Accounting & Reporting For The Federal Gov't Nfp

Federal agencies are required by law to follow the accounting standards (GAAP) established for the federal government. This means that they must incorporate these standards into their financial management systems to ensure consistency and accuracy in their financial reporting. This requirement helps to promote transparency and accountability in the financial operations of federal agencies. Therefore, the statement is true.

The correct answer is "Net Position equals Total Assets minus Total Liabilities". Net position is a measure of the financial position of an entity, and it represents the residual interest in the assets of the entity after deducting liabilities. Total assets refer to the total value of all the resources owned by the entity, while total liabilities represent the total amount of debts or obligations owed by the entity. Therefore, subtracting total liabilities from total assets gives us the net position, which represents the entity's overall financial standing.

The correct answer is Congress, executives, program managers, and citizens. This is because FASAB, the Federal Accounting Standards Advisory Board, has identified these four user groups as the major stakeholders of federal financial reports. Congress, as the legislative branch, needs financial reports to make informed decisions and allocate funds. Executives, such as agency heads and department heads, use financial reports to manage and oversee their respective organizations. Program managers rely on financial reports to monitor the financial performance of their programs. Citizens, as taxpayers and stakeholders, have the right to access and understand federal financial information.

The responsibility for establishing and maintaining a sound financial structure for the federal government is assigned to the Comptroller General, Secretary of the Treasury, and Director of the Office of Management and Budget. These individuals play crucial roles in overseeing and managing the financial operations of the federal government, ensuring that it remains financially stable and accountable. They are responsible for budgeting, financial reporting, and ensuring compliance with federal financial regulations.

The correct answer is that state and local governments use accrual accounting in the government-wide statements as well as proprietary and fiduciary funds, while federal agencies use only the cash basis of accounting. This means that state and local governments record transactions when they occur, regardless of when the cash is received or paid, providing a more accurate representation of their financial position. On the other hand, federal agencies only record transactions when cash is received or paid, which may not reflect the true financial position of the agency.

Federal agencies would report information concerning their performance goals and performance results, along with their future challenges in the Management Discussion and Analysis section. This section provides a narrative explanation of the agency's overall performance and financial results, including an analysis of the agency's goals, objectives, and strategies. It also discusses any challenges or risks that may impact the agency's ability to achieve its goals in the future. This information is important for stakeholders to understand the agency's performance and future prospects.

Undelivered Orders and Other Appropriations Realized would likely be found in the agency's post-closing trial balance at year-end because it reflects the amount of appropriations that have been obligated but not yet delivered or expended. This account captures the remaining budgetary authority that the agency has at the end of the year, which includes both undelivered orders and any other appropriations that have been realized but not yet utilized.

The Comptroller General of the United States is the head of the Government Accountability Office. This is the correct answer because the Comptroller General is responsible for leading and overseeing the activities of the Government Accountability Office, which is an independent agency that provides auditing, evaluation, and investigative services for the U.S. Congress. The Comptroller General is appointed by the President of the United States and serves as a non-partisan, independent official who ensures accountability and transparency in government operations.

The objectives identified by Statement of Federal Financial Accounting Concepts (SFFAC) No. 1 for federal financial reporting include budgetary integrity, operating performance, and stewardship. Transparency, on the other hand, is not included as an objective. Transparency refers to the disclosure of relevant financial information to the public and stakeholders, which promotes accountability and trust in the government's financial activities. While transparency is an important aspect of financial reporting, it is not specifically mentioned as one of the objectives in SFFAC No. 1.

The FASAB due process for establishing a federal financial accounting standard includes public comment on a discussion memorandum, issuing an exposure draft, and support (or lack of opposition) of the standard by the three principles (Comptroller General, Sec. of the Treasury, and Dr. of OMB). However, unanimous approval by the FASAB is not part of the due process.

The statement of net cost is a required basic financial statement for federal agencies. This statement provides information on the costs incurred by the agency in providing goods and services, as well as the revenue generated from those activities. It helps to assess the efficiency and effectiveness of the agency's operations and provides transparency in financial reporting. The statement of net cost is essential for understanding the financial performance of federal agencies and ensuring accountability in the use of public funds.

The statement is false because the federal budgetary term "commitment" is not synonymous with "appropriations" as used in state and local government terminology. While both terms refer to the allocation of funds, they have different meanings and implications in each context. "Commitment" in the federal budget refers to the legal obligation to spend funds, whereas "appropriations" in state and local government refers to the actual allocation of funds for specific purposes.

The process for establishing generally accepted accounting principles (GAAP) for federal agencies includes a comment period. This allows stakeholders and the public to provide input and feedback on the proposed principles before they are finalized. This ensures transparency and allows for a more comprehensive and inclusive decision-making process.

The FASAB's technical bulletins are not the highest level of GAAP for the federal government. The highest level of GAAP for the federal government is the FASAB's standards if adopted by FASAB.

A consolidated performance and accountability report (PAR) typically includes various components that provide a comprehensive overview of an organization's performance and financial accountability. These components usually consist of the management's discussion and analysis (MD&A), the basic financial statements, and a transmittal letter from the agency head. However, the statistical information section is not typically included in a PAR. This section would typically contain additional non-financial data and statistics that may be relevant to the organization's performance but are not considered essential components of the PAR.

The correct answer is that the Comptroller General of the US has rendered a disclaimer of opinion on the US government's consolidated financial statements for as long as that office has audited those statements. This means that the Comptroller General has not been able to express an opinion on the accuracy and reliability of the government's financial statements.

The net position of a federal agency includes unexpended appropriations, cumulative results of operations, and appropriations represented by undelivered orders and unobligated balances. However, fund balances with the U.S. Treasury are not included in the net position.

A commitment in federal government accounting refers to the recording of the estimated amount of equipment before actually placing an order or entering into a contract. This allows the government to plan and budget for future expenses. It is an important step in the procurement process as it helps in ensuring that funds are available and allocated appropriately.

The responsibility for setting accounting and reporting standards for federal agencies does not primarily rest with the Federal Accounting Standards Advisory Board. The correct answer is False.