Quote from then President Thomas Jefferson to his Treasury Secretary, Albert Gallatin more than 200 years ago. Guiding principle behind the Citizen’s Guide.
“How the Sausage is Made” September 30 – Fiscal Year End November 15 – agencies February 15 – Governmentwide GAO – auditor OMB – collaborator (Treasury, in consultation with OMB…) prepares certain parts of report.
This slide compares the Government’s budget deficit (cash basis of accounting) and net operating cost (accrual basis). Complementary perspectives of what the Government has earned/received and spent. (accrual includes revenues earned but not necessarily received; and costs incurred but not necessarily spent).
Correct Answer – A.
This slide summarizes the key “traditional” financial reporting metrics from the Financial Report. Top Center - Revenue and cost crosswalk. Gross cost ($4.6t) less $357b in earned revenues (from services provided), less gains/losses from assumptions (deficit/cost difference from previous slide) = net cost ($4.5t). Bottom Left – Top 3 contributors (per usual) to Net Cost – HHS, SSA, DOD, VA Bottom Right – deduct $3.4t taxes/other revenues to get to bottom line net operating cost of $1.2t. Revenue increase attributable mainly to an overall growth in individual income tax collections.
Total Assets reported on Government’s Balance Sheet - @$3.5 trillion. Largest component – Land, followed closely by PP&E Resources government controls is understated in this presentation – e.g., does not include much of the land that Government owns (national parks, etc) – not practical to try to assign monetary value to national parks. Instead, Government discloses acreage. Liabilities - $24t. Largest – Federal Debt held by Public & Accrued Interest ($14.7t) – Total debt subject to limit = $20.2t. Difference = mostly intragovernmental debt @$5.5t) – debt among government agencies which is eliminated upon consolidation of the governmentwide report. Appears in agency statements, but not governmentwide. What is not shown? Social Insurance obligations – are not considered liabilities per accounting rules, but these amounts are reflected in a dedicated statement…(next slide).
Comparison of key financial line items from the first Financial Report to this past year.
Websites where the Guide and the full report can be accessed. Includes interactive version of the full report including links to other related resources such as individual agency reports and Social Security and Medicare Trustees Reports. Additional copies of the Citizen’s Guide are available upon request. Send an email to [email_address] if interested.
180308 aganm 1 us government financial report
The FY 2017 Financial Report of theThe FY 2017 Financial Report of the
U.S. GovernmentU.S. Government
Part IPart I
AGA – New Mexico
April 5, 2018
R. Scott Bell
Senior Staff Accountant
Department of the Treasury
"We might hope to see the finances of the Union as clear and intelligible
as a merchant's books, so that every member of Congress and every man
of any mind in the Union should be able to comprehend them, to
investigate abuses, and consequently to control them."
President Thomas Jefferson to Treasury Secretary Albert Gallatin, 1802
The first Monthly Treasury
Statement of Receipts and
Expenses was issued in…
The first statutory Financial Report
of the U.S. Government under
GAAP covered which Fiscal Year?
Key Dates in FR History
• 1973 – Fortune Magazine – Carol Loomis
• 1970s – Treasury Prototypes
• 1990 – Chief Financial Officers Act
• 1990 – FASAB is formed
– 1999/2002 – AICPA designation
• 1994 – Govt Management Reform Act
• 1998 – First GAAP-Based FR issued.
Which agency is not one of the
Government Net Cost “Big Four”?
A) Dept. of Education
B) Social Security Administration
C) Dept. of Veterans Affairs
D) Dept. of Defense
E) Dept. of Health & Human Svcs
Gross Cost: $4.6t
- Earned Revenue $431.9b
+/- Assumption Loss/Gain $356.5b
Net Cost: $4.5t
- Taxes / Other Revenue $3.4t
Net Operating Cost: $1.2t
Costs and Revenues
The Government’s largest asset
recorded on its consolidated
balance sheet is:
B) Property, Plant, & Equipment
C) Loans Receivable
D) Inventories & Related
Assets and Liabilities on the
Government’s Balance Sheet
FRUSG: Then & Now
Financial Report of the U.S. Government
Budget Deficit $15 b $665.7b
Tax and Other Revenue $1.6 t $3.4 t
Net Operating Cost $21 b $1.2 t
Total Assets $1.6 t $3.5 t
Public Debt + Accd Int $3.8 t $14.7 t
Total Liabilities $6.6 t $23.9 t
Social Insurance Net Expenditures $1.8 t* $49.0 t
Unmodified Audit Opinion? No No
*Required Supplementary Stewardship Information
• 21 of 24 CFO Act agencies received
unmodified audit opinions
– Disclaimer (DOD, HUD);
– Yet to be released (Energy)
• Governmentwide – Disclaimer
– Intragovernmental Transactions
– Compilation Process / Budget-Accrual
Long-Term Fiscal Projections
Transparency / USASpending.gov!!
Find Out More!