Section 3 - Ch3 Flashcards
CFO Act of 1990
CFO Act of 1990:
- Purposes:
- Bring more effective general and financial management practices to the federal government through statutory provisions which would establish in OMB a deputy director for management, establish a “controller”, and designate a CFO in each executive department/major agency.
- Provide improvement in accounting systems and internal controls to assure reliability and deter fraud, waste, abuse.
- Provide for production of complete, reliable, timely, and consistent financial information in the executive branch of government and Congress.
- CFO Act à REQUIRED agencies to prepare “audited” financial statements for the 1st time.
Government Management Reform Act of 1994:
Government Management Reform Act of 1994:
- Required head of each agency to submit agency-wide audited financial statements to OMB by March 1.
- Requires that Treasury produce an annual consolidated financial report (CFR) for the government as a whole. For many years, the report has been issued on December 15th following each fiscal year, which ends September 30th.
- “Consolidated” reports present information about the reporting entity as if it operated as a single organization. (ch4)
Federal Financial Management Improvement Act of 1996
Federal Financial Management Improvement Act of 1996:
- Purposes:
- Provide for consistency of accounting between agencies
- Required federal financial management systems to support full disclosure of federal financial data so that programs can be considered based on their full costs and merits
- Increase accountability of financial management
- Improve performance, productivity, and efficiency
Reports Consolidation Act of 2000:
Reports Consolidation Act of 2000:
- Purposes:
- To encourage consolidation of financial management reports
- To provide financial information in a more meaningful and useful format for Congress, President, Public
- To improve quality of financial information
- To enhance coordination and efficiency between agencies
Accountability of Tax Dollars Act of 2002:
Accountability of Tax Dollars Act of 2002:
- extended requirement of audited statements to all executive branch entities except OMB (waiver under $25 mm budget level)
Improper Payments Elimination and Recovery Act of 2010
This Act provided requirements relating to prevention, recovery and reporting on improper payments. Specific provisions include the following:
- Agencies are required to conduct annual risk assessments and, if a program is found to be susceptible to significant improper payments, then agencies must measure improper payments in that program. Further, over time, IPERA lowers the threshold for determining a program is susceptible to improper payments.
- Types of programs required to conduct payment recovery audits were expanded from contracts to all types of programs and activities, including grants, benefits, loans, and contract payments, and the threshold for programs and activities that must conduct these reviews if cost-effective (from $500 million to $1 million in annual outlays) was lowered.
- Agency heads are authorized to use recovered funds for additional uses than currently allowed, including to improve their financial management, to support the agency’s Office of Inspector General, and for the original intent of the funding.
- Currently, if an agency does not reduce improper payments or implement the existing law, there are no repercussions. Under IPERA, there is a list of actions that an agency must take to be in compliance with the law, and the agency Inspector General is responsible for determining whether the agency is in compliance with the law. If the agency is found not to be in compliance with the law, then IPERA contains a series of actions that the agency must take to improve its error reduction efforts
Improper Payments Elimination and Recovery Improvement Act of 2012
Improper Payments Elimination and Recovery Improvement Act of 2012
The Improper Payments Elimination and Recovery Improvement Act of 2012 (IPERIA) was enacted to further enhance improper payments requirements and give agencies additional tools to address improper payments. It improved IPIA by requiring OMB to provide an annual list of high-priority federal programs for greater oversight and review by agency inspectors general
Digital Accountability and Transparency Act of 2014
In May 2014, Public Law 113-101 Digital Accountability and Transparency Act of 2014 (DATA Act) was signed into law to establish government-wide financial data standards and increase the availability, accuracy and usefulness of federal spending information. The DATA Act expands the Federal Funding Accountability and Transparency Act of 2006 (FFATA), which initially established the requirement for a government spending website to be maintained by the U.S. Department of the Treasury, and is intended to make federal spending data more accessible, searchable and reliable. The goal is to make it easier to understand how the federal government spends taxpayer dollars and to provide a tool for better oversight, data-centric decision-making and innovatio
The Modernizing Government Technology (MGT) Act of 2017
The Modernizing Government Technology (MGT) Act of 2017 The Modernizing Government Technology (MGT) Act is a key component of continued efforts to improve federal technology, by providing financial resources and technical expertise to agencies. The MGT Act will allow agencies to invest in modem technology solutions to improve service delivery to the public, secure sensitive systems and data, and save taxpayer dollars. OMB Memorandum M-18-12 provides implementation guidance for the MGT Act. The Memorandum also sets forth administration objectives and necessary actions agencies should take in order to implement the MGT Act.
*GAAP for Federal Entities
SAS 91 = GAAP Hierarchy for Federal Entities (from highest level of authority to lowest; A to D)
- Category (a):FASAB statements and interpretations as well as AICPA and FASB pronouncements made applicable by FASAB.
- Category (b): FASAB technical bulletins.
- Category (c): AICPA Accounting Standards Executive Committee practice bulletins
- Category (d): implementation guides published by FASAB staff.
*Financial Reporting Users and Objectives
Users of Federal Financial Reports (4 users):
- Citizens/Media
- Congress
- Executives (the President and agency heads)
- Program Managers
Objectives of Federal Financial Reporting (BOSS) (4 — TEST):
Objectives of Federal Financial Reporting (BOSS) (4 — TEST):
- Budgetary Integrity
- Operating Performance
- Stewardship
- Systems and Control
Budgetary Integrity
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Budgetary Integrity
- Federal financial reporting should assist in fulfilling the government’s duty to be publicly accountable for money raised thru taxes and for the expenditure IAW appropriations laws that establish the government’s budget for the fiscal year.
- Should help readers determine “how” resources have been obtained and used.
- Should convey the “status of budgetary resources”
Operating Performance
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Operating Performance
- Federal financial reporting should assist users in evaluating the service efforts, costs, and accomplishments of the reporting entity and management of the entity’s assets/liabilities.(duty to be accountable)
- Should help users determine “costs of programs” and composition of these costs. (cost comparisons)
- Should show efforts and accomplishments of programs in relation to costs.
- Should show efficiency and effectiveness of government’s management of assets/liabilities.
Stewardship
Stewardship
- Should assist users in assessing the impact on the country of the government’s operations.
- Should show whether the government’s financial position improved/deteriorated over the period.
- Should show whether future budgetary resources will likely be sufficient to sustain public services and meet obligations in the future.
- Should show whether government operations have contributed to the nation’s current and future “well-being”.
