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Unformatted text preview: Chapter 16 Federal Government Accounting Questions for Review and Discussion 1. The Financial Management Service (FMS) is the government’s central collection and disbursing agent. It collects revenues from the IRS, Customs and other agencies and writes most of the government’s checks. It is also in charge of the government’s main accounting functions, such as overseeing the central accounting and reporting systems, keeping track of monetary assets and liabilities, and issuing financial reports. FMS also works with the individual federal agencies to bring greater uniformity to their accounting and reporting practices. 2. Apportionments are shares of an agency’s total appropriation that are available to be spent. The total appropriation is most commonly divided among time periods (such as quarters), programs, activities or projects. The apportionment process helps assure that agencies do not run out of funds prior to year-end or spend a disproportionate amount on certain programs or activities to the detriment of others. 3. The board is titled “advisory” technically it has the authority only to recommend accounting standards to the Treasury, the OMB and the GAO — the three agencies through whose combined efforts the board was established by Congress. These agencies have the authority to review and reject any standards issued by the board. 4. The four primary objectives of federal financial reporting are: • Budgetary integrity . Providing information to enable readers to determine if budgetary mandates were properly carried out. • Operating performance . Assisting users in evaluating the costs and accomplishments of federal entities. • Stewardship . Assisting users in assessing the impact on the country of the government’s operations and investments for the period and the status of the government’s financial position. • Deterring fraud, waste and abuse . Assisting users in understanding whether adequate financial management systems and internal controls are in place. 5. The unified budget encompasses all four types of funds — operating, special, trust and revolving. It is intended to capture in a single tabulation the impact of all federal activities on the national economy. Social Security and Postal Service receipts and disbursements are said to be off budget because they are not included among the receipts and disbursements when federal spending limitations are applied. 16-1 6. It may be unclear as to whether a particular program or subunit is an appropriate reporting entity because one program may be within the control of more than one organizational unit and one organizational unit may be responsible for two or more unrelated programs....
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This note was uploaded on 08/02/2009 for the course ACC 460 BSBH0IE428 taught by Professor Martinginsburg during the Spring '08 term at University of Phoenix.
- Spring '08