Understanding Federal Financial Statements (FINC8103)

Understanding Federal Financial Statements

Understanding Federal Financial Statements


Learn how to prepare federal financial statements that meet the Office of Management and Budget (OMB) guidelines. Discover the importance of stewardship reporting. Learn to apply various techniques used to examine financial statements. Identify the impact of the Government Performance and Results Act (GPRA) on financial reporting.

This course is part of the Master Certificate in Federal Financial Management.

Who Should Attend?

Accountants, financial managers, budget analysts, program managers, auditors and other professionals who are responsible for preparing, analyzing and interpreting federal financial statements will benefit from this course.




24 CPE's

Class Type:

This course is currently being offered in the following training modalities:

Learning Outcomes:

  • Explain the financial statement requirements of OMB Circular No. A-136
  • Describe the preparation and analysis of the "basic financial statement"
  • Describe the form and content of annual financial statements as prescribed in OMB guidance
  • Distinguish between budgetary and proprietary reporting
  • Demonstrate program and financial performance analysis
  • Recognize the importance of stewardship reporting
  • Identify the impact of the Government Performance and Results Act (GPRA) on financial reporting
  • Identify new costs of operations and financial flexibility

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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

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