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Operational Accounting Lifecycle

Warrants & NET Transactions

Warrant And Non-Expenditure Transfer (NET) Transactions

Introduction

This chapter describes the processes to request warrant transactions via the Budget Appropriation and Analysis Section (BAAS) and to process Non-Expenditure Transfers (NETs) transactions within the Centralized Accounting and Reporting System (CARS). Additionally, this chapter includes how to retrieve posted warrant and NET transactions as well as entity guidance to follow if any corrections are necessary to either a warrant or NET transaction after posting to CARS.

Section 2010—Scope and Applicability

All Federal Program Entities (FPEs) and U.S. Government corporations are governed by the procedures in this chapter for:

  • Accounting for appropriated amounts in accounts by warrant or warrant-like transactions (such as warrant journal vouchers that transfer excise tax collections in receipt accounts to trust funds), and
  • Processing NETs between appropriation and other accounts for transfers and borrowings.

Both warrants and NETs are processed using the Agency Transaction Module (ATM) within CARS. Warrants are entered in CARS by the BAAS team and NETs are entered in CARS by the FPE.

Section 2015—Authority

In accordance with 31 U.S.C. 3513:

  • The Secretary of the Treasury shall prepare reports on the financial operations of the U.S. Government, and
  • Each executive entity shall give the Department of the Treasury (Treasury) reports and information on the financial conditions and operations of the entity as the Secretary of the Treasury requires to prepare the reports.
Section 2025—Warrant Transactions

This section describes the processes for the following:

  • Appropriation warrants,
  • Specific warrant types and descriptions,
  • Appropriation warrants under a Continuing Resolution (CR),
  • Rescissions of Funds, and
  • Reversing Warrants.

In general, allow 3 to 5 business days for agency requested warrants to be analyzed, verified, and posted in CARS.

2025.10—Appropriation Warrants

Annually, Congress passes various appropriation acts (omnibus, supplemental, emergency) to fund the federal government. These appropriation acts provide budget authority to entities to incur obligations and expend funds from the General Fund of the U.S. Government for specific purposes. Treasury prepares and issues the Fiscal Service (FS) Form 6200: Department of the Treasury Appropriation Warrant via the CARS ATM Appropriation Warrant Application. 

Under 31 U.S.C. § 3323(a), warrants authorized by law are to be signed by the Secretary of the Treasury and countersigned by the Comptroller General. However, under 31 U.S.C. § 3326(a), the Secretary of the Treasury and the Comptroller General issued several joint regulations phasing out the countersignature requirement. Treasury–GAO Joint Regulation No. 7, effective January 1, 1991, eliminated the countersignature requirement completely.

The appropriation warrant is evidence of Congressional action to fund programs. In addition, an appropriation warrant serves to establish the amount and period of availability of monies the entity is authorized to withdraw from the General Fund of the U.S. Government.

When enacted legislation provides budget authority in the form of an appropriation, the Budget Appropriation and Analysis Section reads and analyzes the enacted appropriation and acts independently from the Office of Management and Budget (OMB). 

The FPE must submit a memo to Treasury requesting the appropriation be processed in the following circumstances:

  • When appropriated amounts in an appropriation act require additional information from the entity before the warrant can be issued such as:
    • One of the three elements is missing or unclear (time, purpose, or amount), 
    • The language includes language such as: “up to”, “not to exceed”, “not more than”, or “not less than”,
    • The bill is in reconciliation format, or
    • The appropriation/rescission legislation language is under general provision area or has a section number.
  • For Indefinite appropriations of an unspecified amount of money,
  • For special and trust fund appropriations with legislation that provides for an amount to be derived from dedicated collection receipts collected in an unavailable receipt account, 
  • For rescissions of appropriations (see section 2025.40),

The request letter, in PDF format, submitted via email must include the following:

  • Specific warrant type requested (see section 2025.20),
  • Treasury Appropriation Fund Symbol (TAFS),
    • Proper format will include the three-digit agency identifier (AID), four-digit Beginning Period of Availability (BPOA), four-digit Ending Period of Availability (EPOA), four-digit main account, and when applicable a three-digit point account.
  • Exact amount of the request to the penny (do not round),
  • Specific legal authority,
    • U.S. Statutes at Large (STAT) citation and/or,
      • PL XX STAT XXX or,
    • U.S. Code with section/subsection identifier,
      • XX USC XXX Sec. XXX (a),
    • If the USC or PL citation is found in a section, that must also be included. Specific, accurate citations expedite the processing time for the warrant request,
  • The requested accounting period including the month and year for posting,
  • Point of contact, 
  • Digital signature, and
  • Supporting documentation if applicable such as OMB approved apportionments, OGC legal opinion, etc.

OMB Circular A-11 Section 120.41 references a 30-day window in the execution process. Please note this applies to the apportionment process with OMB, not Treasury issuing the warrants. Depending on the timing of the bill passage as well as the size of the bill, Treasury may need 8 to 10 weeks to analyze and process. Please refer to Section 2025.30—Recording Budget Execution without a Treasury Warrant below for guidance on interim reporting.

2025.20—Specific Warrant Types and Descriptions

Warrant Type/BETC Description

BETC Code

Description of use

Appropriation – Definite - Regular

AP

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes with a current year appropriation act providing the legal authority.

Appropriation – Definite - Advance

APADV

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes with a prior year appropriation act providing the legal authority.

Appropriation – Indefinite - Regular 

APIND

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes for such sums as may be necessary with Public Law or United States Code providing the legal authority.

Appropriation – Indefinite - Advance

APINDADV

An appropriation available for the current fiscal year that was provided in prior year annual appropriations act that provides indefinite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Appropriation - Indefinite - PY Upward Adjustment

APINDPYA

A cancellation of indefinite budget authority surplused to the General Fund of the US Government due to downward adjustments of prior year recoveries recognized in the current year.

Appropriation – Other

APOTH

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes with United States Code providing the legal authority and does not align with any of the other appropriation types for budget reporting purposes.

Appropriation – Loan Subsidy

APLS

An appropriation that provides definite or indefinite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for the cost of loans.

Appropriation – Loan Administrative Expense

APLAE

An appropriation that provides definite or indefinite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for loan administrative expenses.

Appropriation - Reestimated Loan Subsidy (Credit Reform)

APCRREF

An appropriation that provides definite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for the cost of subsidy and administrative expenses.

Appropriation – Special or Trust Fund

APSPC

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from a Special or Trust Fund Unappropriated (unavailable) Receipt account for specific purposes. This warrant type is specifically connected with the related expenditure account.

Rescission of Appropriation – Definite - Regular

RSAP

A cancellation of an appropriation that provided definite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Indefinite - Regular

RSIND

A cancellation of an appropriation that provided indefinite budget authority to FPAs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Definite - Advance

RSADV

A cancellation of an appropriation derived from a prior annual appropriations act that provided definite budget authority in the current fiscal year to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Indefinite - Advance

RSINDADV

A cancellation of an appropriation derived from a prior annual appropriations act that provided indefinite budget authority in the current fiscal year to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Special or Trust Fund

RSSPC

A cancellation of an appropriation that provided budget authority to FPEs to incur obligations and expend funds from a Special or Trust Fund Unappropriated Expenditure account for specific purposes.

Rescission of Unobligated Balances – Definite - Regular

RSUBAP

A cancellation of unobligated balances that provided definite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Unobligated Balances – Definite - Advance

RSUBADV

A cancellation of unobligated balances that were derived from a prior annual appropriations act that provided definite budget authority in the current fiscal year to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Unobligated Balances – Special or Trust Fund

RSUBSPC

A cancellation of unobligated balances in a Special or Trust Fund Expenditure Account that provides budget authority to FPEs to incur obligations and expend funds from a Special or Trust Fund Unappropriated Expenditure account for specific purposes.

Appropriation – Indefinite – Withdrawn

APINDW

A cancellation of indefinite budget authority surplused to the General Fund of the US Government due to downward adjustments of prior year recoveries recognized in the current year.

Surplus, Special or Trust Available for Restoration

SRRCTEXP

Used to withdraw or cancel unobligated balances of Special or Trust funds. These funds are available to be restored.

Surplus, Unavailable for Restoration

SW

Used to withdraw or cancel unobligated balances of appropriations to X-year accounts and other Treasury Appropriation Fund Symbols. These funds are not available to be restored.

2025.30—Appropriation Warrants Under a Continuing Resolution

When Congress fails to enact an appropriation bill by the beginning of the FY, typically a Continuing Resolution (CR) is issued. A CR allows entities or specific activities to continue operating by providing budget authority until Congress enacts regular appropriations.

Congress usually enacts a CR to cover a limited period, such as 45 or 60 days. The CR specifies that appropriated amounts will cease to be available as follows (whichever occurs first):

  • When the activity is later funded by a regular appropriation,
  • When Congress intends to end the activity by enacting an applicable appropriation act without providing for the activity, or
  • On the fixed cutoff date of the CR.

CRs may include a limited number of appropriations for specified sums of money. The majority of the funding is typically based on annual operations from the previous FY and cover only the amount necessary to continue the project or activity for a short time. Congress often appropriates an amount at a specific rate, such as at the then-current rate, House-passed level, Senate-passed level, Conference-passed level, or budget estimate.

Under a CR, warrants are only issued for the limited number of appropriations for specified sums of money. If a full-year CR is enacted, then the FPE must request a warrant from Treasury for the annualized level of an amount appropriated by the CR. Entities must submit these requests as soon as possible to cover obligations incurred under the authority of the CR. A letter of request under a full-year CR should include the elements in Section 2025.10. Additionally, the memo should include the amount appropriated for the account in the prior FY. Upon receipt of the appropriation request under a full-year CR, Treasury issues a warrant for the annualized level of amounts appropriated.

Treasury handles programs exempted from the normal provisions of a CR individually (for example, a specific amount appropriated separately, or the appropriation of an amount not based on the specified rate). Amounts provided under CRs are subject to apportionment.

Exceptions may be made for issuing warrants under a CR if the CR covers specific mandatory federal payments. 

2025.40—Recording Budget Execution without a Treasury Warrant 

Treasury acknowledges that there are timing differences between the OMB approved apportionment and the posted Treasury warrant. These timing differences do not prevent agencies from executing their missions to fund their programs. 

USSGL Account, 109000 Fund Balance with Treasury While Awaiting a Warrant, was created for this specific purpose. Agencies can continue to fund their programs using this account absent a warrant operating under a CR as well as absent a warrant once the Public Law is signed while awaiting the issuance of the warrant. Once the warrants post, these amounts should be transferred to the 1010 account.

Appropriated funds can be allotted (approved SF-132 received) without the Treasury Warrant. Appropriated funding is available to agencies to execute based upon their legal authority and approved apportionments. The lack of a posted Treasury warrant does not limit access or availability to funding. 

The apportionment processed with OMB and the warrant processed with Treasury are two separate activities and not dependent on each other. OMB Circular A-11 Section 150 discusses internal funds control below the apportionment level.

Reference Transaction Code A197: To record Fund Balance With Treasury while awaiting a warrant in Treasury Financial Manual (TFM) USSGL Part 2, Reporting, Section III: Account Transactions for this scenario.

2025.50—Rescissions of Funds

Rescission legislation may temporarily or permanently reduce budget authority previously provided by Congress. If an appropriation warrant provided budget authority that is subsequently permanently rescinded through an across-the-board cut or specific rescission action, a rescission warrant is prepared to reduce the original amount appropriated. Typically, if the entity receives a warrant for an appropriation that subsequently becomes subject to a rescission, the entity should request a recission warrant.

Generally, rescissions involving spending authority from offsetting collections, as well as special, trust, and revolving funds, are classified as temporarily not available for obligation. When a temporary rescission involves unavailable receipt accounts, then entities must request a recission warrant to reduce the original amount appropriated to the expenditure account and to return the amount to that unavailable receipt account.

Prior to processing a recission of funds, the source of the funds should be identified. This information should be included in the request letter to ensure proper accounting. The memo submitted by the FPE should also include the elements in Section 2025.10. Refer to OMB Circular No. A-11 for more guidance related to rescissions.

2025.60 — Reversing Warrants

For transparency and auditability purposes warrants are reversed in full. Typically, partial reversals will not be processed by BAAS. The full amount of the warrant issued will be reversed and a correcting entry will be made. If the original warrant included multiple accounts, individual line items may be reversed on a warrant.

The FPE will need to submit a request memo following the requirements listed in Section 2025.10. Additionally, the request letter should include the CARS control number being reversed as well as a reason for the reversal.

Section 2030—NET Transactions Using CARS ATM

This section describes procedures and forms for the following:

  • Accessing and using CARS ATM NET module,
  • Entering NETS and selecting Transfer Type,
  • NET processing from Agency Certified to Posted,
  • Reversals and Return of Funds,
  • Negative Balances,
  • Using USSGL budgetary accounts with NETs, and
  • Using USSGL proprietary accounts with NETs.

Note: This section does not apply to NETs for Borrowings (see Section 2035).

2030.10—Accessing CARS ATM NET Module

Each entity must request access to CARS ATM NET module. Select the CARS Enrollment link for specific guidance on the process.

After completion of the enrollment process and notification/receipt of proper access credentialing, entity personnel may access the CARS ATM NET application.

If an agency is not able to view authorized TAFS in the NET module, please contact the Treasury Support Center at 1-877-255-9033 to have the A group permissions updated.

Note that access to the Year End Transaction Module is separate from the NET module. The FPE should ensure proper access annually. TAFS in the A group for the NET and the YETM may differ. Contact the Treasury Support Center at 1-877-255-9033 for assistance.

2030.20—CARS ATM NET Module

The CARS module performs systematic interfaces to produce a system of record in Treasury's central accounting system.

NETs do not impose an impact to the federal government's budget surplus or deficit figures and do not appear in Treasury publications or in budget documents as receipts or expenditures. Consequently, entities should not record or report NET transactions as a Classification Transactions and Accountability (CTA) component on a monthly Statement of Transactions (224). Instead, entities should record such transactions within their own administrative accounting processes.

Entities can use the CARS ATM NET module to track pending documents throughout the final approval/posted process via the audit history timeline. Use of the Posted Transactions application in CARS allows an entity to print a copy of a completed NET and the audit history. Users may also query and download transaction activity.

NETs are limited to transactions in which both the withdrawal and the credit occur in a TAFS within the budget. For example, NETs can be accomplished between general (0100-3000 series), revolving (4000 series), trust fund (8000 series), or special fund (5000 series) TAFS within the budget.

Entities can process trust-to-trust transfers as NETs. However, NET transfers between trust funds and other funds, regardless of the purpose, cannot be processed using CARS ATM NET module.

Without exception, do not transfer funds to or from deposit fund accounts (6000 series). Receipt accounts are limited to a specific transfer type: Transfers to General Fund Receipts listed in the table in Section 2030.25.

2030.30—Entering NETs and Selecting Transfer Types

Based upon legislation, entities can use NET transactions to make increases and decreases between accounts as authorized by law. Entities use CARS ATM NET module to process NET transactions. This module only allows one account symbol on the "transfer from" side and multiple account symbols on the "transfer to" side. Entities must enter the following information:

  • Transfer Category—determines the type of the transaction in CARS (see table below),
  • Sub transfer Type—displays available USSGL budgetary accounts associated with the Transfer Type selected. Selection of the appropriate USSGL budgetary account is required (see Appendix 1). Entities must determine properly between an appropriation (current-year authority) or balance (prior-year authority) transfer type,
  • Transaction Date—defaults to the date the transaction is entered but may be changed. This date determines the accounting period,
  • Effective Date— defaults to the date the transaction is entered but may be changed,
  • Agency Reference Number (optional)—FPE may input information for internal tracking purposes,
  • Legal Authority—The legislative citation identifies the Congressional authority that validates the transfer.
    • U.S. Statutes at Large (STAT) citation and/or,
      • PL XX STAT XXX
    • U.S. Code with section/subsection identifier,
      • XX USC XXX Sec. XXX (a),
    • If the USC or PL citation is found in a section, that must also be included. Specific, accurate citations expedite the processing time for the NET,
    • If public law has been codified, FPEs should reference the U.S. Code citation only,
  • Comment—FPE uses this field for internal purpose, for reversals, return of funds, or other communication/pertinent information. Required for :
    • Return of funds, and
    • Reversals with the original control number referenced,
  • TAFS—the "from" TAFS and the "to" TAFS, and
  • Amount—the "from" amount and the "to" amount. The ATM NET module will allow transfers from one-to-many.

Using the information provided in Appendix 1, the FPE should select the appropriate transfer type as summarized below:

TRANSFER TYPES

 DESCRIPTION

Appropriation Transfers

Transfers that increase or decrease budget authority between TAFS, using current-year budget authority.

Balance Transfers

Transfers that increase or decrease prior-year budget authority.

Reappropriation Transfers

Transfers that increase or decrease unobligated balances between TAS, using prior year transfer authority. Using current-year transfer authority, an entity can transfer unobligated balances between an expired TAS and a current-year TAS. 

Transfers represent a redistribution of funds, or redelegation or adjustment of obligational authority, and permit funds to be expended under another appropriation or fund symbol.

Transfers to General Fund Receipts

Transfers that are credits to miscellaneous receipts. These credits repay the government investment in or distribute the earnings of a revolving fund. These transfers also include special and non-revolving trust fund receipts returned to the General Fund of the US Government for permanent reduction. 

2030.40—Additional NET Guidance

NET Processing: From Agency Certified to Posted

Initiate the NET as early in the month as possible to ensure that each FPE involved in the transaction can process the transaction during the same accounting period. To allow BAAS time to properly review NETs should be submitted no later than the last business day of each month. Treasury requests entities allow 5 to 7 business days for Treasury to post the NET once the agency has certified the transaction. Submitting the NET early allows time for proper analysis, verification, and approval. 

NETs may be future dated within the current accounting period. For instance, a NET may be entered on the 5th business day with an effective date of the 15th business day. 

NETs may be backdated for prior accounting months within the fiscal year as well as previous fiscal years. For additional information see Section 2040.

Reversing NETS

To reverse a NET, the FPE should enter the NET the same as in CARS, except the FPE must also switch the “TO” and “FROM” accounts. The FPE should enter everything identical to the original (i.e. same transaction date, same effective date, same legal authority). In the comments the FPE should enter “reversing Control number” and reference the original control number. Additional comments may be included at the FPE discretion such as incorrect amount, accounting month, and/or transfer type, etc. If the comment with the control number is not entered, the NET will be rejected. 

Reminder, the Transaction Date determines the Accounting Period. If the original control number had multiple “To” accounts, then multiple NETs will need entered to reverse the original. CARS will only allow one account selected for the “FROM” account. 

After reversing the NET, the FPE should then enter a correcting NET changing the incorrect field. The FPE may choose to reference the original NET and the reversal NET for future transparency and auditability. 

When a transfer to a general fund receipt account is involved such as capital transfers, CARS will not allow the FPE to select the receipt account as the “FROM” account. To reverse a NET of this nature, simply make the “To” and “From” amounts negative and include in the comments that this is a reversing NET with the original control number. Typically, negative amounts in NETs are not a common practice but it is acceptable for reversing entries in certain circumstances such as this. 

Returning Funds

When all or a portion of unobligated balances advanced or transferred as a NET is returning to the original TAFS, the FPE to which the amount was originally transferred must initiate the NET to return funds relative to the initial transfer request. The FPE must note in the comment field that funds are being returned. The legislation when returning funds should be the same as the original transaction legal reference. Legislation cited must support and authorize the transfer of funds back to the originating TAFS. If the original NET included multiple “To” TAFS, multiple NETs may be needed to return funds as CARS only allows one account to be selected as the “From” account. 

Negative Balances

BAAS monitors the account statement summary. If processing a requested NET will result in a negative balance in account summary, BAAS will reach out to the FPE for additional information prior to posting the NET. 

Other

To document a transfer and merge funds that provide no benefit to the transfer account (a reorganization is an example), separate the unobligated and obligated balances on the NET. Further separate the amounts of current-year appropriations and balances of prior-year appropriations for unexpired multi-year and no-year appropriations.

2030.50—Using USSGL Budgetary Accounts with NETs

Treasury, in consultation with OMB and entities, has determined that the inclusion of USSGL budgetary and proprietary account information with the submission of NETs will:

  • Assist entities in reconciliation and reporting of NET data,
  • Build confidence in the reports provided by entities to Fiscal Service and OMB, and
  • Allow for the verification of data between OMB’s MAX A-11 budget preparation system, Fiscal Service’s CARS ATM NET application, and GTAS.

Entities must select the appropriate USSGL budgetary account when certifying and submitting NET requests to Treasury. The CARS ATM NET application includes a drop-down list (within the Sub-transfer Type field) of USSGL budgetary accounts directly related to NET transactions. Entities must select the correct USSGL budgetary account in accordance with current USSGL guidance to avoid entity-wide or government-wide elimination discrepancies. For additional guidance on using USSGL budgetary accounts when submitting NETs, see Appendix 1.

2030.60—Using USSGL Proprietary Accounts with NETs

Including the required USSGL proprietary accounts within the comment field of NET requests assists entities in analyzing and reconciling NET data. Specifically, it is helpful when preparing for the quarterly intra-governmental transactions reconciliation process (see Volume I, Part 2, Chapter 4700).

Because there can be mixed funding in a single TAS, the net position of a TAS can include a combination of the following:

  • Unexpended appropriations derived from general fund resources not dedicated collections by law for a specific purpose (for example, a warrant), and
  • Financing sources, such as Economy Act revenue, that impact cumulative results of operations.

Therefore, for budget authority NETs between TASs, the “Transfer From” entity determines the source of funds being transferred and records, in the comment field on the CARS NET entry screen, a USSGL proprietary account that designates the funding as being derived from either of the following:

  • For unexpended appropriations from general fund resources not dedicated collections by law for a specific purpose, use USSGL account 310300, “Unexpended Appropriations–Transfers-Out,” or
  • For financing sources that impact cumulative results of operations, use USSGL account 576500, “Non-Expenditure Financing Sources–Transfers-Out–Other.”

The “Transfer To” entity must use and record a USSGL proprietary account that corresponds to the account used by the “Transfer From” entity as either:

  • For unexpended appropriations from general fund resources not dedicated collections by law for a specific purpose, use USSGL account 310200, “Unexpended Appropriations–Transfers-In,” which corresponds to USSGL account 310300, or
  • For unexpended appropriations from general fund resources not dedicated collections by law for a specific purpose, use USSGL account 575500, “Non-Expenditure Financing Sources–Transfers-In–Other,” which corresponds to USSGL account 576500.

Both entities must record the matching USSGL proprietary accounts to avoid entity-wide or government-wide elimination discrepancies. For additional guidance on using USSGL proprietary accounts when submitting NETs, see Appendix 1.

Section 2035—Borrowings

This section describes procedures for the following:

  • Borrowings from Federal Financing Banks (FFB), and
  • Borrowings from Treasury.

2035.10—Borrowings from the FFB (Using the CARS ATM NET Module)

Borrowings from the FFB are amounts loaned by the FFB to entities authorized to issue, sell, or guarantee their obligations. Entities borrow from the FFB, rather than borrowing from Treasury or issuing securities to the public. Interest payments on such loans represent expenditure transactions and are not in this category.

2035.20—Borrowings from Treasury (Using the CARS Borrowings Module)

Withdrawals and credits resulting from authorized borrowings from Treasury to expend public debt receipts are always NET transactions that involve obligations, expenditures, or reimbursements. These borrowings are amounts Treasury advanced under loan authorizations and amounts to repay the loan principal. Interest payments on such loans represent expenditure transactions and are not in this category.

Section 2040—Correcting Accounting Errors

2040.10—Correcting Accounting Errors discovered in Subsequent Periods – Current Fiscal Year

NETs and warrants may be backdated for prior accounting months within the fiscal year. For instance, a NET and/or warrant may be entered in April for March accounting. Likewise, a NET and/or warrant may be entered in April for January. 

The FPE should specify the requested accounting month and be aware of GTAS reporting requirements and impacts.

2040.20—Backdating Accounting Errors discovered in Subsequent Periods – Prior Fiscal Year

For transactions from prior fiscal years, the FPE submits to OMB via the Backdated Treasury Document Request MAX community page.

FPE will contact OMB to establish the MAX Exercise Record.

  • For CTA’s, Agency will contact the Cash Analysis Section at CashAnalysis.FAO@fiscal.treasury.gov to generate the entry in CARS.
    • Cash Analysis Section will send the entry back to the agency for review and signature.
    • Agency will upload the signed entry into the MAX exercise record.
  • For warrant transactions, the agency will coordinate with BAAS to ensure the memo request meets the specific requirements of Section 2025.10. Once warrant request letters are vetted by the BAAS group, the FPE will upload to the MAX exercise.
  • NET transactions will be input by the agencies and uploaded to the MAX exercise. 

OMB and Treasury will review and coordinate the final posting of all requested backdates in CARS.

If an accounting error is discovered in an expired or closed account, contact BAAS for additional coordination with Treasury legal and guidance on how to proceed to request the TAFS to be re-opened.

If an accounting error is discovered that requires the establishment of a new account, the FPE should follow Treasury Financial Manual (TFM) TFM Volume I, Part 2, Chapter 1500. It is imperative that the FPE notify Treasury if the account is being created to process a backdate so Treasury can establish the account with the correct date to allow for processing the backdate. 

2045—Subscriber Services: Retrieving Posted Copies of Transactions 

Subscriber services is available for entities to receive notification when transactions are completed. CARS access is required for this service. To sign up: 

  • Log into CARS.
  • Go to Transactions and then Posted Transactions.
  • On the upper right side, in the Go To… menu, scroll down to Email Notifications.
  • Select the Authority Type (Warrant or Non-Expenditure Transfer) to subscribe to.
  • Select the Transaction Type to subscribe to from the provided list and click the update button. Repeat for each Transaction Type you wish to be notified about. 

If you have any questions or concerns, please contact baasgroup@fiscal.treasury.gov.

Contact Us

Detailed Contacts

Direct inquiries concerning this chapter and the preparation and submission of NET transactions using CARS, or to submit written requests for appropriations, warrants, or to close a TAS or TAFS, to:

Budget Reporting Branch 
Central Accounting and Reporting Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Email: baasgroup@fiscal.treasury.gov

Direct inquiries concerning the selection of the proper USSGL accounts to:

General Ledger and Advisory Branch 
Financial Reports and Advisory Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Phone: 304-480-7122 
Fax: 304-480-5176 
Website: USSGL

Direct inquiries concerning the quarterly intra-governmental transactions reconciliation process to:

Intra-governmental Transaction and Reconciliation Branch 
Financial Reports and Advisory Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Email: GovernmentwideIGT@fiscal.treasury.gov

Direct inquiries concerning this chapter and the submission of CARS Borrowings transactions in CARS to:

Federal Investments and Borrowings Branch 
Special Asset and Liabilities Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Phone: 304-480-7488 
Fax: 304-480-5206 
Email: borrowings@fiscal.treasury.gov

Direct inquiries regarding the submission of GTAS to:

General Ledger and Advisory Branch 
Financial Reports and Advisory Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106 
Email: GTAS.TEAM@fiscal.treasury.gov

Warrant And Non-Expenditure Transfer (NET) Transactions

Introduction

This chapter describes the processes to request warrant transactions via the Budget Appropriation and Analysis Section (BAAS) and to process Non-Expenditure Transfers (NETs) transactions within the Centralized Accounting and Reporting System (CARS). Additionally, this chapter includes how to retrieve posted warrant and NET transactions as well as entity guidance to follow if any corrections are necessary to either a warrant or NET transaction after posting to CARS.

Section 2010—Scope and Applicability

All Federal Program Entities (FPEs) and U.S. Government corporations are governed by the procedures in this chapter for:

  • Accounting for appropriated amounts in accounts by warrant or warrant-like transactions (such as warrant journal vouchers that transfer excise tax collections in receipt accounts to trust funds), and
  • Processing NETs between appropriation and other accounts for transfers and borrowings.

Both warrants and NETs are processed using the Agency Transaction Module (ATM) within CARS. Warrants are entered in CARS by the BAAS team and NETs are entered in CARS by the FPE.

Section 2015—Authority

In accordance with 31 U.S.C. 3513:

  • The Secretary of the Treasury shall prepare reports on the financial operations of the U.S. Government, and
  • Each executive entity shall give the Department of the Treasury (Treasury) reports and information on the financial conditions and operations of the entity as the Secretary of the Treasury requires to prepare the reports.
Section 2025—Warrant Transactions

This section describes the processes for the following:

  • Appropriation warrants,
  • Specific warrant types and descriptions,
  • Appropriation warrants under a Continuing Resolution (CR),
  • Rescissions of Funds, and
  • Reversing Warrants.

In general, allow 3 to 5 business days for agency requested warrants to be analyzed, verified, and posted in CARS.

2025.10—Appropriation Warrants

Annually, Congress passes various appropriation acts (omnibus, supplemental, emergency) to fund the federal government. These appropriation acts provide budget authority to entities to incur obligations and expend funds from the General Fund of the U.S. Government for specific purposes. Treasury prepares and issues the Fiscal Service (FS) Form 6200: Department of the Treasury Appropriation Warrant via the CARS ATM Appropriation Warrant Application. 

Under 31 U.S.C. § 3323(a), warrants authorized by law are to be signed by the Secretary of the Treasury and countersigned by the Comptroller General. However, under 31 U.S.C. § 3326(a), the Secretary of the Treasury and the Comptroller General issued several joint regulations phasing out the countersignature requirement. Treasury–GAO Joint Regulation No. 7, effective January 1, 1991, eliminated the countersignature requirement completely.

The appropriation warrant is evidence of Congressional action to fund programs. In addition, an appropriation warrant serves to establish the amount and period of availability of monies the entity is authorized to withdraw from the General Fund of the U.S. Government.

When enacted legislation provides budget authority in the form of an appropriation, the Budget Appropriation and Analysis Section reads and analyzes the enacted appropriation and acts independently from the Office of Management and Budget (OMB). 

The FPE must submit a memo to Treasury requesting the appropriation be processed in the following circumstances:

  • When appropriated amounts in an appropriation act require additional information from the entity before the warrant can be issued such as:
    • One of the three elements is missing or unclear (time, purpose, or amount), 
    • The language includes language such as: “up to”, “not to exceed”, “not more than”, or “not less than”,
    • The bill is in reconciliation format, or
    • The appropriation/rescission legislation language is under general provision area or has a section number.
  • For Indefinite appropriations of an unspecified amount of money,
  • For special and trust fund appropriations with legislation that provides for an amount to be derived from dedicated collection receipts collected in an unavailable receipt account, 
  • For rescissions of appropriations (see section 2025.40),

The request letter, in PDF format, submitted via email must include the following:

  • Specific warrant type requested (see section 2025.20),
  • Treasury Appropriation Fund Symbol (TAFS),
    • Proper format will include the three-digit agency identifier (AID), four-digit Beginning Period of Availability (BPOA), four-digit Ending Period of Availability (EPOA), four-digit main account, and when applicable a three-digit point account.
  • Exact amount of the request to the penny (do not round),
  • Specific legal authority,
    • U.S. Statutes at Large (STAT) citation and/or,
      • PL XX STAT XXX or,
    • U.S. Code with section/subsection identifier,
      • XX USC XXX Sec. XXX (a),
    • If the USC or PL citation is found in a section, that must also be included. Specific, accurate citations expedite the processing time for the warrant request,
  • The requested accounting period including the month and year for posting,
  • Point of contact, 
  • Digital signature, and
  • Supporting documentation if applicable such as OMB approved apportionments, OGC legal opinion, etc.

OMB Circular A-11 Section 120.41 references a 30-day window in the execution process. Please note this applies to the apportionment process with OMB, not Treasury issuing the warrants. Depending on the timing of the bill passage as well as the size of the bill, Treasury may need 8 to 10 weeks to analyze and process. Please refer to Section 2025.30—Recording Budget Execution without a Treasury Warrant below for guidance on interim reporting.

2025.20—Specific Warrant Types and Descriptions

Warrant Type/BETC Description

BETC Code

Description of use

Appropriation – Definite - Regular

AP

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes with a current year appropriation act providing the legal authority.

Appropriation – Definite - Advance

APADV

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes with a prior year appropriation act providing the legal authority.

Appropriation – Indefinite - Regular 

APIND

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes for such sums as may be necessary with Public Law or United States Code providing the legal authority.

Appropriation – Indefinite - Advance

APINDADV

An appropriation available for the current fiscal year that was provided in prior year annual appropriations act that provides indefinite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Appropriation - Indefinite - PY Upward Adjustment

APINDPYA

A cancellation of indefinite budget authority surplused to the General Fund of the US Government due to downward adjustments of prior year recoveries recognized in the current year.

Appropriation – Other

APOTH

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes with United States Code providing the legal authority and does not align with any of the other appropriation types for budget reporting purposes.

Appropriation – Loan Subsidy

APLS

An appropriation that provides definite or indefinite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for the cost of loans.

Appropriation – Loan Administrative Expense

APLAE

An appropriation that provides definite or indefinite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for loan administrative expenses.

Appropriation - Reestimated Loan Subsidy (Credit Reform)

APCRREF

An appropriation that provides definite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for the cost of subsidy and administrative expenses.

Appropriation – Special or Trust Fund

APSPC

An appropriation that provides budget authority to FPEs to incur obligations and expend funds from a Special or Trust Fund Unappropriated (unavailable) Receipt account for specific purposes. This warrant type is specifically connected with the related expenditure account.

Rescission of Appropriation – Definite - Regular

RSAP

A cancellation of an appropriation that provided definite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Indefinite - Regular

RSIND

A cancellation of an appropriation that provided indefinite budget authority to FPAs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Definite - Advance

RSADV

A cancellation of an appropriation derived from a prior annual appropriations act that provided definite budget authority in the current fiscal year to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Indefinite - Advance

RSINDADV

A cancellation of an appropriation derived from a prior annual appropriations act that provided indefinite budget authority in the current fiscal year to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Appropriation – Special or Trust Fund

RSSPC

A cancellation of an appropriation that provided budget authority to FPEs to incur obligations and expend funds from a Special or Trust Fund Unappropriated Expenditure account for specific purposes.

Rescission of Unobligated Balances – Definite - Regular

RSUBAP

A cancellation of unobligated balances that provided definite budget authority to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Unobligated Balances – Definite - Advance

RSUBADV

A cancellation of unobligated balances that were derived from a prior annual appropriations act that provided definite budget authority in the current fiscal year to FPEs to incur obligations and expend funds from the General Fund of the US Government for specific purposes.

Rescission of Unobligated Balances – Special or Trust Fund

RSUBSPC

A cancellation of unobligated balances in a Special or Trust Fund Expenditure Account that provides budget authority to FPEs to incur obligations and expend funds from a Special or Trust Fund Unappropriated Expenditure account for specific purposes.

Appropriation – Indefinite – Withdrawn

APINDW

A cancellation of indefinite budget authority surplused to the General Fund of the US Government due to downward adjustments of prior year recoveries recognized in the current year.

Surplus, Special or Trust Available for Restoration

SRRCTEXP

Used to withdraw or cancel unobligated balances of Special or Trust funds. These funds are available to be restored.

Surplus, Unavailable for Restoration

SW

Used to withdraw or cancel unobligated balances of appropriations to X-year accounts and other Treasury Appropriation Fund Symbols. These funds are not available to be restored.

2025.30—Appropriation Warrants Under a Continuing Resolution

When Congress fails to enact an appropriation bill by the beginning of the FY, typically a Continuing Resolution (CR) is issued. A CR allows entities or specific activities to continue operating by providing budget authority until Congress enacts regular appropriations.

Congress usually enacts a CR to cover a limited period, such as 45 or 60 days. The CR specifies that appropriated amounts will cease to be available as follows (whichever occurs first):

  • When the activity is later funded by a regular appropriation,
  • When Congress intends to end the activity by enacting an applicable appropriation act without providing for the activity, or
  • On the fixed cutoff date of the CR.

CRs may include a limited number of appropriations for specified sums of money. The majority of the funding is typically based on annual operations from the previous FY and cover only the amount necessary to continue the project or activity for a short time. Congress often appropriates an amount at a specific rate, such as at the then-current rate, House-passed level, Senate-passed level, Conference-passed level, or budget estimate.

Under a CR, warrants are only issued for the limited number of appropriations for specified sums of money. If a full-year CR is enacted, then the FPE must request a warrant from Treasury for the annualized level of an amount appropriated by the CR. Entities must submit these requests as soon as possible to cover obligations incurred under the authority of the CR. A letter of request under a full-year CR should include the elements in Section 2025.10. Additionally, the memo should include the amount appropriated for the account in the prior FY. Upon receipt of the appropriation request under a full-year CR, Treasury issues a warrant for the annualized level of amounts appropriated.

Treasury handles programs exempted from the normal provisions of a CR individually (for example, a specific amount appropriated separately, or the appropriation of an amount not based on the specified rate). Amounts provided under CRs are subject to apportionment.

Exceptions may be made for issuing warrants under a CR if the CR covers specific mandatory federal payments. 

2025.40—Recording Budget Execution without a Treasury Warrant 

Treasury acknowledges that there are timing differences between the OMB approved apportionment and the posted Treasury warrant. These timing differences do not prevent agencies from executing their missions to fund their programs. 

USSGL Account, 109000 Fund Balance with Treasury While Awaiting a Warrant, was created for this specific purpose. Agencies can continue to fund their programs using this account absent a warrant operating under a CR as well as absent a warrant once the Public Law is signed while awaiting the issuance of the warrant. Once the warrants post, these amounts should be transferred to the 1010 account.

Appropriated funds can be allotted (approved SF-132 received) without the Treasury Warrant. Appropriated funding is available to agencies to execute based upon their legal authority and approved apportionments. The lack of a posted Treasury warrant does not limit access or availability to funding. 

The apportionment processed with OMB and the warrant processed with Treasury are two separate activities and not dependent on each other. OMB Circular A-11 Section 150 discusses internal funds control below the apportionment level.

Reference Transaction Code A197: To record Fund Balance With Treasury while awaiting a warrant in Treasury Financial Manual (TFM) USSGL Part 2, Reporting, Section III: Account Transactions for this scenario.

2025.50—Rescissions of Funds

Rescission legislation may temporarily or permanently reduce budget authority previously provided by Congress. If an appropriation warrant provided budget authority that is subsequently permanently rescinded through an across-the-board cut or specific rescission action, a rescission warrant is prepared to reduce the original amount appropriated. Typically, if the entity receives a warrant for an appropriation that subsequently becomes subject to a rescission, the entity should request a recission warrant.

Generally, rescissions involving spending authority from offsetting collections, as well as special, trust, and revolving funds, are classified as temporarily not available for obligation. When a temporary rescission involves unavailable receipt accounts, then entities must request a recission warrant to reduce the original amount appropriated to the expenditure account and to return the amount to that unavailable receipt account.

Prior to processing a recission of funds, the source of the funds should be identified. This information should be included in the request letter to ensure proper accounting. The memo submitted by the FPE should also include the elements in Section 2025.10. Refer to OMB Circular No. A-11 for more guidance related to rescissions.

2025.60 — Reversing Warrants

For transparency and auditability purposes warrants are reversed in full. Typically, partial reversals will not be processed by BAAS. The full amount of the warrant issued will be reversed and a correcting entry will be made. If the original warrant included multiple accounts, individual line items may be reversed on a warrant.

The FPE will need to submit a request memo following the requirements listed in Section 2025.10. Additionally, the request letter should include the CARS control number being reversed as well as a reason for the reversal.

Section 2030—NET Transactions Using CARS ATM

This section describes procedures and forms for the following:

  • Accessing and using CARS ATM NET module,
  • Entering NETS and selecting Transfer Type,
  • NET processing from Agency Certified to Posted,
  • Reversals and Return of Funds,
  • Negative Balances,
  • Using USSGL budgetary accounts with NETs, and
  • Using USSGL proprietary accounts with NETs.

Note: This section does not apply to NETs for Borrowings (see Section 2035).

2030.10—Accessing CARS ATM NET Module

Each entity must request access to CARS ATM NET module. Select the CARS Enrollment link for specific guidance on the process.

After completion of the enrollment process and notification/receipt of proper access credentialing, entity personnel may access the CARS ATM NET application.

If an agency is not able to view authorized TAFS in the NET module, please contact the Treasury Support Center at 1-877-255-9033 to have the A group permissions updated.

Note that access to the Year End Transaction Module is separate from the NET module. The FPE should ensure proper access annually. TAFS in the A group for the NET and the YETM may differ. Contact the Treasury Support Center at 1-877-255-9033 for assistance.

2030.20—CARS ATM NET Module

The CARS module performs systematic interfaces to produce a system of record in Treasury's central accounting system.

NETs do not impose an impact to the federal government's budget surplus or deficit figures and do not appear in Treasury publications or in budget documents as receipts or expenditures. Consequently, entities should not record or report NET transactions as a Classification Transactions and Accountability (CTA) component on a monthly Statement of Transactions (224). Instead, entities should record such transactions within their own administrative accounting processes.

Entities can use the CARS ATM NET module to track pending documents throughout the final approval/posted process via the audit history timeline. Use of the Posted Transactions application in CARS allows an entity to print a copy of a completed NET and the audit history. Users may also query and download transaction activity.

NETs are limited to transactions in which both the withdrawal and the credit occur in a TAFS within the budget. For example, NETs can be accomplished between general (0100-3000 series), revolving (4000 series), trust fund (8000 series), or special fund (5000 series) TAFS within the budget.

Entities can process trust-to-trust transfers as NETs. However, NET transfers between trust funds and other funds, regardless of the purpose, cannot be processed using CARS ATM NET module.

Without exception, do not transfer funds to or from deposit fund accounts (6000 series). Receipt accounts are limited to a specific transfer type: Transfers to General Fund Receipts listed in the table in Section 2030.25.

2030.30—Entering NETs and Selecting Transfer Types

Based upon legislation, entities can use NET transactions to make increases and decreases between accounts as authorized by law. Entities use CARS ATM NET module to process NET transactions. This module only allows one account symbol on the "transfer from" side and multiple account symbols on the "transfer to" side. Entities must enter the following information:

  • Transfer Category—determines the type of the transaction in CARS (see table below),
  • Sub transfer Type—displays available USSGL budgetary accounts associated with the Transfer Type selected. Selection of the appropriate USSGL budgetary account is required (see Appendix 1). Entities must determine properly between an appropriation (current-year authority) or balance (prior-year authority) transfer type,
  • Transaction Date—defaults to the date the transaction is entered but may be changed. This date determines the accounting period,
  • Effective Date— defaults to the date the transaction is entered but may be changed,
  • Agency Reference Number (optional)—FPE may input information for internal tracking purposes,
  • Legal Authority—The legislative citation identifies the Congressional authority that validates the transfer.
    • U.S. Statutes at Large (STAT) citation and/or,
      • PL XX STAT XXX
    • U.S. Code with section/subsection identifier,
      • XX USC XXX Sec. XXX (a),
    • If the USC or PL citation is found in a section, that must also be included. Specific, accurate citations expedite the processing time for the NET,
    • If public law has been codified, FPEs should reference the U.S. Code citation only,
  • Comment—FPE uses this field for internal purpose, for reversals, return of funds, or other communication/pertinent information. Required for :
    • Return of funds, and
    • Reversals with the original control number referenced,
  • TAFS—the "from" TAFS and the "to" TAFS, and
  • Amount—the "from" amount and the "to" amount. The ATM NET module will allow transfers from one-to-many.

Using the information provided in Appendix 1, the FPE should select the appropriate transfer type as summarized below:

TRANSFER TYPES

 DESCRIPTION

Appropriation Transfers

Transfers that increase or decrease budget authority between TAFS, using current-year budget authority.

Balance Transfers

Transfers that increase or decrease prior-year budget authority.

Reappropriation Transfers

Transfers that increase or decrease unobligated balances between TAS, using prior year transfer authority. Using current-year transfer authority, an entity can transfer unobligated balances between an expired TAS and a current-year TAS. 

Transfers represent a redistribution of funds, or redelegation or adjustment of obligational authority, and permit funds to be expended under another appropriation or fund symbol.

Transfers to General Fund Receipts

Transfers that are credits to miscellaneous receipts. These credits repay the government investment in or distribute the earnings of a revolving fund. These transfers also include special and non-revolving trust fund receipts returned to the General Fund of the US Government for permanent reduction. 

2030.40—Additional NET Guidance

NET Processing: From Agency Certified to Posted

Initiate the NET as early in the month as possible to ensure that each FPE involved in the transaction can process the transaction during the same accounting period. To allow BAAS time to properly review NETs should be submitted no later than the last business day of each month. Treasury requests entities allow 5 to 7 business days for Treasury to post the NET once the agency has certified the transaction. Submitting the NET early allows time for proper analysis, verification, and approval. 

NETs may be future dated within the current accounting period. For instance, a NET may be entered on the 5th business day with an effective date of the 15th business day. 

NETs may be backdated for prior accounting months within the fiscal year as well as previous fiscal years. For additional information see Section 2040.

Reversing NETS

To reverse a NET, the FPE should enter the NET the same as in CARS, except the FPE must also switch the “TO” and “FROM” accounts. The FPE should enter everything identical to the original (i.e. same transaction date, same effective date, same legal authority). In the comments the FPE should enter “reversing Control number” and reference the original control number. Additional comments may be included at the FPE discretion such as incorrect amount, accounting month, and/or transfer type, etc. If the comment with the control number is not entered, the NET will be rejected. 

Reminder, the Transaction Date determines the Accounting Period. If the original control number had multiple “To” accounts, then multiple NETs will need entered to reverse the original. CARS will only allow one account selected for the “FROM” account. 

After reversing the NET, the FPE should then enter a correcting NET changing the incorrect field. The FPE may choose to reference the original NET and the reversal NET for future transparency and auditability. 

When a transfer to a general fund receipt account is involved such as capital transfers, CARS will not allow the FPE to select the receipt account as the “FROM” account. To reverse a NET of this nature, simply make the “To” and “From” amounts negative and include in the comments that this is a reversing NET with the original control number. Typically, negative amounts in NETs are not a common practice but it is acceptable for reversing entries in certain circumstances such as this. 

Returning Funds

When all or a portion of unobligated balances advanced or transferred as a NET is returning to the original TAFS, the FPE to which the amount was originally transferred must initiate the NET to return funds relative to the initial transfer request. The FPE must note in the comment field that funds are being returned. The legislation when returning funds should be the same as the original transaction legal reference. Legislation cited must support and authorize the transfer of funds back to the originating TAFS. If the original NET included multiple “To” TAFS, multiple NETs may be needed to return funds as CARS only allows one account to be selected as the “From” account. 

Negative Balances

BAAS monitors the account statement summary. If processing a requested NET will result in a negative balance in account summary, BAAS will reach out to the FPE for additional information prior to posting the NET. 

Other

To document a transfer and merge funds that provide no benefit to the transfer account (a reorganization is an example), separate the unobligated and obligated balances on the NET. Further separate the amounts of current-year appropriations and balances of prior-year appropriations for unexpired multi-year and no-year appropriations.

2030.50—Using USSGL Budgetary Accounts with NETs

Treasury, in consultation with OMB and entities, has determined that the inclusion of USSGL budgetary and proprietary account information with the submission of NETs will:

  • Assist entities in reconciliation and reporting of NET data,
  • Build confidence in the reports provided by entities to Fiscal Service and OMB, and
  • Allow for the verification of data between OMB’s MAX A-11 budget preparation system, Fiscal Service’s CARS ATM NET application, and GTAS.

Entities must select the appropriate USSGL budgetary account when certifying and submitting NET requests to Treasury. The CARS ATM NET application includes a drop-down list (within the Sub-transfer Type field) of USSGL budgetary accounts directly related to NET transactions. Entities must select the correct USSGL budgetary account in accordance with current USSGL guidance to avoid entity-wide or government-wide elimination discrepancies. For additional guidance on using USSGL budgetary accounts when submitting NETs, see Appendix 1.

2030.60—Using USSGL Proprietary Accounts with NETs

Including the required USSGL proprietary accounts within the comment field of NET requests assists entities in analyzing and reconciling NET data. Specifically, it is helpful when preparing for the quarterly intra-governmental transactions reconciliation process (see Volume I, Part 2, Chapter 4700).

Because there can be mixed funding in a single TAS, the net position of a TAS can include a combination of the following:

  • Unexpended appropriations derived from general fund resources not dedicated collections by law for a specific purpose (for example, a warrant), and
  • Financing sources, such as Economy Act revenue, that impact cumulative results of operations.

Therefore, for budget authority NETs between TASs, the “Transfer From” entity determines the source of funds being transferred and records, in the comment field on the CARS NET entry screen, a USSGL proprietary account that designates the funding as being derived from either of the following:

  • For unexpended appropriations from general fund resources not dedicated collections by law for a specific purpose, use USSGL account 310300, “Unexpended Appropriations–Transfers-Out,” or
  • For financing sources that impact cumulative results of operations, use USSGL account 576500, “Non-Expenditure Financing Sources–Transfers-Out–Other.”

The “Transfer To” entity must use and record a USSGL proprietary account that corresponds to the account used by the “Transfer From” entity as either:

  • For unexpended appropriations from general fund resources not dedicated collections by law for a specific purpose, use USSGL account 310200, “Unexpended Appropriations–Transfers-In,” which corresponds to USSGL account 310300, or
  • For unexpended appropriations from general fund resources not dedicated collections by law for a specific purpose, use USSGL account 575500, “Non-Expenditure Financing Sources–Transfers-In–Other,” which corresponds to USSGL account 576500.

Both entities must record the matching USSGL proprietary accounts to avoid entity-wide or government-wide elimination discrepancies. For additional guidance on using USSGL proprietary accounts when submitting NETs, see Appendix 1.

Section 2035—Borrowings

This section describes procedures for the following:

  • Borrowings from Federal Financing Banks (FFB), and
  • Borrowings from Treasury.

2035.10—Borrowings from the FFB (Using the CARS ATM NET Module)

Borrowings from the FFB are amounts loaned by the FFB to entities authorized to issue, sell, or guarantee their obligations. Entities borrow from the FFB, rather than borrowing from Treasury or issuing securities to the public. Interest payments on such loans represent expenditure transactions and are not in this category.

2035.20—Borrowings from Treasury (Using the CARS Borrowings Module)

Withdrawals and credits resulting from authorized borrowings from Treasury to expend public debt receipts are always NET transactions that involve obligations, expenditures, or reimbursements. These borrowings are amounts Treasury advanced under loan authorizations and amounts to repay the loan principal. Interest payments on such loans represent expenditure transactions and are not in this category.

Section 2040—Correcting Accounting Errors

2040.10—Correcting Accounting Errors discovered in Subsequent Periods – Current Fiscal Year

NETs and warrants may be backdated for prior accounting months within the fiscal year. For instance, a NET and/or warrant may be entered in April for March accounting. Likewise, a NET and/or warrant may be entered in April for January. 

The FPE should specify the requested accounting month and be aware of GTAS reporting requirements and impacts.

2040.20—Backdating Accounting Errors discovered in Subsequent Periods – Prior Fiscal Year

For transactions from prior fiscal years, the FPE submits to OMB via the Backdated Treasury Document Request MAX community page.

FPE will contact OMB to establish the MAX Exercise Record.

  • For CTA’s, Agency will contact the Cash Analysis Section at CashAnalysis.FAO@fiscal.treasury.gov to generate the entry in CARS.
    • Cash Analysis Section will send the entry back to the agency for review and signature.
    • Agency will upload the signed entry into the MAX exercise record.
  • For warrant transactions, the agency will coordinate with BAAS to ensure the memo request meets the specific requirements of Section 2025.10. Once warrant request letters are vetted by the BAAS group, the FPE will upload to the MAX exercise.
  • NET transactions will be input by the agencies and uploaded to the MAX exercise. 

OMB and Treasury will review and coordinate the final posting of all requested backdates in CARS.

If an accounting error is discovered in an expired or closed account, contact BAAS for additional coordination with Treasury legal and guidance on how to proceed to request the TAFS to be re-opened.

If an accounting error is discovered that requires the establishment of a new account, the FPE should follow Treasury Financial Manual (TFM) TFM Volume I, Part 2, Chapter 1500. It is imperative that the FPE notify Treasury if the account is being created to process a backdate so Treasury can establish the account with the correct date to allow for processing the backdate. 

2045—Subscriber Services: Retrieving Posted Copies of Transactions 

Subscriber services is available for entities to receive notification when transactions are completed. CARS access is required for this service. To sign up: 

  • Log into CARS.
  • Go to Transactions and then Posted Transactions.
  • On the upper right side, in the Go To… menu, scroll down to Email Notifications.
  • Select the Authority Type (Warrant or Non-Expenditure Transfer) to subscribe to.
  • Select the Transaction Type to subscribe to from the provided list and click the update button. Repeat for each Transaction Type you wish to be notified about. 

If you have any questions or concerns, please contact baasgroup@fiscal.treasury.gov.

Contact Us

Detailed Contacts

Direct inquiries concerning this chapter and the preparation and submission of NET transactions using CARS, or to submit written requests for appropriations, warrants, or to close a TAS or TAFS, to:

Budget Reporting Branch 
Central Accounting and Reporting Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Email: baasgroup@fiscal.treasury.gov

Direct inquiries concerning the selection of the proper USSGL accounts to:

General Ledger and Advisory Branch 
Financial Reports and Advisory Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Phone: 304-480-7122 
Fax: 304-480-5176 
Website: USSGL

Direct inquiries concerning the quarterly intra-governmental transactions reconciliation process to:

Intra-governmental Transaction and Reconciliation Branch 
Financial Reports and Advisory Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Email: GovernmentwideIGT@fiscal.treasury.gov

Direct inquiries concerning this chapter and the submission of CARS Borrowings transactions in CARS to:

Federal Investments and Borrowings Branch 
Special Asset and Liabilities Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106-1328 
Phone: 304-480-7488 
Fax: 304-480-5206 
Email: borrowings@fiscal.treasury.gov

Direct inquiries regarding the submission of GTAS to:

General Ledger and Advisory Branch 
Financial Reports and Advisory Division 
Bureau of the Fiscal Service 
PO Box 1328 
Parkersburg, WV 26106 
Email: GTAS.TEAM@fiscal.treasury.gov