DOE O 2200.4 Chg 1, Accounting Overview

● I U.S. Department of Energy Washington, D.C. ORDER E 3-31-88 SUBJECT: ACCOUNTING OVERVIEW 1: PURPOSE. To establish Department of Energy (DOE) accounting pol icy, princi- ples, and standards, and to explain the administrative control of funds, financial and cost accounting, and the fina~cial reporting system in accor- dance with Government regulations and generally accepted accounting principles. 2. CANCELLATIONS. a. DOE 21OO.1A, GLOSSARY OF FINANCIAL TERMS, of 10-23-81. b. DOE 2200.1, ACCOUNTING POLICY AND PRACTICES, of 11-9-79. (See Attachment 2,” page 4, paragraph 7.) 3. SCOPE. The provisions of this Order applyto all Departmental Elements and ~r”ated contractors performing work for the Department as provided by law and/or contract and as implemented by the appropriate contracting officer. o 4. EXCLUSION. The Bonneville Po#er Administration is governed by the provisions of the Government Corporation Control Act and, as such, operates in accordance with generally accepted accounting principles issued by the Financial Account- ing Standards Board. In folloxing the generally accepted accounting princi- ples and meeting legislative requirements, the Bonneville Power Administration will, from time to time, deviate from-the provisions of this Order. 5. OBJECTIVES. I I a . To provide an introduction to, and overview of, the accounting direc- tives and the accounting system; b. To provide an outline of accounting concepts and standards; and c. To swmnarize the accounting responsibilities. DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Financial Policy DOE 2200.4 3-31-88 6. DEFINITIONS. Attachment 1, Definitions, provides a consolidated glossary of flnanclal terms used in accounting directives. In some instances a term may be defined within the text of an Order #hen its use is limited to the subject matter. 7. REFERENCES. for subject BY O~DER OF THE Attachment 2, References, is a consolidated listing of references matter contained in accounting directives (DOE 2200 series). SECRETARY OF ENERGY: @ i:r “ LAWRENCE F. DAVENPORT Assistant Secretary Management and Administration 2 DOE 2200.4 3-31-88 TABLE OF CONTENTS CHAPTER I - INTRODUCTION ● Page D 1. 2. 3. 4. Applicability ● ..0.00. . . . . . . . . . ● 0.....00 .0.0..00. ..000...0 ● 0...0000 .000. Organization of a. DOE 2200.4, b. DOE 2200.5, DOE 2200.6, ~: DOE 2200.7, DOE 2200.8, ;: DOE 2200.9, the Directives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ACCOUNTING OVERVIEW ● *....... . . . . . . . . . . .........0 ...**** FUND ACCOUNTING ..**.*... ....*.*.** ..*...***. ...**...** FINANCIAL ACCOUNTING ..0.0... ● .....000 ..00..0.0 ● . . . .0... COST ACCOUNTING ...**.*.. .....*..** ..**.***** ....*.*.** ● ACCOUNTING SYSTEMS, ORGANIZATION, AND REPORTING . . . . . . . . MISCELLANEOUS ACCOUNTING ....00.0 ...00...0 ...0..00. . . . . . 9“ DOE 2200.10, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES . . . . . . . . . . . . . Inquiries .0000... ● . . 0 0 0 0 . . ....000.. . . . . . . . . . . . . . 0 . 0 . 0 . . . . . . . . . ● . . . . . . 0 . a. Exceptions and Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. Policy and Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Policy ......*** ..**.*..*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .*..**

CHAPTER II - CONCEPTS AND STANDARDS 1. DOE Accounting Concepts .0..0..0 . . . . . . . . . . . . . . . . . . . . . . . . . . . ● .0.....0 . . . . a . b. c. d. e. .;: Objective~ -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..00....0 . . . . . . . . . ...0 Reporting Entities .0.....0 ● 0 . . . . . . . . . . . . . . . . ....0.000 .....000. ● . 0 0 0 Elements of Accounting and Financial Reporting . . . . . . . . ● Oeoeoaoo ● 0.0 (1 ) Assets ..0.0000 . . . . . . . . . .00..0.0. . . . . . . . . . ● 0 0 . 0 0 . . . ● . . 0 . 0 0 0 . ● 0 0 (2) Budget Authority .000...0 ..0...000 . 0 0 . 0 0 . 0 0 ● 0 0 0 0 . 0 0 = ● 0 . 0 . 0 0 0 = ● 0 (3) Budget Resources .0.0..00 ..0.0..0. . . . . . . . . . ● . . 0 0 . 0 . 0 .00.0..00 ● 0 (41 C o l l e c t i o n s ....***.. . . . . . . . . . . ......0... . . . . . . . . . . ....0..... . . (5) Equity . . . . . . . . . . . . . . . . . .00...0.. . . . . . . . . . . . . . . . . . . .000...0. ..0 (6) Expenses, Losses, and Transfers Out (7) F~nancing sources .0.0.... ● 0...00.. ..0..0000 ● . . . . . . . . ..000.0.. . . . . . . . . . ...0.0.00 .0.000.00 ● (8) Liabilities ....0000 . . . . . . . . . . . . . . . . . . ...000... ● 00.....0 ● .....0 (9) Obligations .00..... ● 0.0..0.. .00....0. ..0..00.0 ● ..0.0000 ● .00000 (10) Outlays .0.000.0 . . . . . . . . . ● ...00.0. . . . . . . . . . . . . . . . . . . .000...00 ● 0 (11 ) Results of Operations .0..000. ● 0 0 . . . 0 . 0 ● . 0 . . . . 0 0 ● 0 0 0 0 0 0 = . ..000. Usefulness of Accounting Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 ) Timeliness .*.*.**.. ..0. . . . . . . ● *....*.** ● **..**.** ....*...** ● 0. (2) Relevance .0.00... . . . . . . . . . ● ..000..0 . . . . . . . . . ..00...0. . . . . . . . . . (3) Reliability .00.0000 ● . 0 . . 0 0 0 0 ● . . . . 0 . . 0 ..0.0...0 ...0...00 . . . . . . . (4) Cost Benefit . . . . . . . . . . . . . . . . . . . .....0.... ● .*.....** .........0 . (5) Material ity . . . . . . . . .000..... ..00...0. ● ...00... ...0.0.00 ● 0.0000 (6) Comparability .....0... ....0..... . . . . . . . . . . ..****.*** .***.*.*** (7) Consistency ...00..0 ● 0....... .00.0.... ● ....00.0 ..00...00 ● ..0000 Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 ) Accrual Accounting ...**.*.. . . . . . . . . . . . . . . . . . . . . .......*** .**** (2) Matching ● . . . 0 . 0 . .0.0.000. ....00.0. .0...00.. . . . . . . . . . ● . . 0 . . . 0 0 . (3) Allocation . . . . . . . . . . . . . . . . . . . ● ....**.** ● **...**** .*.***...* ● .* Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ost-oo,oc, ,.oo,,..co.e.o . . . . . . . . . . . . . . . . . . . . . . . . . . ....***..*.****** I-1 I-1 I-1 I-1 I-1 I-1 1-1 I-2 I-2 I-2 I-2 I-2 I-2 II-1 II-1 II-1 II-1 II-1 II-2 II-2 II-2 II-2 II-3 II-3 II-3 11-3 II-4 II-4 II-4 II-4 II-4 II-4 II-4 II-4 II-4 II-5 II-5 II-5 11-5 II-5 II-5 11-6 i 3-31-88 DOE h. Accounting Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) i2j (3) (4) (5) (6) (7) (8) (9) (10) (11 ) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21 ) (22) (23) (24) (25) (26) (27) (28) 2. Internal

Accounts Payable . . . . . . . . . . . . . . . . . .0.0....0 ● . . . . . . . . . . . . . . . . . . Acquisition Cost of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . .00....00 Advances and Prepayments . . . . . . . . ● ...0.... . . . . . . . . . . . . . . . . . . . . Appropriations for Property, Plant, and Equipment ....00.0 . . . . Cash .0..0... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capitalization of Interest on Property, Plant, and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..0. Contingencies . . . . . . . . ...0.0..0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity ...000.. . . 000 . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● . . . 0 0 . . 0 . . Fair Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● ..0... Financial Assistance Awards ● . . . . . . . . . . . . . . . . ● ..0..000 ● . . . . . . . Financial Reports . . . . . . . . . . . . . . . . . . . . . . . . . . .0...0..0 ..0.0.0.. Foreign Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . .....00.0 . . . . . . . . Fund Accounting . . . . . . . . . . . . . . . . . ● 0.....0. . . . . . . . . . ...0.0.0. ● . Fund Control . . . . . . . . . . . . . . . . . . . . . . . . . . ● 0..0.... . . . . . . . . . ● . . . . Imputed Interest ● .00.... . . . . . . . . . . . . . . . . . . ● .0...... . . . . . . . . . . Interest Payable and Receivable . . . . . . . . ● .....0.. . . . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loan Guarantees and Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Long-Term Contracts . . . . . . . . . . . . . . . . . ● .....0.. . . . . . . . . . ● . . . . . . Prior Period Adjustments of Financial Statements . . . . . . . . . . . . . Payroll ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Control Standards . . . . . . . . . . . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 111 - RESPONSIBILITIES 1. :; 4. 5. 6. 7. 8. 1:: Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Secretary (S-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Under Secretary (S-3) . . . . . . . . . . . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heads of Departmental Elements . . . . . . . . . . . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . . Assistant Secretary, Management and Administration (MA-1 )

Accounting Concepts and Standards ● .0.0.0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;: Administrative Control of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inspector General (IG-1 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● . Headquarters General Counsel (GC-1 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heads of Field Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● 0. Allottees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Finance Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heads of Contracting Activities ● .....0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Certifying Officials ......00 ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Program Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personnel Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● ..00.... . . . . . . . . 2200.4 II-6 II-6 II-7 II-8 II-8 II-8 II-8 II-9 11-10 11-10 11-11 11-11 11-12 11-12 11-13 11-14 11-14 11-14 11-14 11-15 11-15 11-15 11-16 4 11-16 11-17 11-17 ● 11-19 11-20 11-20 11-21 III-1 111-1 III-1 III-1 III-2 III-2 III-2 III-3 III-3 III-4 III-4 III-5 III-6 III-6 o III-6 III-6 ● DOE 2200.4 3-31-88 0 Attachment l-Definitions ... .c*. ..0. ..e=. ... ..*. .**. ~***. **** *e "*S"*"""*_""" 1 ● Attachment 2-References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 * , * ● iii (and iv) o 3-13-88 a CHAPTER I * INTRODUCTION DOE 2200.4 1. APPLICABILITY. The accounting directives (DOE 2200.4 through DOE 2200.10) are Integral parts of the DOE system of accounts. The scope of these directives is specified in DOE 2200.4, ACCOUNTING OVERVIEW, paragraph 3. Heads of con- tracting activities or designees shall interpret the provisions of these directives and review and approve the practices and procedures that are neces- sary for the integrated contractors to maintain a system of accounts accept- able to DOE. The integrated contractors’ customary accounting practices shall be accepted if they conform with generally accepted accounting principles, produce accurate results, provide the necessary DOE financial reports, and do not conflict with the provisions of these directives. Several central Federal agencies, such as the Office of Management and Budget (OMB), the Department of the Treasury, and the General Services Administration (GSA), as well as the General Accounting Office (GAO), provide mandatory accounting and financial management auidance for Federal aaencies. DOE must rely as much as possible. “ on the issuances of these oversigtk i restated in these directives, except policies or general procedures or to ● 2. ORGANIZATION OF THE DIRECTIVES. The matter into a series of seven direct directive is summarized below: gencies, and such ;aterial will” not be where necessary to specifically implement provide clarification. contents are organized by related subject ves. The material covered in each a. DOE 2200.4, ACCOUNTING OVERVIEW, provides introductory material, defini- tions, references, principles, standards, internal control requirements, and responsibilities.

b. DOE 2200.5, FUND ACCOUNTING, provides DOE policy and general procedures for accounting for appropriations, funds, and obligations. The chapters cover administrative control of funds; accounting for appropriations; other funds, such as special, trust, and revolving funds; and obligation accounting. c. DOE 2200.6, FINANCIAL ACCOUNTING, covers accounting and financial manage- ment tODICS necessary for financial Statement PN?St?nttitiOn in areas other than fund accounting: The directive is organized in balance sheet topic order, from assets to liabilities and equity accounts. Topics related to cash management and disbursements are included in the appropriate asset and liability chapters. d. DOE 2200.7, COST ACCOUNTING, provides policy and general procedures for costing and prlclng of products and services. e. DOE 2200.8, ACCOUNTING SYSTEMS, ORGANIZATION, AND REPORTING, covers reDortinq by contractors and field elements to Headquarters through the Financiai Information System, financial reporting standards, required I-1 DOE 2200.4 3-31-88 Paragraph 2e Department-wide internal financial reports, and required financial reports to entities external to DOE. f. DOE 2200.9, MISCELLANEOUS ACCOUNTING, includes chapters on miscellaneous tOplCS, such as payroll, travel , contract closeout, and grants. In addf- tion, chapters are reserved for special accounting requirements that are not applicable to DOE as a whole, such as requirements related to power marketing administrations, Naval Petroleum Reserves, and the Nuclear Waste Fund. i= DOE 2200.10, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES, provides a refer- ence source tor DOt f-lnanclal codes and th elr applications. It fncludes the general ledger chart of accounts and financial codes, along with illustrative accounting entries corresponding to the references from previous directives. 3. INQUIRIES. a . Exceptions and Exemptions. Except where authority to approve an excep- ~lon or exempt~on has been delegated to the field organization, the Head of t?e Departmental Element or Field Element shall forward, in writing, requests for exception to or exemption from the provisions contained in the accounting directives to the Controller (MA-3) for approval. b. Policy Interpretation and Revisions. Inquiries about policy interpre- tations of, or proposed revlslons to, this Order shall be forwarded, in writing, to the Director of Financial Policy (MA-31). Copies of change requests should be forwarded to Directives and Federal Register (MA-213.1) per DOE 1321.19, DEPARTMENTAL DIRECTIVES SYSTEM, page I-6, paragraph IOd. 4. POLICY. It is the policy of DOE that a system of accounts shall be maintained in accordance with regulatory requirements established by GAO, OM!I, and the Department of the Treasury. The system of accounts shall adhere to generally accepted accounting practices and procedures when they do not contradict GAO, OMB, and Department of the Treasury regulations. Although a uniform classifi- cation of accounts is prescribed for DOE Elements, each power marketing admin- istration may have a chart of accounts based upon its own requirements. Heads of contracting activities or designees shall interpret the provisions of these directives and review and approve the practices and procedures that are neces- sary for the integrated contractors to maintain a system of accounting accept- able to DOE. The integrated contractor’s customary accounting Dractices shall be accepted if they conform with generally accepted accounting principals, produce accurate results, provide the necessary DOE financial reports, and do not conflict with the provisions of these accounting directives.

. # ● I-2 3-31-88 DOE 2200.4 CHAPTER II CONCEPTS AND STANDARDS 1. DOE ACCOUNTING CONCEPTS. The Comptroller General prescribes the account- ing concepts and standards for the Federal Government. The concepts and standards adopted by DOE are based on, and implement, the concepts and standards prescribed by the Comptroller General. a. b. c. Objectives. Two of the main objectives of the DOE accounting and _financial reporting systems are to provide information that can be use- ful in allocating resources and to assess management’s performance and stewardship. These objectives are discussed below. (1) Resource allocation involves choosing from among alternative uses of resources. It is the process of distributing budget authority and deciding how resources will be used. (2) Assessing management’s performance and stewardship involves determin- ing whether their allocation decisions are proper and whether they have met congressional intent. Reporting Entities are the DOE components for which financial state- ments are prepared. Financial statements shall be prepared at least annually (at the end of the fiscal year). Elements of Accounting and Financial Reporting. DOE accounting and Inancial reporting focus on the followlng elements: assets, budget authority, budget resources, collections, equity, expenses, losses, transfers in and out, financing sources, liabilities, obligations, outlays, and results of operations. These are described below. (1) Assets. (a) Any item of economic value owned by DOE is an asset. The item may be physical in nature (tangible) or a right to ownership (intangible) that is expressed in terms of costs or some other val ue. An asset has three essential characteristics: 1 It embodies a probable future benefit that involves a – capacity, singly or in combination with other assets, to contribute to future operations of the Department; 2 DOE can obtain the benefit from it and control access to it; and 3 The transaction or other events giving the Department the – right to or control of the asset have already occurred. 11-1 DOE 2200.4 3-31-88Paragraph lc(l)(b) (b) Assets benefit DOE when they can be exchanged for goods or a services of value, used to provide services, or used to liqui- date or reduce liabilities. DOE’s future benefit from the asset can include relief from having to expend cash in the future. (c) Assets have widely varying identifying features. For example, assets may be acquired with or without cost, they may be . exchangeable or not exchangeable, and claim to them may be legally enforceable or not. Assets may be used in DOE’s opera- tions or for distributing other goods or services. Although DOE’s ability to benefit from an asset and to control others’ access to it generally rests on legal rights, legal claim to the benefit is not necessary before it qualifies as an asset if its receipt by DOE is otherwise probable. (2) Budget Authority is provided by law to enter into obligations that WI11 result in fnsnediate or future outlays of Federal funds, but it does not include authority to insure or guarantee the repayment of indebtedness incurred by another person or government. The basic forms oftudget authority are appropriations, authority to borrow, and contract authority. (J) Budget Resources. In addition to budget authority, reimbursable work provides the following budget resources: (a) The amount of ~rders received by the Government representing valid obligations of the ordering account, the reimbursements of o

which will be placed in the correct account when collected; and (b) The amount of unfilled customers’ orders from the public for which advance payment has been made. (4) Collections may be treated as budget receipts, offsetting receipts, refunds, or credits to deposit fund. (5) Equity is the difference between assets and 1 iabil ities and consists of tlve components (for budgetary purposes, equity also includes an additional item, unfinanced budget authority, which includes unfilled customer orders, contract authority, and borrowing authority; power marketing administrations have special legal and regulatory require- ments and therefore do not precisely follow this paragraph): (a) Invested capital ; (b) Cumulative results of operations; (c’ (d’ (e’ II-2 Unexpended appropriations; Trust fund balances; and Donations and other items. I 3-31-88 (6) (7) (8) (9) DOE 2200.4 Paragraph lc(9) Expenses, Losses, and Transfers Out. Expenses and losses are out- f lows of assets or lncurrences of Tinabilities (or a combination of both). They can result from rendering services, delivering or pro- ducin goods, or carrying out other activities. Ex enses relate to 7norma operating activities, 1’whereas losses general y relate to all other transactions. The distinction between expenses and losses is a matter of classification in the statement of operations; expenses are commonly displayed at their gross amount, and losses are usually shown net of related revenue. Transfers out are assignments of appropriations or contributions of other assets to another Federal agency. Financing Sources. Financing sources and gains are actual inflows and other enhancements of assets or certain settlements of lia- bil ities (or a combination of both). In statements of operations, financing sources include expended appropriations and revenues. Revenues differ from gains only in that revenues generally result from normal operations, whereas gains usually result from nonoperat- ing activities. The only practical difference between revenues and gains is their presentation in statements of operations; revenues are connnonly shown at their gross amount, and gains are usually shown net of related expenses. (“Income” is a generic term that encompasses financing sources and gains.) Liabilities. (a) Liabilities are amounts owed for items received, services received, expenses incurred, assets acquired, construction per- formed (regardless of whether invoices have been received), and amounts received but as yet unearned. Included are amounts owed for goods in the hands of prime contractors under the construc- tive delivery concept and amounts owed under grants, pensions, awards, and other indebtedness not involving the furnishing of goods and services. Liabilities may be classified into two groups: current liabilities (amounts owed but not due and pay- able within 1 year) and long-term liabilities (amounts that are not due and payable within 1 year). (b) Although liabilities rest generally on legal rights and duties, a legal claim is not a prerequisite or qualification of a lia- bility if future cash or other transfer of assets in settlement is otherwise probable and estimable. The decision to record liabilities is not always affected by whether funds for payment have been provided or authorized, as in the case of unfunded liabilities.

Obligations are amounts of orders placed, contract acquisitions and financial assistance instruments awarded, services received, and similar transactions for bona fide needs existing that will require payments. Such amounts include outlays for which obligations have not been previously recorded and reflect aa”ustments for differences II-3 DOE 2200.4 3-31-88 Paragraph 1c(9) between obligations previously recorded and actual outlays to liquidate those obligations. (10) Outlays. Obligations are generally liquidated when checks are Issued, funds are electronically transferred, or cash is disbursed. Such payments are called outlays. (11 ) Results of Operations are the net difference between (a) expenses and losses of financing sources and gains of DOE (whether financed from ~~propriation, transfers in, revenues, reimbursements, or any combination of the four) for the operating period reported. The results of operations are sometimes referred to as net income or net loss in revolving funds or business-like activities. d. Usefulness of Accounting Information. The overall goal of accounting and Inancial reporting In DOL 1s to provide information that is useful in the management and accountability of Departmental resources. Accounting information is useful when it fs timely, relevant, reliable, cost 5ene- ficial, material, comparable, consistent, and in the best interest of the Department. (1) (2) (3) (4) (5) (6) Timeliness is reporting of financial information to users promptly, ~WI 1 be of maximum benefit. Financfal data shall be recorded as soon as practicable after a transaction occurs. Relevance is the capacity of information to affect a decision by ● helplng users to understand the outcomes of past, present, and future events or to confirm or correct prior expectations. Reliability is the quality of information that ensures it is rea- sonably free from error and bias and faithfully represents what it purports to represent. Cost Benefit is judged by measuring the expense of obtaining certain lnrormatlon against the benefits to be derived from having it. Information is not provided if the costs of providing it exceed the benefits to be derived, unless it is required for legal or other specffied purposes. Materiality refers to whether the information is significant enough to make a difference to a reasonable person relying on it. Some information may not be disclosed in the financial statements because the amounts involved are too small to make a difference or to affect the reliability of the information. In addition to magnitude, the nature of the item must be considered when making a materiality judgment. Any information that is material is reported in the financfal statements. Comparability relates to the similarity and consistency of informa- tion produced in different periods and information reported by others . operating in similar circumstances. The value and usefulness of ● II-4 3-31-88 DOE 2200.4 Paragraph If information depend greatly on the degree to which it is comparable with information from prior periods and with similar information reported by others. (7) Consistency refers to information produced by one entity using the same methods over periods of time. e. Recognition is the recording of the effects of transactions in financial statements. Recognition ensures that the effects of similar events and transactions are accounted for similarly within the Federal Government. The three principles that form the basis of the recognition requirements in DOE accounting standards are accrual accounting, matching, and allocation.

(1) (2) (3) Accrual Accounting. The standards contained in this Order are based on accrual accounting and allow obligation accounting where required for budgetary purposes. Accrual accounting recognizes a revenue or an expense in the period in which it is incurred, even when the receipt of the revenue or the payment of the cost occurs in a subse- quent perfod. Generally, accrual accounting contributes materially to effective financial control over resources and costs of operations and is essential to develop adequate cost information. The reporting standards contained herein focus on accrual accounting. However, these standards also require complete financial information, includ- ing budgetary information, to be captured and maintained in DOE accounts. Matching involves identifying and recording costs in the proper period, that is, the period in which the cost is incurred rather than the period in which the disbursement is made. For commercial-type activities, matching is the simultaneous recognition of the revenues and expenses that result directly and jointly from the same transaction or other event. A1l-ocation is a concept of distributing an amount between periods. . . . . Iinterperlod) or to different elements within a period [intraperiodl. Interperiod allocation is necessary because many assets yield their beneffts over several periods. A conmon example of allocation is spreading the cost of a building or equipment to two or more account- ing periods by depreciating it. (“Allocation” is also used in terms of funds being transferred from one agency to another.) f. Measurement principles are the bases for assigning numeric values to the elements of financial reports. The data reported in the financial state- ments required by this directive should be based on historical costs so that dollar amounts remain compatible with budget authority. Historical data are measured in terms of money agreed upon in the initial transaction. Thus, data are comparable to the dollar authorizations and limitations initially granted through budget authority. 11-5 DOE 2200.4 Paragraph lg(l ) 3-31-88 cost.9* (1) Cost is ~he financial measurement of resources used in accomplishing a specified purpose, such as performing a service, carrying out an activity, acquiring an asset, or completing a unit of work or a spe- cific project. (2) (3) Reporting significant cost, obligation, and outlay information facilitates effective financial management. Such information must be avaflable to management officials, OMB, and Congress for devising and approving realistic future financial plans (budgeting). It is needed in making meaningful comparisons and in keeping spending within limits established by law, regulation, or management policy. Finally, this fnfomation provides several common financial denomi- nators for measuring and evaluating efficiency and economy in terms of the resources used in various activities. Accounting for activities on a cost basis means that all significant elements should be included in the amounts reported as total cost (direct cost as well as allocated cost). Cost, in this context, is the value of goods and services used by DOE within a given perfod, regardless of when they were ordered, received, or paid for. For example, cost may be the value of resources put into or removed from inventory. It may be the amount of depreciation or amortization on an asset. It may be the amount of contractor or grantee performance under a contract or grant (accrued expenditure).

(4) In any given year, the obligations incurred may be less than, equal to, or greater than the costs recognized for that period. The differ- ences, which must be precisely tracked in the DOE accounting system, may be due to such things as increases or decreases in inventories, undelivered orders, depreciation, amortization, or other changes in certain resources. The difference lies in the distribution of these different measures (costs and obligations) over a period of time. h. Account~ng Standards. The following accounting standards shall be adhered %0: (1) Accounts Payable. Accounts payable are liabilities, amounts owed for goods and services received, and amounts received but not yet earned. Accounts payable include amounts owed for goods and other property purchased and received; services performed by employees, contractors, grantees, and lessors; amounts received in advance (received but as yet unearned); and amounts owed at the end of the accounting period under programs for which no further performance of services by payees is required (such as annuities, insurance premiums, and some grants). (a) Accounts payable for goods and liabilities when the goods are in annual financfal statements received and estimated amounts services shall be recorded as received. The liability reported shall reflect both invoices for invoices not yet received. @ II-6 received from non-Federal entities shall be” reported as a lia- bility equal to the value of the monetary credit. (2) Acquisition Cost of Assetse This Order provides the accounting treatment to be followed for all assets acquired by expenditure of funds, except as noted in paragraph 2h(2)(c), below. 3-31-88 (b) (c) (d) (e) (f) Under certain circumstances, physical receipt of goods or DOE 2200.4 Paragraph lh(2) (c ) accounts payable arise before the the passing of formal legal title. When a contractor provides goods that are also suitable for sale to others, the liability usually arises when the contractor physically delivers the goods and DOE receives them and takes formal title. However, when a contractor manufactures or fabri- cates goods or equipment to DOE specifications, constructive or de facto receipt occurs in each accounting period. Formal accep- tance of the products by DOE is not the determining factor. For items manufactured to DOE’S specifications, DOE activities shall record the appropriate payable amount, including contract retentions, for each accounting period based on requests for progress payments or on reasonable estimates of unbilled con- tractor performance. Accounts payable for services performed by employees, contrac- tors, and others shall be determined based on performance as evidenced by payroll records, progress billings, grant reim- bursement requests, financial status reports, or other available data. Reasonable estimates of the cost of services performed before the end of a reporting period shall be made for annual financial reporting purposes in the absence of invoices or other available data. Amounts due for annuities, claims, and benefit payments as of the end of the period shall also be recorded based on available information, provided that the payment is probable and that the amount is estimable. Monetary credit issued as compensation for property or services . 9 (a) (b) (c) All assets acquired shall be recorded at full cost. The full cost of assets acquired shall include the amounts paid to acquire them, including transportation, installation, and related costs of obtaining the assets, in their current form and place.

Costs shall be recorded net of purchase discounts taken” Purchase discounts lost and late payment penalties shall not be included as costs of assets, but shall be recognized as operat- ing expenses. Assets acquired by seizure shall be recorded as assets at their fair market values or other reasonable estimates, with an II-7 DOE 2200.4 3-31-88 Paragraph lh(2)(c) II-8 (3) (4) (5) (6) offsetting I;ability until such time as a determination about their disposition has been made. Advances and Prepayments are exchanges of assets to cover future expenses or acqulsltlon of other assets. Advances or prepayments to employees, contractors, grantees, or others shall be recorded as assets until receipt of the goods or services involved or until con- tract terms are met. When goods or services have been received or contract terms have been met, the expense or acquired asset is recog- nized and advances or prepayments are reduced. Appropriations for Property, Plant, and Equipment. (a) The amounts of appropriations for property, plant, and equipment are reflected as part of the unexpended appropriations in the equity section of the Statement of Financial Position until they are expended. When expended, the amounts are transferred from the Unexpended Appropriations account in the equity section to the Invested Capital account in the equity section. The trans- fer shall be reported in the Statement of Changes in Financial Position. [b) If property, plant, and equipment acquired with appropriations are depreciated, it will be reported as a nonfund cost in the Statement of Operations. An amount equal to each year’s depre- ciation expense shall be removed from the Invested Capital account and reported as a financing source in the Statement of a Operations. (A 1 ike amount is also reported as an operating cost in the Statement of Operations.) Power marketing adminis- trations should follow appropriate industry practices. (c) When property, plant and equipment are retired, the assets shall be removed from the accounting records, including any related amounts of depreciation. Gains or losses must be recognized on retirement of depreciated property, plant, and equipment. An amount equal to the net book value of assets retired shall be removed from the Invested Capital account. Cash resources include fund balances with the Department of the 77iZTsury representing available disbursement authorizations granted by Congress. The official record for reporting cash to the Depart- ment of the Treasury, as well as the Department’s overall financial position, shall be the general ledger and related subsidiary records. Cash transactions shall be reconciled to the record of Department of the Treasury transactions monthly. The basis of the reconciliation is approved vouchers. Compliance with all externally imposed require- ments for the handling of cash resources is mandatory. Capitalization of Interest on Property, Plant, and Equipment. The obJectlve of capltallzlng interest 1s to obtain a measure of acqui- sition cost that more closely reflects total investment in the asset. d 3-31-88 DOE 2200.4 Paragraph lh(7) (a) (b) (c) (d) (e) (f) Interest cost paid by DOE shall be capitalized as part of the historical cost of acquiring certain pieces of property, plant, or equipment where it is material. To qualify for interest capitalization, property, plant, or equipment must require an acquisition period (specified in paragraph lh(6)(e)) to prepare it for use in DOE operations or for sale outside of the Federal Government. The interest cost to be capitalized is based on the interest rate DOE is charged by the Department of the Treasury or as prescribed by law.

Interest cost shall not be capitalized for inventories. In addition, interest cost shall not be capitalized for property, plant, or equipment that is in use or ready for use or is not being used by DOE and is not undergoing the activities necessary to get it ready for use. Except for power marketing administrations (PMA’s), imputed interest cost shall not be capitalized for property, plant, or equipment constructed for use in DOE operations or to be sold outside the Federal Government. The imputed interest cost, however, shall be included in the selling price of the property, plant, or equipment. For PMA’s, interest during construction is part of total plant cost and is capitalized. The amount of interest cost capitalized for qualifying assets is intended to be that portion of the interest incurred by DOE dur- ing the asset acquisition period that theoretically could have been avoided (for example, by avoiding additional borrowings) if the expenditures for the assets had not been made. The interest capitalization period begins with the first expenditure for a qualifying asset and ends when the asset is substantially complete and ready for its intended use. The interest cost shall be capitalized when two conditions are present: expenditures for the asset have been made and activi- ties that are necessary to get the asset ready for its intended use are in progress. Interest capitalization shall continue as long as those two conditions are present. The term “activities” is to be construed broadly. It encompasses more than physical construction; it includes all the steps required to prepare the asset for its intended use. The total amount of interest costs, if any, that have been capi- talized during the period shall be-discloked in the notes to the financial statements. (7) COntingenCieS. Contingent liabilities represent transactions that may not become actual liabilities; for example, claims for price adjustments, personal property claims, tort claims, and loan guaran- tees. Estimated losses shall be recorded in the financial system and reported in the financial statements if (a) information available II-9 DOE 2200.4 3-31-88 Paragraph 1 h(7) before the financial statements are issued indicates that an asset ● probably has been impaired or a liability probably has been incurred as of the date of the financial statements and (b) the amount can be . reasonably estimated. (8) Equity. Equity is the difference between assets and liabilities. mare five components of equity reported in the Statement of Financial Position: (9) (a) (5) (c) (d) (e) Invested Capital. Invested capital is the amounts invested in certain property and the initial investments to commence opera- tions or new activities of revolving funds or business-like activities where periodic revenue or cost determination is essential. Cumulative Results of Operation. The cumulative results of operations are th e net dltt erence between (a) expenses, losses, and transfers out from the inception of the Department or a DOE activity and (b) financing sources, that is, appropriations, revenues, and gains from the inception of the Department or a DOE activity, whether financed from appropriations, transfers in, revenues, reimbursements, or any combination of the four, to the date when financial statements are prepared. Unexpended Appropriations. Unexpended appropriations are amounts of authority at the reporting date that are either 1 unobligated and not lapsed, rescinded, or withdrawn or—

2 obligated but not yet expended. Donations are nonreciprocal transfers of assets or services from tate, local, or foreign governments; individuals; or others not considered a party to the Federal Government. For power market- ing administrations, donated assets are generally shown as “non-Federal investments” rather than as donations. Trust Fund Balances. A trust fund balance is the net difference between trust tund assets and liabilities. Since the nature of trust funds is to account for assets and liabilities held or serviced in a fiduciary capacity, the equity of the fund is shown as a single item in the Statement of Financial Position. Fair Value. The fair value of an asset is the monetary value that reasonably expect to receive for the asset in a current sale between a willing buyer and a willing seller other than in a forced or liquidation sale. Fair value of an asset or liability (debt agreement) can usual IY be determined by reference to cash realized in transactions ‘involving the same or similar assets, quoted market prices, fair value of other assets or services received in exchange of property, expected cash flows discounted at the a 11-10 3-31-88 DOE 2200.4 a Paragraph lh(ll )(c) Department of the Treasury average interest rate for marketable interest-bearing debt, and independent appraisals. (10) Financial Assistance Awards. Funds shall be obligated upon execu- tion of the Notice of !- inancial Assistance Award by the contracting officer. The agreement sets forth the amount, purpose, performance periods, obligations of the parties, and other applicable basic terms. Payments in advance of performance may be made as authorized by the terms and conditions of the Notice of Financial Assistance 4 Award. Such payments shall be accounted for as advances until the recipient has performed under the award. Grantees shall use SF-269, “Financial Status Report,” to report the status of funds for all nonconstruction projects unless specified in the award that SF-270, “Request for Advance or Reimbursement,” or SF-272, “Report of Federal Cash Transactions,” shall be used for this purpose. Additional reportin guidance is found in title 10, section 600.116, of the !Code of ederal Regulations. (11 ) Financial Reports are designed to present the results of financial posltlon and operations to management, other Government agencies, and the public. (a) General Principles. 1 Reports reflect the results of financial transactions and – fully disclose all material facts for the period covered. Reports also disclose such other data as may have an imme- diate and direct bearing on the financial position and operations pertinent to the management level to which the reports are addressed. Significant data applicable to prior periods are so identified. 2 The cost of preparing a report and the timely issuance of the – report are evaluated in the light of the usefulness of the data. (h) Basic System Requirements. The accounting system is designed to _facllltate he prompt preparation of all required internal and external financial statements and reports. ‘Financial statements shall be prepared and issued in accordance with standards of the Department of the Treasury at the end of each fiscal year. The necessary statements are (1) Statement of Financial Position, (2) Statement of Operations, (3) Statement of Changes in Finan- cial Position, and (4) Statement of Reconciliation to 9udget Reports.

(c) Reports for Internal Management Purposes. Management is sup- plied monthly with reports retlectlng costs and obligations incurred for actual operations. Statements of cost and revenue are provided, showing information by budget activity and program structure. When necessary, the reports shall be accompanied by 11-11 DOE 2200.4 3-31-88 Paragraph lh(ll )(c) a narrative statement, statistical information, and interpre- tation for management. These managerial reports shall be used to exercise financial control over resources and to promote efficiency and economy in operations. (12) Foreign Currencies. Cash in the form of foreign currencies is sub- ject to th e same accounting principles and standards that apply to domestic cash resources. (13) Fund Accounting is a fundamental requirement to demonstrate compl i- ance with legislation. Funds are derived from two basic sources: (1) funds derived from general taxation and revenue powers and from business operations and (2) funds held in the capacity of custodian or trustee. (a) Funds derived from general taxation and revenue powers and from business operations include the following: 1— 2— 3 4 General Fund Accounts consist of receipt accounts used to record collections not dedicated to specific purposes and expenditure accounts used to record financial transactions arising under congressional appmpriations or other authori- zations to spend general revenues. Special Fund Accounts consist of separate receipt and expen- ~ture accounts established to record receipts of the govern- 0 ment that are earmarked by law for a specific purpose but are not generated by a cycle of operations for which there is continuing authority to reuse such receipts. Revolving Fund Accounts are combined receipt and expenditure accounts established by law to finance a continuing cycle of operations, with receipts derived from such operations usu- ally available in their entirety for use by the fund without further action by Congress. For power marketing administra- tions, the funds must be used for operations and payback to the Department of the Treasury of the Federal investment. Consolidated working funds under title 31, section 1536, of the United States Code are not revolving funds. See title 7, subsections 3.8 and 5.6, of the General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies. Management Fund Accounts are combined receipt and expenditure accounts establ lshed by law to facilitate accounting for and administration of intr;-Governmental operations of an agency. Working funds, which are a type of management fund, may be established in connection with each of the foregoing account types to record advances from other agencies. (b) Funds held by DOE in the capacity of custodian or trustee include the following: 11-12 DOE 2200.4 Paragraph lh(14) (b) 3-31-88 ● (d) (14) 1— 2— Trust Fund Accounts are established to record receipts that are held In trust for use in carrying out specific purposes and programs in accordance with an agreement or statute. The assets of trust funds are frequently held over a period of time and may involve such transactions as investments in revenue-producing assets and the collection of revenue there- from. Generally, trust fund accounts consist of separate receipt and expenditure accounts, but when the trust corpus Is dedicated to a business-like operation, the fund entity is called a trust-revolving fund, and a combined receipt and expenditure account is used.

Deposit Fund Accounts are expenditure accounts established to account for receipts (a) held in suspense temporarily and later refunded or”paid into some otter fund of the government or other entity or (b) held by the government as banker or agent for others and paid out at the direction of the owner. Such funds are not available for paying salaries, grants, or other expenses of the government. Expenditures are often offset by receipts within this fund. (c) For each DOE reporting entity, general ledger accounts for all assets; liabilities; equity of the U.S. Government; expenses, losses, and transfers out; and financing sources and gains shall be established. Budgetary general ledger accounts for each appropriation fund account for selected assets, liabilities, and equities shall also be established. For financial statements, DOE shall report information from fund accounts established as required above in accordance with the financial reporting standard. In addition, DOE shall report information from fund accounts as required by the Department of the Treasury and OMB. Differences between financial statements and budgetary reports shall be explained in the Statement of Reconciliation to Budget Reports as required by the financial reporting standard. Fund Control. The administrative control of funds system within DOE applles to all appropriated funds, revolving funds, trust funds, and any other funds subject to limitations, including obligations under direct loan commitments and loan guarantees. The DOE administrative control of funds system shall: (a) Provide a system of administrative control funds so that viola- tions of the Anti-Deficiency Act and of DOE limitations on obligations and expenditures are prevented, or, if violations occur, are detected promptly. (b) Be supported by DOE’s planning, programming, and integrated budget and accounting systems. 11-13 DOE 2200.4 3-31-88 Paragraph lh(14)(c) (c) provide procedures for authorizing persons to formally commit and obligate funds and for properly documenting those commitments and obligations. (d) Ensure that funds are expended only for the purposes intended by Congress. (e) Ensure that all commitments and obligations are recorded in a timely manner. (f) Ensure that all expenditures are recorded in a timely manner and are preceded by or occur simultaneous with a valid obligation of funds in an equal or greater amount. (15) Imputed Interest. The Federal Government incurs significant interest costs In financing its debt. Interest costs shall be included in the selling price of products when DOE does not pay the !lepartment of the Treasury for the full or partial amount of interest that the Depart- ment of the Treasury incurs and goods or services are sold outside the Federal Government. Imputed interest shall also be considered when constructing property, plant, or equipment for sale outside the Federal Government. (16) Interest Payable and Receivable. Interest expenses shall be accrued as Incurred. hese expenses typically will arise from late payment of bills and on capital lease obligations (see paragraph lh(lgl). Interest receivable shall be recorded in the accounts when interest income is earned but not yet received. Interest shall continue to be recorded, even when regular loan payments are not made, until the related debt is officially declared to be in default or a debt agreement modification action is taken. (17) Inventories consist of tangible personal property (a) consumed in normal operations, (~) inCOrpO?Wtt?d in

[ reduction of goods for later consumption, or (c) In process or finis ed that will ultimately be sold. Generally, inventories shall be costed at actual cost of acquisition, at the standard inventory cost, at the lower of cost or market, or usfng a moving average, whichever is applicable. Physical Inventories on hand or in stock are taken at least once a year. Differences between quantities determined by physical inventory and those shown in accounting records should be fully investigated when material. Inventories shall be identified by balance sheet account codes and further subdivided by asset types. (18) Investments normally are in marketable equity securities and mar- ketable debt (nonequity) securities. The marketable debt securi- ties shall be recorded in the accounts at face amount (par) of the instrument, including any premium or discount. The income derived from these securities shall be the interest stated on the face of the securities a~”usted for the amortized premium or discount. Premiums ● 11-14 3-31-88 DOE 2200.4 Paragraph lh(21)(c) and discounts shall be amortized over the life of the securities, usfng the effective interesl results are obtained. (19) Lease agreement conveys the as part of a building) from lessee, for a specified per< compensation. Lessees have whereas lessors have either method or other method if similar use of an asset or part of an asset (such one entity, the lessor, to another, the od of time in return for rent or other either capftal or operating leases sales-type, direct financing, or operat- ing leases. Capital, sales-type, and direct financing leases transfer substantially all the benefits and risks of ownership from the lessor to the lessee. All other leases should be accounted for as operating leases, that is, rental of property. The FASB Current Text, section L1O, contains accounting guidance for speclrlc areas ot lease transac- tions, such as real estate, related parties, and subleases. (20) Leave. The accrual of annual leave is material and shall be recog- = annually in accounting records and financial statements. The Department’s accounting system accrues and discloses in the financial reports the cost and related liability for accrued annual leave. Sick leave shall not be shown in the financial statements. Inte- grated contractors shall follow the above unless contractual agree- . ments state othemise. (21) Loan Guarantees and Commitments. Normally, losses under loan guaran- tees are Incurred betore the obligation of funds, precluding recogni- tion of an accrual in the financial records. If funds have been obligated, then the following shall be done: (a) Estimated losses resulting from loan guarantees and commitments shall be accrued if (1) information available before the finan- cial statements are issued indicates that an asset probably has been impaired or a liability probably has been incurred as of the date of the financial statements and (2) the amount can be reasonably estimated. (b] All loan guarantees and commitments (the total exposure) shall be disclosed in the notes to the financial statements. Addi- tional disclosures required include the amount and nature of the loan guarantees and commitments, the period of such guarantees and commitments, any collateral provisions, and any other infor- mation necessary to understand the magnitude and nature of the government’s guarantees and commitments.

(c) Loan guarantees and commitments shall be reported whether they are funded or not. The notes to the financial statements shall disclose whether funds have been obligated. 11-15 DOE 2200.4 Paragraph lh(22) 3-31-88 (22) Long-Te~ Contracts. (a) Long-Te~ Co:!&ac:: for the Purchase or Sale of Goods (Excluding Property, * Fquipment) or Services. ~ The liability for goods and services purchased under a long- term contract shall be recognized in the period in which the goods or services (or a portion thereof) are received or accepted. The related asset (i.e., inventory, materials and supplies, or work in process) or expense, as appropriate, shall be recorded at the same time as the liability. ~ The revenue and costs of goods and services sold under a long-term contract shall be recognized in the period in which the goods or services are delivered or constructively deliv- ered to the purchaser. Constructive delivery occurs when the seller meets the obligations of the long-term contract. (b) Long-Term Contracts for the Purchase or Sale of Property, Plant, and Equipment. For flnancfal reporting purposes, compute the llabllity tor property, plant, and equipment manufactured or constructed under long-term contracts on the basis of verified estimates of work completed (percentage-of-completion method) per contractor reports or invoices received during each accounting period, rather than on disbursements made. Appropriate liabili- ties for contract retainages, if any, shall also be recorded. ● The appropriate property, plant, and equipment accounts (includ- ing construction in progress) shall also be adjusted based on liabilities recorded. (c) Advances Under Long-Term Contracts. 1 Payments to contractors under any long-term contracts in – excess of related liabilities at the end of an accounting period shall be accounted for as advance payments under long-term contracts. 2 Receipts from purchasers under any long-term contracts in – excess of revenues earned as of the end of an accounting Y eriod shall be reported as revenues received in advance (a iability account). The liability amount shall be decreased as the revenues are earned and recognized. (23) prior period Adjustments of Financial Statements. Errors in expenses, losses, gains, transters out, and financing sources (such as appro- priations and revenues) from earlier financial statements and changes in components shall be reported as aa”ustments to previously reported results, when material. All other expenses, financing sources, gains, losses, and transfers recognized in an accounting period shall be reported in the operations of that period. (See FASB Current Text, sec. A35.) ● 11-16 3-31-88 DOE 2200.4 paragraph lh(25) (d) ● (24) Payroll. (a) :]:t:yroll system is an integral part of the total accounting . The accounts and records of all payroll activities constitute subsidiary accounts to the general ledger control account. Consistent with the DOE accounting structure, payroll costs shall be accumulated by major organization elements, bud- get and program activities, and other categories as may be required by internal management and law. (b) Throughout the Department, the payrol 1 procedures are as uniform as the diversity of the Department allows. The procedures for accounting for pay, leave, and allowances shall conform to GAO title 6. Reporting requirements for payroll shall provide for accurate and timely reports that enable management to operate effectively and efficiently and meet outside reporting needs.

(25) Property. (a) (b) (c) (d) m As required by statute, there are adequate financial management controls for the acquisition, use, and ultimate disposition of both real and personal property. These controls are in confor- mance with applicable rules, regulations, and laws. Procedures have been formulated that provide reliable and timely informa- tion on the acquisition and efficient and effective use and management of DOE property. Significant segments of property shall be separately classified and reported to clearly disclose the nature of the Government’s assets. The basis for financially recording property shall be the acquisition cost netof discounts. Acquisition cost includes purchase price, shipping costs, and installation charges. Items acquired without charge or at a cost significantly below their true value shall be recorded at the lower of the original acquisition cost or the fair market value, less accumulated depreciation. All property, regardless of how it is acquired, is recorded as of the date the Department takes title, with subsequent recording of retirements, transfers, sales, or other disposals. Property depreciation shall be based on cost less net salvage value, if significant, and such property shall be cost over its service 1 ife. (See also ;:::;::$ %%%;:7 Physical inventories shall be taken periodically and reconciled to accounting records. Both the property and the accounting records shall contain the description (identification) of the property, serial number, location, date of acquisition, acqui- sition cost, and standard service life. 11-17 DOE 2200.4 paragraph 1 h(25)(d)~ 1 Capital ization Criteria. 3-31-88 I a All property, plant, and equipment with an fnitial acqui- — sition cost- of” $5,000 ormore’ and an estimated service life of 2 years or greater shall be capitalized and reported in the financial statements. b Items of a sensitive nature or subject to misappropriation – may be capitalized where financial controls are needed. Physical accountability controls always apply. ~ Construction Accounting. a Construction accounting by the Department shall include all material elements of cost, but shall exclude all incremental indirect or overhead costs. b Costs of construction projects shall be accounted for to— provide data for cost control, property record units for continuing plant records, and cost estimates and studies. c Total cost of construction projects shall include all – costs incurred, regardless of how they were funded. For each construction project, the costs incurred shall be recorded and properly classified as construction work in progress. Following completion of the project, appropri- ate costs shall be recorded in fixed property accounts. ~ Governmental Transfer of Property. Property received on a cash basis shall be recorded at fhe price paid plus shipping and installation costs. Property transferred in on a non- cash basis shall be recorded at the acquisition cost to the Government less depreciation, if known. In the event such information cannot be obtained, estimates of fair market value may be used. 4 Property Acquired by Other Means. a Property acquired by donation, confiscation, devise, for-— feiture, or other means shall be recorded at an amount DOE would have been willing to pay, giving consideration to usefulness, condition, and estimated market value. b Power Marketing Administrations. The Federal Energy— Regulatory Conmnsslon states:

“The electric plant accounts shall not include the cost or other value of electric plant contributed to the company. Contributions in the form of money or its equivalent toward the construction of electric plant shall be credited to accounts charged with the cost of such construction. 9 11-18 3-31-88 DOE 2200.4 Paragraph lh(26)(a) Plant constructed from contributions of cash or its equivalent shall be shown as a reduction to gross plant constructed when assembling cost data in work orders for posting to plant ledgers of accounts. The accumulated gross costs of plant accumulated in the work order shall be recorded as a debit in the plant ledger of accounts along with the related amount of contributions concur- rently recorded as a credit.” 5 Property Acquired Through Lease-Purchase Contract. Property acquired th rough lease-purchase contracts shall be capital- ized at net purchase price under the contract plus related costs incurred by the Government upon acceptance of the prop- erty or when the option to purchase is exercised. (Al so, see paragraph lh(19). ) 6 Depreciation.— a Depreciable cost is equal to the cost of the depreciable – asset less the estimated future salvage value, if signifi- cant. If the asset is acquired in a monetary exchange, cost shall be the amount of monetary consideration given. If the asset is acquired by donation or other means in which cash is not exchanged with non-Federal entities, cost shall be the asset’s fair market value plus any costs incurred to place the item in use. If the asset is acquired from another Federal agency, cost shall be determined as specified in Transfer of Assets and Lia- bilities 9etween Federal Agencies. (GAO title 2, TIO.] b Assets for which depreciation is recorded shall be – disclosed separately from depreciable assets for which depreciation is not being recorded. 7 Amortization. Accounting for intangible assets shall be determined in accordance with 2 GAO D20.03-.O9. Intangible assets are items that have economic value but lack physical substance, such as assets leased under a capital lease agree- ment and leasehold improvements. Intangible assets shall not be amortized for periods longer than 40 years, even if the useful life of the asset is more than 40 years. The useful life of an asset leased under a capital lease agreement or a leasehold improvement is the shorter of the estimated lease term or the useful life of the asset or improvement. Intan- gible assets shall be monitored for changes in future benefits. (26) Receivables. (a) Receivables shal 1 be accounted are established until they are for as assets from the time they completely collected, converted 11-19 DOE 2200.4 3-31-88 Paragraph lh(26)(a) into other resources, or determined to be uncollectible. These ● receivables shall be recorded accurately and promptly as soon as the transactions are completed in order to enable the Department to collect them promptly. (b) Loans to others are accounted for as receivables only after funds have been disbursed. Loans authorized, but not disbursed, shall be noted in explanatory notes to the financial reports. (c) periodic estimates shall be made of the be uncollectible. Such estimates shall reported separately and fully disclosed financial statements. receivables deemed b be in accounted for and the Department’s (27) Research and Development. (a) Expenses incurred by research and development programs described (b) (c)

as research and development budget items, or related to the search for knowledge and the conversion of knowledge into use shall be reported as operating costs in the period incurred. Costs for property, plant, or equipment acquired or constructed for a particular research and development project with no alter- native future uses are to be depreciated or amortized over the life of the specific project. Property, plant, and equipment acquired or constructed for ● research and development activities that have alternative future uses (in research and development activities or others) shall be capitalized over the estimated useful life of the property, plant, or equipment. The associated costs and depreciation used in the activity shall be reported as research and development cost. For additional guidance on research and development, refer to FAS8 Current Text, “Research and Development,” section R50. (28) Revenues. Operating revenues are derived from the sale of products and services to both private and governmental enterprises. Products sold include electricity and a full range of nuclear-related products and by-products. DOE also recefves revenues, for deposit into mis- cellaneous receipts, from oil import fees, licensing fees, fees earned by providing information and documents under the Freedom of Information Act, and other miscellaneous collections. (a] Revenues shall be recorded in the month earned. The key events which result in revenue shall serve as the bases for recording revenues earned. Revenues shall be identified in DOE financial statements. (b) In the financial reports on revenue-producfng operations, data comparing revenues earned with the cost of providing the service . or product shall be shown for each type of revenue. a 11-20 DOE 220004” 3-31-88 m 2. Paragraph 2 c) Revenues shall be classified by type, by availability or non- availability for expenditure, and by appropriation or fund. Revenues earned shall be billed and collected promptly. d) Net income or loss from revenue-producing operations shall be separately accounted for and disclosed in the financial reports. The net income or loss shall reflect all costs of operations offset against the revenues received during the reporting period. INTERNAL CONTROL STANDARDS. Internal controls shall be maintained to assure 1hat all funds, property, and other resources for which the Department is responsible are properly used or safeguarded to prevent unwarranted waste, deterioration, destruction, misuse, or misappropriation. Further guidance on the internal control system is provided in DOE 1000.3A, INTERNAL CONTROL SYSTEMS. a 11-21 (and II-22) e 3-31-88 DOE 2200.4 CHAPTER 111 ~~spo~sIgI1-ITIEs 1. PURPOSE. To establish Departmental responsibilities for the accounting directives (DOE 2200.4 through !IOE 22OO.1O). 2. SECRETARY (S-1). “3. a . Shall prescr DOE. b. Shall submit and the Pres be a system for the administrative contro’ all re~ortable Anti-Deficiency Act violat dent. of funds within ons to Co9gress c. In this capacity, the Secretary has delegated authority to the Assistant Secretary, Management and Administration (MA-1], for the financial admin- istration of !JOE funds and appropriations, including the establishment and management of budget and accounting systems throughout the Depart- ment, except as delegated to the administrator of the power marketing administrations (PMA’s). UNDER SECRETARY (S-3) shall:

a. Approve or disapprove disciplinary action recommended by the Controller (MA-3), upon notification that a violation(s) of fund control regulations has occurred, and ensure that appropriate disciplinary action is taken. b. Provide concurrence or nonconcurrence on the report of any disciplinary action(s) related to funding violations, within 1!) wor?days of notifi- cation by the Controller, in order to close the violation file. 4. HEADS OF DEPARTMENTAL ELEMENTS shall: a . Ensure that the provisions of the accounting directives that apply to functions over which they have program direction and management responsi- bilities, both in the field and at Headquarters, are carried out. b. Inform the Controller (MA-3) of changes in functions and activities planned for future budget requests. c. Develop, with the Controller, budget and reporting classifications and definitions that cover the specific functions and activities for which they are responsible. III-1 DOE 2200.4 3-31-88 Paragraph 5 5. ASSISTANT SECRETARY, MANAGEMENT AND ADMINISTRATION (MA-l), through the controller [MA-3 ), shall: a. Accounting Concepts and Standards. (1) 6 (2) (3 (4) (5) (6) (7) (3) (9) . Establish, maintain, and interpret policy and general procedures for accounting and related reporting essential to the financial integrity and efficient management of the Department’s financial resources and to the safeguarding of its funds and property. Provide technical accounting advice and guidance to field offices directly performing accounting functions. Review activities throughout DOE to evaluate the adequacy of estab- lished policies, procedures, and standards governing accounting and related reporting functions for which the Controller is responsible; evaluate the performance of such functions; and ensure that any necessary corrective action is taken. Serve as liaison with the General Accounting Office (GAO), the Office of Management and Budget (OMB), the Department of the Trea- sury, the General Services Administration (GSA), other agencies, congressional committees, and industry in the areas for which the Controller is responsible. Perform the accounting and certain statistical functions for Head- quarters and, to the extent that financial activities are central- ● ized, for DOE as a whole. Report on the financial status of DOE and the results of its opera- tions; furnish periodic reports on such obligations, costs, and other matters within the Controller’s area of responsibility as are needed for the sound management of DOE operations; and provide reports required by GSA, OMB, the Department of the Treasury, and other central agencies. Provide technical advice and guidance to offices and divisions on the financial implications of proposed courses of action. Develop, with Heads of Departmental Elements, current budget and reporting classifications and definitions covering the specific functions and activities for which they are responsible. Develop and keep current policies and procedures for this manual. b. Administrative Control of Funds. (11 Establish policies and procedures for Departmental systems of admin- istrative control of funds. (2) Submit apportionment requests to the Director of OhlB and receive and record OMB apportionments. ● III-2 3-31-88 (31 (4) (5) (6) (7) (8) (9) DOE 2200.4 Paragraph 7C

Administer the allocation of congressional control levels from the base table and internal distribution decisions, issue approved fund- ing program calls, and prepare and issue approved funding programs and allotments that conform to all legal and administrative limi- tations on the appropriations and funds of DOE. Continuously reconcile OM8-approved apportionments and Department of the Treasury warrants to appropriations, approved funding program totals to allotments, and allotment totals to base table controls. Serve as the allottee for all funds managed at Headquarters except when other allottees have been designated. Ensure that the allotments and approved funding programs issued each month accurately reflect all increases, withdrawals, and reallocations requested in the previous month and, where appro- priate, that the Department financial information system has been updated accordingly. ~oordfnate all fund withdrawals with the allottee or funds approval officer to ensure that the withdrawal does not create an overobligation. Review, in coordination with the Office of General Counsel (GC-I ), all reports of violations or alleged violations of legal limita- tions and advise the Secretary (S-1) or Under Secretary (S-3) as to whether a report shall be made to the Congress and, through OM9, to the President; recommend disciplinary action when appropriate; and notify the DOE component promptly of any disciplinary action taken. Monitor all reports of violations of administrative limitations received from DOE components to ensure that reports are submitted in a timely fashion and to ensure that corrective action is adequate. 6. INSpECTOR GENERAL (IG-1) shall: a. Investigate allegations of illegal conduct, wrongdoing, fraud, waste, and misuse that are associated with fund control violations. b. Advise the Controller (MA-3) of facts derived from any investigation that has fund control violation implications. 7. HEADQUARTERS GENERAL COUNSEL (GC-1) shall: a. Review all reports of apparent violations submitted by the Controller (MA-3). b. Issue a determination within 30 days as to whether the apparent violation is reportable to the President or Congress, or both. c. Either concur or decline to concur with the Controller’s recommendation on disciplinary actions. 111-3 DOE 2200.4 Paragraph 8 8. HEADS OF FIELD ELEMENTS shall: a. b. c. d. e. 3-31-88 Execute all accounting and related financial reporting functions, includ- ing establishing an effective system of internal control, for all DOE activities under their jurisdiction, in compliance with the policies, principles, and objectives specified in the accounting directives. Interpret !IOE accounting policy, principles, and objectives for contrac- tors and approve the practices and procedures necessary for contractors to carry them out. Develop and keep current field organization instructions on accounting procedures that outline the accounts and records maintained, flow of all documents, functions of all organizational units, and reporting of infor- mation necessary to show clearly the accounting operations performed by the field organization. Ensure that their integrated contractors develop and maintain written current accounting practices and procedures. Review and approve their integrated procedures and any revisions before 9. ALLOllEES shall: contractors’ accountin~ wactices and they are put into effe~t’. a. Establish and maintain an effective system for the administrative control

. of funds allotted to them and the commitment of funds, including the cer- — tification of fund availability for each transaction prior to obligation, in accordance with approved funding programs and allotments. b. Designate, in writing, an authorizing official(s) to sign program release documents and determine the fund citation(s) or accounting classifica- tion(s) that accompanies each authorization; this includes ensuring that funds are used for the purposes for which they were appropriated in accordance with title 31 U.S.C. section 1301. At Headquarters, Assistant Secretaries or equivalents shall designate the authorizing officials to siqn woqram release documents. The Controller (MA-3). the allottee fo~ Head@arters elements, Headquarters. c. Ensure that the designated fully competent to prevent shall designate certifying-officials for authorizing official is adequately trained and the occurrence of violations. d. Inform, by memorandum or notice, all employees serviced under the approved funding program of the identity of the individual(s) authorized to sign program release documents and of the prohibition against unauthorized persons’ signing program release documents or incurring liabilities. e. Provide the servicing finance offices and contracting officers (heads of contracting activities) with current listings of persons, and their alternates, authorized to initiate program release documents. III-4 3-31-88 DOE 2200.4 Paragraph IOd . f. Provide written instruction for incurring obligations to the certifying official detailing the documents, document flows, and controls within the organization. 9. Ensure that all program release documents are processed in accordance with established document flows and procedures. h. Request sufficient funds for the apportionment in the new fiscal year to cover upward adjustments of obligations incurred against appropriations for previous years (contingencies), even if the activity that the funds support has been or is planned to be discontinued. i. Ensure that accounting reports are periodically reconciled to source documents, all errors are identified, and corrective actions are taken in a timely manner. j. Ensure that no acceptance of voluntary service by no employment of personal service is in excess of except in cases of emergency involving the safety protection of property. k. Siqn and issue reports to the Controller prepared the United States and that authorized by law, “ of human life or the by the finance director or-budget officer; if responsible for administrative control of funds in paragraphs 8b through j, on any violation or apparent violation of a legal or administrative limitation. 1. For the Headquarters allotments for which the Controller is the allottee, responsibilities in paragraph 8b through j, with the exception of desig- nating certifying officials, are assigned by the Controller to the approved funding program holder or recipient. 10. FINANCE DIRECTORS shall: a. Establish and maintain the official accounting records, which must be supported with valid documents and periodically reconciled to detect and correct recording errors. b. Provide a timely status report on each allotment to the allottee for each approved funding program, reflecting commitments, obligations, costs, and expenditures against the approved funding program and the allotment.

c. Review the status of obligations and expenditures monthly, and take all actions necessary to ensure that any potential violation of legal and administrative limitations is detected within 30 days after the reporting cycle during which the potential violation occurred. d. Prepare a written report of any apparent violation for the signature of the allottee. and forward it to the Controller within 45 days after the end of the The report stances in action, if reporting cycle during which the potential violation occurred. shall provide the underlying facts and surrounding circum- sufficient detail to allow the Controller’s Office to take required. The required contents of the report are outlined III-5 I I DOE 2200.4 3-31-88 Paragraph IOd in DOE 2200.5, FUND ACCOUNTING, Chapter I, Administrative Control of Funds. This requirement also applies to Field Elements where admin- istrative control of funds is not performed by a finance and accounting office. 11. HEADS OF CONTRACTING ACTIVITIES shall: a. Fnsure that program release documents are signed by the appropriate authorizing official. b. Ensure that funds are certified and that obligations incurred are not in excess of the amount certified as available by the certifying official. c. Ensure that all obligating documentation is forwarded to the servicing finance director for recordation within 3 workdays of the time the obligation is incurred. d. Notify the program manager not later than 9-15 of each year of the status of all procurement documents to ensure that required procurements will be obligated before yearend. 12. CERTIFYING OFFICIALS shall: a. b. c. d. e. Ensure that program release documents are controlled in accordance with established document flows and procedures. Ensure that funds are spent for purposes intended by Congress. Assist allottees by reconciling accounting reports to source documents, identifying errors, and taking corrective actions in a timely manner. Ensure that sufficient funds are reserved to cover outlays for personnel expenses. Ensure that all ~ro~osed reductions in allotments have been verified with allottees as available for withdrawal prior to certification (see DOE 2200.5, FUND ACCOUNTING, Chapter I, Administrative Control of Funds). 14. PERSONNEL OFFICERS a. Take action to Secretary. III-6 shall: execute the disciplinary measures approved by the Under a. Maintain the current commitment status of the allottee’s funds at all times. b. Promptly certify availability of funds only for program release documents that have been signed by an authorizing official and that will not exceed legal or administrative limitations. 13. PROGRAM MANAGERS shall: !IOE 2200.4 3-31-88 Paragraph 14b b. Ensure that the disciplined employee’s personnel file is updated to reflect any actions taken. III-7 (and 111-8) 3-31-88 DEFINITIONS DOE 220004” ATTACHMENT 1 (Note: Entries in this attachment are not numbered, because numerous a~ions and updates are expected as chapters are added to the accounting directives. ) ACCOUNTING CLASSIFICATION. A means of classifying financial transactions and account balances to provide needed information for the financial management of appropriations and related programs and budgets. This term includes, but is not limited to, the appropriation symbol (e.g., 89X0213), budget and reporting code (e.g. , ORO 391 AA 05), and the object classification (e. g., 2529).

ACCOUNTING CONTROL. The plan of organization and the procedures and records that are concerned with the safeguarding of assets and the reliability of financial records. They are designed to provide reasonable assurance that transactions are executed in accordance with management’s general or specific authorization. Transactions are recorded as necessary to permit preparation of financial state- ments in conformity with generally accepted accounting principles or any other criteria applicable to such statements, and to maintain accountability for assets. Access to assets is permitted only in accordance with management’s ● authorization, and the recorded accountability for assets is compared with the existing assets at reasonable intervals. Appropriate action is taken with respect to any differences. (See INTERNAL CONTROL. ) ACCOUNTS PAYABLE. A control account that includes all amounts billed to the Department but not yet paid. Accounts payable also include amounts that the Department owes as required by law, regulation, or agreement and not necessarily represented by invoices. ACCOUNTS RECEIVABLE. A control account applicable to all claims held against others for the future receipt of money, goods, and services. ACCRUAL BASIS OF ACCOUNTING. A method of accounting in which revenues are recognized In the period earned and costs are recognized in the period incurred, regardless of when payment is received or made. ACCRUED COST. See APPLIED COST. ACCUMULATED ALLOWANCE FOR PURCHASE OF ANNUITIES. The accumulated allowance necessary to purchase annultles for employees. ADDITIVE COSTS. All direct and indirect costs that are incurred beyond those that normally would have been incurred had DOE not agreed to perfornl the work or service. Additive costs are charged to others in all instances, except when a cooperative agreement has been executed that provides for sharing the cost. ADMINISTERING OFFICE. The organization responsible for controlling all aspects of a work arrangement. 1 DOE 2200.4 AllACHMENT 1 3-31-88 ADMINISTRATIVE CONTROL. Administrative control includes, but is not limited to, the plan or organization and the procedures and records that are concerned with the decision processes leading to management’s authorization of transactions. Such authorization is a management function directly associated with the respon- sibility for achieving the objectives of the organization and is the starting point for establishing accounting control of transactions. ADMINISTRATIVE LIMITATION. An upper limit placed on the amount of obligations or expenditures that may be incurred for a specific program, function, activity, or element of expense. Exceeding an administrative limitation is subject to Depart- mental rather than statutory rules and penalties. Administrative limitations can be imposed on the Department by Congress (e.g., congressional conference reports), the Office of Management and Budget (e.g., any executive branch directive con- taining an administrative limitation attached to an apportionment), or internal DOE management (e.g., ceilings on travel). Administrative limitations specified in approved funding programs may not be exceeded. Although administrative limi- tations may not be exceeded, they differ from legal limitations, for violations of administrative limitations are not necessarily violations of law. Violations of administrative limitations are violations of DOE policy. Exceeding an administra- tive limitation may, however, result in a legal violation at the Department level.

ADMINISTRATIVE OFFSET. The withholding of money payable by the United States to, or held by the United States on behalf of an individual, corporation, or other entity to satisfy a debt owed the United States. ADMINISTRATIVE SUBDIVISION OF FUNDS. Any subdivision of an allotment that makes funds available In a speclfled amount for the purpose of incurring obligations or that can be further subdivided to make funds available in a specified amount for the purpose of incurring obligations, subject to limitations contained in the funding documents, statutes, regulations, or other applicable directives. ADVANCE. Payment made in advance for the later delivery of goods, services, or other assets. ADVANCE FUNDING. Authority provided in an appropriation act to obligate and dis- lmrse funds during a fiscal year from the succeeding year’s appropriation. The funds so obligated are added to the budget authority for the fiscal year and deducted from the budget authority of the succeeding fiscal year. The appro- priation language usually states the date after which the funds of the succeed- ing year may be obligated. ADVICE OF ALLOTMENT. The document used to officially record allotments. It is issued to a manager for field activities or to the Controller for Headquarters activities. In conjunction with an approved funding program, the advice of allot- ment establishes organizational funding limits, which may not be exceeded. This document is the mechanism by which DOE controls funds to satisfy the requirements of the Anti-Deficiency Act (31 U.S.C. 1517). AGENCY. Each authority of the executive branch of the Government of the United =, whether or not it is within or subject to review by another agency (5 U.s. c. 551(1 )). 2 3-31-88 DOE 2200.4 ATTACHMENT 1 ● AGGREGATE LIMITATION. A loan guarantee commitment ceiling that is subject to a llmltatlon other th an an annual limitation. An aggregate limitation stipulates a maximum level of loan guarantee commitments that may be accumulated against the limitation. Aggregate limitations do not require apportionment action by the Office of Management and Budget and are not subject to violations of title 31, section 1517(a), of the United States Code. A violation of an aggregate limita- tion constitutes a violation of a legal limitation. ALLOCATION. The amount of obligational authority transferred from one agency, t bureau, or account to another agency, bureau, or account that is set aside in a transfer appropriation account to carry out the purposes of the parent appropria- tion or fund. For example, allocations are made when one or more agencies share the administration of a program for which appropriations are made to only one of the agencies or to the President. ALLOTMENT. Authority delegated by the head or other authorized employee of an agency to agency employees to incur obligations within a specified amount pursuant to Office of Management and budget apportionment or reapportionment action or other statutory authority making funds available for obligations. Allotments reflect legal limitations. (See ADVICE OF ALLOTMENT. ) ALLOTTEE. The recipient of an allotment. ● ANNUITY FUNDS. Deposits in escrow to provide funds for the purchase of pension benefits for the Federal Employees Retirement System contingent upon completion of a specified number of years of service by each employee.

APPARENT VIOLATION. The status placed on an overobligation or overexpenditure of an admlnlstratlve or legal limitation that is pending investigation to determine whether the overobligation or overexpenditure is an actual violation or the result of an accounting error. APPLICABLE INTEREST RATE. The interest rate established by the Secretary of the Treasury under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) and published in the Federal Register. This rate is referred to as the renegotiation board interest rate or prompt payment rate and is published semiannually, on or about 1-1 and 7-1. This rate is applicable to interest penalties assessed for late payments. APPLIED COST. The value (purchase price) of goods and services used, consumed, given away, lost, or destroyed by an agency of the Government within a given period of time, regardless of when ordered, received, or paid for. For operating programs, applied costs represent the value of resources consumed or used. For procurement and manufacturing programs, applied costs represent the value of material received or produced. For capital outlay programs, applied costs for public works equal the value of work put in place. For loan activities, applied costs represent assets acquired (even though no resource has been consumed). In the case of appropriations for programs that are essentially operating in nature, equipment is included in costs when it is put into use. For all programs--when the data are provided in the accounting system--accrued annual leave is included under costs when earned, rather than when taken (even though it may be unfunded at the time], and depreciation costs and other unfunded costs are to be included where appropriate. Generally, applied costs are associated with program outputs 3 I DOE 2200.4 ATTACHMENT 1 3-31-88 ● so that such costs become the financial measures of resources consumed or applied tn accomplishing a specific purpose, such as performing a service, carrying out an activity, or completing a unit of work or a specific project. APPORTIONMENT. A distribution by the Office of Management and Budget of amounts available for obligation in appropriation or fund accounts of the executive branch. The distribution makes amounts available on the basis of time periods, programs, activities, projects, objects, or combinations thereof. The appor- tionment system is intended to achieve an effective and orderly use of funds. APPROPRIATION. Legal authority provided by an act of Congress that permits }ederal agencies to incur obligations and to make payments from the Department of the Treasury for specified purposes. An appropriation usually follows enactment of authorizing legfslatton. An appropriation act is the most common means of providing budget authority (see 9UDGET AUTHORITY). Appropriations do not repre- sent cash actually set aside in the Department of the Treasury for purposes specffied in the appropriations act; they represent limitations of amounts tfiat agencies may obligate during the time period specified in the appropriations act. There are several types of appropriations that are not counted as budget author- ity, sfnce they do not provide authority to incur additional obligations, such as-- 1. 2. 3. Appropriation to Liquidate Contract Authority. Congressional action to provfde funds to pay obligations incurred against contract authority. Appropriation to Reduce Outstanding Debt. Congressional action to provide ?unds for debt retirement.

Appropriation for Refund of Receipts. APPROPRIATION (OR FUND) ACCOUNT. An account established in the Department of the Treasury record amounts ava-iiable for obligation and outlay. These accounts Include not only those to which money is directly appropriated but also those to which revenues are available for use with or without current congressional appro- priation action, such as revolving funds and trust funds. In the account number, the first two positions provide agency identification (89). The third or the third and fourth positions indicate the duration of availability of funds, and the last four positions are the account description. 1. 2. 3. 4. Annual Account. An account available for incurring obligations only during a speclfled fiscal year (e.g., for the year 19--, 8910216). Multiple-Year Account. An account available for incurring obligations for a deflnlte period greater than 1 fiscal year (e.g., for the years 19_---, 899/10218) . No-Year Account. An account available for incurring obligations for an _indefinfte perfod, usually until the objectives have been accomplished (e.g., 89X0224) . Unexpired Account. An account in which authority to incur obligations has not ceased to be aval~able. ● 4 3-31-88 DOE 2200.4 ATTACHMENT 1 ● 5, Expired Account. An account in which authority to incur obligations has ceased to be available but from which outlays may be made to pay obligations previously incurred as well as a valid adjustment thereto. This includes successor accounts [or lapsed accounts) established pursuant to title 31, sections 1552 through 1556, of the United States Code (M accounts). APPROPRIATION ACT. An act under the jurisdiction of the Committees on Mwropria- tlons that provlcfes funds for Federal programs. A supplemental appropriation act is enacted from time to time to provide additional funding. APPROPRIATION LIMITATION. A statutory restriction in an appropriation act that establishes the maximum amount that may be obligated and expended for specified purposes from an appropriation or other funds, such as special or trust funds. A P P R O P R I A T I O N REFUNDS. see REFIJ)JDso APPROPRIATION REIMBURSEMENTS. See REIMBURSEMENTS. APPROVED FUNDING PROGRAM. The approved funding program (AFP; formerly referred to as the financial plan) i_s an internal DOE document issued by the Office of Budget to program managers and operating activities, setting forth the funds available for the program activity in each appropriation and fund account. The AF? speci- fies pertinent legal and administrative limitations applicable to programs, sub- ● programs, activities, and elements of expense. The AFP provides the authority to program managers to initiate program release documents for their respective pro- grams. Each allottee uses the AFP in conjunction with the associated allotment to establish administrative limitations on the obligational authority available to program managers and organizational elements. ASSET. Any item of economic value owned by DOE. The item may be physical ~ible) or a right to ownership (intangible) that is expressed in terms of costs or some other value. ASSET TYPE CODE. A three-digit code used in DOE asset accounts to identify the type of property. Real property codes include 800 and 401-699. Personal property codes are 700-799. Related personal property will be included in the appropriate code for the real property to which it relates.

AUGMENTATION OF APPROPRIATION. The acceptance of moneys, goods, or services that 7ncrease an appropriation beyond the limits set by law. AUTHORITY TO BORROW FROM THE DEPARTMENT OF THE TREASURY AND THE PUBLIC. See ~) TO . AUTHORITY TO SPEND DEBT RECEIPTS. Statutory authority that permits a Federal agency to incur obligations and make payments for specified purposes out of borrowed moneys. Authority to spend debt receipts, which is sometimes referred to as borrowing authority, is composed of the following: e 1. Public Debt Authority. Authority derived from the sale of public debt securi- lnes of he Federal Government. When an agency has authority to issue its own securities to the Department of the Treasury (and when the Department 5 DOE 2200.4 ATTACHMENT 1 3-31-88 2. 3. of the Treasury has authority to treated as public debt authority purchase such securities), such authority is rather than agency debt authority. Agency Debt Authority. Authority derived from the sale to the public or to other Federal agencies of agency debt securities, including the sale of bonds, assumption of mortgages, and sale of participation certifi~ates in pools of - loans. !?eamrom-iation. See REAPPROPRIATION. ~ AUTHORIZING COMMITTEE. A standing committee of the House of Representatives or he Senate with jurisdiction over the subject matter of laws, or parts of laws, that set up or continue the operations of Federal programs, agencies, or particular types of obligations within programs. AUTHORIZING LEGISLATION. !3asic substantive legislation enacted by Congress that sets up or contnnues he legal operations of a Federal program or agency either indefinitely or for a specific period of time or that sanctions a particular type of obli ation or expenditure within a program. 7 Such legislation is normally a prerequ site to subsequent appropriations or other kinds of budget authority to be contained in appropriation acts. It may limit the amount of budget authority to be provided subsequently, or it may authorize the appropriation of “such sums as may be necessary.” AUTHORIZING OFFICIAL. An individual authorized in writing to sign procurement requests or slmllar documents and determine the fund citations or accounting classifications that accompany each authorization. Authorization includes responsibility for ensuring that the funds are used for the purpose intended fn the appropriation act. BALANCES. Balances may be classified as follows: 1. Obligated Balance. The amount of unpaid obligations applicable to an account less the amount collectible as repayments to the appropriation or fund. The obligated balance represents obligations incurred (as determined under 31 U.S.C. 1501) for which outlays have not yet been made (including undelivered orders), plus amounts received but not yet earned, less (a) collectible reim- bursements receivable, (b) collectible refunds receivable, (c) unfilled orders on hand from within the Government that constitute valid obligations of the ordering account and for which reimbursements will be credited to the account being reported, and (d) unfilled orders from outside the Government for which an advance payment has been received and credited to the account being reported. 2. Unexpended Balance. The amount of appropriations or other funds or author- ity remalnlng after deducting outlays. This balance includes cash with the Department of the Treasury (and on hand and in banks, when included in Department of the Treasury reports), investments in U.S. Government securi- ties, and unfunded contract authority. The unexpended balance of an account is the sum of obligated and unobligated balances.

. 6 3-31-88 DOE 2200.4 ATTACHMENT 1 m 3. Unobligated Balance. The differences between the obligated balance and the unexpended balance, which is the same as the amount remaining after deducting the cumulative obligations from the amount apportioned and therefore available for obligation during that period. BILLS/VOUCHERS. See INVOICES. BORROWING AUTHORITY. Statutory authority (substantive or appropriation) that permits a Federal agency to incur obligations and to make payments for specified purposes out of borrowed moneys. Section 401 of the Congressional Budget Act of 1974 limits new borrowing authority (except for certain instances) to such an extent or to such amounts as are provided in appropriation acts. Borrowing authority, also called authority to borrow from the Department of the Treasury and the public, may be one or both of the following: 1. Authority To Borrow from the Treasury. The legislative authority to borrow funds from the Department of the Treasury that are realized from the sale of public debt securities. 2. Authority To Borrow from the Public. The legislative authority to sell Agency debt securities. !3UDGET ACTIVITY. Categories included in the budget appendix for each appropria- 0 tlon and fund account that identify programs under the appropriation or fund for which the budget estimate (or request) is being made. BUDGET AMENDMENT. A formal request submitted to Congress by the President, after the formal budget transmittal but before completion of appropriation action by Congress, that revises previous requests, such as the amount of budget authority. BUDGET AND REPORTING CLASSIFICATIONS. Classifications that parallel DOE activi- ties and are prescribed tor the formulation of budgets; for the reporting of obligations, costs, and revenues; and for the control and measurement of actual performance versus budget performance. BUDGET AUTHORITY. Authority provided by law to enter into obligations that will result in immediate or future outlays involving Government funds, except for authority to assure or guarantee the repayment of indebtedness incurred by another person or government. The basic forms of budget authority are appropriations, contract authority, and borrowing authority. Budget authority may be classified by the following: 1. Period of Availability. 9 a. One-Year (Annual) Authority. Budget authority that is available for obligation only during a specified fiscal year and that expires at the end of that time. b. Multiple-Year Authority. Budget authority that is available for a specltled period ot time in excess of 1 fiscal year. DOE 2200.4 Attachment 1 3-31-88 I c. No-Year Authority. Budget authority that remains available for obliga- tion for an Indefinite period of time, usually until the objectives for whtch the authority was made available are attained or until the funds are fully expended. 2. Time of Congressional Action. a. Current Authority. Budget authority dlately preceding the fiscal year in enacted by Congress in or imme- which it becomes available. b. Pemanent Authority. Budget authority that becomes available as the resul t of previously enacted ~egislation (substantive legislation or prior appropriation act) and that does not require current action by the Congress. Authority created by such legislation is considered to be current in the first year in which it is provided and permanent in succeeding years. It is possible to distinguish between “fully permanent” authority (such as interest on the public debt), where no subsequent action is required, and “conditionally permanent” authority (such as general revenue sharing), where authority expires after a set period of time unless it is reenacted.

3. Determination of Amount. a. Definite Authority. Budget authority that is stated as a specific sum at the time that the authority is granted. This includes authority stated as “not to exceed” a specified amount. e b. Indefinite Authority. Budget authority for which a specific sum is not stated but is to be determined by other factors, such as the receipts from a certain source or obligations incurred. BUDGET OFFICER. Management official responsible for the budget operations at ~eadquarters or at a field element. The responsibility for fund control may rest with the individual at some field elements. BUDGET RECEIPTS. Amounts received by the Federal Government from the public that arise from the following sources (excluded from budget receipts are offsetting receipts, which are counted as deductions from budget authority and outlays rather than as budget receipts; see OFFSETTING RECEIPTS (COLLECTIONS)): 1. The exercise of governmental or sovereign power, consisting primarily of tax revenues, but also including receipts from premiums of compulsory social insurance programs, court fines, certain license fees, and the like. 2. Premiums from voluntary participants in Federal social insurance programs, such as deposits by States for unemployment insurance and for social security for their employees, that are closely related to compulsory social insurance programs. 3. Gifts and contributions. , BUDGETARY RESERVES. Portions of budget authority set aside under authority of the a Anti-Deficiency Act- (31 U.S.C. 1517(a)), as amended by the Impoundment Control Act 8 3-31-88 DOE 2200.4 ATTACHMENT 1 a of 1974, for contingencies or to effect savings whenever savings are made possible by or through changes in requirements or greater efficiency of operations. Section. 1002 of the Impoundment Control Act of 1974 restricts the establishment of budget- ary reserves and requires that all reserves be reported to Congress. BUDGETARY RESOURCES. In the case of reimbursable work, budgetary resources available for obligation are: 1. Orders from other Federal Government accounts that represent valid obligations of the ordering account. 2. Orders from a non-Federal entity, to the extent that they are accompanied by an advance, to perform reimbursable work. CAPITALIZED PROPERTY. Items of plant and equipment, including both real and per- sonal property, that are owned by DOE and are recorded in the completed plant accounts because they meet the monetary and service life criteria for capitali- zation, regardless of the appropriation or fund charged. Group purchases of similar items that each cost less than the minimum monetary criterion but that, when combined, constitute a significant investment in DOE-owned property are handled as capitalized property. Items of a sensitive nature or subject to mis- appropriation are not capitalized unless they meet the above criteria, but they are controlled throuqh ~ro~erty accountability records or appropriate safekeeping ● facilities or both. ‘Refer-to DOE 2200.6, FINANCIAL ACCOUNTING. Cha~ter VI. Plant and Capital Equipment, for the specific criteria for owned property. CASH ADVANCE. See ADVANCE. CASH BASIS OF ACCOUNTING. A method of accounting in at he time hat payment is received and costs are considered incurred at the time that payment is made. the capitalization of-DOE- which revenue is recognized CENTRAL BANK. The official government bank of a foreign partner that provides direct funds transfer to a Federal qeserve bank.

CERTIFYING OFFICER. A designated DOE employee with signature authority from that agency’s head to attest that the vouchers submitted for payment are correct in their facts, as recited in the certificates or as otherwise stated on the vouchers, and legal under the appropriation or fund involved. c~RTIFyING OFFICIAL. A person designated, such as a finance and accounting officer, to certify funds available for the purposes specified in an allotment and who is responsible for maintaining accurate and complete administrative control of funds records. COLLECTIONS. Any moneys received by the Government. Depending upon the nature of the transaction, collections may be treated as budget receipts, offsetting . receipts, refunds, or credits to a deposit fund. e COMMITMENT. A firm administrative reservation of funds, prior to creation of an obligation. A commitment is based upon a valid request for procurement that 9 DOE 2200.4 ATTACHMENT 1 3-31-88 a authorizes the creation of an obligation without further recourse to the official responsible for assuring the availability of funds. An administrative reservation of funds does not constitute a formal subdivision of funds. (Note: This defini- . tion concerns commitments in the accounting sense and therefore differs from loan guarantee commitments.) . CONGRESSIONAL BASE TABLE. A table submitted by the Department to cognizant con- gressional committees th at displays operating expenses, capital equipment, and construction at a level of detail that is consistent with congressional control requirements. This table forms a base against which reprogrammings, restructur- ings, and appropriation transfers will be determined and reported. CONGRESSIONALLY AUTHORIZED APPROPRIATIONS. Funding authority provided by Congress either as a direct appropriation or as authority to obligate revenues. CONSTRUCTIVE RECEIPT. As differentiated from physical receipt, a constructive receipt occurs when a contractor who is manufacturing or fabricating a tangible item to the Government’s specifications has earned a portion of the contract price for work performed. Formal acceptance or actual delivery of the work in progress or the work completed is not the determining factor. CONSUMER REPORTING AGENCY. Any individual or organization that, for monetary ”fees or dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information for the purpose of furnishing consumer reports to third parties, and who uses any means or facility of interstate commerce for the purpose of furnish- ● ing consumer reports. CONTINGENT LIA81LITY. An existing condition, situation, or set of circumstances involving uncertainty as to a possible loss to an agency that will ultimately be resolved when one or more future events occur or fail to occur. Contingent lia- bilities include such items as guaranteed loans and unresolved claims against the Department. CONTINUING RESOLUTION AUTHORITY. Legislation enacted by Congress that provides obligation authority for specific ongoing activities when the regular appropria- tion for such activities has not been enacted by the beginning of the fiscal year. The continuing resolution usually specifies a maximum rate at which the agency may incur obligations. This rate is usually based on the rate of obliga- tions of prior years. It may be based on the President’s budget request or other Congressional measures.

CONTRACT. Any enforceable agreement, including rental and lease agreements and purchase orders, between an agency and a business concern for the acquisition of property or services. (For the purpose of the accounting directives, grants and cooperative agreements are not included in this definition.) CONTRACT AUTHORITY. Statutory authority under which contracts or other obliga- ~ions may be entered into in ”advance of an appropriation or in excess of amounts otherwise available. Contract authority must be funded by a subsequent appro- priation or by the use of collections to liquidate the obligations. 10 #o 3-31-88 DOE 2200.4 ATTACHMENT 1 0 Appropriations to liquidate contract authority are not classified as budget authority, because they are not available for obligation. Section 401 of the Congressional Budget Act of 1974 limits new contract authority, with few excep- tions, to such an extent or to such amounts as are provided in the appropriation acts. CONTROLLABILITY. The ability under existing law to control budget authority or outlays during a given fiscal year. “Relatively uncontrollable” usually refers to spending that cannot be increased or decreased without changes in existing sub- stantive law. The largest part of such spending is the result of open-ended programs and fixed costs, such as social security and veterans’ benefits, but it also includes payments due under obligations incurred during prior years. COSPONSORS. A third-party participant contributing funds, goods, or services to projects supported by the Department. The cosponsor may also participate in the management of the cosponsored project. COSPONSORED WORK ARRANGEMENT. An agreement normally entered into when costs for “ work performed associated with DOE’s mission can be determined to be mutually beneficial to both the Department and a specific non-Federal partici~ant. Some benefit must be attributable directly to the participant. Cosponsored work is performed with funding provided by cash advances for the non-Cederal portion and congressionally authorized appropriations for DOE’s portion. Performance of the m work is accomplished according to contracted funding arrangements. COST-!3ASED BUDGETING. 5udgeting in terms of costs to be incurred, i.e., the resources to be consumed in carrying out a program, regardless of when the funds to acquire the resources were obligated or paid. Cost-based budgeting, in addi- tion to reflecting the obligational requirements for the program, presents the cost of what is planned to be accomplished. (Obligation-based budgeting is expressed in terms of obligations to be incurred, regardless of when the resources acquired are to be consumed. ) When the financing schedules in the appendix to the Presi- dent’s budget state the “program by activities” in terms of costs, an adjusting entry is required to arrive at total obligations. CREDITOR AGENCY. The Federal agency to which a debt is owed. CROSSWALK. The expression of the relationship between one set of classifications and another, such as between appropriation accounts and authorizing legislation or between the budget functional structure and the congressional comnittee spending jurisdictions. D~BTe An amount of money or property that has been determined by an appropriate agency official to be owed to the United States by any person, organization, or entity, except another Federal agency. DEFICIENCY APPORTIONMENTS. Apportionments that anticipate the need for a defi- ciency appropriation or a supplemental appropriation under title 31, section 1515,

. of the United States Code, are specifically identified on the apportionment request * (standard form 132). To qualify as a deficiency apportionment, the request must be required by laws enacted subsequent to the transmittal to Congress of the annual budget for the year; emergencies involving human life, the . 11 DOE 2200.4 ATTACHMENT 1 3-31-88 9) protection of property, or the inmlediate welfare of individuals; or specifically authorized by law. The approval of a deficiency apportionment by the Office of Management and Budget and its transmittal to Congress merely advises the Congress that funds appropriated to date are being obligated at a more rapid rate than was anticipated. This notification does not guarantee that the Congress will approve any part of any associated supplemental requests and does not authorize the use of any amounts not yet provided. DOE 5100.12, BUDGET EXECUTION, DEPARTMENT OF ENERGY BASE TABLE, contains a full statement of DOE policies on apportionments. DELINQUENT DEBT. A debt that has not been paid by the date specified in the creditor agency’s initial written notification or applicable contractual agree- ment, unless other satisfactory payment arrangements have been made by that date. In addition, a debt is delinquent if the debtor (either an individual or a cor- poration) fails to satisfy obligations under a payment agreement with the creditor agency. DEOBLIGATION. The particular complete reversal of an obligation. See OBLIGATIONS. DEPARTMENTAL INTEGRATED STANDARDIZED CORE ACCOUNTING SYSTEM. The decentralized- accounting-process system, with common hardware and software, used by all field elements except the power marketing administrations. The system ensures that changes made centrally, by a single programming staff, have uniform application. DEPRECIATION. In general, the expiration or consumption, in whole or in part, of the service ‘life, capacity, or utility of plant facilities and equipment, result- ing from such factors as wear and tear, decay, elements, and obsolescence. Depre- 9 ciation expense is that portion of the cost of units or groups of plant facilities and equipment that is allocated to an accounting period (month or fiscal year) and charged to the operating cost of an activity. Depreciation accounting is the sys- tematic allocation of the cost of depreciable plant facilities and equipment over their estimated useful service life, i.e., a process of allocation or amortiza- tion, not of valuation. DESIGNATED BII forwards lnvo. DIRECT LOAN. is contracl%d direct Federa’ private loans LING OFFICE. The place named in a contract where the contractor ces for approval or, in certain instances, for payment. A disbursement of funds (not in exchange for goods or services) that to be repaid with or without interest. Direct loans may include participation in loans privately made or held and the purchase of through secondary market operations. DISALLOWED COST. The amount of claimed or reimbursed contract or grant cost deter- mined by a contracting officer to be unallowable and therefore not payable or that is recoverable by the Government. DISBURSEMENTS. See OUTLAYS. DISCOUNT DATE. The date by which, if payment is made, a specified discount can be taken. 12 3-31-88 D O E 2 2 0 0 . 4 ATTACHMENT 1

DISPOSABLE PAY. That part of current basic pay, special pay, incentive pay, retired pay, retainer pay, or, in the case of an employee not entitled to basic pay, other authorized pay remaining after the deduction of any amount required by law to be withheld. To determine disposable pay, agencies must exclude deductions described in title 5, section 581.105(b) through (f), of the Code of Federal Regulations. DUE DATE. The date on which payment should be made. EARLY PAYMENT. Any payment made 3 days or more before the due date or the last day of the discount period. EMPLOYEE BENEFIT FUNDS. Deposits with contractors for the purpose of providing funds for payments to contractors’ employees suffering disabilities from certain specified causes. EXPENDITURES. See OUTLAYS. EXPIRED APPROPRIATION. An appropriation that is no longer available for new obligation but that is still available for payment of or adjustment to existing obligations. FEDERAL DEBTO There are three basic concepts or tabulations of Federal debt: 1. Gross Federal Debt. The sum of all public and agency debt issues outstanding. 2. Debt Held by the Public. That part of the gross Federal debt held by the public. Debt held by Government trust funds, revolvin funds, and off-budget i’Federal entities is excluded from debt held by the pub ic. 3. Debt Subject to Statutory Limit. At present virtually all public debt, but only a small t- fAgency debt, is included in debt subject to statutory limit as defi~~! ~$nt;e Second Liberty Bond Act of 1917, as amended. FIELD ELEMENTS. The components of the Department that have financial management responsibility for one or more allottees. This term is generally limited to power marketing administrations, the naval reactors offices in Schenectady and Pitts- burgh, and the operations offices. FINANCE DIRECTOR. The management official responsible for the financial opera- tions at a field element. This term includes officials with all or part of the responsibility for fund control, accounting, and managing the financial assets of the field. FINANCIAL ACCOUNTING STANDARDS BOARD. An independent body established to promul- gate accounting rules. The board is composed of representatives of universities, certified public accounting firms, and industry. . FINANCIAL INFORMATION SySTEM. The Departmental information system that accumu- m lates data from financial subsystems and consolidates that data for Departmental reports issued internally and to the Office of Management and Budget, the Depart- ment of the Treasury, and the Congress. 13 I DOE 2200.4 ATTACHMENT 1 3-31-88 FISCAL YEAR. Any yearly accounting period, without regard to its relationship to a calendar year. The fiscal year for the Federal Government beains on 10-1 and ends on 9-3!). The fiscal year is designated by the calendar ye~r in which it ends; e.g., fiscal year 1987 is the fiscal year ending on 9-30-1987. FOREIGN CURRENCY ACCOUNT. See SPECIAL FOREIGN CURRENCY PROGRAM APPROPRIATIONS. FORWARD FUNDING (GRANTS) . The obligation of funds in one fiscal year for the financing of ongoing grantee programs during the succeeding year. The funds so obligated are added to the budget authority for the current fiscal year and deducted from the budget authorities of succeeding fiscal years. Appropriation language usually states the date after which the funds of the succeeding fiscal years may be obligated.

FUNDS. Accounting units established for segregating revenues and assets in accordance with law and for assuring that revenues and other assets are applied only to financial transactions for which they were appropriated or otherwise authorized. Funds are of different types and designed for different purposes. 1. Federal Fund. The fund collected and used by the Federal Government for the general purposes of the Government. There are accounts. four types of Federal fund a. b. c. d. General Fund. The fund credited with all by law and that are charged with payments receipts that are not earmarked out of appropriations of “any money in the Treasury no~ otherwise-appropriated” and out of general o borrowings. Special Fund. A fund credited with receipts of the Government that are earmarked for a specific purpose. Generally, if the purpose of the fund is to carry out a cycle of business-type operations, it will be classi- fied instead as a public enterprise fund. Public Enterprise Fund. A revolving fund credited with collections, primarily from outside the Government, that are earmarked to finance a continuing cycle of business-type operations. Intragovernmental Fund. Federal funds that facilitate financing of trans- actions with and between Federal agencies. Intragovernmental funds are of two (1) (2) types: Public Enterprise Revolving Fund. A revolving fund credited with collections, prlmarlly from other agencies and accounts, that are earmarked by law to carry out a continuing cycle of intragovernmental business-type operations. Management Fund. A fund in which moneys derived from two or more appropriations are merged to carry out a common purpose or project, but not a cycle of operations. Management funds include consolidated working funds, which are set up pursuant to law to receive advance payments from other agencies or bureaus for agreed-upon undertakings, primarily for the benefit of the paying account. 14 3-31-88 DOE 2200.4 3. 4. ATTACHMENT 1 Trust Fund. A fund credited with collections that are used by the Federal Government to carry out specific purposes and programs according to the terms of a trust agreement or a statute. Within the category of trust funds, trust revolving funds are those intended to carry on a cycle of business-type operations. Deposit Fund. A fund established to account for receipts that are either: a. Held in suspense temporarily and later refunded or paid into some fund the Government or of b. Held by the Government as banker or agency for others and paid out at the discretion of the owner. Foreign Currency. See SPECIAL FOREIGN CURRENCY PROGRAM APPROPRIATIONS. GENERAL PLANT PROJECT. Congress has recognized DOE’s need to provide for mis- cellaneous construction items that are required during the fiscal year and that “ cannot be specifically identified beforehand, and Congress annually provides an amount for these purposes under the title ‘General Plant Projects.” 1. General-Purpose Facilities. Miscellaneous general facilities, such as roads, site utlllties, and support buildings (e.g., multiprogram laboratory and ● office buildings and maintenance facilities). 2. General-Purpose Equipment. Items of general use needed to make a general- purpose facility.

GOODS AND SERVICES ON ORDER. Services or goods for which DOE has obligated funds, for which payment may or may not have been made, and for which cost has not been applied or accrued and amounts to assure that major contractors are provided funding authority beyond the end of the fiscal year for continuity of operations or to provide for the eventuality of contract termination. For accounting purposes, this is represented by the balance of uncosted obligations in unpaid obligation accounts. GRACE PERIOD. The number of days allowable after the due date for making payments before interest, penalties, or both, are applied. GRANTS-IN-AID. Federal programs to support services to the public authorized by law and administered by State or local governments.~ Grants do not include pur- chases from State or local governments. GUARANTEED LOAN. A loan for which the Federal Government guarantees, in whole or In part, the repayment of principal, interest, or both. IMPOUNDMENT. Any action or inaction by an officer or employee of the United States that precludes the obligation or expenditure of budget authority provided by the Congress. IMPOUNDMENT RESOLUTION. A resolution of the House of Representatives or the Senate disapproving a deferral of budget authority set forth in a special message 15 DOE 2200.4 ATTACHMENT 1 3-31-88 ● ordinarily transmitted by the President under section 1013 of the Impoundment Control Act of 1974. Passage of an impoundment resolution by either House of Congress has the effect of overturning the deferral and requires that such budget authority be made available for obligation. IMPREST FUND. A fixed cash or pettv cash fund in the form of currency, coin, or a negotiable instrument charged against a Government appropriation account and advanced to a duly authorized cashier. The designation should state the general purpose of the advance. This fund may be of a revolving type, replenished to the level of a fixed amount as spent or used, or of a stationary nature, such as a change-making fund. INSURANCE COLLATERAL FUNDS. Funds deposited with insurance companies, not a part of he premium, but held for the specific purpose of providing the insurance company with immediate cash in the event of catastrophe or some other event causing a large number of claims. INTEGRATED CONTRACTOR. A DOE contractor, usually a management and operating contractor, th at 1s required by contract provisions to maintain a separate set of accounts and records for recording and reporting all business transactions under the contract in accordance with DOE accounting practices and procedures and whose books of account are integrated with those of DOE through the use of reciprocal accounts. An integrated contractor may be a private enterprise, a nonprofit institution, a corporation, or any other form of organization legally capable of entering into a contract with DOE. INTERNAL CONTROL (MANAGEMENT CONTROL) . The plan of organization, methods, and procedures adopted by management to provide reasonable assurance that program objectives are achieved in an effective and efficient manner; obligations and costs are in compliance with applicable law; funds, property, and other assets are safeguarded against waste, loss, mismanagement, unauthorized use, or misappro- priation; revenues and expenditures applicable to the !lepartment’s operations are properly recorded and accounted for to permit the preparation of accounts and reliable financial and statistical reports to maintain accountability over assets; and program objectives are achieved in an effective and efficient manner. Internal control applies to programs and operational missions, as well as administrative functions.

INTERNAL CONTROL REVIEW. A detailed examination of the internal controls of a program or administrative function or subdivision thereof to determine whether adequate, cost-effective contrcfl measures exist and are implemented to prevent or detect the occurrence of potential waste, loss, mismanagement, unauthorized use, or misappropriation of resources. INTERNAL CONTROL SYSTEM. The totality of the methods and measures of internal control for all or part of an agency. INVESTMENTS WITH INTEGRATED CONTRACTORS. The net assets of DOE in the possession designated cost-type contractors whose accounts are integrated with those of ~OE. The entries made by DOE organizations in their reciprocal accounts are discussed in DOE 2200.10, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. The inte- gration of contractor accounts with those of DOE and the use of reciprocal 16 3-31-88 DOE 2200.4 ATTACHMENT 1 accounts by the integrated contractors are discussed and explained in DOE 2200.6, FINANCIAL ACCOUNTING, Chapter II, Advances, Prepaid Expenses, and Other Assets. INVOICE RECEIPT DATE. The date on which the invoice is actually received in the office designated in the contract or purchase order to receive invoices. INVOICES. Documents requesting payment for work performed, goods and services delivered, or costs incurred. There is an exception to this definition: the documents serve only as notification of costs incurred when DOE is performing work for non-Government customers and advance payment has been received. LEGAL LIMITATION. A limitation imposed upon the use of an appropriation or other fund or subdivision thereof, having the same effects as a fund subdivision in the control of obligations and expenditures. The limitation is derived from public laws (e.g., appropriation bills) and apportionments from the Office of Management and Budget (OMB). The framework for this type of limitation is title 31, section 1517(a) of the United States Code and ONIB Circular A-34. Legal limitations are identified on allotments only. A loan guarantee commitment is a legal limitation. LEGAL VIOLATION. The status of an overobligation or overexpenditure of a legal funding limitation that has been investigated and determined to be an actual violation. Legal violations are reportable to the President and Congress. e LETTER OF CREDIT. A commitment, certified by an authorized official of a Federal pro~ram agency, specifying a dollar limit available to a designated payee. A period of availability may also be specified. LIABILITIES. Amounts owed for items received, services rendered, expenses incurred, assets acquired, construction performed (regardless of whether invoices have been received), and amounts received but as yet unearned. Included are amounts owed for goods in the hands of contractors under the constructive delivery concept (when the records of the agency provide such information) and amounts owed under grants, pensions, awards, and other indebtedness not involving the furnish- ing of goods and services. Liabilities may be classified into two groups: 1. Current Liabilities. Amounts owed to others within 1 year for items received, services rendered, expenses incurred, assets acquired, construction performed (regardless of whether invoices have been received), and amounts received but as yet unearned. Included are amounts owed for goods in the hands of prime contractors under the constructive delivery concept. Although liabilities rest generally on legal rights and duties, a legal claim is not a prerequisite for qualification as a liability if future cash or other transfer of assets in settlement is otherwise probable and estimable.

2. Long-Term and Unfunded Liabilities. Debts payable to others that are not payable or due within 1 year. Includes bond debts, notes payable, and lia- bilities that will not become obligations until later (for example, accrued annual leave in the case of appropriation accounts]. If funds for pament have not been provided or authorized, amounts owed are recorded as unfunded liabilities. 17 DOE 2200.4 ATTACHMENT 1 3-31-88 LOAN GUARANTEE. An agreement by which the Government pledges to pay part or all of loan prlnclpal and interest to a lender or holder of a security, in the event of default by a third-party borrower. For the purposes of credit control, the term includes agreements in the form of loan insurance (i.e., a program to pool risks) pledging the use of insurance premiums and, under some circumstances, other resources to secure a lender against default by a borrower. The term also includes direct Federal loans that the Government has sold under guarantee or repurchase agreements. The maximum amount of the Government’s liability must be stated in the loan guarantee agreement. { LOAN GUARANTEE COMMITMENT. The gross amount of loan guarantees committed during a fiscal year or other period, without reductions for such items as repayments, pre- payments, sale of guaranteed loans, or defaults. A loan guarantee is counted against the annual or aggregate limitation when the firm commitment is made, i.e., when the Government enters into a guarantee agreement to become effective at such time as the borrower meets stipulated preconditions. A commitment must be recorded for every loan guaranteed, even though the commitment and the actual guarantee may occur simultaneously. Were the principal amount of a loan is guaranteed par- tially by the Government, only the amount of the Government’s contingent liability is recorded. LOAN GUARANTEE C!3MMITMEtJT LIMITATION. The gross amount of loan guarantee commit- ments allowable during a fiscal year or other time period. The limitation is normally at the allotment or aDproDriation level. A violation of a loan guarantee limitation at the allotment or appropriation level represents a violation of a legal limitation. * M A~COljNTo Unliquidated obligations under an appropriation are transferred to (merged Into) an M account at the end of the second full fiscal year after expira- tion. The M account remains available for the payment of the unliquidated obliga- tions charged to various years’ appropriation accounts that have been merged. MAMAGE!?S. Senior Executive Service and merit pay or equivalent employees with slgnlflcant management responsibility, including fulfillment of assigned internal control responsibilities. MANAGEMENT 4N!I OPERATING CONTRACTORS. Contractors designated by the Secretary in accordance with policies. Management and operating contractors’ accounting systems are, for the purposes of the accounting overview directives, limited to those integrated with DOE’s accounting system. (See INTEGRATED CONTRACTORS. ) MEMORANDUM OF UNDERSTANDING. A written agreement broadly stating basic under- standings and describing a mechanism for coordinating activities to be enga ed in by the Department and other signatory authorities. i! 8t is not limited to un er- standings with Federal agencies and also may include local, State, international, and other government entities; the t)rivate sector; and educational institutions. A memorandum of understanding may be written for some interagency agreements to document agreements that are being or have been established to assist DOE in meet- ing its Department-wide, programmatic, or regional objectives with Federal agen- cies; local, State, international, and other government entities; the private I sector; and educational institutions. Agreements between Departmental organiza- tions are not considered memorandums of understanding. A memorandum of

9 18 ● 3-31-88 DOE 2200.4 ATTACHMENT 1 understanding is not a binding contract; it cannot be used to obligate or commit funds or as the basis for the transfer of funds from one agency to another. If a commitment, obligation, or transfer of funds is required, a specific reimbursable, agreement must be developed between DOE and the participating organization to provide specific funding, obligation, and billing data. MISCELLANEOUS RECEIPTS. Moneys received for the use of the United States. These receipts are deposited in the Department of the Treasury general fund. Collec- tions representing refunds of payments made previously (appropriations refunds) are not miscellaneous receipts. (See FUNDS, Federal, General. ) NON-FEDERAL ENTITY. An entity that is not part of the U.S. Government or a U.S. federally chartered corporation. NONFUND COST. A cost that generally does not affect appropriations, allotments or suballotments, obligations, or payments, e.g., depreciation and nuclear material consumed or lost. However, with respect to plant and capital equipment transac- tions, nonfund costs may affect the amount required in an approved funding program or allotment. NON-GOVERNMENT. See NON-FEDERAL ENTITY. e OBJECT CLASSIFICATION. A uniform classification identifying the transactions of the Federal Government by the nature of the goods or services purchased (such as personnel compensation, supplies and materials, or equipment), without regard to the agency involved or the purpose of the programs for which they are used. OBLIGATIONAL AUTHORITY. The sum of budget authority provided for a given fiscal year; amounts authorized to be credited to a specific fund or account during that year, including transfer between funds or accounts; and balances of amounts brought forward from previous years that remain available for obligation. OBLIGATIONS. Amounts of orders placed, contracts awarded, services received, and similar transactions during a given period that will require payments during the same or a future period. Such amounts include outlays for which obligations have not been previously recorded and reflect adjustments for differences between obli- gations previously recorded and actual outlays to liquidate those obligations. All obligations must be supported by written documentation or law. OFFLINE BANK. A bank that does not have the capability to transfer funds elec- tronically through the FEDWIRE Funds Transfer Network, but rather must rely on a correspondent bank that has the capability. OFFSETTING RECEIPTS (COLLECTIONS). All collections deposited into receipt accounts that are offset against budget authority and outlays rather than reflected as budget receipts in computing budget totals. Under current budgetary usage, cash collections not deposited into receipt accounts (such as revolving fund receipts e and reimbursements) are deducted from outlays at the account level. These trans- actions are offsetting collections but are not classified as offsetting receipts. Offsetting receipts generally are deducted at the budget function or subfunction level and from agency budget authority and outlays. In three cases--employer share of employee retirement, intragovernmental interest received by a trust 19 DOE 2200.4 ATTACHMENT 1 3-31-88 fund, and rents and royalties from the Outer Continental Shelf lands--the deduc- . tions, referred to as undistributed offsetting receipts, are made from budget

totals rather than offset by function and subfunction and by agency. Offsetting receipts are subdivided into two major categories: 1. Proprietary Receipts from the Public. Collections from the public deposited In receipt accounts th at arise from the conduct of business-type activities. Examples are sales of timber, power, steam, and isotopes. 2. Intragovernmental Transaction. All collections or deposits into receipt accounts In which the payment is made by a Federal aqency. Intracjovernmental transactions may represent either receipts from off-budget Federai entities, where a payment comes from a Federal entity whose funds are excluded from the budget totals, or intrabudgetary transactions, where both the paying and the receiving accounts are within the budget. Intrabudgetary transactions, in turn, are further subdivided into three groups: a. Interfund Transactions. Transactions where the payment is from a Federal to a trust fund, or vice versa. b. Federal Intrafund Transactions. Transactions where both the paying and the recelvlng accounts are i-ederal funds. c. Trust Intrafund Transactions. Transactions where both the paying and the recelvlng accounts are trust funds. ONLINE BANK. A bank that has the capability to transfer funds electronically hrough the FEDWRE Funds Transfer Network. OTHER DEPOSITS 1. Service Deposits. Deposits with utility and transportation companies, required as a basis for services by them and returnable at the conclusion of their contracts. , , 2. Deposits on Returnable Containers. Deposits with vendors for containers when he containers are expected to be returned upon removal of contents. If it is known at the time of receipt that the containers in a particular shipment will not be returned--because they will be used in a contaminated area, because the cost to ship them back to the supplier would exceed the amount of the deposit, or for some other acceptable reason--the deposit should not be recorded in other deposits but should be recorded in the inventory, plant and equipment, or expense account, depending upon their nature. Since some vendors require only token or nominal deposits on containers but demand full cost if they are not returned, the full amount to be paid for the containers should be recorded when a determination is made that they are not to be returned. The cost to DOE for vendors’ containers that are retained by DOE or its contractors for their own use as returnable containers should be charged to the stores account; the cost to DOE of special containers to hold or transport process materials should be charged to the completed plant and equipment account if the containers meet the criteria for retirement units stated in DOE 2200.6, a FINANCIAL ACCOUNTING, Chapter VI, Plant and Capital Equipment; the cost to DOE . 20 3-31-88 DOE 2200.4 ATTACHMENT 1 of vendors’ containers that are destroyed or that for any reasons other than those stated in the preceding sentence, are not returned should be charged to the cost of operations or included in the cost of the materials they contain (on a consistent basis, of course). 3. Miscellaneous Deposits. Deposits that cannot be classified under either of preceding categories. OTHER FEDERAL AGENCY ARRANGEMENTS. See REIMBURSEMENTS. ,

OUTLAYS. The amount of checks issued or funds electronically transferred, inter- est accrued on most public debt, or other payments; net of refunds; and reimburse- ments. Total budget outlays consist of the sum of the outlays from appropriations and funds included in the unified budget, less offsetting receipts. The outlays of off-budget Federal entities are excluded from the unified budget under provi- sions of law, even though these outlays are part of total Government spending. Federal outlays are recorded on the cash basis of accounting, with the exception of most interest on the public debt, for which the accrual basis of accounting is used. OVERSIGHT COMMITTEE. The congressional committee charged with general oversight of he operation of an agency or program. In some but not all cases, the over- sight committee for an agency also is the authorizing committee for the agency’s programs. (See AUTHORIZING COMMITTEE. ) PARTICIPANT. See COSPONSOR. PAYING AGENCY. The Federal agency making a disbursement in payment of an amount, e.9a9 due to individuals or other Government agencies. PAYMENT DATE. The date on which a check for payment is dated or a wire transfer 1s made. PREPAYMENT. See A!IVANCE. PROCUREMENT INITIATION. The Process by which the contracting officer accepts and begins action on a procurement request that has been properly approved by the program official authorized to allocate program funds and has been committed and recorded by the appropriate field financial office. For any individual procure- ment request, the dollar amount of the program initiation and the dollar amount of the procurement initiation will be identical. PROGRAM. Generally defined as an organized set of activities directed toward a common purpose, objective, or goal, undertaken or proposed by an agency to carry out responsibilities assigned to it. In practice, however, the term has many uses and thus does not have a well-defined, standardized meaning in the legislative process. “Program” has been used as a description for agency missions, activi- ties, services, projects, and p~ocesses. e PROGRAM INITIATION. An administrative recording by the program office that a procurement action has been requested from program funds. The dollar amount of the program initiation must equal the dollar amount on the procurement request. 21 DOE 2200.4 ATTACHMENT 1 3-31-88 4DPROGRAM MANAGER. An individual in an organization or activity responsible for the management ot a specific function or functions and responsible for budget formula- tion and execution of the approved budget. The individual is the recipient of an * approved funding program from the Office of Budget identifying his or her program dollars available to accomplish the assigned function. , PROGRAM RELEASE. A document initiated by program managers to execute their respective programs. The allotment provides the authority for the certifying official to certify fund availability on program release documents for a s~ecific purpose, and these program release documents are the basis for establishing a commitment and, in some cases, obligation of funds. Examples of program release documents are travel orders, procurement requests, purchase orders, time and attendance cards, and other authorized documents. Funds must be certified on a valid program release document issued by an authorized program manager.

PROJECT. A major endeavor within a program, with firmly scheduled dates for beginning, intermediate, and ending milestones; prescribed performance require- ments; prescribed costs; and close management planning and control. A project is not constrained to any specific element of the budget or accounting structure, e.9., operating or construction. RECEIVING REPORT. The document used to formally accept goods or services provided to the Department by contract or other authorization. The completed receiving report also describes shortages, errors, and other variances from the goods or services ordered and provides written evidence of acceptance of property or services by a Government official or designee. RECIPROCAL ACCOUNTS. The integrated contractor accounts that are reciprocal to he same accounts on DOE books; for example, current account (cash transactions) and investment account (noncash assets in the possession of the contractor for which the contractor is accountable to DOE). REFUNDS. Recoveries of excess payments that are credited to an appropriation or ~und account. These items, such as the recovery of a salary overpayment or the return of the unused portion of a travel advance, are not included as reimburse- ments but are treated as reductions of outlays. Refunds also include credits to an appropriation of fund account that result from accounting adjustments relat- ing to obligations or outlays where such procedures are permitted by law or regulations. REIMBURSABLE AUTHORITY. Reimbursable obligation authority can only be acquired by obtalnlng an all otment through the DOE approved funding program process. REIMBURSABLE PROCUREMENT. Procurement for a customer citing DOE funds on the contract or purchase order, with reimbursement by the customer. REIMBURSABLE WORK. Work or services performed for a sponsor that are part of the sponsor’s mission and for which the Department does not directly receive appro- priated funds from Congress. In other words, the work or services performed are financed not by DOE appropriations, but rather by the funds of the ordering J Federal agency or by cash advances from a non-Federal sponsor. m 22 3-31-88 DOE 2200.4 ATTACHMENT 1 m REIMBURSEMENTS. Amounts received from the public or other Government agencies that represent payments for goods and services furnished and that may be credited, or authorized by law to the appropriation or fund account of the providing entity. An anticipated reimbursement is an estimated transaction that is neither earned nor collected, as in the case of transactions with the public, or for which there+ has been no order accepted, as in the case of transactions within the Government. R~IMBuRsEME~Ts COLLECTED. sea ~EIMB(JRsEMENTso REIMBURSEMENTS EARNED. The amount of reimbursements to be collected, based on commodities, work, or services actually furnished (delivered), whether or not billed. REPROGRAMMING. Utilization of funds in an appropriation account for purposes other than hose contemplated at the time of appropriation. Reprogramming gener- ally is accomplished pursuant to consultation between DOE, the Office of Manage- ment and Budget, and the appropriate congressional committees. REVENUES. Inflows or other enhancements of assets of the Department or settlement of Its liabilities (or a combination of both) resulting from delivering or produc- ing goods, rendering services, or other activities that constitute the Depart- ment’s mission-related work for which funds have been appropriated.

a REVOLVING FUND. A fund established to finance a cycle of operations through amounts received by the fund. There are three types of revolving funds: public enterprise, intragovernmental revolving, and trust revolving funds. SALARY OFFSET. An administrative offset to collect a debt under title 5, section 51 4, of the United States Code by deduction(s) at one or more officially estab- lished pay intervals from the current pay account of an employee with or without his or her consent. SALVAGE VALUE. An estimate of the amount that will be realized at the end of the useful lite of a depreciable asset from the disposition of the asset as used property or scrap less cost of disposition. SPECIAL FOREIGN CURRENCY PROGRAM APPROPRIATIONS. Appropriations made available to incur obligations for which payments must be made only in the United States-- owned foreign currencies that are declared in excess of the normal requirements of the United States by the Secretary of the Treasury. The appropriation is made in general fund dollar amounts, which are credited to the account or fund generating the currency or to miscellaneous receipts of the Department of the Treasury, as appropriate. The appropriated dollars are exchanged for excess foreign currency (held in the Department of the Treasury foreign currency fund accounts), and used to make payments. # SPECIAL FUND ACCOUNTS. See FUNDS. SUNDRY COLLATERAL AND SPECIAL CONTRACT FUNDS. ● Special funds other than insurance collateral t’unds, employee benetlt funds, and annuity funds established pursuant to specific contractual agreements. DOE 2200.4 3-31-88 ATTACHMENT 1 SUPPLEMENTAL APPROPRIATION. An act appropriating funds in addition to those in an annual appropriation act. Supplemental appropriations provide additional budget authority beyond original estimates for programs or activities (including new programs authorized after the date of the original appropriation act) for which the need for funds is too urgent to be postponed until enactment of the next regular appropriation act (see APPROPRIATION). TOTAL ESTIMATED COST OF A CONSTRUCTION PROJECT. The total estimated cost of a construction project is the gross cost of the project, including the cost of land and land rights; engineering, design, and inspection costs; direct and indirect construction costs; and the cost of initial equipment necessary to place the plant or installation in operation, whether funded out of operations or plant and capital equipment appropriations. It should be noted that in recent years Con- gress has authorized amounts for construction projects exclusive of amounts for construction planning and design. In these cases the amount authorized is used as a base for total estimated costs, even though it does not include planning and design costs. TRANSFER APPROPRIATION ACCOUNT. A separate account established to receive (and subsequently obligate and expend) allocations from another appropriation. Trans- fer appropriation accounts carry symbols identified with the original appropria- tion. Since allocations are a distribution of an appropriation (representing, in effect, the sharing of some responsibility for the program rather than a payment for goods or services to be provided), the allocations are not treated as outlays in the parent account or as receipts in the transfer appropriation account. The o subsequent transactions of the transfer account are usually reported with the transactions of the parent account.

TREASURY WARRANT. An official document, TFS Form 6200, “Appropriation Warrant,” that is issued pursuant to law by the Secretary of the Treasury and that, by appropriation symbol, establishes the individual amounts appropriated by Congress. Treasury warrants can be issued on the basis of appropriation bills enacted by Congress or continuing resolution authority granted by Congress. UNDELIVERED ORDERS. The amount of orders for goods and services outstanding for which the liabillty has not yet accrued. This amount includes any orders for goods or services for which advance payment has been made, but for which delivery or performance has not yet occurred. UNFILLED CUSTOMERS’ ORDERS. The amount of orders accepted from other accounts within the Government for goods and services to be furnished on a reimbursable basis and, in the case of transactions with the public, amounts advanced or collected for which the account or fund has not yet performed the service or incurred its own obligations for that purpose. UNFUNDED COST. A cost that does not result in an obligation or expenditure against appropriations, revolving funds, or trust funds (e.g., depreciation employees’ earned leave). VULNERABILITY ASSESSMENT. A review of the susceptibility of a program or administrative function to waste, loss, mismanagement, unauthorized use, or misappropriation of resources. 74 or a 3-31-88 DOE 2200.4 ATTACHMENT 1 ? WAIVER. The cancellation, remission, or forgiveness of a debt allegedly owed by an employee to an agency as permitted or required by title 5, sections 5584 and 8346(b); title 10, section 2774; and title 32, section 716, of the United States * Code, or any similar law. WAREHOUSING. Holding a payment after it has been certified, to permit the payment to be made as close as possible to, but not later than, the payment due date or, if appropriate, the discount date. WRITEOFF. The amount of no-year authority that is withdrawn from availability for obligation by administrative action, pursuant to title 31, section 1555, of the United States Code. This excludes amounts withdrawn from expired accounts pursu- ant to the Act of July 25, 1956 (31 U.S.C. 1552-1554), and exceptions made by the Congress (31 U.S.C. 1557). 25 (and 26) 3-31-88 DOE 2200.4 ATTACHMENT 2 REFERENCES (Note: Inquiries concerning the sources of these references s~d be addressed to the Office of Financial Policy, MA-31.) 1. UNITED STATES CODE, TITLE 31. Codifies laws pertaining to government ( tlnance. specltlc sections important to the accounting directives: a. b. c. d. e. f. 9. h. i. j. Section 501 et seq. Establishes the Office of Management and Budget and Its authorities and responsibilities. Section 1100 et seq. Establishes the federal budget and fiscal and program information authorities. Section 1300 et seq. Establishes appropriation requirement and responslbllltles. Section 1500 et seq. Establishes appropriation accounting requirements. Section 3300 et seq. Establishes financial management requirements for deposltlng, keeping, and paying money. Section 3500 et seq. Establishes financial management requirements for accounting systems and information and for the auditing, settling, and collection of accounts. Sections 3700-3900 et seq. Establishes financial management requirements tor clalms of and against the United States Government. Sections 6100-7300 et seq. Establishes general assistance administration tor grants, contracts, Intergovernmental cooperation, revenue sharing, and joint funding simplification.

Sections 9101-9109 et seq. Establishes the acquiring, budgeting, and accounting for mixed-ownership and wholly-owned Government corporations. Section 9700 et seq. Codifies laws pertaining to fees charged and invest- ment of trust funds. 2. CODE OF FEDERAL REGULATIONS, TITLE 4, SECTIONS 101-105. Implements the Debt Collection Act (31 Usc 3/ul-3719) by regulations published jointly by the General Accounting O;f;c;’and the Department of Justice. 3. OFFICE OF MANAGEMENT AND !3UDGET. a. Circulars. (1) A-n : Budget Preparation (revised and reissued annually). prescribed the forms and procedures for budget ~reparatlon and submission. 1 DOE 2200.4 3-31-88 ATTACHMENT 2 (2) (3) (4) (5) (6) (71 (8) (9) (10) (11) b. Bul A-12: Uniform Classification According to Objects (7-22-80). prescribes standard classlflcatlons for he Government ‘s financial transactions. A-34: Instructions on Budget Execution (8-26-85). prescribes ~overnment pollcies for budget execution and reporting. A-70: Credit Pol icy (8-24-84). Sets Federal ~olicies for reviewing and managing credit programs. A-102: Uniform Requirements for Assistance to State and Local Governments (1-81 ). Sets Federal standards for the administration of grants to state and local governments. A-11O: Grants and Agreements with Institutions of Higher Education, ~ospltals, and ther Nonprotlt Organlzatlons (/-3-/6). Sets Federal standards for awarding grants and making other agreements with higher educational institutions, hospitals, and nonprofit organizations. A-123: Internal Control Systems (8-4-86). Prescribes policies and standards to establish and maintain internal controls. A-125: Prompt Payment (8-1 9-82). Prescribes policies and procedures to be followed in paying for property and services acquired under Federal contracts. A-127: Financial Management Systems (1 2-19-84). Prescribes PO1 icies and procedures for developing, operating, evaluating, and reporting on financial management systems. A-129: Managing Federal Credit Programs (5-9-85). prescribes policies and procedures for managing credit programs and collecting receivables. A-130: Management of Federal Information Resources (12-12-85). Estab- lishes the pollcy for he management of Federal information resources and the procedural and analytic guidelines for their implementation. letin 82-17: Budget Execution Procedures for Federal Credit Programs (9 1/ 82)-- . Provides instructions for all I-ederal credit programs that are . subJect to annual limitations. c. Memorandum M-85-1O: Financial Management and Accounting Objectives (3 lb ~~)-- . Prescribes the management objectives for Federal financial management and accounting. 4. DEPARTMENT OF THE TREASURY FINANCIAL MANUAL. 1 a. b. 2 Prescribes procedures and forms to be used by Government agencies a Part 4. in causing funds to be disbursed from the Department of the Treasury. Part 6. Prescribes ~rocedures and forms to be used by Government agencies for special transactions and procedures, such as cash advances, refunds, * intergovernmental billing and collections, cash management, and payment procedures upon expiration of an appropriation or a continuing resolution. 3-31-88 DOE 2200.4 ATTACHMENT 2 ● 5. GENERAL ACCOUNTING OFFICE POLICIES AND PROCEDURES MANUAL FOR GUIDANCE OF FEDERAL AGtNCI~. a. Title 2. Prescribes the overall accounting principles and standards for executive agencies and may be cited as “generally accepted accounting 6 principles for the federal government.”

b. Title 4. Prescribes the procedures for handling all claims for and against the United States except those under the exclusive jurisdiction of administrative agencies pursuant to specific statutory authority. c. Title 6. Provides the standards for developing, installing, and operating pay, leave, and allowances of a financial system. d. Title 7. Provides the standards and related requirements for the develop- ment, Installation, and operation of the Department’s fiscal operations. 6. DOE DIRECTIVES. b m a . !). c. d. e. f. 9. h. DOE 1000.3A, INTERNAL CONTROL SYSTEMS, of 6-11-86, which Describes poli- cles and standards for establishing, evaluating, improving, and reporting on internal controls. DOE 2100.3, TRANSFER OF CONTRACTS BETWEEN DEPARTMENTAL ELEMENTS, of - - (1, which establishes pollcles and procedures for transferring contracts and similar instruments between Departmental Elements. DOE 2100.8, COST ACCOUNTING, COST RECOVERY, AND INTERAGENCY SHARING OF ATA PROCESSING t-ACIL~ , of 3-3- ~ implements off-Ice of Manage- ment and Budget Circular A-121 and prescribes policies for cost accounting, cost recovery, and the sharing of automated data processing facilities. DOE 2200.3, FINANCIAL MANAGEMENT OF CIVILIAN NUCLEAR WASTE ACTIVITIES, of I - -8!) , which establishes pollcles and procedures for the flnanclal man- agement of funds related to the Department’s civilian nuclear waste program. DOE 4600.lA, FINANCIAL ASSISTANCE PROCEDURES MANUAL, of 4-1-87, which establ lshes the various processing and procedural requirements for financial assistance award and administration. DOE 51OO.1A, PROGRAMMING, BUDGETING, AND ACCOUNTING FOR THE ACQUISITION OF OW VALUE CAPITAL tQ_NT , of 10-18-84 , which defines and sets forth policies for th e acqulsltlon of low-value capital equipment. DOE 5100.11, BUDGET EXECUTION--OFFICE OF MANAGEMENT AND BUDGET APPORTION- AND TRkAS~ WAR!IANT PROCESS , of 5-1-84 , which describes the process whereby the Department receives apportionments and warrants. D(JE 5100012,” BUDGET EXECUTION--DEPARTMENT OF ENERGY BASE TABLE, of 3-12-84, which describes the development and maintenance of the base table and its relationship to other budget execution phases. 3 DOE 2200.4 3-31-88 ATTACHMENT 2 i . j. ‘k. DOE 5100.14, ALLOTMENT AND APPROVED FUNDING PROCESS, of 9-17-86, which sets he Department ‘s pollcles and procedures for issuing allotments and 1 approved funding plans. DOE 5160.lA, REPROGRAMMING, RESTRUCTURING, AND APPROPRIATION TRANSFER ) S, of 12-1-86, which establishes he pollcles, crlterla, and procedures “for ‘the Department to reprogram, restructure, and ”transfer appropriations. HQ 21OO.1A, FINANCIAL MANAGEMENT OF MONEY RECEIVED FROM ”PERSONS WHO HAVE ALLEGEDLY VIOLATED DEPARTMENT OF kNERGY REGULATIONS, of 5-11-81, which prescribes policies for the Headquarters administration of funds collected as a result” of civil penalties levied against firms in violation of petro- leum price controls. 7. ACCOUNTING PRACTICES AND PROCEDURES HANDBOOK. This handbook provides accounting system guidance that shall be followed until it is replaced by the accounting directives (DOE 2200.4-2200.10). . US. Department of Energy Washington, D.C. PAGE CHANGE I DOE 2200.4 Chg 1 I . 6-8-92 su&lECT, ACCOUNTING OVERVIEW 1. PURPOSE . To transmit revised pages to DOE 2200.4, ACCOUNTING OVERVIEW, of 3-31-88. 2. EXPLANATION OF CHANGE. To make organizational title, routing symbol, and other editorial changes required by SEN-6. No substantive changes have been made.

3. FILING INSTRUCTIONS. a. Remove Paqe 1 and 2 i and ii I-1 and I-2 11-11 and 11-12 11-21 (and II-22) III-1 thru III-6 Atch 1, page 1 and 2 Atch 1, pages 13 and 14 Atch 2, pages 3 and 4 !xL!2d 3-31-88 3-31-88 3-31-88 3-31-88 3-31-88 3-31-88 3-31-88 3-31-88 3-31-88 Insert Paae ; i and ii I-1 and I-2 11-11 11-12 11-21 (and II-22) II I-1 thru 111-6- Atch 1, page 1 Atch 1, page 2 Atch 1, page 13 Atch 1, page 14 Atch 2, pages 3 and 4 w 6-8-92 3-31-88 6-8-92 6-8-92 3-31-88 6-8-92 6-8-92 6-8-92 3-31-88 6-8-92 6-8-92 3-31-88 6-8-92 b. After filing the attached pages, this transmittal may be discarded. BY ORDER OF THE SECRETARY OF ENERGY: @ A “ DONALD W. PEARMAN, JR. Acting Director Administration and Human Resource Management ● DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer . . U.S. Department of Energy ORDER Washington, D.C. E 3-31-88 Change 1: 6-8-92 SUBJECT: ACCOUNTING OVERVIEW 1. 2. 3. 4. ● 5. PURPOSE . To establish Department of Enerqy (D(IE) accounting pol icy, princi - ~nd standards, and to explain the administrative control of funds, financial and cost accounting, and the financial reporting system in accor- dance ~ith Government regulations and generally accepted accounting principles. CANCELLATIONS. a. DOE 21OO.1A, GLOSSARY OF FINANCIAL TERMS; of 10-23-81. b. DOE 2200.1, ACCOUNTING POLICY AND PRACTICES, of 11-9-79. (See Attachment 2, page 4, paragraph 7.) SCOPE. The provisions of this Order applyto all Departmental Elements and Integrated contractors performing work for the Department as provided by law and/or contract and as implemented by the appropriate contracting officer. EXCLUSION. The Bonneville Power Administration is-governed by the provisions of the Government Corporation Control Act and, as such, operates in accordance with generally accepted accounting principles issued by the Financial Account- ing Standards Board. In following the generally accepted accounting princi- ples and meeting legislative requirements, the Bonneville Pwer Administration will, from time to time, deviate from-the provisions of this Order. OBJECTIVES. a. To provide an introduction to$ and overview of, the accwnting direc- tives and the accounting system; b. To provide an outline of accounting concepts and standards; and co To sumnarize the accounting responsibilities. . . 9 DISTRIBUTION: INITIATED BY: I All Departmental Elements Office of Chief financial Oftlcer Vertical line denotes change. DOE 2200.4 3-31-88 ● 6. JIFF~. Attachment 1, Definitions, provides a consolidated glossary of financial terms used in accounting directives. In some instances a term may be defined within the text of an Order when its use is limited to the subject matter. 7. WEKKW. for subject BY ORDER OF THE Attachment 2, References, is a consolidated listing of references matter contained in accounting directives (DOE 2200 series). SECRETARY OF ENERGY: @ LAWRENCE F. DAVENPORT A “ Assistant Secretarv Management and Administration 2 6-8-92 DOE 2200.4 Chg 1 . Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OO. ;: I-1 Organization of the Directives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1 DOE 2200.4, ACCOUNTING OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0 1 :: DOE 2200.5B, FUND ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,OO, ;:;

DOE 2200.6, FINANCIAL ACCOUNTING ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1 ;: DOE 2200.7, COST ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,.,.O I-1 I e. DOE 2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING . . . . . . . I-1 f. DOE 2200.9B, MISCELLANEOUS ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . ,..O. 9* DOE 2200. lOA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES . . . . . . . . . . . . . ;:; 3. Inquiries . . . . . . . . . . . . . . . . . . . . . . . . . . ....*..** .OO.OOOOO .,..,...O ..,...OO, . I-2 a. Exceptions and Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2 b. Policy and Interpretation 4. ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..,...eo I-2 Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..o..,,,e . . . . . . . . . ....,..OO ..,, I-2 PTFR I I CONCFPTS AND ST~ 1. DOE Accounting Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..,...,,O .Oe.e II-1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . ....,OOO. . . . . . . . . . .e...eeee ..OO. :: II-1 Reporting Entities . . . . . . . . ● .....,.. . . . . . . . . . . . . . . . . . . . . . . . . . . . ..*eee II-1 c . Elements of Accounting and Financial Reporting . . . . . . . . . . . . . . . . . . . . . . II-1 (1) Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0 II-1 (2) Budget Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..O II-2 (3) Budget Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-2 (4) Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-2 (5) Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .O.ooeoo .* II-2 (6) Expenses, Losses, and Transfers Out . . . . . . . . . . . . . . . . . . . . . . . . . . .0 II-3 (7) Financing Sources ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,, II-3 (8) Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....e.,ee ......OO II-3 (9) Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . ● ....*... . . . . . . . . . .....,.O II-3 (10) Outlays ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...e..oee ..O II-4 (11) Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-4 d. Usefulness of Accounting Information . . . . . . . . . . . . . . . . . . . . . . . . . . ..,eee II-4 (1) Timeliness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .e.e,eoee II-4 (2) Relevance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,.....,,O . II-4 (3) Reliability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..,.OO... . . . . . . . . II-4 (4) Cost Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...,,O. II-4 (5) Material ity . . . . . . . . . . . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . . . . . . ......OO II-4 (6) Comparability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-4 (7) Consistency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Oee..e, II-5

e. Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,.,,....O ..,, II-5 (1) Accrual Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..*,...., , II-5 (2) Matching ● . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-5 (3) Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..*.,**.. ,.....OOO II-5 f. Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-5 9* cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., II-6 Vertical 1 ine denotes change. i I I I L DOE 2200.4 Chg 1 6-8-92 h. Accounting Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-6 (1) (2) (3) (4) (5) (6) (7 (8 (9 [;; (12 (13 (14 (15 (16 (17 (18 (19 & (22 (23 (24 (25 (26 (27 J:2 2. Accofints Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acquisition Cost of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advances and Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appropriations for Property, Plant, and Equipment . . . . . . . . . . . . . . Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capitalization of Interest on Property, Plant, and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fair Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Assistance Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fund Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● ,*.. . . . . . . Fund Control ......** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Imputed Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest Payable and Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leave . . . . . . . . ● **...... . . . . . . . . . ● ..*..... . . . . . . . . . . . . . . . . . . . . . . . Loan Guarantees and Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Long-Term Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . ● ...*.... . . . . . . . . .

Prior Period Adjustments of Financial Statements Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● . . Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Receivables . . . . . . . . . . . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . . . . . . ....0.0. Research and Development . . . . . . . . . . . . . . . . . ● . . . . . . . . . . . . . . . . . . . . . Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-6 II-7 II-8 II-8 II-8 II-8 II-9 11-10 11-10 11-11 11-11 11-12 11-12 11-13 11-14 11-14 11-14 11-14 11-15 11-15 11-15 11-16 11-16 11-17 11-17 11-19 11-20 11-20 1 Control Standards . . . . . . . . ● *....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-21 LHAPTFR III - RWQNSI.BII ITLES ;: 3. I & 6. ;: I 1:: ;;: 13. 14. i i Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Secretary (S-1) . . . . . . . . . . . . . . . ● *...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Under Secretary (S-3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heads of Departmental Elements . . . . . . . . ● ....**.. . . . . . . . . . . . . . . . . . . . . . . . . . Chief Financial Officer (CFO; CR-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting Concepts and Standards . . . . . . . . . . . . . . . . . . . . . . . . . . ● ..0..... ;: Administrative Control of Funds . . . . . . . . . . . . . . . . . .***..... . . . . . . . . . . . Inspector General (IG-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● . . . Headquarters General Counsel (GC-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heads of Field Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Allottees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Field Element Chief Financial Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heads of Contracting Activities ● ....0.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Certifying Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● .0...... . . . . . . . . Program Managers . . . . . . . . . . . . . . . . . . . . . . . . . . ...00..0. . . . . . . . . . . . . . . . . . . . . . Personnel Officers . . . . . . . . . . . . . . . . . .0.000... . . . . . . . . . . . . . . . . . . ..eoe***o . Vertical 1 ine denotes change. II I-1 111-1 111-1 II I-1 II I-2 II I-2 II I-2 II I-3 II I-3 II I-4 II I-4 II I-5 II I-6 II I-6 II I-6 II I-6 6-8-92 DOE 2200.4 Chg 1 PTFR I. JNTRODUCTIOfl 1. ● 2. I

APPIICABIIITY. The accounting directives (DOE 2200.4 through DOE 22OO.1OA) are integral parts of the DOE system of accounts. The scope of these directives is specified in DOE 2200.4, ACCOUNTING OVERVIEW, paragraph 3. Heads of con- tracting activities or designees shall interpret the provisions of these directives and review and approve the practices and procedures that are neces- sary for the integrated contractors to maintain a system of accounts accept- able to DOE. The integrated contractors’ customary accounting practices shall be accepted if they conform with generally accepted accounting principles, produce accurate results, provide the necessary DOE financial reports, and do not conflict with the provisions of these directives. Several central Federal agencies, such as the Office of Management and Budget (OMB), the Department of the Treasury, and the General Services Administration (GSA), as well as the General Accounting Office (GAO), provide mandatory accounting and financial management guidance for Federal agencies. DOE must rely as much as possible on the issuances of these oversight agencies, and such material will not be restated in these directives, except where necessary to specifically implement policies or general procedures or to provide clarification. ~. The contents are organized by related subject matter into a series of seven directives. The material covered in each directive is summarized below: a. b. c. d. t e. ~, provides introductory material, defini- tions, references, principles, standards, internal control requirements, and responsibilities. DOF 7700.5B. FUND ACCO-, provides DOE policy and general procedures for accounting for appropriations, funds, and obligations. The chapters cover administrative control of funds; accounting for appropriations; other funds, such as special, trust, and revolving funds; and obligation accounting. DOE 2200.6, FINANCIAL ACCOUNTING, covers accounting and financial manage- ment topics necessary for financial statement presentation in areas other than fund accounting. The directive is organized in balance sheet topic order, from assets to liabilities and equity accounts. Topics related to cash management and disbursements are included in the appropriate asset and liability chapters. ~,provides policy and general procedures for costing and pricing of products and services. DOF 7700.8B. ACCOUNTING SYSTFMS. ORQlN17ATIONS. AND RFpORTIJK , covers reporting by contractors and field elements to Headquarters through the Financiai Information System, financial reporting standards, required Vertical line denotes change. 1-1 DOE 2200.4 Chg 1 Paragraph 2e 6-8-92 Departmentwide internal financial reports, and required financial reports to entities external to DOE. I f. ~,includes chapters on miscellaneous topics, such as payroll, travel, contract closeout, and grants. In addi- tion, chapters are reserved for special accounting requirements that are not applicable to DOE as a whole, such as the Nuclear Waste Fund and I Financial Management of Oil Overcharges. I g. DOF 7700. 10A. ACCOUNTS. CODFS. AND III USTRATIVF FNTR.LES provides a refer- ence source for DOE financial codes and their applicati~ns. It includes the general ledger chart of accounts and financial codes, along with illustrative accounting entries corresponding to the references from previous directives. I

a. F~.eDti~ Except where authority to approve an excep- tion or exemption has bee; delegated to the field organization, the Head of the Departmental Element or Field Element shall forward, in writing, requests for exception to or exemption from the provisions contained in the accounting directives to the Office of Chief Financial Officer (CFO; CR-1) for approval. b. Pol icv Interpretation and Revlsw. . Inquiries about policy interpre- tations of, or proposed revisions t;, this Order shall be forwarded, in I writing, to the Director of Financial Policy (CR-20). Copies of change requests should be forwarded to the Departmental DCP, AD-122, per DOE 1321.16, DEPARTMENTAL DIRECTIVES SYSTEM, page I-6, paragraph IOd. 4. J2QlJCf. It is the policy of DOE that a system of accounts shall be maintained in accordance with regulatory requirements established by GAO, OMB, and the Department of the Treasury. The system of accounts shall adhere to generally accepted accounting practices and procedures when they do not contradict GAO, OMB, and Department of the Treasury regulations. Although a uniform classifi- cation of accounts is prescribed for DOE elements, each power marketing admin- istration may have a chart of accounts based upon its own requirements. Heads of contracting activities or designees shall interpret the provisions of these directives and review and approve the practices and procedures that are neces- sary for the integrated contractors to maintain a system of accounting accept- able to DOE. The integrated contractor’s customary accounting practices shall be accepted if they conform with generally accepted accounting principals, produce accurate results, provide the necessary DOE financial reports, and do not conflict with the provisions of these accounting directives. I-2 Vertical line denotes change. 3-31-88 (lo) (11) Department of the Treasury interest-bearing debt, and DOE 2200.4 Paragraph lh(ll) (c) average interest rate for marketable independent appraisals. Financial Assistance Awards. Funds shall be obligated upon execu- tion of the Notice of Financial Assistance Award by the contracting officer. The agreement sets forth the amount, purpose, performance periods, obligations of the parties, and other applicable basic terms. Payments in advance of performance may be made as authorized by the terms and conditions of the Notice of Financial Assistance Award. Such payments shall be accounted for as advances until the recipient has performed under the award. Grantees shall use SF-269, “Financial Status Report,” to report the status of funds for all nonconstruction projects unless specified in the award that SF-270, “Request for Advance or Reimbursement,” or SF-272, “Report of Federal Cash Transactions,” shall be used for this purpose. Additional reporting guidance is found in title 10, section 600.116, of the Code of Federal Regulations. Financial Reports are designed to present the results of financial position and operations to management, other Government agencies, and the (a) (b) (c) public. “ General Princit)les. ~ Reports reflect the results of financial transactions and fully disclose all material facts for the period covered. Reports also disclose such other data as may have an imme- diate and direct bearing on the financial position and operations pertinent to the management level to which the reports are addressed. Significant data applicable to prior periods are so identified.

~ The cost of preparing a report and the timely issuance of the report are evaluated in the light of the usefulness of the data. Basic Svstem Requirements. The accounting system is designed to facilitate the prompt preparation of all required internal and external financial statements and reports. Financial statements shall be prepared and issued in accordance with standards of the Department of the Treasury at the end of each fiscal year. The necessary statements are (1) Statement of Financial Position, (2) Statement of Operations, (3) Statement of Changes in Finan- cial Position, and (4) Statement of Reconciliation to Budget Reports. ReDorts for Internal Manactement PurDoses. Management is sup- plied monthly with reports reflecting costs and obligations incurred for actual operations. Statements of cost and revenue are provided, showing information by budget activity and program structure. When necessary, the reports shall be accompanied by 11-11 DOE 2200.4 Chg 1 Paragraph lh(ll) (c) 6-8-92 I -a narrative statement, statistical information, and interpre- tation for management. These managerial reports shall be used to exercise financial control over resources and to promote efficiency and economy in operations. (12) Foreicm Currencies. Cash in the form of foreign currencies is sub- ject to the same accounting principles and standards that apply to domestic cash resources. (13) Fund Accounting is a fundamental requirement to demonstrate compli- ance with legislation. Funds are derived from two basic sources: (1) funds derived from general taxation and revenue powers and from business operations and (2) funds held in the capacity of custodian or trustee. (a) Funds derived from general taxation and revenue powers and from business operations include the following: 1 General Fund Accounts consist of receipt accounts used to record collections not dedicated to specific purposes and expenditure accounts used to record financial transactions arising under congressional appropriations or other authorizations to spend general revenues. Z S~ecial Fund Accounts consist of separate receipt and expen- diture accounts established to record receipts of the Govern- ● ment that are earmarked by law for a specific purpose but are not generated by a cycle of operations for which there is continuing authority to reuse such receipts. ~ Revolvinci Fund Accounts are combined receipt and expenditure o accounts established by law to finance a continuing cycle of operations, with receipts derived from such operations usu- ally available in their entirety for use by the fund without further action by Congress. For power marketing administra- tions, the funds must be used for operations and payback to the Department of the Treasury of the Federal investment. Consolidated working funds under title 31, section 1536, of the United States Code are not revolving funds. ~ Manaa ement Fund Accounts are combined receipt and expenditure accounts established by law to facilitate accounting for and administration of intra-Governmental operations of an agency. Working funds, which are a type of management fund, may be established in connection with each of the foregoing account types to record advances from other agencies. (b) Funds held by DOE in the capacity of custodian or trustee include the following: # . 11-12 Vertical line denotes change. 6 - 8 - 9 2 DOE 2200.4 Chgl a Paragraph 2

(c) Revenues shal 1 be classified by type, by avail abi 1 ity or non- availability for expenditure, and by appropriation or fund. Revenues earned shall be billed and collected promptly. (d) Net income or loss from revenue-producing operations shall be separately accounted for and disclosed in the financial reports. The net income or loss shall reflect all costs of operations offset against the revenues received during the reporting period. 2. INTERNAL CONTROL STANDARDS. Internal controls shall be maintained to assure that all funds, property, and other resources for which the Department is responsible are properly used or safeguarded to prevent unwarranted waste, deterioration, destruction, misuse, or misappropriation. Further guidance on the internal control system is provided in DOE 1000.3B, INTERNAL CONTROL SYSTEMS. e Vertical line denotes change. 11-21 (and II-22) 6-8-92 DOE 2200.4 Chg 1 1. 2. . I 3. I 4. I , APTFR IIL .PURPOX. To establish Departmental responsibilities for the account directives (DOE 2200.4 through DOE 2200. 10A). FTARY (s-1} . a. Shall prescribe a system for the administrative control of funds DOE. ng within b. Shall submit all reportable Anti-Deficiency Act violations to Congress and the President. c. In this capacity, the Secretary has delegated authority to the Office of Chief Financial Officer (CFO; CR-l), for the financial administration of DOE funds and appropriations, including the establishment and management of budget and accounting systems throughout the Department, except as delegated to the administrator of the power marketing administrations (PMA’ S) . FR SFCRFTARY (S-31 shall: . a. Approve or disapprove disciplinary action recommended by the CFO (CR-1), upon notification that a violation(s) of fund control regulations has occurred, and ensure that appropriate disciplinary action is taken. b. Provide concurrence or nonconcurrence on the report of any disciplinary action(s) related to funding violations, within 10 workdays of notification by the CFO, in order to close the violation file. ~ shall: a. Ensure that the provisions of the accounting directives that apply to functions over which they have program direction and management responsibilities, both in the field and at Headquarters, are carried out. b. Inform the CFO (CR-1) of changes in functions and activities planned for future budget requests. c. Develop, with the CFO, budget and reporting classifications and definitions that cover the specific functions and activities for which they are responsible. Vertical line denotes change. III-1 DOE 2200.4 Chg 1 Paragraph 5 15 FF F-l OFF~[CFO ● IJ. shall: 6 - 8 - 9 2 ● (1) Establish, maintain, and interpret policy and general procedures for accounting and related reporting essential to the financial integrity and efficient management of the Department’s financial resources and to the safeguarding of its funds and property. (2) Provide technical accounting advice and guidance to field offices directly performing accounting functions. (3) Review activities throughout DOE to evaluate the adequacy of estab- lished policies, procedures, and standards governing accounting and I related reporting functions for which the CFO is responsible; evaluate the performance of such functions; and ensure that any necessary corrective action is taken. (4) Serve as liaison with the General Accounting Office (GAO), the Office of Management and Budget (OMB), the Department of the Trea- sury, the General Services Administration (GSA), other agencies,

I congressional committees, and industry in the areas for which the CFO is responsible. (5) Perform the accounting and certain statistical functions for quarters and, to the extent that financial activities are centralized, for DOE as a whole. (6) Report on the financial status of DOE and the results of its Head- opera- tions; furnish periodic reports on such obligations, costs, and other matters within the CFO’S area of responsibility as are needed for the sound management of DOE operations; and provide reports required by GSA, OMB, the Department of the Treasury, and other central agencies. (7) Provide technical advice and guidance to offices and divisions on the financial implications of proposed courses of action. (8) Develop, with Heads of Departmental Elements, current budget and reporting classifications and definitions covering the specific functions and activities for which they are responsible. (9) Develop and keep current policies and procedures for this manual. b. stratlve. . (1) Establish policies and procedures for Departmental systems of administrative control of funds. (2) Submit apportionment requests to the Director of OMB and receive and record OMB apportionments. # III-2 Vertical line denotes change. 6-8-92 DOE 2200.4 Chg 1 Paragraph 7C ● (3) Administer the allocation of congressional control levels from the base table and internal distribution decisions, issue approved fund- ing program calls, and prepare and issue approved funding programs and allotments that conform to all legal and administrative 1 imitations on the appropriations and funds of DOE. (4) Continuously reconcile OMB-approved apportionments and Department of the Treasury warrants to appropriations, approved funding program totals to allotments, and allotment totals to base table controls. (5) Serve as the allottee for all funds managed at Headquarters except when other allottees have been designated. (6) Ensure that the allotments and approved funding programs issued each month accurately reflect all increases, withdrawals, and reallocations requested in the previous month and, where appro- priate, that the Department financial information system has been updated accordingly. (7) Coordinate all fund withdrawals with the allottee or funds approval officer to ensure that the withdrawal does not create an overobligation. (8) Review, in coordination with the Office of General Counsel (GC-1), all reports of violations or alleged violations of legal limita- tions and advise the Secretary (S-l),or Under Secretary (s-3) as to whether a report shall be made to the Congress and, through OMB, to the President; recommend disciplinary action when appropriate; and notify the DOE component promptly of any disciplinary action taken. (9) Monitor all reports of violations of administrative limitations received from DOE components to ensure that reports are submitted in a timely fashion and to ensure that corrective action is adequate. 6. fIG-1 ~ shall: a. Investigate allegations of illegal conduct, wrongdoing, fraud, waste, and misuse that are associated with fund control violations. I b. Advise the CFO (CR-1) of facts derived from any investigation that has* fund control violation implications. . 7. RTFRS GFNFRAI COU~Fl (GC-1~ shall: I a. Review all reports of apparent violations submitted by the CFO (CR-1). b. Issue a determination within 30 days as to whether the apparent violation is reportable to the President or Congress, or both. @

I c. Either concur or decline to concur with the CFO’S recommendation on disciplinary actions. Vertical line denotes change. III-3 DOE 2200.4 Cha 1 6 - 8 - 9 2 Paragraph 8 - 8. ~ shall: a. Execute all accounting and related financial reporting functions, includ- ing establishing an effective system of internal control, for all DOE activities under their jurisdiction, in compliance with the policies, principles, and objectives specified in the accounting directives. b. Interpret DOE accounting policy, principles, and objectives for contrac- tors and approve the practices and procedures necessary for contractors to carry them out. c. Develop and keep current field organization instructions on accounting procedures that outline the accounts and records maintained, flow of all documents, functions of all organizational units, and reporting of infor- mation necessary to show clearly the accounting operations performed by the field organizai d. Ensure that their current accounting e. Review and approve procedures and any 9. ALLQUKS shall: a. b. c. d. I e. ion. ntegrated contractors develop and maintain written practices and procedures. their integrated contractors’ accounting practices and revisions before they are put into effect. Establish and maintain an effective system for the administrative control of funds allotted to them and the commitment of funds, including the cer- tification of fund availability for each transaction prior to obligation, in accordance with approved funding programs and allotments. Designate, in writing, an authorizing official(s) to sign program release documents and determine the fund citation(s) or accounting classifica- tion(s) that accompanies each authorization; this includes ensuring that funds are used for the purposes for which they were appropriated in accor- dance with title 31 U.S.C. section 1301. At Headquarters, Assistant Secretaries or equivalents shall designate the authorizing officials to sign program release documents. The CFO, the allottee for Headquarters elements, shall designate certifying officials for Headquarters. Ensure that the designated authorizing official is adequately trained and fully competent to prevent the occurrence of violations. Inform, by memorandum or notice, all employees serviced under the approved funding program of the identity of the individual(s) authorized to sign program release documents and of the prohibition against unauthorized persons’ signing program release documents or incurring liabilities. Provide the servic. officers (heads of persons, and their documents. ng Field Element CFO’S (F”eld CFO’S) and contracting contracting activities) wth current listings of initiate program releasealternates; authorized to III-4 Vertical line denotes change. 6-8-92 DOE 2200.4 Chg 1 Paragraph IOde , I al I I I f. 9“ h. i. J. k. 1. Provide written instruction for incurring obligations to the certifying official detailing the documents, document flows, and controls within the organization. Ensure that all program release documents are processed in accordance with established document flows and procedures. Request sufficient funds for the apportionment in the new