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Financial Services Center (FSC) is responsible for maintaining the VA Standard. General Ledger accounts, budget object classes, and revenue ...
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VA’s Accounting Classification Structure Volume II – Chapter 1
Section Revision Office Reason for Change Effective Date
Appendices E and F
Incorporated charts of VA Revenue Source Codes (RSCs) for FMS and iFAMS
Implementation of iFAMS accounting system
November 2020
Appendices G, H, and I
Incorporated procedures for updating elements in VA’s ACS and VA SGL
Implementation of iFAMS and Removal of Procedures from Volume I, Chapter 4
November 2020
Various
Reformatted to new policy format and completed five-year update
Reorganized chapter layout
February 2020
0102 Policy 0105 Procedures Appendix F, Journal Voucher Procedures
Removed journal voucher information from this policy and created Volume II, Chapter 1A – VA Journal Vouchers
JV information is more appropriate in a separate policy
February 2020
Account Procedures (Formerly Appendix D)
Removed procedures for establishing and maintaining VA SGL Accounts
Information is contained in Volume I, Chapter 4 – Financial Management Systems
February 2020
0103 Definitions
Accounting Classification Structure – The categorization of accounting data along several dimensions allowing the retrieval, summarization, and reporting of information in a meaningful way.
Agency Location Code (ALC) – A numeric symbol assigned by Treasury to identify an agency accounting and/or reporting office.
Budget Object Class (BOC) Code – Categories in a classification system that present obligations by the items or services purchased by the Federal Government.
VA’s Accounting Classification Structure Volume II – Chapter 1
Budgetary Account – An account that reflects budgetary operations and conditions, such as estimated revenues, appropriations, and obligations.
Cost Center – A four to six-digit code used to accumulate costs incurred by area of responsibility or geographic region (e.g., 301000, [Veterans Benefits Administration (VBA)] Executive Director). The cost center field only relates to Administrations and Staff Offices that utilize FMS. iFAMS contains a non-ACS field for the FMS cost center (does not impact the iFAMS ACS or iFAMS GL).
Direct Obligation – An obligation financed by appropriations, in contrast to reimbursable obligations.
Division Code – Classifies financial transactions by the entities responsible for managing resources and carrying out the programs and activities of the Federal Government. The Division Code represents the top level of the hierarchical structure in iFAMS, followed by the Organization Code.
Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) – A Treasury operated Government-wide web-based accounting system used by Federal agencies to submit both budgetary and proprietary financial data.
Integrated Financial and Acquisition Management System (iFAMS) – The system replacing VA’s legacy accounting system, FMS as the official financial and acquisition system of record. VA is implementing iFAMS in waves beginning in 2020.
Location Code – Represents the physical address of each organizational unit in VA’s Administrations and Staff Offices.
Object Class – Categorization of financial obligations and expenditures according to the nature of the services or items purchased as defined in OMB Circular A-11, Section
Organization Code – Classifies financial transactions by the entities responsible for managing resources and carrying out the programs and activities of the federal government. The organization code represents the lower levels of the hierarchical structure below the Division Code in iFAMS.
Proprietary Account – Accounts used to recognize and track assets, liabilities, net position accounts, revenues, and expenses.
Reimbursable Obligation – An obligation financed by offsetting collections credited to an expenditure account in payment for goods and services provided by that account.
Revenue – The inflow of resources brought into VA, earned through exchange transaction activity or received through non-exchange transactions. This may include
VA’s Accounting Classification Structure Volume II – Chapter 1
Congressional committees during the formulation process, defending and promoting VA’s program plans and budget estimates before examiners and committee staff. OB also obtains apportionments from OMB and issues Financial Management Allowances and Transfer of Disbursing Authority documents to establish funds controls in VA’s accounting system, and monitors execution for funds control and adherence to operating plans.
VA’s Station Identification Officer is responsible for assigning and maintaining the uniform station number system in FMS, as detailed in Appendix B, VA Station Numbers.
Financial Services Center (FSC) is responsible for maintaining the VA Standard General Ledger accounts, budget object classes, and revenue source codes. FSC is also responsible for the yearly update of the ALC Point of Contact listing.
Manpower Management Services within the Office of Human Resources and Administration (OHRA) is responsible for the maintenance of the Division, Organization, Location and Cost Organization Codes elements within iFAMS.
0105 Policies
010501 General Policies
A. An ACS is a comprehensive schema that supports the traceability and data interoperability of financial information to support budget, financial accounting, and performance reporting requirements.
B. The ACS will allow accounting systems to:
010502 Accounting Classification Structure (FMS)
VA’s Accounting Classification Structure Volume II – Chapter 1
The following minimum elements are required by the Accounting Classification Structure. VA will comply with this structure, to the extent possible given limitations within FMS.
A. The Treasury Account Symbol is an identification code assigned by Treasury, in collaboration with OMB and VA, to an individual appropriation, receipt, or other fund account. Refer to Volume II, Chapter 2, VA’s Budget Cycle and Fund Symbols, for additional information.
B. Budget Fiscal Year refers to the fiscal year in which the obligation is made and captured on the obligating document; it is used to distinguish whether subsequent adjustments affect a prior year or the current year. The budget fiscal year differs from the TAS period of availability. VA’s accounting system uses Budget Fiscal Year to denote the period of availability, establish a base year, or denote year of funding for a no year. It is not the equivalent of the obligation year.
C. The Accounting Period is the period in which a transaction is established in the general ledger. In most instances, the accounting period pertains to a fiscal month within a fiscal year. However, in some instances, it represents a period that falls before or after the fiscal month and is used for recording opening balances to the period or period-end adjustments applicable to a month, quarter, or fiscal year. Accounting periods are used to group transactions by the period in which they are reported. The accounting system periods are from 00 (beginning) to 15 (closing).
D. The Internal Fund Code is an agency-assigned code for a fund. It is a shorthand code entered on transactions and enables the derivation of the account identification codes (appropriation, receipt, or other TAS) required for reporting externally to Treasury (for reporting the TAS) and OMB (for reporting the budget account). VA will maintain appropriation fund codes in accordance with Treasury guidance. VA will establish separate fund accounts for direct and reimbursable obligations; these funds shall not be co-mingled. Refer to Volume II, Chapter 2, VA’s Budget Cycle and Fund Symbols.
E. Organization Code, often referred to as Station Number, is the official identification number for funding and budgetary purposes and for describing the sphere of authority of an organizational entity designated by the Secretary. A uniform station number methodology provides a unique identifier for each station and allows for easier association and integration of data among systems.
VA’s Accounting Classification Structure Volume II – Chapter 1
H. Object Class Code, referred to as Budget Object Code (BOC), classifies obligations by the items or services purchased by the Federal government (e.g., personnel compensation, supplies, rent, or equipment). While OMB Circular A-11 establishes the standard codes, titles, and definitions of the object class, an agency may further define extensions for capturing additional detail to support internal information needs. Refer to Volume XIII Chapter 2, Budget Object Codes, for detailed information.
I. Revenue Source Code is used to track the revenue lifecycle from the initial order, processing, and finally to output, providing a history of financial activity related to the receipts. The code is agency-assigned and classifies revenue and receipt transactions by the type or source of revenue. The Revenue Source Codes is a unique four-digit code used to define revenue sources within different VA programs. The code in FMS also represents the mechanism to identify the applicable accounts receivable to move into the next fiscal year as part of the annual close process for Tricare and Shared Medical Resource bills under PL 104-262.
VA’s Accounting Classification Structure Volume II – Chapter 1
a. VA’s revenue source codes are assigned by using a standardized and unique numbering scheme as follows:
i. Enhanced sharing assets must begin with an alpha character of “A” followed by three sequential numbers;
ii. Enhanced-use lease assets must begin with an alpha character of “E” followed by three sequential numbers; and
iii. Out-lease assets must begin with an alpha character of “U” followed by three sequential numbers.
b. The numbering scheme supports the following activities:
a. Supply Fund activities use a numbering scheme that begins with “SF,” “SM,” or “SR,” followed by two numeric characters for its revenue activities.
b. VHA uses revenue source codes for the Medical Care Collection Fund (MCCF) revenue activities and other reimbursable activities. The numbering scheme will begin with either code "81" through "89" with a combination of alpha-numeric for the third and fourth positions – or – with code "8A" through "8P" with a combination of alpha-numeric for the third and fourth positions. VHA will use a numbering scheme that begins with an “80” for all non-MCCF revenues and reimbursable activities.
c. VHA General Post Fund and NCA National Cemetery Gift Fund activities use a numbering scheme that begins with a “9” for revenue activities.
VA’s Accounting Classification Structure Volume II – Chapter 1
E. The Internal Fund Code is an agency-assigned code value for a fund. The Fund Code and its attributes are used by agencies to classify financial transactions for reporting purposes. An agency’s Treasury Account Symbol (TAS) and Budget Accounts are also part of this category but are typically used for external reporting to Treasury and OMB, respectively. VA will maintain appropriation fund codes in accordance with Treasury guidance. VA will establish separate fund accounts for direct and reimbursable obligations; these funds shall not be co-mingled. Refer to Volume II, Chapter 2, VA’s Budget Cycle and Fund Symbols.
F. The Division Code in iFAMS represents the top level of hierarchical structure for organizational elements in the ACS. The next level of organizational element in the ACS is the Organization Code (referred to as station identification numbers in FMS). These are the official identification numbers for funding and budgetary purposes and for describing the sphere of authority of an organizational entity designated by the Secretary. A uniform organization system provides a unique identifier for each organization and allows for easier association and integration of data among systems which require unique identification in automated information systems.
G. Program, Project, and Activity (PPA) Codes provide VA the means to categorize financial information to support budget execution and reporting functions. The PPA Codes generally represent the lowest level of budget distribution. Refer to VA Volume II, Chapter 2, VA’s Budget Cycle and Fund Symbols, for additional information on the budget process. Detailed reference information for Accounting
VA’s Accounting Classification Structure Volume II – Chapter 1
Classification Codes, Budget Object Codes, Cost Centers, End of Month Reports, Funds, and other accounting transaction reports is available on the FMS Home website.
H. In iFAMS, the organization class value is representative of the FMS Cost Center, where the FMS cost centers are organizationally based. The FMS cost center is housed in iFAMS as a non-ACS user-defined field. iFAMS will maintain the integrity of the standardized data and provide the user with an understanding of how FMS cost centers relate to the new iFAMS ACS.
I. Object Class Extension, referred to as Budget Object Class (BOC) Code, classifies obligations by the items or services purchased by the Federal government (e.g., personnel compensation, supplies, rent, or equipment). While OMB Circular A- establishes the standard codes, titles, and definitions of the object class, an agency
VA’s Accounting Classification Structure Volume II – Chapter 1
K. A Trading Partner is a federal entity that is party to intragovernmental transactions with another federal entity.
L. Procedures for updating elements of the ACS and VA SGL in iFAMS are found in Appendices H and I.
010504 United States Standard General Ledger
A. VA’s ACS will support Treasury’s reporting requirements via compliance with the Treasury Financial Manual and the United States Standard General Ledger (USSGL).
B. Proprietary asset and liability accounts cover the receipt of funds in the Treasury, the proper classification of assets (such as receivables, prepayment, inventory, and fixed assets), and the recognition and proper classification of liabilities. The transactions in these accounts provide information on how operations are functioning, as well as ensure that the basic accounting equation remains in proper balance. Revenue and expense accounts measure the realization of revenues from reimbursements and the recognition of costs through the use and consumption of assets. The financial control provided through accounting records for property provides managers with a tool that helps to effectively discharge their stewardship function for those resources.
C. Budgetary accounts reflect the recording of appropriation, apportionment, allocation, commitment, obligation, reimbursement and expenditure processed. The transactions involve anticipating resources, realizing resources, or changing the status of resources.
010505 VA Standard General Ledger
A. VA’s Chart of Accounts will be based upon the USSGL, thus providing a consistent basis for recording and reporting financial transactions and resource balances. The
VA’s Accounting Classification Structure Volume II – Chapter 1
Chart of Accounts will also provide the basic structure for VA’s proprietary and budgetary reporting functions. In iFAMS, the General Ledger Account Code dimension consists of the USSGL Account and Extension Code, which is at the lowest level. The four roll-ups associated with the General Ledger Account Code are Category, Class, Group and Type, which are characteristics of the GL Account.
B. VA SGLs must point to or roll into a valid USSGL.
C. VA may use SGL accounts in its accounting system that are more detailed than the USSGL chart of accounts to provide detailed information for decision making or reporting purposes.
D. VA will use, maintain, and record SGL accounts for all appropriations and fund activities, regardless of the source of funds.
E. In addition to the USSGL accounts published by Treasury, VA may use SGL accounts in the accounting systems that are different from the USSGL Chart of Accounts when it is deemed necessary and the internal SGLs are rolled into a valid USSGL.
VA’s six-digit SGL accounts are classified as follows:
USSGL 800000 is currently used by VBA for credit reform transactions and by all organizations to capture purchases of PP&E.
F. VA will record all transactions (e.g., resources acquired and used by VA and claims against those resources) to the appropriate SGL (transaction level) in VA’s accounting system.
G. Refer to Appendix I, General Ledger Request Process, for the procedures for establishing and maintaining VA SGL Accounts.
010506 Agency Location Codes
VA’s Accounting Classification Structure Volume II – Chapter 1
Treasury Financial Manual
TFM US Standard General Ledger
VA Facility Listing website
VA Financial Policy Volume I, Chapter 4 – Financial Management Systems
VA Financial Policy Volume II, Chapter 2 - Budget Cycle and Fund Symbols
VA Financial Policy Volume VII – Financial Reporting
VA Financial Policy Volume XIII, Chapter 1 – Cost Centers
VA Financial Policy Volume XIII, Chapter 2 – Budget Object Class Codes
VA FMBT ACS SharePoint Site
0107 Rescissions
Volume II Chapter 1, VA’s Accounting Classification Structure, February 2020.
0108 Questions
Questions concerning these financial policies should be directed to the following points of contact:
VHA VHA Financial Policy (Outlook) VBA VAVBAWAS/CO/OPERATIONS (Outlook) NCA NCA Financial Policy Group (Outlook) All Others OFP Accounting Policy (Outlook)
VA’s Accounting Classification Structure Volume II – Chapter 1 Appendix A
Appendix A: History of Revisions to this Chapter
A. The following table provides the history of revisions to this chapter.
Section Revision Office Reason for Change
Effective Date Appendix C, Agency Location Codes (Previously numbered Appendix E)
Updated VBA’s contact information on the ALC chart
Contact information was updated
September 2018
Appendix F
Updated the FSC Accounting e-mail address, FMS JV Approval procedures, and MinX JV Data Field Requirements
Financial Reporting Corrective Action Plan
September 2018
Definitions Added iFAMS definition
Define iFAMS June 2018
Appendix E Updated ALC listing
Added ALC listing for iFAMS processing
June 2018
Appendix D
Updated responsibilities for maintenance of USSGL accounts
To reflect current responsibilities and procedures
February 2018
Appendix E Update Agency Location Code listing
Update with current information
February 2018
0102 Policies
Added pre-approval requirement for non- routine FMS and MinX JVs equal to or greater than $100 million
Consolidated Financial Reporting
December 2017
Agency Location Code
Removed references to Treasury FMS 224, Statement of Transactions
FMS 224 is no longer used
December 2017
0104 Roles and Responsibilities
Assigned roles and responsibilities for pre- approval of non-routine FMS and MinX JVs equal to or greater than $100 million
Consolidated Financial Reporting
December 2017
