Understanding Federal Financial Statements (FINC8103)

Day one of three

Overview of Federal Financial Reporting

• Accountability and management – the foundation of financial reporting
  • Accountability for money and results
  • Expanding levels of accountability
• Background and historical perspective
  • Early history – focus on fund accounting and reporting
  • The shift to financial accounting and reporting
  • Recent laws
• The current framework
  • Financial management functions
  • Statutory requirements
  • Requirements setting organizations and their roles
  • Implementing standards and guidance
  • Users of federal financial reports
• How the accounting system supports federal financial reporting
  • Multiple methods of accounting used for federal financial reporting
• How financial reporting supports performance management
  • Cost measurement
  • Accomplishment measurement
  • Relating costs to accomplishments
• Case exercises

The Agency Financial Report

• The annual reporting cycle
  • Periodicity of financial reports
• Unique characteristics of federal accounting and reporting
  • Importance of defining the reporting entity
  • Summary of federal reporting entities

Day two of three

The Agency Financial Report (continued)

• Central financial reporting guidance
  • OMB Circular A-136
  • Submission format and deadlines
• Required components of the PAR and AFR
  • Agency head message
  • Management’s discussion and analysis
  • Performance section
  • Other information
• Analysis of entity’s financial statement and stewardship information
• Analysis of entity’s systems. controls and legal compliance
• Other management information, initiatives and issues
• Limitations of financial statements
• Case exercises

Form and Content of Financial Statements

• Agency financial statements
• Federal financial accounting concepts and standards
• Hierarchy of standards
• Active FASAB projects
• Specific guidance
• Understanding the U. S. Standard General Ledger
• Financial statement contents
  • Balance sheet
  • Statement of net cost
  • Statement of changes in net position
  • Statement of budgetary resources
  • Statement of custodial activity
  • Statement of social insurance
  • Statement of changes in social insurance amounts

Day three of three

Form and Content of Financial Statements (continued)

• Notes to financial statements
• Interim financial statements
• Additional required information
• Financial Reporting Systems
  • Government-Wide financial reporting system
  • Government-wide Treasury Account Symbol Adjusted Trial Balance System
  • MAX information system
• Case exercises

Financial Statement Audits

• Shared management and auditor responsibilities
• Audit guidance
• Scope and type of work performed
• Audit opinions, control weaknesses and system deficiencies
• Current status and remaining obstacles
• Case exercises

Course review quiz