) Parking Benefits

Employees wishing to park in the garage in any particular month must submit their parking application in accordance with TSA Management Directive 200.14, HQ Parking and Carpool Program, which requires employees to pay for parking passes in advance.

(b) Fitness Center

Membership dues for the HQ Fitness Center are paid in advance.

(2) Recording Receivables

TSA receives the parking and fitness fees in advance and will deny access to the facilities/benefits for employees who do not pay. Therefore, TSA does not record a receivable for parking or fitness fees. Because TSA does not refund fees to employees, no advance is booked either.

C. Collecting and Posting Employee User Fees

(1) RES and the Office of Property Management gather the employee user fees and provide them to the OFM Claims Management Branch for deposit on a weekly basis.

Upon receipt, the OFM Claims Management Branch enters employee user fees collected into a spreadsheet summarizing all checks to be presented for deposit.

(2) The OFM Claims Management Branch enters the CAS accounting string in the spreadsheet which is forwarded to FINCEN with a copy to the OFM Accounting Branch; checks are forwarded to the TSA lockbox for deposit. FINCEN posts deposits of employee user fees from the lockbox to TSA’s budget clearing account 70_3875. FINCEN matches deposit information from the OFM Claims Management Branch spreadsheet, the lockbox reports, and Treasury’s Cashlink system to reclassify deposits for employee user fees from the suspense account to Treasury Account Fund Symbol (TAFS) 70_0554. The OFM Accounting Branch verifies timely and accurate postings to CAS.

Budgetary Entry To record the collection of business-type fees

Account Description Debit Credit 4261 Actual Collections of Business-Type Fees XX 4060 Anticipated Collections From Non-Federal Sources XX

TSA Financial Management Manual May 18, 2010

To record receipt of fees Account Description Debit Credit

1010 Fund Balance with Treasury XX 5900 Other Revenue XX

D. Budget Execution: Allotment, Sub-Allotment, and Allowance – Fund Distribution

(1) Based upon the monthly notice from the Office of the Revenue and the monthly analysis of fee collections from FCPS, OBP prepares an allocation request to provide the budget distributions to the TSA program offices. Allocation budget distributions are based on the previous month’s actual collections to date (e.g. the allotment for April 2011 would be based on actual collections through March 2011), not to exceed the most recent OMB apportionment. OBP distributes budget authority from the TSA program offices to Managing Unit segments via Allowance (Allocations.)

(2) Since Allotments, Sub Allotments and Allowances are considered agency subdivisions of funds, no specific USSGL accounts have been established by Treasury to report these subdivisions. Within CAS, Allotment and Sub Allotments are identified by the combination of the 8-digit CAS general ledger account plus the following accounting code data elements: Appropriation, Budget Year, Program/Project, Activity, Sub-Activity, Funding Organization (Funding Org), and Managing Unit.

(3) Allotments are distributed to the Appropriation, Budget Year, and Program Project segments with the other accounting code data elements through the Managing Unit populated with the zero-filled default.

(4) Sub Allotments are distributed to the Appropriation, Budget Year, Program/Program and Funding Org segments with the other accounting code data elements populated with the zero-filled default.

(5) Allowances are distributed to the full account ID including the Appropriation, Budget Year, Program/Program, Activity, Sub-Activity, Funding Org, and Managing Unit data elements.

TSA Financial Management Manual May 18, 2010

Budgetary Entry To record TSA Allotment

Account Description Debit Credit 45100000 Apportionments – Available XX 46100100 Allotments – Direct TSA XX

To record TSA Sub Allotment Account Description Debit Credit

46100100 Allotments – Direct TSA XX 46100200 Sub Allotments - Direct TSA XX

To record TSA Allowance Account Description Debit Credit

46100200 Sub Allotments - Direct TSA XX 46100000 Allotments - Realized Resources XX

None