Aggregated Receivables for Custodial Revenues

050.FFM.L3.01 Aggregated Receivables for Custodial Revenues
End-to-End Business Process: 050 Bill-to-Collect
Business Scenario(s) Covered
  • Unbilled Collections
  • Aggregated Receivables
  • Custodial Revenues
Business Actor(s)
Program Office; Finance Office; Private Sector Entities (PSE)
Synopsis
Funds (e.g., taxes, fees, royalties) from PSE activities are owed to an agency managing a custodial account. Periodic payments are submitted using a Treasury-provided electronic payment system, and payment information is provided to the agency Program Office. The aggregated custodial revenue is reported by the agency Program Office. Reports substantiating the payments with activity information are submitted periodically to the agency Program Office. A periodic reconciliation of collections and PSE activity report information is performed to determine if there is a discrepancy. During a review, it is determined additional payments, penalties, and interest are due. The aggregated receivables are reported by the agency Program Office. At fiscal year-end, information for the Statement of Custodial Activity is provided by the Program Office, and the Financial Statement is produced by the Finance Office.
Assumptions and Dependencies
  1. There may or may not be automated (near/real-time or batch) interfaces between functional areas/functions/activities or between provider solutions/systems.
  2. There is no presumption as to which activities are executed by which actor, or which activities are automated, semi-automated, or manual.
  3. Supporting information for general ledger transactions includes sub-ledger entries when sub-ledgers are used.
  4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string.
  5. Relationships between use cases are described in the Framework for Federal Financial Management Use Cases found in the related overview document.
  6. All predecessor activities required to trigger the Initiating Event have been completed.
  7. Funds availability checks are performed against appropriations/fund accounts for obligating funds, and against obligations for disbursing funds in accordance with OMB A-11, Section 150.2.
  8. The royalties (e.g., gas and oil), along with interest and penalties, if any, are being held for the Treasury General Fund.
  9. Terms and conditions under which funds and periodic reports are due to the agency have been established.
  10. The collecting agency retains administrative fees, if any, to cover expense of reconciliation and processing of underpayments.
  11. The agency collecting the custodial revenues does not transfer the revenue to other agencies.
  12. An IPAC transfer is not used; funds are redirected to the Treasury General Fund during period end processing via Treasury Central Accounting Reporting System (CARS).
FFMSR ID Reference(s) 1.1.2; 1.1.3; 1.1.4; 1.1.5; 1.3.1; 2.3.2
Initiating Event

Royalty payments are submitted using a Treasury-provided payment system.

USE CASE 050.FFM.L3.01 AGGREGATED RECEIVABLES FOR CUSTODIAL REVENUES
Typical Flow of Events
FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)
1
  1. Receive and aggregate periodic reports
  2. Receive royalty collection and deposit information
  3. Request processing of periodic aggregated royalty collection and deposit information (Program Mission Activity)
  • Periodic royalty reports, showing royalty amounts and collections for the period
  • Royalty collection and deposit information
  • Aggregated periodic reports
  • Request for processing of aggregated royalty collection and deposit information
2
  1. Receive and aggregate royalty collection and deposit information (FFM.060.040 Public Receipt Processing)
  2. Recognize custodial collections for others (FFM.040.010 Revenue Processing)
  3. Recognized custodial liability (FFM 090.030 Accrual and Liability Processing)
  4. Generate appropriate royalty collection report (FFM.040.020 Revenue Reporting)
  • Request for processing of aggregated royalty collection and deposit information
  • Appropriate collection and deposit entry created with reference to source information
  • Appropriate custodial collections entry created with reference to source information
  • Appropriate custodial liability entry created with reference to source information
  • Appropriate royalty collection report
3

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
4
  1. Review reports and validate accuracy of royalty calculations
  2. Determine underpayment, penalties, interest, and administrative fees and send a bill
  3. Request processing of bill information for adjustments to royalty calculation plus penalties and interest (Program Mission Activity)
  • Appropriate revenue report
  • Aggregated periodic reports
  • Request for processing of bill information for adjustments to royalty calculation plus penalties, interest, and administrative fees
5
  1. Receive and process request for processing of bill information for adjustments to royalty calculation plus penalties, interest, and administrative fees (FFM.060.020 Public Receivable Set-up and Invoicing)
  2. Establish receivable (FFM.060.020 Public Receivable Set-up and Invoicing)
  3. Recognize custodial collections for others (FFM.040.010 Revenue Processing)
  4. Recognized custodial liability (FFM 090.030 Accrual and Liability Processing)
  5. Recognize revenue from administrative fees (FFM.040.010 Revenue Processing)
  • Request for processing of bill information for adjustments to royalty calculation plus penalties, interest, and administrative fees
  • Appropriate receivable entry created with reference to source information
  • Appropriate custodial collections entry created with reference to source information
  • Appropriate custodial liability entry created with reference to source information
  • Appropriate administrative fees entry created with reference to source information
  • Bill sent and received
6

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
7
  1. Receive adjusted royalty collection and deposit information
  2. Receive penalties, interest, and administrative fees collection and deposit information
  3. Request processing of adjusted royalty collection and deposit information
  4. Request processing of penalties, interest, and administrative fees collection and deposit information (Program Mission Activity)
  • Collection and deposit information received
  • Request for processing of adjusted royalty collection and deposit information
  • Request for processing of penalties, interest, and administrative fees collection and deposit information
8
  1. Receive and process request for processing of adjusted royalty collection and deposit information
  2. Receive and process request for penalties, interest, and administrative fees collection and deposit information (FFM.060.040 Public Receipt Processing)
  • Request for processing of adjusted royalty collection and deposit information
  • Request for processing penalties, interest, and administrative fees collection and deposit information
  • Appropriate royalty collection and deposit entries created with reference to source information
  • Appropriate receivable liquidated with reference to source information
  • Appropriate penalties, interest, and administrative fees collection and deposit entries created with reference to source information
9

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
10
  1. Initiate period end closing (FFM 090.040 Period End Closing)
  2. Liquidate custodial liability (FFM 090.030 Accrual and Liability Processing)
  • Custodial collection and custodial liability information
  • Appropriate custodial liability liquidation entry created with reference to source information
11

Provide fiscal year end information for the Statement of Custodial Activity (Program Mission Activity)
  • Financial information associated with custodial activity
  • Information for the Statement of Custodial Activity
12

Generate Statement of Custodial Activity to incorporate in the Financial Statement (FFM.110.020 Financial Statement Preparation)

  • Information for the Statement of Custodial Activity
  • Statement of Custodial Activity
13

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated

This page was last updated on November 17, 2022.