- Participate fully in the standards-setting process
- Plan for changes in generally accepted accounting principles (GAAP)
Showing posts with label FASAB. Show all posts
Showing posts with label FASAB. Show all posts
Friday, January 13, 2012
Federal Accounting Standards Advisory Board Issues 3 Year Plan
This report is intended to better inform and engage FASAB stakeholders. The board’s stakeholders include those who use, prepare and audit financial reports. Users of federal financial information include citizens, citizen intermediaries, elected and appointed officials, and financial and program managers. We hope publishing this three-year plan allows our stakeholders to:
Friday, February 18, 2011
Experts push financial reporting overhaul
As the administration and Congress begin the battle of the budget, a task group report suggests the numbers might be even more complicated than most of the country realizes.
"Let's be honest. This is one of the most important, and most boring hearings in Congressional history," Rep. Jim Cooper (D-Tenn.) said during the Oversight and Government Reform Subcommittee on Government Organization, Efficiency and Financial Management's first in a series of hearings on financial reform Wednesday.
The subcommittee heard from three experts about recommendations from the Federal Accounting Standards Advisory Board (FASAB).
"Our focus is to look at financial information of the federal government, particularly how that information is reported and then acted upon," said subcommittee chairman Todd Platts (R-Pa.). "Specifically we are looking at the Consolidated Financial Report (CFR) and how we can make it more useful. The question we are asking is how we take than information and make it more useful, not just to Congress, but to the American people."
Platts said that given the $14 trillion deficit, the public is paying attention to whether Congress is spending tax dollars responsibly - or not.
The task force identified serious problems with the financial information government auditors collect and how they report it. It focused primarily on the CFR, a record of how agencies have spent money and the costs of unfunded but obligated programs such as Medicare.
"The static, paper-based reports the government delivers today contain important information," said Jonathan Breul, a member of the task force and a former Office of Management and Budget official. "However, those reports are not presented or available in a way that makes them easy to use or easy to understand."
The task force conducted a user-needs study which showed citizens, executives and managers in both the private and public sector had difficulty understanding information in federal financial reports.
The task force developed ten recommendations it says will improve the usefulness of the CFR. Four of the recommendations focus on ways to enhance the communication of the data by making it easier to access, search and understand.
FASAB wants to develop a way to link agency financial statements to performance measures to give users a better idea of whether or not the money is being spent wisely. They said numbers lack meaning when there is no context as to whether or not the spending had meaningful results.
Breul said this goal is in line with the recently passed Government Performance and Results Modernization Act. The law calls for OMB to develop governmentwide standards to measure agency performance and identify inefficient programs.
-Meg Beasley, FederalNewsRadio.com
READ MORE...
"Let's be honest. This is one of the most important, and most boring hearings in Congressional history," Rep. Jim Cooper (D-Tenn.) said during the Oversight and Government Reform Subcommittee on Government Organization, Efficiency and Financial Management's first in a series of hearings on financial reform Wednesday.
The subcommittee heard from three experts about recommendations from the Federal Accounting Standards Advisory Board (FASAB).
"Our focus is to look at financial information of the federal government, particularly how that information is reported and then acted upon," said subcommittee chairman Todd Platts (R-Pa.). "Specifically we are looking at the Consolidated Financial Report (CFR) and how we can make it more useful. The question we are asking is how we take than information and make it more useful, not just to Congress, but to the American people."
Platts said that given the $14 trillion deficit, the public is paying attention to whether Congress is spending tax dollars responsibly - or not.
The task force identified serious problems with the financial information government auditors collect and how they report it. It focused primarily on the CFR, a record of how agencies have spent money and the costs of unfunded but obligated programs such as Medicare.
"The static, paper-based reports the government delivers today contain important information," said Jonathan Breul, a member of the task force and a former Office of Management and Budget official. "However, those reports are not presented or available in a way that makes them easy to use or easy to understand."
The task force conducted a user-needs study which showed citizens, executives and managers in both the private and public sector had difficulty understanding information in federal financial reports.
The task force developed ten recommendations it says will improve the usefulness of the CFR. Four of the recommendations focus on ways to enhance the communication of the data by making it easier to access, search and understand.
FASAB wants to develop a way to link agency financial statements to performance measures to give users a better idea of whether or not the money is being spent wisely. They said numbers lack meaning when there is no context as to whether or not the spending had meaningful results.
Breul said this goal is in line with the recently passed Government Performance and Results Modernization Act. The law calls for OMB to develop governmentwide standards to measure agency performance and identify inefficient programs.
-Meg Beasley, FederalNewsRadio.com
READ MORE...
Monday, December 07, 2009
NASA Still Struggles with Accounting
SAN FRANCISCO — Although NASA failed for the seventh year in a row to receive a passing grade from independent auditors, the U.S. space agency has made significant progress in cleaning up its financial records, Elizabeth Robinson, NASA’s newly appointed chief financial officer, told members of the House Science and Technology Committee during a Dec. 3 hearing.
The major problem preventing auditors from Ernst & Young LLP from approving NASA’s books is the space agency’s difficulty in calculating the value of its two largest assets: the space shuttle and international space station, said Paul Martin, NASA’s new inspector general. That problem was serious enough to be deemed a material weakness because it made it impossible for auditors to determine whether information included in the space agency’s balance sheets was accurate, said Daniel Murrin, a partner in New York-based Ernst & Young.
Space agency officials have been trying to determine the value of NASA’s largest assets for years, a task complicated by the size and scope of the programs, changes in NASA’s financial systems, revised federal accounting rules and the hiring of new teams of auditors. “This tale has gone on for so many years and has so many twists and turns,” Robinson told the panel.
The issue is likely to be resolved in the near future, however, because the agency that issues guidance in this area, the Federal Accounting Standards Advisory Board, published new rules in October designed to assist federal agencies, including NASA, in calculating the cost of extremely large assets based on estimates. “The adoption of the new rule provides a unique opportunity for NASA to address the issue,” Murrin said.
In addition, the space shuttle and space station will become less prominent features of NASA’s financial accounts because the programs are nearing completion. At the end of 2009, those two programs comprised approximately 77 percent of the total value of NASA’s property, plants and equipment as well as 38 percent of the space agency’s total assets, Robinson said. Since the shuttle program is scheduled to conclude in 2010, and the space station is on a depreciation schedule that ends in 2016, NASA will not have to account for the cost of those assets much longer, she added.
Nevertheless, NASA’s financial managers are not waiting until the completion of the space station program to clear up their financial records. Instead, NASA officials testifying at the hearing were cautiously optimistic that they would be able to calculate the value of the shuttle and space station programs and obtain a clean bill of health from auditors in 2010.
Robinson also assured the committee that NASA will be better able to evaluate the cost of major assets because the space agency is better able to track financial data. “It is now standard practice in contracts to acquire the accounting information we need,” Robinson said. “Our contractors have felt the burden of giving us all of the data and have worked very closely with us to ensure it is the right data. … We feel like we are on a strong footing.”
Still, NASA financial managers have two other issues to tackle. The Ernst & Young auditors cited deficiencies in NASA’s ability to calculate its environmental liability as well as the space agency’s failure to comply with the Federal Financial Management Act of 1996.
READ MORE...
The major problem preventing auditors from Ernst & Young LLP from approving NASA’s books is the space agency’s difficulty in calculating the value of its two largest assets: the space shuttle and international space station, said Paul Martin, NASA’s new inspector general. That problem was serious enough to be deemed a material weakness because it made it impossible for auditors to determine whether information included in the space agency’s balance sheets was accurate, said Daniel Murrin, a partner in New York-based Ernst & Young.
Space agency officials have been trying to determine the value of NASA’s largest assets for years, a task complicated by the size and scope of the programs, changes in NASA’s financial systems, revised federal accounting rules and the hiring of new teams of auditors. “This tale has gone on for so many years and has so many twists and turns,” Robinson told the panel.
The issue is likely to be resolved in the near future, however, because the agency that issues guidance in this area, the Federal Accounting Standards Advisory Board, published new rules in October designed to assist federal agencies, including NASA, in calculating the cost of extremely large assets based on estimates. “The adoption of the new rule provides a unique opportunity for NASA to address the issue,” Murrin said.
In addition, the space shuttle and space station will become less prominent features of NASA’s financial accounts because the programs are nearing completion. At the end of 2009, those two programs comprised approximately 77 percent of the total value of NASA’s property, plants and equipment as well as 38 percent of the space agency’s total assets, Robinson said. Since the shuttle program is scheduled to conclude in 2010, and the space station is on a depreciation schedule that ends in 2016, NASA will not have to account for the cost of those assets much longer, she added.
Nevertheless, NASA’s financial managers are not waiting until the completion of the space station program to clear up their financial records. Instead, NASA officials testifying at the hearing were cautiously optimistic that they would be able to calculate the value of the shuttle and space station programs and obtain a clean bill of health from auditors in 2010.
Robinson also assured the committee that NASA will be better able to evaluate the cost of major assets because the space agency is better able to track financial data. “It is now standard practice in contracts to acquire the accounting information we need,” Robinson said. “Our contractors have felt the burden of giving us all of the data and have worked very closely with us to ensure it is the right data. … We feel like we are on a strong footing.”
Still, NASA financial managers have two other issues to tackle. The Ernst & Young auditors cited deficiencies in NASA’s ability to calculate its environmental liability as well as the space agency’s failure to comply with the Federal Financial Management Act of 1996.
READ MORE...
Monday, November 02, 2009
FASAB Issues ED, New Standard on Property, Plant, Equipment
The Federal Accounting Standards Advisory Board (FASAB)has announced that the board is seeking input on the Exposure Draft (ED), Subsequent Events: Codification of Accounting and Financial Reporting Standards Contained in the AICPA Statements on Auditing Standards. The American Institute of Certified Public Accountants' (AICPA) Statements on Auditing Standards (SAS) AU section 560, Subsequent Events, includes accounting and financial reporting guidance that is not discussed in the authoritative literature that establishes accounting principles. The objective of this proposed Statement is to incorporate that guidance into the authoritative literature of the FASAB. The exposure draft requests comments by Dec. 28, 2009. The exposure draft and specific questions raised are available at the FASAB website.
In other FASAB news, FASAB issued Statement of Federal Financial Accounting Standards (SFFAS) 35, Estimating the Historical Cost of General Property, Plant, and Equipment --Amending Statements of Federal Financial Accounting Standards 6 and 23. SFFAS 35 amends SFFAS 6 and 23 to clarify that reasonable estimates of original transaction data historical cost may be used to value general property, plant, and equipment. More information can be found at http://www.fasab.gov
In other FASAB news, FASAB issued Statement of Federal Financial Accounting Standards (SFFAS) 35, Estimating the Historical Cost of General Property, Plant, and Equipment --Amending Statements of Federal Financial Accounting Standards 6 and 23. SFFAS 35 amends SFFAS 6 and 23 to clarify that reasonable estimates of original transaction data historical cost may be used to value general property, plant, and equipment. More information can be found at http://www.fasab.gov
Sunday, August 09, 2009
NC State Accounting Professor Appointed to FASAB Board
D. Scott Showalter, teaching professor in the Department of Accounting at North Carolina State University College of Management and retired partner at KPMG LLP, was appointed to a five-year term on the Federal Accounting Standards Advisory Board (FASAB). His term began July 1, 2009. The appointment was announced recently by Tom Allen, FASAB chairman.
Also appointed was Michael H. Granoff, Ernst & Young Distinguished Centennial Professor of Accounting and a University Distinguished Teaching Professor at the University of Texas at Austin.
An Appointments Panel advises the FASAB Sponsors on appointments and re-appointments for the six nonfederal members of the Board. The FASAB Sponsors – Timothy F. Geithner, the Secretary of the Treasury; Peter R. Orszag, the director of the Office of Management and Budget; and Gene L. Dodaro, the Acting Comptroller General of the United States - made the final appointments.
Regarding the appointments, Allen said, “I am pleased to welcome both Michael and Scott to the Board. Michael is uniquely qualified as an academic who authors both governmental and financial accounting textbooks. Scott is a recognized leader in the field, having been with KPMG for more than 30 years including service as the public sector industry leader for the firm. Michael’s service on the Association of Government Accountants’ Financial Management Standards Board and Scott’s position as the co-editor of “Government Accounting and Auditing Update” from 1996 – 2008 demonstrates that they have both followed the most recent work of the FASAB. I am confident that Michael and Scott will hit the ground running, enabling the Board to continue its work on critical federal financial reporting issues under consideration.”
About FASAB
Accounting and financial reporting standards are essential for public accountability and for an efficient and effective functioning of our democratic system of government. Thus, federal accounting standards and financial reporting play a major role in fulfilling the government's duty to be publicly accountable and can be used to assess the government’s accountability and its efficiency and effectiveness, and the economic, political, and social consequences of the allocation and various uses of federal resources. The FASAB issues federal accounting standards after following a due process consistent with the Memorandum of Understanding under which it operates. Due process includes consideration of the financial and budgetary information needs of citizens, congressional oversight groups, executive agencies, and the needs of other users of federal financial information.
Also appointed was Michael H. Granoff, Ernst & Young Distinguished Centennial Professor of Accounting and a University Distinguished Teaching Professor at the University of Texas at Austin.
An Appointments Panel advises the FASAB Sponsors on appointments and re-appointments for the six nonfederal members of the Board. The FASAB Sponsors – Timothy F. Geithner, the Secretary of the Treasury; Peter R. Orszag, the director of the Office of Management and Budget; and Gene L. Dodaro, the Acting Comptroller General of the United States - made the final appointments.
Regarding the appointments, Allen said, “I am pleased to welcome both Michael and Scott to the Board. Michael is uniquely qualified as an academic who authors both governmental and financial accounting textbooks. Scott is a recognized leader in the field, having been with KPMG for more than 30 years including service as the public sector industry leader for the firm. Michael’s service on the Association of Government Accountants’ Financial Management Standards Board and Scott’s position as the co-editor of “Government Accounting and Auditing Update” from 1996 – 2008 demonstrates that they have both followed the most recent work of the FASAB. I am confident that Michael and Scott will hit the ground running, enabling the Board to continue its work on critical federal financial reporting issues under consideration.”
About FASAB
Accounting and financial reporting standards are essential for public accountability and for an efficient and effective functioning of our democratic system of government. Thus, federal accounting standards and financial reporting play a major role in fulfilling the government's duty to be publicly accountable and can be used to assess the government’s accountability and its efficiency and effectiveness, and the economic, political, and social consequences of the allocation and various uses of federal resources. The FASAB issues federal accounting standards after following a due process consistent with the Memorandum of Understanding under which it operates. Due process includes consideration of the financial and budgetary information needs of citizens, congressional oversight groups, executive agencies, and the needs of other users of federal financial information.
Wednesday, February 18, 2009
AGA FMSB Issues Three Comment Letters to FASAB
AGA's Financial Management Standards Board (FMSB) provided comments to the Federal Accounting Standards Advisory Board (FASAB) on its exposure drafts of two proposed statements: Estimating the Historical Cost of General Property, Plant and Equipment and The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board.
The FMSB also issued a comment letter on its exposure draft about Accounting for Social Insurance, Revised. In general, the FMSB commended the board for continuing its deliberations on this most important topic and for its continuing efforts to ensure that reporting for social insurance is transparent and useful. However, the FMSB remains concerned that the positions taken by some of the board members find their basis in other than established accounting and reporting principles. Read more FMSB comment letters.
The FMSB also issued a comment letter on its exposure draft about Accounting for Social Insurance, Revised. In general, the FMSB commended the board for continuing its deliberations on this most important topic and for its continuing efforts to ensure that reporting for social insurance is transparent and useful. However, the FMSB remains concerned that the positions taken by some of the board members find their basis in other than established accounting and reporting principles. Read more FMSB comment letters.
FASAB Issues Concept Statement
The Federal Accounting Standards Advisory Board (FASAB) has issued Statement of Federal Financial Accounting Concepts 6, Distinguishing Basic Information, Required Supplementary Information, and Other Accompanying Information. The Statement amends Statement of Federal Financial Accounting Concepts 2, Entity and Display, to provide guidance for use by the FASAB in determining whether information should be basic information, required supplementary information (RSI), or other accompanying information (OAI). Existing concepts provide the FASAB with guidance on what information should be reported to achieve the reporting objectives and identifies different methods that may be used to communicate it to readers, such as financial statements and management's discussion and analysis (MD&A). The Statement expands the existing conceptual framework to provide a process the FASAB may apply in selecting whether an item of information should be considered basic information, RSI, or OAI.
Tuesday, January 20, 2009
FASAB Seeks Input on Exposure Drafts
The Federal Accounting Standards Advisory Board (FASAB) is seeking input on several exposure drafts:
Estimating the Historical Cost of General Property, Plant, and Equipment--Amending Statements of Federal Financial Accounting Standards 6 and 23.
Comments are due Jan. 30, 2009.
The Hierarchy of Generally Accepted Accounting Principles for Federal Entities, Including the Application of Standards Issued by the Financial Accounting Standards Board.
Comments are due Feb. 2, 2009.
Social Insurance Accounting, Revised.
Comments are due by Feb. 9, 2009.
Estimating the Historical Cost of General Property, Plant, and Equipment--Amending Statements of Federal Financial Accounting Standards 6 and 23.
Comments are due Jan. 30, 2009.
The Hierarchy of Generally Accepted Accounting Principles for Federal Entities, Including the Application of Standards Issued by the Financial Accounting Standards Board.
Comments are due Feb. 2, 2009.
Social Insurance Accounting, Revised.
Comments are due by Feb. 9, 2009.
Monday, November 24, 2008
New FASAB Exposure Drafts
FASAB Releases Exposure Draft on Social Insurance
The Federal Accounting Standards Advisory Board (FASAB) is seeking input on the exposure draft Social Insurance Accounting, Revised. Social Insurance comprises five programs; however, two programs, Social Security and Medicare, are of special significance because of the high rate of participation among citizens, the fiscal challenges related to the programs, and the challenges associated with incorporating estimates of future cash flows of this magnitude in financial statements.
From the outset, members have agreed on the objectives of financial reporting for social insurance programs but have had different views about how best to achieve the objectives and about the timing of the recognition of expense and liability for social insurance programs.
Chairman Tom Allen says that "this exposure draft represents a compromise. It proposes enhanced reporting but does not resolve the two strongly held views regarding when the obligating event occurs for social insurance programs and, thus, when the liability and expense definitions are met within those programs." Comments on the exposure draft are due by Feb. 9, 2009.
FASAB Releases ED on Estimating the Historical Cost of General Property, Plant and Equipment
The FASAB is seeking input on an exposure draft, Estimating the Historical Cost of General Property, Plant, and Equipment--Amending Statements of Federal Financial Accounting Standards 6 and 23.This Statement proposes to clarify that reasonable estimates of original transaction data historical cost may be used to value general property, plant, and equipment. Comments on the exposure draft are due by Jan. 30, 2009.
The Federal Accounting Standards Advisory Board (FASAB) is seeking input on the exposure draft Social Insurance Accounting, Revised. Social Insurance comprises five programs; however, two programs, Social Security and Medicare, are of special significance because of the high rate of participation among citizens, the fiscal challenges related to the programs, and the challenges associated with incorporating estimates of future cash flows of this magnitude in financial statements.
From the outset, members have agreed on the objectives of financial reporting for social insurance programs but have had different views about how best to achieve the objectives and about the timing of the recognition of expense and liability for social insurance programs.
Chairman Tom Allen says that "this exposure draft represents a compromise. It proposes enhanced reporting but does not resolve the two strongly held views regarding when the obligating event occurs for social insurance programs and, thus, when the liability and expense definitions are met within those programs." Comments on the exposure draft are due by Feb. 9, 2009.
FASAB Releases ED on Estimating the Historical Cost of General Property, Plant and Equipment
The FASAB is seeking input on an exposure draft, Estimating the Historical Cost of General Property, Plant, and Equipment--Amending Statements of Federal Financial Accounting Standards 6 and 23.This Statement proposes to clarify that reasonable estimates of original transaction data historical cost may be used to value general property, plant, and equipment. Comments on the exposure draft are due by Jan. 30, 2009.
Monday, October 27, 2008
FASAB Issues New Statement of Federal Financial Accounting
The Federal Accounting Standards Advisory Board (FASAB) has issued Statement of Federal Financial Accounting Standards (SFFAS) 33, Pensions, Other Retirement Benefits, and Other Post-employment benefits: Reporting Gains and Losses from Changes in Assumptions and Selecting Discount Rates and Valuation Dates. The standards in SFFAS 33 require:
- Gains and losses from changes in long-term assumptions used to estimate liabilities for federal employee pension and other retirement benefits, and other post-employment benefits to be displayed as discrete line items on the governmentwide entity's and the component entities' statements of net cost; and
- Components of the expense associated with such liabilities to be disclosed in notes to the financial statements. SFFAS 33 also provides standards for selecting the discount rate assumption and the valuation date for such liabilities.
Monday, September 29, 2008
FASAB Seeks Candidates for Board Membership
The Federal Accounting Standards Advisory Board (FASAB) is seeking individuals interested in serving a five-year term as a member of the board. FASAB is identifying candidates for two vacancies occurring on July 1, 2009, when board members James Patton and John Farrell will have completed their service. FASAB is particularly interested in candidates who have experience as: analysts of financial information, economists or forecasters, academics, auditors, preparers of financial information, or those otherwise knowledgeable regarding the use of financial information in decision-making.
The registry is open to those not currently employed by the federal government. If you are interested in serving but need more information, the FASAB website includes a "Statement of Board Members' Responsibilities," a list of current members and a fact sheet. The nonfederal members serve as part-time special government employees and are compensated at an hourly rate for attendance at board meetings and an equivalent amount of time for preparation (typically 200 hours per year).
The registry will be provided to the appointments panel in January 2009. The panel--comprising three federal members, the FASAB chairman and three individuals representing the American Institute of CPAs, the Financial Accounting Foundation and the Accounting Research Association--advises the FASAB sponsors on appointments and re-appointments for the six nonfederal members of the board. The sponsors--the Secretary of the Treasury, the director of the Office of Management and Budget, and the Comptroller General--make the final appointment.
Individuals wishing to be added to the registry should submit a resume, addressed before Dec. 19, 2008 to: Wendy M. Payne, Executive Director, Federal Accounting Standards Advisory Board, 441 G St. NW, Mailstop 6K17V, Washington, D.C. 20548 or fasab@fasab.gov.
The registry is open to those not currently employed by the federal government. If you are interested in serving but need more information, the FASAB website includes a "Statement of Board Members' Responsibilities," a list of current members and a fact sheet. The nonfederal members serve as part-time special government employees and are compensated at an hourly rate for attendance at board meetings and an equivalent amount of time for preparation (typically 200 hours per year).
The registry will be provided to the appointments panel in January 2009. The panel--comprising three federal members, the FASAB chairman and three individuals representing the American Institute of CPAs, the Financial Accounting Foundation and the Accounting Research Association--advises the FASAB sponsors on appointments and re-appointments for the six nonfederal members of the board. The sponsors--the Secretary of the Treasury, the director of the Office of Management and Budget, and the Comptroller General--make the final appointment.
Individuals wishing to be added to the registry should submit a resume, addressed before Dec. 19, 2008 to: Wendy M. Payne, Executive Director, Federal Accounting Standards Advisory Board, 441 G St. NW, Mailstop 6K17V, Washington, D.C. 20548 or fasab@fasab.gov.
Monday, September 15, 2008
FASAB Releases Exposure Draft on Fiscal Sustainability Reporting
The Federal Accounting Standards Advisory Board (FASAB) has released an exposure draft called, Reporting Comprehensive Long-Term Fiscal Projections for the U.S. Government. One of FASAB's federal financial reporting objectives--the stewardship objective--includes enabling readers to determine whether future budgetary resources will likely be sufficient to sustain public services and to meet obligations as they come due. FASAB Chairman Tom Allen noted that "the question of the long-term fiscal sustainability of U.S. government services may be among the most important questions of our time. The board believes that fully meeting the stewardship objective requires non-traditional approaches to complement and enrich the information from the federal government's balance sheets and operating statements. The proposed reporting will include information about projected trends in the federal budget deficit or surplus and the federal debt and how t hese amounts relate to the national economy."
Comments on the exposure draft are requested by Jan. 5, 2009 and a public hearing will be held on Feb. 25, 2009. Paper copies are available by calling 202.512.7350.
Since the objective of the proposed reporting is not only to provide information that is useful and necessary in assessing fiscal sustainability, but also to effectively communicate the information in way that is meaningful and understandable to readers, FASAB is particularly interested in receiving comments from the public.
Comments on the exposure draft are requested by Jan. 5, 2009 and a public hearing will be held on Feb. 25, 2009. Paper copies are available by calling 202.512.7350.
Since the objective of the proposed reporting is not only to provide information that is useful and necessary in assessing fiscal sustainability, but also to effectively communicate the information in way that is meaningful and understandable to readers, FASAB is particularly interested in receiving comments from the public.
Tuesday, September 02, 2008
FASAB Releases Exposure Draft on Fiscal Sustainability Reporting
The Federal Accounting Standards Advisory Board (FASAB) plans to release an exposure draft later today called, Reporting Comprehensive Long-Term Fiscal Projections for the U.S. Government. One of FASAB's federal financial reporting objectives--the stewardship objective--includes enabling readers to determine whether future budgetary resources will likely be sufficient to sustain public services and to meet obligations as they come due. FASAB Chairman Tom Allen noted that "the question of the long-term fiscal sustainability of U.S. government services may be among the most important questions of our time. The board believes that fully meeting the stewardship objective requires non-traditional approaches to complement and enrich the information from the federal government's balance sheets and operating statements. The proposed reporting will include information about projected trends in the federal budget deficit or surplus and the federa l debt and how these amounts relate to the national economy."
Comments on the exposure draft are requested by Jan. 5, 2009 and a public hearing will be held on Feb. 25, 2009. Paper copies are available by calling 202.512.7350.
Comments on the exposure draft are requested by Jan. 5, 2009 and a public hearing will be held on Feb. 25, 2009. Paper copies are available by calling 202.512.7350.
Monday, July 14, 2008
AGA's FMSB Weighs in On Three Proposals
AGA's Financial Management Standards Boad (FMSB) has sent comments to the Federal Accounting Standards Advisory Board (FASAB) on the exposure draft of the proposed Statement of Federal Financial Accounting Concepts (SFFAC), Distinguishing Basic Information, Required Supplementary Information, and Other Accompanying Information. Read the letter.
The FMSB has also sent comments to the Governmental Accounting Standards Board (GASB) on its exposure draft of a proposed Statement titled, Fund Balance Reporting and Governmental Fund Type Definitions. The FMSB wrote, "Overall, it is a very good, needed and reasonable standard." Read the letter.
The FMSB sent another comment letter to the GASB on its proposed revisions to Concepts Statement No. 2 related to Service Efforts and Accomplishments Reporting. The FMSB thinks that, even though there are limitations that can be potentially significant for a reporting entity, SEA reporting can provide essential information. Read the letter.
The GASB will hold a public hearing, scheduled for 9 a.m., Tuesday, July 29, at the Hilton Hotel, 255 Courtland Street, NE, Atlanta, GA, in conjunction with the PDC. AGA Executive Director Relmond Van Daniker, DBA, CPA, has been asked to testify. For more information, visit the GASB website.
The FMSB has also sent comments to the Governmental Accounting Standards Board (GASB) on its exposure draft of a proposed Statement titled, Fund Balance Reporting and Governmental Fund Type Definitions. The FMSB wrote, "Overall, it is a very good, needed and reasonable standard." Read the letter.
The FMSB sent another comment letter to the GASB on its proposed revisions to Concepts Statement No. 2 related to Service Efforts and Accomplishments Reporting. The FMSB thinks that, even though there are limitations that can be potentially significant for a reporting entity, SEA reporting can provide essential information. Read the letter.
The GASB will hold a public hearing, scheduled for 9 a.m., Tuesday, July 29, at the Hilton Hotel, 255 Courtland Street, NE, Atlanta, GA, in conjunction with the PDC. AGA Executive Director Relmond Van Daniker, DBA, CPA, has been asked to testify. For more information, visit the GASB website.
Monday, June 02, 2008
FASAB Survey on Boundaries of Federal Reporting Entities
The Federal Accounting Standards Advisory Board (FASAB) has sent out a survey to federal CFOs and IGs to help it develop criteria defining the boundaries of the reporting entity. The survey seeks information on organizations considered questionable or unique when assessed in relation to the boundaries of the reporting entity and criteria used in the assessment. The survey also seeks feedback on certain aspects of SFFAC 2, Entity and Display as well as input on current proposals. FASAB would like input from the community and is asking for your help. Please take the survey by June 30, 2008.
Tuesday, April 01, 2008
AGA Blog - Is It Time to Reevaluate the Role of the Federal Balance Sheet?
Jeffrey C. Steinhoff, CGFM, a member of AGA’s Northern Virginia and Washington, D.C. Chapters, retired earlier this year after 40 years of government service. His most recent position was managing director, Financial Management and Assurance, U.S. Government Accountability Office (GAO). He is an AGA Past National President and is known in the Association as the “father” of the Certified Government Financial Manager (CGFM) Program.
Is It Time to Reevaluate the Role of the Federal Balance Sheet?
AGA has been at the forefront in advocating simplicity in governmental reporting at all levels. A number of state and local governments have been experimenting with Citizen-Centric Reporting, and earlier this year the U.S. Department of the Treasury issued The Federal Government’s Financial Health: A Citizen’s Guide to the 2007 Financial Report of the United States Government, a nine-page summary presented in a user-friendly format. Further experimentation will continue as Citizen-Centric Reporting evolves and gains greater acceptance. I applaud these efforts and strongly support AGA’s continued leadership as a catalyst to move this initiative forward.
On a track parallel with the evolution of Citizen-Centric Reporting, there is also a need to reevaluate the broader content of federal financial statements and, in particular, the role of the balance sheet. The Federal Accounting Standards Advisory Board (FASAB) is now addressing the treatment of social insurance on the balance sheet, and I am confident that its ongoing deliberations will result in the right decision. FASAB’s earlier creation of the Statement of Social Insurance shines light on what are arguably the most important numbers on the federal government’s financial statements and represents a major achievement in developing useful financial statements unique to government. Building on this work, it is time to ask fundamental questions about the role of the balance sheet since it can never really capture the full range of the federal government’s assets and liabilities. Once we have decided on the role of the balance sheet, we could consider alternatives to the current financial reporting model that would ensure that all federal financial reporting objectives are met in a more useful way.
READ MORE...
Is It Time to Reevaluate the Role of the Federal Balance Sheet?
AGA has been at the forefront in advocating simplicity in governmental reporting at all levels. A number of state and local governments have been experimenting with Citizen-Centric Reporting, and earlier this year the U.S. Department of the Treasury issued The Federal Government’s Financial Health: A Citizen’s Guide to the 2007 Financial Report of the United States Government, a nine-page summary presented in a user-friendly format. Further experimentation will continue as Citizen-Centric Reporting evolves and gains greater acceptance. I applaud these efforts and strongly support AGA’s continued leadership as a catalyst to move this initiative forward.
On a track parallel with the evolution of Citizen-Centric Reporting, there is also a need to reevaluate the broader content of federal financial statements and, in particular, the role of the balance sheet. The Federal Accounting Standards Advisory Board (FASAB) is now addressing the treatment of social insurance on the balance sheet, and I am confident that its ongoing deliberations will result in the right decision. FASAB’s earlier creation of the Statement of Social Insurance shines light on what are arguably the most important numbers on the federal government’s financial statements and represents a major achievement in developing useful financial statements unique to government. Building on this work, it is time to ask fundamental questions about the role of the balance sheet since it can never really capture the full range of the federal government’s assets and liabilities. Once we have decided on the role of the balance sheet, we could consider alternatives to the current financial reporting model that would ensure that all federal financial reporting objectives are met in a more useful way.
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Thursday, March 13, 2008
OMB seeks to improve value of internal controls reporting
The Office of Management and Budget is considering how to realign internal controls for financial reporting so it is more relevant and valuable to agencies. On April 13, OMB will conduct the first in a series of forums on integrating internal controls to help agencies expand the effectiveness and efficiency of their organizations, said Danny Werfel, OMB’s acting controller.
Agencies must report to OMB on the effectiveness of their internal controls not only for financial reporting. Some of those internal controls overlap into information security and procurement, he said.
Chief financial officers “are overwhelmed by compliance. The internal controls are numerous, complex and aren’t right-sized for added value,” Werfel said at the Federal Financial Management Conference March 11. CFOs often have the responsibility to fix material weaknesses but not the authority because the problem may reside in a program in one of the department’s operating agencies.
“We need to relook at financial reporting requirements and realign them to drive more value,” Werfel said.
OMB has asked agencies to evaluate internal controls not only for financial reporting, which OMB requires under Circular A-123, but where they overlap for acquisition and information security and where they can have greatest impact on mission effectiveness. OMB wants agencies to take an enterprisewide view of internal controls under A-123 and a broader view of risk. CFOs could find risk in procurement or information security.
OMB also wants agencies to take an integrated approach to internal controls. The CFO, chief information officer, chief acquisition officer and chief human capital officer each have internal controls to oversee.
Agencies can enhance their organizational capacity by being more efficient and effective so CFOs can move beyond compliance. Agencies need to become more standard in how they do business, such as through the Financial Management Line of Business, which focuses on common systems, business processes and accounting standards across government. CFOs also should work more with other agency CXOs to build more support throughout the agency. And agencies should integrate financial management throughout the organization.
OMB last month also asked the Federal Accounting Standards Advisory Board, of which it is a member, to take on the project to evaluate and integrate the standards for which agencies must report. The board tends to add to the standards that agencies must account for instead of integrating or consolidating or reducing them, Werfel said.
-Mary Mosquera, FCW.com
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Agencies must report to OMB on the effectiveness of their internal controls not only for financial reporting. Some of those internal controls overlap into information security and procurement, he said.
Chief financial officers “are overwhelmed by compliance. The internal controls are numerous, complex and aren’t right-sized for added value,” Werfel said at the Federal Financial Management Conference March 11. CFOs often have the responsibility to fix material weaknesses but not the authority because the problem may reside in a program in one of the department’s operating agencies.
“We need to relook at financial reporting requirements and realign them to drive more value,” Werfel said.
OMB has asked agencies to evaluate internal controls not only for financial reporting, which OMB requires under Circular A-123, but where they overlap for acquisition and information security and where they can have greatest impact on mission effectiveness. OMB wants agencies to take an enterprisewide view of internal controls under A-123 and a broader view of risk. CFOs could find risk in procurement or information security.
OMB also wants agencies to take an integrated approach to internal controls. The CFO, chief information officer, chief acquisition officer and chief human capital officer each have internal controls to oversee.
Agencies can enhance their organizational capacity by being more efficient and effective so CFOs can move beyond compliance. Agencies need to become more standard in how they do business, such as through the Financial Management Line of Business, which focuses on common systems, business processes and accounting standards across government. CFOs also should work more with other agency CXOs to build more support throughout the agency. And agencies should integrate financial management throughout the organization.
OMB last month also asked the Federal Accounting Standards Advisory Board, of which it is a member, to take on the project to evaluate and integrate the standards for which agencies must report. The board tends to add to the standards that agencies must account for instead of integrating or consolidating or reducing them, Werfel said.
-Mary Mosquera, FCW.com
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Monday, July 16, 2007
FASAB Seeks Comments on Two Exposure Drafts
The chairperson of the Federal Accounting Standards Advisory Board's Accounting and Auditing Policy Committee (AAPC), Wendy Comes, CGFM, has announced that the AAPC has issued an exposure draft of a new Federal Financial Accounting Technical Release titled, Implementation Guide for Statement of Federal Financial Accounting Standards 29: Heritage Assets and Stewardship Land. Comes stated that the proposed technical release "addresses important implementation questions regarding assets for which financial representations do not satisfy federal reporting objectives." Specific questions for respondents are included in the exposure draft and other comments are welcome. Responses are requested by Aug. 13, 2007.
AAPC has also issued an exposure draft of a new Federal Financial Accounting Technical Release titled, Clarification of Standards Relating to Inter-Entity Cost. Full implementation of the inter-entity cost provisions of Statement of Federal Financial Accounting Standards (SFFAS) 4 is required by SFFAS 30, Inter-Entity Cost Implementation Amending SFFAS 4, Managerial Cost Accounting Standards and Concepts, which becomes effective Sept. 30, 2008. Responses to the exposure draft are requested by Aug. 6, 2007.
AAPC has also issued an exposure draft of a new Federal Financial Accounting Technical Release titled, Clarification of Standards Relating to Inter-Entity Cost. Full implementation of the inter-entity cost provisions of Statement of Federal Financial Accounting Standards (SFFAS) 4 is required by SFFAS 30, Inter-Entity Cost Implementation Amending SFFAS 4, Managerial Cost Accounting Standards and Concepts, which becomes effective Sept. 30, 2008. Responses to the exposure draft are requested by Aug. 6, 2007.
Friday, May 18, 2007
Upcoming Events - May 23, 2007
The Association of Government Accountants (AGA)
Dinner and awards ceremony in honor of eleven federal agencies that have been awarded the 2007 Certificate of Excellence in Accountability Reporting.
The recipients include: the Commodity Futures Trading Commission; the Housing and Urban Development Department; the Interior Department; the General Services Administration; the Government Accountability Office; the Nuclear Regulatory Commission; the Patent and Trademark Office; the Securities and Exchange Commission; the Small Business Administration; and the Social Security Administration.
[Note: There will be a media availability following the event.]
Participants: Clay Johnson III, deputy director for management at the Office of Management and Budget; U.S. Comptroller General David Walker of the Government Accountability Office; Linda Combs, comptroller of the Office of Management and Budget; and Redmond Van Danker, executive director of the AGA
Location: National Press Club, 14th and F Sts., NW, 13th Floor, Washington, D.C.. 6 p.m. (May 23, 2007)
Contact: Jennifer Curtis, 703-562-0770, jcurtin@agacgfm.org; [http://www.agacgfm.org]
Federal Accounting Standards
Federal Accounting Standards Advisory Board (FAR. Page 39318)
Meeting to discuss their conceptual framework, social insurance, application of the liability definition, the federal entity, natural resources, inter-entity costs, technical agenda, and any other topics as needed. May 23-24.
Location: Government Accountability Office, 441 G St., NW, room 7C13, Washington, D.C..
9 a.m. (May 23, 2007)
Contact: Wendy Comes, 202-512-7350
Dinner and awards ceremony in honor of eleven federal agencies that have been awarded the 2007 Certificate of Excellence in Accountability Reporting.
The recipients include: the Commodity Futures Trading Commission; the Housing and Urban Development Department; the Interior Department; the General Services Administration; the Government Accountability Office; the Nuclear Regulatory Commission; the Patent and Trademark Office; the Securities and Exchange Commission; the Small Business Administration; and the Social Security Administration.
[Note: There will be a media availability following the event.]
Participants: Clay Johnson III, deputy director for management at the Office of Management and Budget; U.S. Comptroller General David Walker of the Government Accountability Office; Linda Combs, comptroller of the Office of Management and Budget; and Redmond Van Danker, executive director of the AGA
Location: National Press Club, 14th and F Sts., NW, 13th Floor, Washington, D.C.. 6 p.m. (May 23, 2007)
Contact: Jennifer Curtis, 703-562-0770, jcurtin@agacgfm.org; [http://www.agacgfm.org]
Federal Accounting Standards
Federal Accounting Standards Advisory Board (FAR. Page 39318)
Meeting to discuss their conceptual framework, social insurance, application of the liability definition, the federal entity, natural resources, inter-entity costs, technical agenda, and any other topics as needed. May 23-24.
Location: Government Accountability Office, 441 G St., NW, room 7C13, Washington, D.C..
9 a.m. (May 23, 2007)
Contact: Wendy Comes, 202-512-7350
Wednesday, November 01, 2006
A Better Measure of Long-Term Spending: FASAB Proposes Changes in Accounting for Social Security, Medicare
The Federal Accounting Standards Advisory Board issued a report on October 23 calling for changes in financial reporting for social insurance programs. This is an important step that will provide better financial information on the operations of the federal government. It will also help to begin a serious discussion of how the huge impact of future entitlement spending should be reflected in the federal budget. Social Security and Medicare represent a growing threat to the federal budget, one that bodes ill for future generations. Understanding and indicating their financial effect on the nation’s fiscal burden is key to sound financial management.
What is FASAB and What the Report Did
The Federal Accounting Standards Advisory Board (FASAB) is a rather obscure quasi-governmental organization that establishes the generally accepted accounting principles (GAAP) used to prepare the federal government’s financial report. These standards are established through “Statements” issued by a joint public- and private-sector-member board. FASAB considers a broad array of viewpoints and input in establishing these standards, and its deliberations often take a few years before a final standard is issued. FASAB’s new report aims to strengthen financial reporting for social insurance programs. Because there are two views that differ strongly on how best to accomplish this, the report establishes common ground and then discusses each view in depth. FASAB is requesting public comment before it proceeds with a final standard.
Two Views on Needed Changes
FASAB members agree that financial statements should help Congress, the media, and the public make informed decisions about whether these social insurance programs are sustainable as they are designed today, whether the federal government’s financial position has improved or worsened due to these programs, and to what extent these programs will be able to provide benefits in the future. But there are two views on how to do this. Both—the “Primary” and the “Alternative”—agree that information on social insurance programs should:
- Be included in the basic federal financial statements,
- Be audited,
- Be readily understandable to a non-expert reader, and
- Clearly illustrate any projected long-range fiscal imbalance.
The views differ on how and what to include in the financial statements. According to David Mosso, FASAB Chairman, both views would include the present values of projected future program revenues and scheduled benefit payments, changes in present values during the period, and other disclosures on sustainability, though they differ on the details and the format of the statement. They would go about this in different ways, however. The biggest differences between the two views concern when a liability should actually be booked and how much of a liability to recognize.
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