May 26

The USSGL Chart of Accounts: A Walkthrough of Sections 1 and 2

The USSGL chart of accounts is the federal government's standardized list of six-digit general ledger accounts that every federal agency uses. Published in Section 1 of the USSGL supplement to the Treasury Financial Manual, it organizes accounts into eight series: 100000 (Assets), 200000 (Liabilities), 300000 (Net Position), 400000 (Budgetary), 500000 (Revenue and Other Financing Sources), 600000 (Expenses), 700000 (Gains, Losses, and Miscellaneous), and 800000 (Memorandum). Section 2 provides a definition for every account. Together, Sections 1 and 2 are where every federal accounting research task begins.

Key takeaways

• Eight account series: The USSGL chart of accounts is organized into series 100000 through 800000, with each series covering a specific type of account.
• Two parallel systems: Proprietary accounts work like commercial accounting. Budgetary accounts (series 400000) are unique to federal accounting and self-balance within the 400000s.
• Section 1 is the list: Section 1 of the USSGL provides the account number, title, and normal balance for every account.
• Section 2 is the definition: Section 2 provides a complete definition of what each account is used for, and is more readable than the raw chart of accounts.
• Agencies can extend: Agencies can add digits beyond six in their internal systems, but every account must roll up to a six-digit USSGL account for reporting.
• Where to find it: tfx.treasury.gov/tfm/supplements/ussgl, Part 1, Sections 1 and 2.

Why the USSGL chart of accounts matters

If you have read our pillar post on the USSGL, you know the chart of accounts is what makes federal accounting consistent across thousands of agencies. This post goes deeper. It walks through each of the eight account series, explains the difference between budgetary and proprietary accounts, and shows how to use Sections 1 and 2 together to find the right account for any transaction.
For new federal accountants, this is where you start. For experienced accountants moving to a new agency, this is the reference that confirms your knowledge transfers. For managers onboarding staff, this is the document you walk them through in their first week.

How the USSGL chart of accounts is structured

Every USSGL account is a six-digit number. The first digit tells you the account series. The next five digits identify the specific account within that series. For each account, Section 1 of the USSGL provides four pieces of information: the account number, the title (with category and subcategory), the account name, and the normal balance (debit or credit).
Important note on system limitations. Some legacy federal financial systems were built when USSGL accounts were only four digits long. If your agency's system still uses four-digit accounts, there probably is a workaround that maps four-digit codes to the six-digit USSGL. The six-digit standard is what gets reported to Treasury.

The eight USSGL account series

The chart of accounts is roughly 23 pages long in the current USSGL supplement. The accounts are organized into eight series, each covering a specific type of account. Here is what each series tracks.

100000 series: Assets

Assets are what an agency owns or has the right to receive. The 100000 series covers fund balance with Treasury (101000), accounts receivable (131000), advances and prepayments (141000), inventory, property, plant, and equipment (175000 for general equipment), and many others. Some accounts within this series are unique to federal accounting, including fund balance with Treasury awaiting a warrant (109000), seized monetary instruments (153100), and forfeited property held for sale (154100).

200000 series: Liabilities

Liabilities are what an agency owes. The 200000 series covers accounts payable (211000), accrued liabilities, advances from others, federal employee benefits payable, environmental liabilities, and contingencies. Federal-specific accounts in this series include liabilities for refunds and other payments (213000) and various types of intragovernmental payables.

300000 series: Net Position

Net position is the federal equivalent of equity in commercial accounting. The 300000 series tracks unexpended appropriations (309000), cumulative results of operations (331000), and adjustments to net position from various sources. Unlike commercial equity, federal net position reflects the difference between assets and liabilities at any point in time, plus the appropriated funds available for future use.

400000 series: Budgetary Accounts

This is the series that makes federal accounting different from commercial accounting. Budgetary accounts track the lifecycle of budget authority from initial appropriation through final outlay. The 400000 series includes anticipated appropriations (411000), unapportioned authority (445000), apportionments (451000), allotments (461000), undelivered orders (480100), delivered orders unpaid (490100), and delivered orders paid (490200), among many others.
Budgetary accounts self-balance within the 400000 series, meaning every budgetary journal entry has equal debits and credits all within the 400000s. The total budgetary resources (the credit side of the budgetary entry) should always equal the status of budgetary resources (the debit side) at any point in time. This is what enables the Statement of Budgetary Resources to balance.

500000 series: Revenue and Other Financing Sources

Revenue accounts capture exchange revenue (like 520000, Revenue from Services Provided) and non-exchange revenue (taxes, fines, and penalties). The 500000 series also includes other financing sources such as appropriations used (570000), expended appropriations (577000), and transfers in and out of net position. These accounts populate the Statement of Net Cost and the Statement of Changes in Net Position.

600000 series: Expenses

Expenses are the costs of agency operations. The 600000 series covers operating expenses (610000), benefit programs, interest expense, cost of goods sold, depreciation and amortization, and bad debt expense. Federal-specific expense accounts also exist for things like federal employee benefits, environmental cleanup, and grants disbursed.

700000 series: Gains, Losses, and Miscellaneous Items

The 700000 series captures non-operating gains and losses, including gains and losses on the disposal of assets, actuarial gains and losses on federal benefit programs, and other miscellaneous items that do not fit cleanly into operating revenue or expense categories.

800000 series: Memorandum Accounts

Memorandum accounts provide additional tracking and reporting detail without affecting the trial balance totals. The 800000 series includes purchases of property, plant, and equipment (880200), offsets for purchases of assets (880100), and other memo entries used for reporting purposes. Memo entries always come in offsetting pairs, so they balance to zero.
Common pitfall on memo accounts. Some accountants treat memo entries as optional. They are not optional. When a USSGL transaction code tells you to post a memo entry, it is required for proper reporting. The memo entries feed specific lines of the financial statements and disclosure notes.

Budgetary vs. proprietary: the two-track system

Federal accounting maintains two parallel sets of books that record the same events from different perspectives. Proprietary accounting records what the agency owns, owes, earns, and spends. It is similar to commercial accounting and feeds the Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position.
Budgetary accounting (the 400000 series) records the flow of budget authority from Congress through the agency to final outlay. It tracks what Congress authorized, what OMB apportioned, what the agency allotted, what was obligated, and what was actually paid out. Budgetary accounting feeds the Statement of Budgetary Resources, the SF 132, and the SF 133.
For most transactions, you post to both sides. Buying equipment, for example, generates a proprietary entry (debit equipment, credit accounts payable) and a budgetary entry (move funds from undelivered orders to delivered orders unpaid). The two entries record the same event from different reporting perspectives, and both have to be made for the transaction to be complete.

How to use Section 2: Accounts and Definitions

Section 1 tells you the account number, title, and normal balance. Section 2 tells you what each account is actually used for. It is roughly 157 pages and provides a definition for every account in the USSGL.
Use Section 2 when you are not sure whether an account fits your transaction. The definitions disambiguate similar accounts, explain which fund types apply, and clarify edge cases. If you find two accounts with similar names in Section 1, the definitions in Section 2 are how you decide which one is correct.

A walkthrough: Sarah looks up seized cash

Here is how Sections 1 and 2 work together in practice. Sarah is a new federal accountant at a law enforcement agency. Her manager tells her the agency just seized $10,000 in cash during an investigation, and it has not yet been deposited. Sarah needs to find the right GL account to record the seizure.

Step 1: Search the chart of accounts (Section 1)

Sarah opens Section 1 of the USSGL, uses Control+F to search for "seized," and finds two candidates: 153100 Seized Monetary Instruments and 153200 Seized Cash Deposited. Both have a normal debit balance. The names are similar enough that Section 1 alone does not tell her which one to use.

Step 2: Check the definitions (Section 2)

Sarah opens Section 2 and looks up both accounts. The definition for 153100 says it is used to record "the value of all seized monetary instruments, including undeposited cash." The definition for 153200 says it is used for "cash seized by law enforcement and deposited to the Department of Treasury in banks." Since the cash has not yet been deposited, 153100 is the correct account.

Step 3: Confirm the transaction code (Section 3)

Once Sarah has the right account, she moves to Section 3 to find the transaction code that posts to it. That process is covered in our USSGL transaction codes deep dive. The short version: she opens the T-Accounts under Section 3, looks up 153100, sees three transaction codes that debit it (C166, D310, E606), reads each description, and identifies C166 as the right one for recording seized monetary instruments including undeposited cash.
Total time from the manager's question to a complete answer: about five minutes once Sarah knows the navigation. This is why the USSGL is the most important reference document for federal accountants.

How agencies extend the USSGL

The USSGL provides six-digit accounts as the federal standard. Agencies can add additional digits to those six in their internal systems to track sub-categories, organizational units, or program detail. For example, an agency might use 211000-001 for accounts payable in one program and 211000-002 in another. The internal extensions are agency-specific, but the rollup to the six-digit USSGL is mandatory for Treasury reporting.
This flexibility is what lets the USSGL work across thousands of agencies with different missions, structures, and reporting needs. The six-digit standard ensures consolidation works. The extensions let individual agencies track what they need internally.

Common pitfalls when using the USSGL chart of accounts

• Picking an account based on title alone. Two accounts can have similar names but very different uses. Always check the definition in Section 2 before posting.
• Forgetting the normal balance. Section 1 tells you the normal balance for every account. Posting an entry that puts an account on its abnormal side is usually a sign something is wrong.
• Skipping the budgetary entry. Most transactions require both a proprietary entry and a budgetary entry. Posting only the proprietary side breaks the budgetary tracking that drives the SF 132 and SF 133.
• Treating memo accounts as optional. Memo entries balance to zero but still feed financial statement disclosures. When the transaction code says to post a memo entry, it is required.
• Using outdated account numbers. The USSGL is updated annually by Treasury Bulletin. Accounts can be added, retired, or renumbered between fiscal years. Always check that you are working from the current Part 1.

Frequently asked questions about the USSGL chart of accounts

How many accounts are in the USSGL?

The USSGL contains several hundred six-digit accounts organized into eight series. The exact count changes from year to year as Treasury adds new accounts, retires old ones, or renumbers existing ones. The current chart of accounts is approximately 23 pages long in Section 1 of the USSGL supplement.

What is the difference between budgetary and proprietary accounts?

Proprietary accounts (USSGL series 100000 through 700000) track what an agency owns, owes, earns, and spends. They function like commercial accounting and feed the Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position. Budgetary accounts (USSGL series 400000) are unique to federal accounting and track the flow of budget authority from appropriation through outlay. They self-balance within the 400000 series and feed the Statement of Budgetary Resources, SF 132, and SF 133.

Can agencies add their own accounts to the USSGL?

Agencies cannot add new six-digit USSGL accounts. Those are set by Treasury's Bureau of the Fiscal Service. However, agencies can extend the six-digit accounts with additional digits internally for sub-categorization. For example, an agency might use 211000-001 for accounts payable in one program and 211000-002 in another. The internal extensions roll up to the six-digit USSGL for Treasury reporting.

What does USSGL account 101000 represent?

USSGL account 101000 is Fund Balance with Treasury. It represents the amount of money an agency has on deposit with the Department of the Treasury, similar to a checking account balance in commercial accounting. It is the most common asset account in federal accounting because nearly all federal cash flows through Treasury rather than commercial banks.

What is a memo account in the USSGL?

A memo account is a USSGL account in the 800000 series that provides additional tracking or reporting detail without affecting the trial balance totals. Memo entries always come in offsetting pairs that balance to zero. They are used to track things like current-year purchases of property, plant, and equipment that need to be disclosed but should not be double-counted in financial statement totals. Despite balancing to zero, memo entries are not optional; they feed required disclosures.

Where can I download the USSGL chart of accounts?

The current USSGL chart of accounts is available at tfx.treasury.gov/tfm/supplements/ussgl. Navigate to Part 1, then Section 1 (Chart of Accounts). Treasury publishes the chart of accounts as a PDF. Section 2 (Accounts and Definitions) is published separately under Part 1 and is the more readable reference for understanding what each account is used for.

What to learn next

Once you can navigate Sections 1 and 2, the next step is learning how to find the right transaction code for any accounting event. Section 3 of the USSGL is where you go to find journal entries. After that, account attributes (Section 4) and the crosswalks to financial statements (Sections 5 and 6) become important when you start working on financial statement preparation.
• What Is the USSGL? A Complete Guide to the U.S. Standard General Ledger (pillar)
• USSGL Transaction Codes: How to Research and Post Federal Journal Entries
• USSGL Account Attributes and Crosswalks: How Sections 4, 5, and 6 Drive Financial Reporting

Master the USSGL with structured training

If you want to build deep familiarity with the USSGL chart of accounts and all seven sections of the supplement, the Introduction to U.S. Standard General Ledger course is the structured path. It walks through every section with worked examples, knowledge checks, and earns NASBA-approved CPE credit. Best for new federal accountants, anyone moving between agencies, and managers onboarding staff.

Sources

• Treasury Financial Manual, USSGL Supplement, Part 1, Sections 1 and 2
• Federal Financial Management Improvement Act of 1996 (FFMIA)
• FASAB Handbook