Module 3 without auditing Flashcards
Government Fund Types
general, special, public enterprise, Intragovernmental, Trust, Trust revolving, deposit, clearing accounts
Government fund categories
Appropriated, Reimbursable, revolving, trust, non appropriated
Special Fund Type
Earmarked for specific purposes
Public enterprise fund type
revolving funds, business ops
Intragovernmental fund type
revolving funds, busness ops between gov agencies
Clearing accounts
temporary account for transactions that don’t fit elsewhere
trust fund type
carrying out specific programs IAW statute where nation is the beneficiary ex. Highway trust fund. Government owns the assets
Three color books
Green book - Internal Controls; Yellow book - Auditing policy; Red book - fiscal law
Act exempts promotion of individual for gov purchases
Gov employee incentive awards act
Type of approps and time frame
MILPERS - 1; O&M - 1; RDT&E - 2; Procurement - 3; SCN (Ship construction NAVY) - 5; MILCON - 5
When are no year approps cancelled
- agency determines no longer needed 2. no charges for 2 years
Severable Services
Governemnt recives something useful uppon expenditure; can cross Fys
Non Severable Services
Cannot be separated into increments. Entire amount Obligated at onset. Training is non severable usually
This carries forward expired phased balances
SF-133
Agency head approval for program AL amounts above
$4M
What kinds of gifts can be made, and what happens to unauthorized gifts
Gifts to the US (real or personal property. 2. Gifts to an agency (money or real property), can accept services/property under mutual agreement; unauthorized are deposited in misc receipts
ADA criminal penalties
no more than $5000 and no more that 2 years
ADA must be reported within ___ and investigation complete within ___
10 days, 14 weeks
ADAs reported to
POTUS through congress,OMB and comp general
Instructions on ADA provided in
OMB circular A-11
Continuing Resolution for authority for multi year
carry over authority is subtracted from CR portion
Certifying official authorized to seek guidance of ___
Comptroller General or DOD General Council
Acounting “Major Loss” vs “Minor Loss”
Major -$750 or if any fraud; Minor - under $750 no fraud
Is relief provided for loss? Who Provides it? What is statute of limitations
DFAS provides it. Granted for accidental loss (no statute of limitations) Accidental illdgal/incorrect/ improper payment (3 yr statute of limitation)
Certifying official must ensure 4 things
Complete, computed correctly, correct and legal
Which accountable individual CANNOT hold public funds
Certifying official
DOD Finance has 4 distinct functions
Entitlement, Payment, Collecting, Controlling
Law requires Certifying Officers to be personally liable for wrong payment resulting from negligence
1996 Public Law 104-106
Two types of accounting used the US Standard General Ledger; one other type
Budgetary Accounting - System to set priorities, allocate/finance resources, assess implications; Proprietary/Financial Accounting - Supports Accral accounting and financial reporting; Managerial accounting not required until 2006 w/ SFFAS 30
Which entities hold Dispersing Office (DO) functions
Militray holds their own while the rest of gov is through Treasury
This holds all DOD FM policy/regs/procedures
DOD FMR - Financial Management Regulations (16 volumes)
Dispersement voucher has 5 elements
Date and unit info, line of accounting, amount, dispersement method, payee
All units authorized to disperse funds are asigned a ____
DSSN - Dispersing Station Symbol Number
Preferred method of dispersement
ETF
Dispersing offices are responsible for
payment operations and disbursement accountibility (not ADMIN work)
Large dispersement thresholds and reporting requirements
> $50M report to Fiscal Service 2 days advance; >$500M 5 business days
Proper payment defined as
right recipient, right amount, right time, right reason
How much leave can you sell back at separation
60 days
How many allotments can you put on LES
six
Civilian Pay dutes separated into what categories
Certifying, Compiling/certifying payments, recording, maintaining systems
Civilian Time and attendance records must be reconciled every ____ 4 months, resolved withing ____ and kept for ___
4 months, 10 days, 56 years
Civilian special pay is for
if employee underpaid by more than 10%
Civilian premium pay
overtime, compensatory time/credit hours
how much sick leave can be donated
104 hours
Questionable Travel Claim
Illegal/improper payment. Less than $250 Certifying officer works with DOD General council; more than $250 Office of hearing and appeals
Doubtful Travel Claim
employee questions Certifying official decision, can appeal to certifying official or go to DFAS
Permanent duty travel (PDT) (same as PCS travel) charge to
gaining activity unless bewteen agencies or DOD components (Reduction in Force - RIF) or within same DOD compotent (Base Realignment and closure - BRAC)
Contractor can request advance payment if
Gives adequate security, is in public interest, only up to contract price
Types of vendor payments
- Fast Pay - Contractor paid by proof of shipping instead of receipt (authorized by KO); 2. Pay and Confirm - Invoice paid but not received receiving report; 3. Constructive acceptance - Acceptance documents not received in timely manner (at least 7 days after delivery)
Payment pacakage consists of
Copy of purchase order/contract, proper invoice from contracter, receiving report, acceptance of product/service
What are exceptions to using EFT
Vendor express - Commercial entities join this electronic pay network; Governemnt purchase cards; Card Aquiring Service (CAS) like Visa or mastercard
How long are Governemnt purchase card records held
6 years and 3 months
Types of Collecting
Reciepts - collections from credible accounts, Reimbursements - from property sold/services furnished, refunds- from excess payments
Three components of IPAC system
- IPAC 2. Retirement and Insurance Transfer System (RITS) 3. Treasury Recivable accounting and collection system (TRACS)
Debt ____ days old and not in litigation go to ______
180, treasury
Collection action begins after ____ days
60
Quesionable payments handled by
GAO
Fraud or False claims handled by
Dept of Justice
What Act limits accrual claim against gov and what is time frame
Barring Act, 6 years
_____ must be notified of debts no later than _____ days
Debt Management office (DMO), 90 days
Undeliverable Check
attempted to deliver 60 days. Dispose and document on SF-1098
All treasury checks payable for
1 year but can reissue
Spoiled Check
returned to DO. DO must reissue
All dispersement office reporting forms kept for
6 years and 3 months, except payroll 56 years
Dispersing Office Reporting Requirements
- Daily statement of accountibility - All transactions 2. Statement of accountibility - monthly for each DSSN 3. Daily agent accountibilty summary - Actual count of all cash 4. Voucher control log - daily voucher transactions; 5. Deposit ticket - prepared to deposit all currency to US Treasury
Initial requirements for accounting
Constitution
What are the Federal Financial Statements (each one)
Balance sheet; statement of net cost; statement of changes in net position; statement of budgetary resources
Sections of Statement of Budgetary Resources
- Budgetary Resources 2. Status of Resources 3. Outlays
CFO Act of 1990
Established CFO position for 24 agencies 2. Agencies required to publish Financial statements subject to audit 3. Deputy director for management established in OMB
What Act required agencies to set up Internal controls
1982 Federal Managers Financial Integrity Act (FMFIA)
Financial Accounting Standards Board (FASB)
GAAP for private sector/businesses/non-profit
Government Accounting Standards Board (GASB)
GAAP for STATE and LOCAL governemnet entities
Federal Accounting Standards Advisory Board (FASAB)
GAAP for federal government
Federal Accounting Standards Advisory Board (FASAB) publishes these
SFFAC Statement of Federal Financial Accounting Concept; SFFAS Statement of Federal Finanacial accounting standard
Fereral GAAP Hierarchy
- FASAB Statements and Interpretations 2. FASAB technical bulletins 3. FASAB technical releases 4. FASAB Implementation guides and industry best practices
DOD Financial Management Structure chain
USD Comptroller directs DFAS (Defense Finance and Accounting Service) - the accounting entity for DOD
Primary documents used to obligate
- Contracts 2. MIPRs
Types of MIPRs
- Project Orders: can cross Fys but not extend budget authority; 2. Economy Act Orders: routine work/services recurring. Usually less than a year.
Undistributed Dispersements
Federal funds that have been paid but are not ID’d to a specific organization. Placed in suspese account
Types of fixed assets (and capitalized or expensed)
- General PPE (Capitalized) 2. Heritage Assets - may have little or indeterminable value (also multi ude heritage means they have a mission ex. pentagon) Usually capitalized 3. Stewardship Land - land and land rights aquired at no cost (expensed in period incurred)
Properties of General PPE
est life of 2+ years, not for sale during ops, available for entity use, cost or fair market value exceeds capitalization thresholds (which vary by component)
Footnotes required for Federal Financial Report
Required Supplementary Stewardship Info (Human capital such as education/training, investments but not physical assets); Required Supplementary Info RSI (estimated deffered mx and repairs; Other accompanying info (OAI - Management challenges/assurances)
Defence authorization act of 2010 mandated this for financial audit improvements
Financial improvement and audit remediation plan (mandated by 2017)
Ratio analysis is used to conduct what types of analysis
Trend analysis - ratio moves over time; Comparitive Analysis - how entity is performing at a point in time compared to other entities
Current Ratio
Working capital. Current Assets / Current Liabilites. DOD desires 2:1 ratio
Quick Ratio
Also known as Acid Test. Quick Assets (all assets but inventory)/ Current Liabilites. How quickly assets can convert to meet liabilites. DOD goal 1:1
