Questions concerning this policy chapter should be directed to:

0701 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies regarding recycling revenues. Recycling is considered a component of abandonment/destruction and applies only to personal property that has been through the entire excess/surplus process.

Key points covered in this chapter:

  • VA may retain proceeds from their recycling efforts as an incentive to increase and expand the Government-wide recycling efforts;
  • VA will adhere to the yearly consolidated appropriations Public Law (P.L.), to ensure funds earned from recycling will remain available for obligation until expended, e.g. not be swept at year-end;
  • VA will follow 41 C.F.R. § 102-38.295, to receive and distribute revenue earned from their recycling efforts; and
  • Proceeds from recycling revenues in GSA-leased facilities will be provided to GSA to support employee child-care programs.

0702 Revisions

See changelog.

0703 Definitions

Recycling – The series of activities, including collection, separation, and processing by which materials are recovered from the solid waste stream for use in the manufacture of new products other than fuel for producing heat or power by combustion.

Revenue – An inflow of resources that an entity demands, earns, or receives by donation. Revenue is recognized to the extent that the collection is probable (i.e., more likely than not) and the amount is measurable (i.e., reasonable estimable).

0704 Roles and Responsibilities

Under Secretaries, Assistant Secretaries, Other Key Officials, Chief Financial Officers and Fiscal Officers are responsible for ensuring compliance with the policies set forth in this chapter. As well as, ensuring that cost-effective recycling programs are effectively and efficiently implemented and managed within the Administrations and Staff Offices.

Assistant Secretary for Management/Chief Financial Officer (VA CFO) monitors VA activities to implement recycling programs, reports progress to the Secretary of VA and other appropriate parties. Requests sufficient funds to ensure Department-wide implementation of recycling programs.

0705 Policies

070501 General Policies

  1. VA will utilize 41 C.F.R. § 102-38.295 to determine whether proceeds from property sold may be retained by VA.
  2. In accordance with the government-wide general provisions of the yearly consolidated appropriation (e.g., P.L. 117-103, Consolidated Appropriations Act, 2022, Division E, Title VII, Section 706) and 41 C.F.R. § 102-38.295, VA will retain recycling revenue when:
    • The agency sells scrap material or expendable property to a recycler; or
    • The agency has decided to abandon or destroy the item(s) and hires a recycler to destroy the item(s) and sell the residual material on the agency’s behalf.
  3. VA will adhere to 41 C.F.R. § 102-38.295 and will not retain recycling revenue when:
    • VA sells surplus equipment, such as a computer, to a recycler, VA may keep only enough revenue to cover the direct costs and reasonably related indirect costs incurred in selling the property. The remaining proceeds must be deposited as miscellaneous receipts in the U.S. Treasury; or
    • If VA relinquishes ownership of the property to a recycler as an abandonment/destruction item (instead of selling it), then the agency is no longer owner of the property and is not entitled to any proceeds earned by the recycler.
  4. As required by Executive Order (E.O.) 14057 Section 207, VA must minimize waste by annually diverting from landfills non-hazardous solid waste (including food and compostable materials) and construction and demolition waste and debris.

070502 Accounting for Recycling Revenue

  1. In accordance with the government-wide general provisions of the yearly consolidated appropriation, VA will ensure funds earned from recycling will remain available for obligation until expended (i.e., No-Year Funds).
  2. In order for VA to monitor and track deposits, unobligated balances, and expenditures of funds under VA recycling programs, no-year appropriation accounts with the proper budget structure will be established as required.
  3. VA will ensure accounting transactions related to recycling activities include recycling revenue source codes when required.
  4. Administration and Staff Offices will provide field stations under their jurisdiction with guidance on which budget(s)/fund(s) will be utilized for recycling activities.
  5. Field station offices will ensure proper accountability for recycling revenue.
  6. Income derived from the sales of precious metals and x-ray film, a recycling program managed by the Office of Procurement, Acquisitions and Logistics (OPAL) Service and Distribution Center (SDC) will be paid to the Supply Fund. OPAL SDC may return funds to the Supply Fund’s customers in the form of a billing holiday for OPAL services.
  7. VA will deposit recycling revenue funds from stations that occupy GSA rental property/space and participate in GSA-managed recycling programs into the Federal Building Fund (47X4542.001) for use as tuition assistance for child-care centers operated in GSA space.

070503 Authorized Uses for Recycling Revenue

  1. As authorized by P.L. 117-103, Section 706 and subsequent laws, VA will use recycling and waste prevention revenue, other than that generated through GSA- managed programs in leased facilities, for:
    • Acquisition, waste reduction and prevention, and recycling programs defined in current legislation, E.O.s, etc. (e.g., E.O. 14057), including any such programs adopted prior to the effective date of current mandates if authorized;
    • Other environmental management programs, including, but not limited to, the development and implementation of hazardous waste management and pollution prevention programs; or
    • Other employee programs as authorized by law or deemed appropriate by the Secretary of VA (or delegate).
  2. Recycling revenues generated by GSA-managed recycling programs are allocated and distributed to the GSA Child-care Tuition Assistance Program and to participating federal tenant agencies.
  3. Use of recycling revenue earned for a use other than explicitly stated in this section is disallowed unless specific approval is received from the Secretary of VA or his/her delegate.

0706 Authorities and References

0707 Rescissions

VA Financial Policy Volume II, Chapter 7E – Recycling Revenue, September 2021.

0708 Questions

Questions concerning this policy chapter should be directed to:

Appendix A: VHA – Accounting for Recycling Revenue at Facilities in Financial Management System (FMS)

  1. In order for VHA to monitor and track deposits, unobligated balances, and expenditures of funds under VHA recycling programs, each qualifying VHA facility must establish an account in the no-year medical facilities appropriation with the following accounting elements:
    • Treasury Symbol: 36X0162. This treasury symbol is used for Medical Facilities VA.
    • Fund code 0162X2. This fund code is for a no-year fund.
    • Revenue Program: AR06. This Accounts Receivable (AR) process cycle makes facility collections available at the allowance level.
    • Budget Fiscal Year (BFY): 2004. Recycling fund deposits will always use this BFY.
    • Revenue Source Code (RSC): 8031. This is a revenue source code that is used to track recycling income.
    • Accounting Classification Code (ACC): 0100401Y1. This ACC is specifically assigned for recording revenues, obligations, and expenditures related to the recycling program.
  2. Transactions were established in FMS application tables with all the necessary data, including zero budgets down to the Sub-allowance Spending (SASP) control table, allowing revenue collections to be available for obligating and expending using existing FMS transactions.
  3. Facilities are required to set up the fund control points in the Integrated Funds Distribution, Control Point Activity, Accounting and Procurement System (IFCAP) Data Dictionary, prior to submitting any transactions to FMS for the 0162X2 fund. Once IFCAP submits the fund control points to FMS, facilities will be able to enter zero-dollar Spending Allowance (SA) documents to establish the ACC in the SASP table. After these steps are successfully completed, facilities will be able to make input to the 0162X2 fund.
  4. To record a deposit of recycling revenue, VHA facilities will process a cash receipt transaction using transaction code CR, transaction type 05, revenue source code 8031, and ACC 0100401Y1.
  5. To record obligations and expenditures, VHA facilities will follow the same procedures for other medical care appropriations detailed in the FMS Procedures Guide for Field Stations.
  6. VHA facilities occupying GSA-leased space will transfer proceeds from GSA- managed recycling efforts to GSA. Revenue earned from these activities which were previously recorded to Fund 0162X2 will be transferred into F3885, Undistributed Intra-Governmental Payments. To accomplish the transfer VHA facilities will first use two FMS transactions with a valid vendor code then process a transaction using IPAC:
    • Transaction 1 – Decrease the cash receipt for Fund 0162X2 using transaction code TR and transaction type 26;
    • Transaction 2 – Increase the cash receipt for Fund 3885 using transaction code TR and transaction type 24; and
    • Transaction 3 – Process an IPAC transaction to transfer the funds to GSA fund 47X4542.001, ALC 47000017.

Appendix B: Accounting for Recycling Revenue in Integrated Financial and Acquisition Management System (iFAMS)

The accounting for recycling revenue in iFAMS occurs through a number of transactions affecting the budgetary and proprietary general ledgers.

  1. Recording a Prior Year Carryover
    1. The appropriate staff should process an AA 01 transaction to bring forward no- year recycling revenue earned and still available for obligation at the end of the prior year.
      • 42010015 – Carryover In
      • 10100001 – FBWT – Disbursing Authority
      • 90000000 – Statistical Accounts
      • 44500001 – Unapportioned Authority
      • 33100001 – Cumulative Results of Operations
      • 90021908 – Recoveries or Cancellation of Authority
  2. Record Estimated Reimbursements (Proceeds) for the Current Year
    1. Prior to collection of any recycling revenue an estimate of the annual proceeds expected from the activity must be recorded in iFAMS using an AA AMR transaction.
      • 40600001 – Anticipated Collections from Non-Federal Sources
      • 44500002 – Unapportioned Anticipated Authority
    2. After the unapportioned anticipated authority for the estimate of annual proceeds is posted, an AO RE document is processed to apply the apportionment.
      • 44500002 – Unapportioned Anticipated Authority
      • 90000000 – Statistical Accounts
      • 45900002 – Reimbursement Apportion Unavailable – Current Quarter
      • 90021902 – Anticipations or Temporarily Unavailable
    3. And record the allowance at Level 3 with an AC RE transaction.
      • 45900009 – Lower-level Budget Offset
      • 45900003 – Allowances Available for Obligation
  3. Recording Receipt of Recycling Revenue
    1. NCA ONLY; When an authorized party at a field facility, other than Agent Cashier located at the NCA Stafford office, receives recycling revenue via a cash payment, a transaction for undeposited collections is entered using the BON RY document and transaction type.
      • 11100001 – Undeposited Collections
      • 90021603 – Revenue that is receivable from public
      • 59000001 – Other Revenue
      • 90010001 – Misc Revenue Receivable with no Budget
    2. Collections processed using the Collections Information Repository (CIR), e.g., payment is received via credit card, Automated Clearing House (ACH), or check and other payments through the Agent Cashier, a CRI RY transaction is processed. A systematic updated performed by iFAMS liquidates any referenced billing document when this transaction is processed.
      • 10100021 – FBWT – Reclassifications
      • 42660001 – Other Actual Business-Type Collections from Non-Fed Sources
      • 45900002 – Reimbursement Apportion Unavailable – Current Quarter
      • 59000001 – Other Revenue
      • 40600001 – Anticipated Collections from Non-Federal Sources
      • 46100001 – Allotments – Budget Level 3 – Allotment (Administration)
    3. NCA ONLY; Collections not interfaced via the CIR can be manually recorded in iFAMS using the CME document type, with a RY transaction type. The BON document will be referenced in this transaction; if no BON billing document exists then one should be created prior to processing the CME RY.
      • 10100022 – FBWT – CIR Collections
      • 42660001 – Other Actual Business-Type Collections from Non-Fed Sources
      • 45900002 – Reimbursement Apportion Unavailable – Current Quarter
      • 59000001 – Other Revenue
      • 40600001 – Anticipated Collections from Non-Federal Sources
      • 46100001 – Allotments – Budget Level 3 – Allotment (Administration)
    4. If a collection for recycling activities was temporarily posted to a suspense account while the deposit was researched, VA will use the CYR RY transaction to clear the suspense account and correct the accounting of the deposit.
      • 10100021 – FBWT – Reclassifications
      • 42660001 – Other Actual Business-Type Collections from Non-Fed Sources
      • 45900002 – Reimbursement Apportion Unavailable – Current Quarter
      • 59000001 – Other Revenue
      • 40600001 – Anticipated Collections from Non-Federal Sources
      • 46100001 – Allotments – Budget Level 3 – Allotment (Administration)
  4. Reprogramming
    1. If a need arises to reprogram funding and update authority in the budget, a pair of SCT RY transactions may be used to move recycling revenue from one organization to another.
      • 10100021 – FBWT – Reclassifications
      • 42660001 – Other Actual Business-Type Collections from Non-Fed Sources
      • 45900002 – Reimbursement Apportion Unavailable – Current Quarter
      • 59000001 – Other Revenue
      • 40600001 – Anticipated Collections from Non-Federal Sources
      • 46100001 – Allotments – Budget Level 3 – Allotment (Administration)