APPENDIX M2

DEPARTMENTAL (CENTRAL OFFICE LEVEL) GENERAL LEDGER ACCOUNTS

AND PRO FORMA ENTRIES - COMPENSATION, PENSION AND EDUCATION PROGRAMS

Appendix M-2 contains the general ledger account descriptions and pro forma entries to be used by the Department of Veterans Benefits at the Central Office level for benefit appropriations 36X0102 and 36X0137. This appendix applies not only to the automated systems but also to the manual system. The following general ledger accounts described herein will be used:

Account                         .                                             

Number                         Title                                          



3_1012                         Disbursing Authority                           

3_2226                         Unallotted Allocation                          

3_2227                         Unobligated Allotment                          

352228                         Undelivered Orders                             

3_2229                         Accrued Expenditures                           

3_2241                         Capital                                        

3_6032                         Disbursing Authority Advanced or               

 .                             Withdrawn by Central Office                    

3_6311                         Allocations Issued or Received                 


APPENDIX M21. GENERAL LEDGER ACCOUNTS

1. The general ledger accounts maintained for benefit appropriations 36X010' and 36X0137 have been assigned a fourdigit symbol preceded by a twodigit prefix. The number "3" designating benefit appropriations, has been assigned as the first of the twodigit prefix. The second digit of the prefix will identify the specific appropriation as follows:


Series      2d Digit        Symbol         Title                             



3_0000      4               36X0102        Compensation and                  

 .          5               36X0137        Pension, VA                       

 .           .               .             Readjustment Benefits, VA         





2. The account descriptions indicate the title and type of account, purpose and entries representing the most common types of transactions. In order to simplify printing requirements, the last two-digit identifying prefix has been omitted in listing contra accounts. However, all accounts will be maintained by appropriation. In the event it is necessary to make an entry which is not prescribed, the accountant shall record such transaction in a manner consistent with sound judgment and accounting practices, and in accordance with general principles outlined in Chapter 1.

3_1012 DISBURSING AUTHORITY

This is a debit balance (asset) account maintained by appropriation to show the amount of undistributed disbursing authority.


Debits:                                 Credits:                                



a. Advances of disbursing               a. Withdrawal of disbursing             

authority from Controller.              authority by Controller.                

Contra to 3_6032.                       Contra to 3_6032.                       



b. Withdrawal of disbursing             b. Disbursing authority issued          

authority from field stations.          to field stations.                      

Contra to 3_6032.                       Contra to 3_6032                        





3_2226 UNALLOTTED ALLOCATION

This is a credit balance (accountability) account maintained by appropriation to show the amount of allocation available for allotment.


Debits:                                 Credits:                                



a. Decrease in allocation.              a. Allocation or increase in            

Contra to 3_6311.                       allocation.                             

 .                                      Contra to 3_6311.                       

b. Disbursing authority issued           .                                      

to field stations.                      b. Disbursing authority                 

Contra to 3_2227.                       withdrawn from field stations.          

 .                                      Contra to 3_2227.                       



3_2227 UNOBLIGATED ALLOTMENT

This is a credit balance (accountability) account maintained by appropriation to show the total amount of unobligated balance of allotment.


Debits:                                 Credits:                                



a. Disbursing authority                 a. Disbursing authority issued          

withdrawn from field stations.          to field stations.                      

Contra to 3_2226.                       Contra to 3_2226.                       



b. Net monthly cash                     b. Amount of decrease between           

expenditures.                           current month and prior month           

Contra to 3_2229.                       accruals.                               

                                        Contra to 3_2229.                       

c. Amount of increase between            .                                      

current month and prior month           c. Reversal of the amount of            

accruals.                               advances and prepayments                

Contra to 3_2229.                       recorded in the prior month.            

 .                                      Contra to 352228.                       

d. Amount of advances and                .                                      

prepayments applicable to                .                                      

subsequent months training and           .                                      

subsistence allowances as of             .                                      

the end of the current                   .                                      

accounting month.                        .                                      

Contra to 352228.                        .                                      



352228 UNDELIVERED ORDERS

This is a credit balance (accountability) account maintained by appropriation 36X0137 to show the total amount of payments (advances and prepayments) made applicable to subsequent months training allowances.


Debits:                                 Credits:                                



a. Reversal of amount recorded          a. Amount of advances and               

as advances and prepayments                prepayments applicable to            

in the prior months.                       subsequent months training and       

Contra to 352227.                          subsistence allowances as of         

 .                                         the end of the current               

 .                                         accounting month.  Contra to 352227. 


3_2229 ACCRUED EXPENDITURES

This is a credit balance (accountability) account maintained by appropriation to show the net amount of liabilities incurred.


Debits:                                 Credits:                                



a. Amount of decrease between           a. Net monthly cash                     

current month and prior month             expenditures.  Contra accruals. to 3_2227. 

Contra to 3_2227.                        .                                      

 .                                       b. Amount of increase between           

b. Net cumulative balance                   current month and prior month           

closed at end of fiscal year.               accruals.                               

Contra to 3_2241.                           Contra to 3_2227.                       





3_2241 CAPITAL

This is a credit balance (accountability) account maintained by appropriation to show the net worth resulting from operations. Normally, entries will be made to this account only through prescribed closing entries at the end of the fiscal year.


Debits:                                 Credits:                                



a. Net debit balance in                 a. Net cumulative accrued               

interoffice account closed at           expenditures closed at end of           

end of fiscal year.                     fiscal year.                            

Contra to 3_6311.                       Contra to 3_2229.                       



 .                                      b. Net credit balance in                

 .                                      interoffice account closed at           

 .                                      end of fiscal year.                     

 .                                      Contra to 3_6032.                       





3_6032 DISBURSING AUTHORITY ADVANCED OR WITHDRAWN BY CENTRAL OFFICE

This is a credit balance (interoffice) account maintained by appropriation and station number to show the net amount of disbursing authority received.


Debits:                                 Credits:                                



a. Withdrawal of disbursing             a. Advance of disbursing                

authority by Controller.                authority from Controller.              

Contra to 3_ 1012.                      Contra to 3_1012.                       



b. Disbursing authority issued          b. Withdrawal of disbursing             

to field stations.                      authority from field stations.          

Contra to 3_1012.                       Contra to 3_ 1012.                      



c. Net cumulative credit balance         .                                      

closed at end of fiscal year.            .                                      

Contra to 3_2241.                        .                                      



3_6311 ALLOCATIONS ISSUED OR RECEIVED

This is a debit balance (interoffice) account maintained by appropriation to show the net allocations received from the Controller.


Debits:                                 Credits:                                



a. Allocation or increase in            a. Decrease in allocation.              

allocation.                             Contra to 3_2226.                       

Contra to 3_2226.                                                               

 .                                      b. Net cumulative debit balance         

 .                                      closed at end of fiscal year.           

 .                                      Contra to 3_2241.                       

 .                                       .                                      





APPENDIX M-2-2. PRO FORMA ENTRIES

Appendix M22 contains most of the general ledger entries made by the Department of Veterans Benefits at the Central Office level for the benefit appropriations 36X0102 and 36X0137.

PRO FORMA ENTRIES

1. Allocation or Increase in Allocation and Advance of Disbursing Authority

3_1012/3_6032

3_6311/3_2226

2. Decrease in Allocation and Withdrawal of Disbursing Authority

3_6032/3_1012

3_2226/3_6311

3. Disbursing Authority Issued to Field Stations

3_6032/3_ 1012

3_222613_2227

4. Disbursing Authority Withdrawn From Field Stations

3_1012/3_6032

3_222713 _2226

5. Net Monthly Cash Expenditures

3_2227/3_2229

6. Amount of Net Increase Between Current Month and Prior Month Accruals

3_2227/3_2229

7. Amount of Net Decrease Between Current Month and Prior Month Accruals

3_2229/3_2227

8. Amount of Advances and Prepayments at End of Month Applicable to Subsequent Months Training and Subsistence Allowances

352227/352228

9. Reversal of Amount of Advance and Prepayments Recorded in the Prior Month

352228/352227

10. Fiscal Yearend Closing Entries

a. 3_2229/3_2241

b. 3_2241 /3_6311

c. 3_6032/3_2241