Quiz 14: Financial Reporting by the Federal Government

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What are the required financial statements of a federal agency

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Essay

The federal government has passed the Chief Financial Officers' Act in 1990, for improving the financial management system of the federal government agencies, which are handled by the Office of Federal Financial Management under the Office of Management and Budget. The Office of Management and Budget, the Government Accountability Office and the Department of the Treasury are in-charge of the financial management for federal government agencies. The annual financial reporting of an agency or other organization under the Chief Financial Officers' Act is handled by the federal accounting standards advisory board. For the annual financial reporting of a federal agency, the financial statements which are required are as follows: 1. Balance sheet, 2. Statement of net cost, 3. Statement of changes in net position, 4. Statement of budgetary resources, 5. Statement of custodian activity (if required), 6. Statement of social insurance (if required).

Q 2

What are the required financial statements of the U.S. government

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Essay

The federal government has passed the Chief Financial Officers' Act in 1990, for improving the financial management system of the federal government agencies, which are handled by the Office of Federal Financial Management under the Office of Management and Budget. The Office of Management and Budget, the Government Accountability Office and the Department of the Treasury are in-charge of the financial management for federal government agencies. The annual financial reporting of an agency or other organization under the Chief Financial Officers' Act is handled by the federal accounting standards advisory board. The Department of the Treasury prepares the U.S. government's annual financial statements and the Government Accountability Office audits their annual financial reports. For the annual financial reporting of a U.S. government, the financial statements which are required are as follows: 1. Balance sheet, 2. Statement of net cost, 3. Statement of changes in Cash balance from unified budget and other activities, 4. Statement of operations and changes in net position, 5. Statement of net operating coat and unified budget deficit, 6. Statement of social insurance. And 7. Notes to the financial statements.

Q 3

What bodies are responsible for establishing accounting standards for the federal government and its agencies

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Essay

The federal government has passed the Chief Financial Officers' Act in 1990, for improving the financial management system of the federal government agencies, which are handled by the Office of Federal Financial Management under the Office of Management and Budget. The Office of Management and Budget, the Government Accountability Office and the Department of the Treasury are in-charge of the financial management for federal government agencies. The annual financial reporting of an agency or other organization under the Chief Financial Officers' Act is handled by the federal accounting standards advisory board. The Department of the Treasury prepares the U.S. government's annual financial statements and the Government Accountability Office audits their annual financial reports. The major governing body which is responsible for the development and issue of the accounting standard of the federal governmental and its agencies is the Federal Accounting Standards Advisory Board (FASAB), which comprises of ten members, two members from the executive branch, two members from the legislative and six non-employee members. This is an advisory board which was established by the Treasury, Office of Management and Budget and the Government Accountability Office, which approves the accounting standards developed by the FASAB.

Q 4

The 2008 financial statements of the U.S. Government are available at: http://www.gao.gov/financial/fy2008/08frusg.pdf. Use these to answer the following questions: a. Statement of Net Costs 1. What are the three largest government units based on net cost 2. Which government department operates at the largest net profit b. Statement of Operations and Changes in Net Position 3. What are the two largest sources of revenue to the federal government 4. Which item on this statement articulates (agrees) with the Statement of Net Costs c. Balance Sheet 5. What are the two largest liabilities reported on a balance sheet 6. Which item on this statement articulates with the Statement of Operations and Changes in Net Position

Essay

Q 5

The 2008 financial statements of the Internal Revenue Service are available at: http://www.gao.gov/new.items/d09119.pdf. Use these to answer the following questions: a. Statement of Net Costs 1. What are the IRS's two largest programs based on net cost b. Statement of Changes in Net Position 2. What is the largest source of financing for the activities of the IRS c. Statement of Custodial Activity 3. What activity is reported in this statement (i.e., what is the IRS doing)

Essay

Q 6

Assume a federal agency has the following events: 1. Receives a warrant from the Treasury notifying the agency of appropriations of $2,400,000. 2. OMB apportions one-fourth of the appropriation for the first quarter of the year. 3. The director of the agency allots $590,000 to program units. 4. Program units place orders of $550,000. 5. Supplies ($100,000) and services ($320,000) are received during the first quarter. Supplies of $80,000 were used in the quarter. Required: Prepare any necessary journal entries to reflect the events described above. Identify whether the entry is a budgetary or proprietary type.

Essay

Q 7

Using the information from exercise 14-6, prepare a schedule showing the status of the appropriation at the end of the first quarter.

Essay

Q 8

The Mosquito Abatement Commission is a newly organized federal agency with three primary programs: Coordination of state government abatement functions, conduct research on mosquito abatement, and promote abatement through public education. The following information is available at the end of the first quarter (December 31, 2012): Required: Prepare a Statement of Net Costs for the quarter ended December 31.

Essay

Q 9

Assume the Federal Interstate Commission began the fiscal year with the following account balances: 1. Congress passed a spending bill providing $12,000,000 to fund the agency's operations for the year. 2. During the first quarter the commission processed the following items for payment (all items were paid by Treasury in the first quarter). 3. Unpaid wages at the end of the quarter totaled $25,000. 4. In addition to the items paid in item 2, the commission received supplies of $12,000 and contracted services of $70,000 that are to be processed for payment in January. 5. Unused supplies on hand totaled $209,000 at December 31. 6. Depreciation for the quarter is $60,000. Required: a. Prepare journal entries in the proprietary accounts for the events described above. b. Prepare a Statement of Changes in Net Position for the quarter ended December 31. (Assume the amount of appropriations used is $3,607,000 and use the format appearing in Illustration 14-11.) c. Prepare a Balance Sheet as of December 31.

Essay

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Quiz 14: Financial Reporting by the Federal Government

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