Term
| Where do the statutory requirements for accounting in the Government come from? |
|
Definition
| It comes from the Constitution, but has been expanded in the both the U.S. Code and specific accounting-relation legislation. (p 3.3.6) |
|
|
Term
| What did the Budget and Accounting Act do? |
|
Definition
| Established the GAO to audit the Executive Branch. Established the Bureau of Budget (now OMB) and required the President to submit a comprehensive national budget. Also, gave GAO the authority to approve Federal Financial Systems and to establish GAAP for the Federal Government. (p 3.3.11) |
|
|
Term
| What did the Federal Property and Administrative Services Act do? |
|
Definition
| Established the GSA. (p 3.3.11) |
|
|
Term
| What did the Accounting and Auditing Procedures Act do? |
|
Definition
* Requires apportion, allocation systems
* Expanded anti-deficiency, required reporting
* Mandated principles/standards
* Established Joint Financial Management Improvement Program (JFMIP) (p 3.3.11) |
|
|
Term
| What did the Prompt Payment Act do? |
|
Definition
| Required agencies to pay bills when due to pay interest and to not pay in advance unless advantageous to the Government. (p 3.3.11) |
|
|
Term
| What did the Debt Collection Act, as amended by the Debt-Collection Improvement Act, do? |
|
Definition
| Strengthened ability to collect receivables from people who owe the Government. (p 3.3.11) |
|
|
Term
| What did the Federal Managers' Financial Integrity Act (FMFIA) do? |
|
Definition
| Required agencies to set up an Internal Control Program and report annually an aspects of their accounting systems not conforming to GAO's principles/standards. Specifically included are Internal Control Assessment and Accounting Control Assessment. (p 3.3.11) |
|
|
Term
| What did the Chief Financial Officers (CFO) Act do? |
|
Definition
| Required appointment of a Chief Financial Officer in 24 major Federal agencies and required financial reports for business operations. (p 3.3.12) |
|
|
Term
| What did the Government Performance and Results Act (GPRA), as amended by the Modernization Act of 2010, do? |
|
Definition
* Define long-term goals
* Set performance targets
* Report actual performance (p 3.3.12) |
|
|
Term
| What did the Government Management Reform Act do? |
|
Definition
* Required direct deposit of Federal wages, salary, and retirement payments
* Amended the Chief Financial Officers (CFO) Act to require a consolidated financial statement for the entire Executive Branch (prepared by the Treasury Department and audited by the GAO) beginning with FY 1997
* Required 24 agencies (now known as the CFO Act Agencies) to submit audited financial statements. (p 3.3.12) |
|
|
Term
| What did the Federal Financial Management Improvement Act (FFMIA) do? |
|
Definition
* Required systems to support the control of cost of Government
* Required application of accounting standards to produce consistency in financial reporting
* Required financial management systems to support full-cost reporting and full disclosure of financial data (p 3.3.12) |
|
|
Term
| What did the Accountability of Tax Dollars Act do? |
|
Definition
| Required each covered Executive Branch Agency to prepare and submit audited financial statements. (p 3.3.12) |
|
|
Term
| What did the National Defense Authorization Act (PL 111-166) do? |
|
Definition
| Required that DoD financial statements be validated as ready for audit by 30 September 2017. (p 3.3.12) |
|
|
Term
| What does the Office of Management and Budget (OMB) do? |
|
Definition
* In conjunction with the CFO counsel, conducts a continuous program for accounting and financial reporting in the Federal Government.
* Assisting the President in preparing and overseeing the execution of the budget. (p 3.3.13) |
|
|
Term
| What does the Government Accountability Office (GAO) do? |
|
Definition
| As an agent of Congress, audits the financial performance of the Executive Branch and is often referred to as the "watchdog" of Congress. GAO is primarily concerned with how Executive agencies/departments implement legislation enacted by Congress. (p 3.3.13) |
|
|
Term
| What does the Department of Treasury do? |
|
Definition
The Federal Government's banker treasury:
* Manages the balances and flow of funds required to support the Government
* Formulates and recommends economic, financial, tax, and fiscal policies
* Manufactures coins and currency
* Compiles the consolidated Federal financial statements
* Publishes the U.S. Standard General Ledger, which feeds to all financial reports and makes the consolidated financial statements possible. (p 3.3.13) |
|
|
Term
| What does the Federal Accounting Standards Advisory Board (FASAB) do? |
|
Definition
| Established in 1990 by the Comptroller General, the Secretary of the Treasury, and the Director of OMB, it is the responsible for codifying the Generally-Accepted Accounting Principles (GAAP) for the Federal Government. After a recommendation is adopted, it is published as a Statement of Federal Financial Accounting Concept (SFFAC) or a Statement of Federal Financial Accounting Standards (SFFAS), which forms the basis of the Federal GAAP. (p 3.3.13) |
|
|
Term
| What does the Financial Accounting Standards Board (FASB) do? |
|
Definition
| Issues standards of accounting, referred to as Generally Accepted Accounting Principles (GAAPs), for non-governmental, not-for-profit entities. (p 3.3.14) |
|
|
Term
| What does the Government Accounting Standards Board (GASB) do? |
|
Definition
| Issues Generally Accepted Accounting Principles (GAAPs) for state and local governmental, not-for-profit entities. (p 3.3.14) |
|
|
Term
| What three agencies are responsible for implementing the Federal accounting standards? |
|
Definition
1. Office of Management and Budget (OMB)
2. Government Accountability Office (GAO)
3. Department of Treasury (p 3.3.15) |
|
|
Term
| How does OMB implement the Federal accounting standards? |
|
Definition
| Implements an approved standard by publishing the standard and updating OMB Circular A-136. The published standards become Federal GAAP and must be followed by Federal Executive Branch. (p 3.3.15) |
|
|
Term
| How does GAO implement the Federal accounting standards? |
|
Definition
| Formulates the Generally Accepted Government Auditing Standards (GAGAS) that are to be used by Government auditors in performing statement audits. (p 3.3.15) |
|
|
Term
| How does the Department of Treasury implement the Federal accounting standards? |
|
Definition
| Publishes and updates the U.S. General Ledger to accommodate any changes required by a new standard, and makes changes to the financial statement crosswalks that may be required by changes in OMB Circular A-136. The U.S. Standard General Ledger feeds all the financial reports and makes the consolidated financial statements possible. (p 3.3.15) |
|
|
Term
| Who does the Federal accounting standards consider the financial and budgetary information needs of? |
|
Definition
* Citizens
* Congressional oversight groups
* Executive agencies
* The needs of other users of Federal financial information (p 3.3.16) |
|
|
Term
| What are the objectives of Statement of Federal Financial Accounting Concepts (SFFACs)? |
|
Definition
| Budgetary Integrity, Operating Performance, Systems and Control, and the concept of Stewardship, which links to the Preamble of the Constitution requirement of Promoting the General Welfare (SFFAC No. 1). (p 3.3.16) |
|
|
Term
| What does SFFAC No. 2 address? |
|
Definition
| Discusses accounting and reporting entities, whether administrative, fiduciary, or another organizational structure. It also addresses the content and form of an entity's financial report and how reporting can and should help meet the objectives defined in SFFAC No. 1. (p 3.3.16) |
|
|
Term
| What does SFFAC No. 3 address? |
|
Definition
| Describes the concepts recommended for Management's Discussion and Analysis reports. Federal financial reports should include a section devoted to management's discussion and analysis. (p 3.3.17) |
|
|
Term
| What does SFFAC No. 4 address? |
|
Definition
| Identifies the intended audience for the Consolidated Financial Report (CFR) of the U.S. Government. The FASAB identified five audiences for the CFR: Citizens, Citizen Intermediaries, Congress, Federal Executives, and Program Managers. The CFR should be a "general purpose" report directed to external users that contains understandable information and is timely. (p 3.3.17) |
|
|
Term
| What does SFFAC No. 5 address? |
|
Definition
| It develops those elements of financial statements resulting from an entity's transaction or other events that affect the entity. It establishes two basic recognition criteria that an item must meet to be a candidate for recognition in the body of a financial statement: (1) the item must meet the definition of an element and (2) the item must be measurable, meaning a monetary amount can be determined with reasonable certainty or reasonably estimable. (p 3.3.17) |
|
|
Term
| What are the Elements of financial statements? |
|
Definition
| They are the "building blocks" of financial statements - the broad classes of items from which the statements are constructed assets, liabilities, net position, revenue, and expense. (p 3.3.17) |
|
|
Term
| What items are candidates for disclosure in the notes of financial statements or as supplementary information? |
|
Definition
| An item that meets the definition of an element, but is not measurable. (p 3.3.17) |
|
|
Term
| What does SFFAC No. 6 address? |
|
Definition
| Amends SFFAC No. 2. Discusses a process and factors the Board considers when deciding whether the information should be considered basic information, required supplementary information (RSI), or other accompanying information (OAI), which may help those engaged in Federal financial reporting to better understand the nature of the information being communicated and their importance to the financial reporting objectives. (p 3.3.17) |
|
|
Term
| What does SFFAC No. 7 address? |
|
Definition
| Expresses an objective to identify and elucidate the conceptual issues relevant to establishing measurement standards in the future for accrual basis financial statements. It applies mainly to assets and liabilities. It outlines the Board's future standards whether and under what circumstances it might be more useful for users' decision making to report an asset or liability in periods after its acquisition or incurrence: (a) at the amount initially recorded (the historical cost or historical proceeds) which may be adjusted subsequently for amortization, depreciation, or depletion if applicable) or (b) at an amount measured at each financial statement date ("re-measured amount"), such as the fair value. The Concepts Statement discusses the advantages and disadvantages of different alternatives of measurement. (p 3.3.17-18) |
|
|
Term
| What does the Under Secretary of Defense (Comptroller) do? |
|
Definition
* Principle financial advisor to the Secretary and Deputy Secretary of Defense
* Chief Financial Officer (CFO) of DoD
* Deputy CFO, represents DoD on the Chief Financial Officers Council
* Formulates DoD-wide financial management policies
* Directs the Defense Finance and Accounting Service (DFAS)
- Is the accounting entity for DoD
- Maintains a central general ledger
* Directs DCAA (p 3.3.22) |
|
|
Term
| Why does DFAS maintain a central general ledger? |
|
Definition
To:
* Account for DoD resources
* Determine cost of operations
* Report DoD financial position and cost of operations (p 3.3.22) |
|
|
Term
| What does DoD 7000.14R Financial Management Regulation (FMR) do? |
|
Definition
| Provides DoD components with the policy and procedures within the responsibility of the Under Secretary of Defense (Comptroller). It is comprised of 15 volumes that cover comptroller responsibilities. (p 3.3.23) |
|
|
Term
| What are the types of Federal funds? |
|
Definition
* General funds
* Special funds
* Public enterprise funds
* Intragovernmental funds (p 3.3.24) |
|
|
Term
|
Definition
| The greater part of the budget and record receipts not earmarked by law for a specific purpose, such as almost all income-tax receipts. Also includes the proceeds of general borrowing. Draws from general fund receipts collectively and are therefore not specifically linked to receipt accounts. (p 3.3.24) |
|
|
Term
|
Definition
| Consists of receipt account for Federal fund receipts that laws have earmarked for a specific purpose and associated appropriation accounts for the expenditure of earmarked receipts. (p 3.3.24) |
|
|
Term
| What are Public enterprise funds? |
|
Definition
| Revolving funds used for programs authorized by law to conduct a cycle of business-type operations, primarily with the public, in which outlays generate collections. (p 3.3.24) |
|
|
Term
| What are Intragovernmental funds? |
|
Definition
| Revolving funds that conduct business-type operations primarily within and between Government agencies. The budget records the collections and the outlays of revolving funds in the same account. (p 3.3.24) |
|
|
Term
| What are Trust funds (Federal)? |
|
Definition
| Funds that account for the receipt and expenditure of monies by the Government for carrying out a specific purpose and programs in accordance with the terms of a statute that designates the fund as a trust fund (e.g. Highway Trust Fund), or for carrying out the stipulations of a trust agreement where the Nation is the beneficiary (such as any of several trust funds for gifts and donations for specific purposes). There is no substantive difference between a trust fund and a special fund. (p 3.3.24) |
|
|
Term
| What are Trust revolving funds? |
|
Definition
| Trust funds credited with collections earmarked by law to carry out a cycle of business-type operations. There is no substantive difference between a trust revolving fund and a public enterprise fund. (p 3.3.24) |
|
|
Term
|
Definition
| Funds that are held from the proceeds of sales of lost, abandoned, or unclaimed personal property, withheld allotment of compensation for payment of employee organization dues, and cooperative research and development-project funds. The Government accounts for such funds in deposit funds, which are not included in the budget. (p 3.3.24) |
|
|
Term
| What are Clearing accounts? |
|
Definition
| Technically, not a type of fund. Used to temporarily account for transactions that you know belong to the Government but you cannot match to a specific receipt or expenditure account. (p 3.3.24) |
|
|
Term
| What are the types of DoD funds? |
|
Definition
* Appropriated funds
* Reimbursable funds
* Revolving funds
* Trust funds
* Non-Appropriated funds (p 3.3.25) |
|
|
Term
| What are Appropriated funds? |
|
Definition
| Funds provided by Congress to fund an agency's budget request. These funds have a limited life for obligations and expenditures. (p 3.3.25) |
|
|
Term
| What are Reimbursable funds? |
|
Definition
| Funds provided by customers, which are funds in addition to those appropriated by Congress, typically for work performed in addition to normal mission work. In order to accept reimbursable work, an organization must have the reimbursable work in its budget request (that is, it must be in the annual plan). (p 3.3.25) |
|
|
Term
| What are Revolving Funds? |
|
Definition
| Funds that work like a for-profit business and sell products and services to customers at a price that covers the cost incurred. While revolving funds are initially established with funds appropriated by Congress, they normally receive no additional funding from Congress. (p 3.3.25) |
|
|
Term
| What are Trust funds (DoD)? |
|
Definition
| Funds held in trust for use in carrying out specific purposes and programs in accordance with a trust agreement or statute (e.g. Military Retirement Trust Fund and Foreign Military Sales). (p 3.3.25) |
|
|
Term
| What are Non-Appropriated funds? |
|
Definition
Funds that are not appropriated by Congress. They:
* Come primarily from the sale of goods and services to DoD military and civilian personnel and their family members
* Are used to support morale, welfare, recreation, and certain other function such as religious and educational programs
* Are separate from funds that are recorded in the books of the Treasury
* Are considered Government funds and are governed by specific DoD regulations even though they are not appropriated (p 3.3.25) |
|
|
Term
| What are the categories of Appropriated funds? |
|
Definition
* Annual Appropriations
* Multi-Year Appropriations
* No-Year Appropriations
* Permanent (Indefinite) Appropriations (p 3.3.26) |
|
|
Term
| What are Annual Appropriations? |
|
Definition
| One fiscal year funds, usually provided for routine mission work (e.g. O&M and Salaries and Expenses (S&E) funding). (p 3.3.26) |
|
|
Term
| What are Multi-Year Appropriations? |
|
Definition
| Funds that are available for obligation for more than one fiscal year. Congress specifies the length of availability in the appropriation language (e.g. RDT&E). (p 3.3.26) |
|
|
Term
| What are No-Year Appropriations? |
|
Definition
| Funds that do not expire, unless specified in the appropriation. They are available for obligation and expenditure until revoked (e.g. Working Capital funds). (p 3.3.26) |
|
|
Term
| What are Permanent (Indefinite) Appropriations? |
|
Definition
| Funds covered by basic laws that allow the Secretary of Treasury to pay without further enactment by Congress (e.g. interest on debt, Federal retirement, Social Security, and the Judgment fund). (p 3.3.26) |
|
|
Term
|
Definition
| A rule that states that a fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in the fiscal year(s) for which the appropriation was made. Applies to multi-year and annual appropriations, but not to no-year appropriations. (p 3.3.28) |
|
|
Term
| How are obligations for military and civilian pay recorded? |
|
Definition
| They are recorded in the month or pay period earned and support by payroll records. (p 3.3.28) |
|
|
Term
| How are obligations for permanent change-of-station costs recorded? |
|
Definition
| They are recorded when the orders are issued, based on travel estimates and the date(s) of the travel. (p 3.3.28) |
|
|
Term
|
Definition
| An enforceable agreement between the Government and a commercial vendor (supplier) to provide specific goods and/services to the Federal Government. An obligation occurs when the contract has been accepted and signed by the Government. (p 3.3.28) |
|
|
Term
| What is a Military Interdepartmental Purchase Request (MIPR)? |
|
Definition
| A purchase request for requesting work or services from another Government entity. An obligation occurs for the issuer when the order is accepted by the performing activity. A MIPR may be issued as a Project Order or an Economy Act order. (p 3.3.28-29) |
|
|
Term
| What is an Economy Act order? |
|
Definition
| An order used for routine work or services of a reoccurring nature, usually within one fiscal year. (p 3.3.29) |
|
|
Term
|
Definition
| Amounts earned and collected from the selling of goods and services. DoD reimbursable programs or activities must be approved by the Under Secretary of Defense (Comptroller). (p 3.3.29) |
|
|
Term
|
Definition
| The recovery of excess payments that are credited to the appropriation that made the payment. Treated as a reduction of the payment and not a reimbursement. (p 3.3.29) |
|
|
Term
|
Definition
| Includes the issuance of checks, disbursement of cash, or electronic transfer of funds made to liquidate a Federal obligation. (p 3.3.29) |
|
|
Term
| What is Budgetary Accounting primarily concerned with? |
|
Definition
| The legal requirement to control and properly manage budget authority provided to entities in an appropriation. (p 3.3.31) |
|
|
Term
| What series of accounts is provided in the Standard General Ledger (SGL) to accommodate budgetary accounting? |
|
Definition
|
|
Term
| What is the budgetary accounting equation? |
|
Definition
| Resources = Status of Resources (p 3.3.31) |
|
|
Term
| What is the basis for budgetary accounting? |
|
Definition
|
|
Term
| What is the basis for proprietary accounting? |
|
Definition
|
|
Term
| What does Proprietary Accounting do? |
|
Definition
| Captures costs and revenues and then applies them to the appropriate period. It has a structure for capturing assets, liabilities, and the owner's equity. (p 3.3.32) |
|
|
Term
| What is the proprietary accounting equation? |
|
Definition
| Assets = Liabilities + Net Position (p 3.3.32) |
|
|
Term
| What series of accounts is provided in the Standard General Ledger (SGL) for assets? |
|
Definition
|
|
Term
| What series of accounts is provided in the Standard General Ledger (SGL) for liabilities? |
|
Definition
|
|
Term
| What series of accounts is provided in the Standard General Ledger (SGL) for net position? |
|
Definition
|
|
Term
| What is the equation for the statement of net cost? |
|
Definition
| Expenses - Exchange Revenue = Net Cost Operations or Net Operating Result (p 3.3.32) |
|
|
Term
| What is the net cost of operations? |
|
Definition
| The gross cost (expenses) incurred by the reporting entity less any exchange revenue earned from its activities. (p 3.3.32) |
|
|
Term
|
Definition
| The full cost of the outputs produced by a program plus any non-production costs that can be assigned to the program. (p 3.3.32) |
|
|
Term
| What are earned revenues? |
|
Definition
| Exchange revenues, which arise when a Federal entity provides goods and services to the public or to another Government entity for a price. (p 3.3.32) |
|
|
Term
| How are receipts of appropriations recorded in accounting records under budgetary accounting? |
|
Definition
DR CR
4119 Other Appropriations Realized $100,000,000
4450 Unapportioned Authority $100,000,000
To record simultaneous enactment of appropriations and receipts of warrants. (p 3.3.33) |
|
|
Term
| How are receipts of appropriations recorded in accounting records under proprietary accounting? |
|
Definition
DR CR
1010 Fund Balance with Treasury $100,000,000
3101 Unexpended Appropriations - Appropriations Received $100,000,000
To record simultaneous enactment of appropriations and receipt of warrants. (p 3.3.33) |
|
|
Term
| How are apportionments recorded in accounting records under budgetary accounting? |
|
Definition
DR CR
4450 Unapportioned Authority $25,000,000
4510 Apportionments $25,000,000
To record budgetary authority apportioned by OMB and available for allotment. (p 3.3.33) |
|
|
Term
| How are allotments recorded in accounting records under budgetary accounting? |
|
Definition
DR CR
4510 Apportionments $20,000,000
4610 Allotments - Realized Resources $20,000,000
To record the allotment of Authority. (p 3.3.33) |
|
|
Term
| How are commitments recorded in accounting records under budgetary accounting? |
|
Definition
DR CR
4610 Allotments - Realized Resources $2,000,0000
4700 Commitments - Programs Subject to Apportionment $2,000,000
To record the commitment. (p 3.3.34) |
|
|
Term
| How are obligations recorded in accounting records in budgetary accounting? |
|
Definition
DR CR
4700 Commitments - Programs Subject to $2,000,0000
Apportionments
4801 Undelivered Orders - Obligations, Unpaid $2,000,000
To record a current year undelivered order. (p 3.3.34) |
|
|
Term
| How are receipts of materials ordered recorded in accounting records in budgetary accounting? |
|
Definition
DR CR
4801 Undelivered Orders - Obligations, Unpaid $2,000,0000
4901 Delivered Orders - Obligations, Unpaid $2,000,000
To record the delivery of goods and accrue a liability. (p 3.3.34) |
|
|
Term
| How are receipts of materials ordered recorded in accounting records in proprietary accounting? |
|
Definition
DR CR
1511 Operating Materials and Supplies Held for Use $2,000,0000
2110 Accounts Payable $2,000,000
To record the delivery of goods and accrue a liability. (p 3.3.34)
3107 Unexpended Appropriations - Used $2,000,0000
5700 Expended Appropriations $2,000,000
To record appropriations used this Fiscal Year. (p 3.3.35)
8804 Purchase of Assets - Other $2,000,0000
8801 Offset for Purchase of Assets $2,000,000
To record activity for current-year purchases of other assets not recorded as Property, Plant, and Equipment or Inventory and Related Property. (p 3.3.35) |
|
|
Term
| How are payments of invoices recorded in accounting records in budgetary accounting? |
|
Definition
DR CR
4901 Delivered Orders - Obligations, Unpaid $2,000,0000
4902 Delivered Orders - Obligations, Paid $2,000,000
To record the confirmed disbursement. (p 3.3.35) |
|
|
Term
| How are payments of invoices recorded in accounting records in proprietary accounting? |
|
Definition
DR CR
2110 Accounts Payable $2,000,0000
1010 Fund Balance with Treasury $2,000,000
To record the a confirmed disbursement. (p 3.3.35) |
|
|
Term
| What is the Fund Balance with the Treasury? |
|
Definition
| The aggregate amount of funds an entity has at the Treasury to make expenditures and to pay liabilities or to purchase assets, goods, and services. It is similar to a bank balance. (p 3.3.39 |
|
|
Term
| What is Undistributed Disbursements? |
|
Definition
| Federal Government funds that have been paid, but for whatever reason, have not yet been identified to a specific organization; therefore they are placed in a suspense account. They represent the amount of disbursements as reported by the finance network that have not been accepted by the operating-level accounting entity. They are not a separate asset account, but a subset of the "Fund Balance with Treasury" account 1010, and are tracked with ledger account 1015. (p 3.3.39) |
|
|
Term
|
Definition
| A petty cash fund in the form of currency or coin for specifically authorized cash payments. May be a revolving or stationary fund, such as a change-making fund. The use of an imprest fund for unclassified programs is not authorized unless specific authority has been granted by the Office of the Deputy CFO, OUSD (Comptroller). (p 3.3.39) |
|
|
Term
| What is Accounts Receivable? |
|
Definition
| The amounts owed to the entity. Can result from a reimbursable agreement or from an overpayment to a vendor. (p 3.3.39) |
|
|
Term
|
Definition
When an entity has given funds to others in anticipation of receiving a future benefit. Examples are:
* Payments to contractors who are, or will be, doing work for the entity
* Travel advances paid to employees, both military members and civilians (p 3.3.39) |
|
|
Term
| How are travel advances accounted for? |
|
Definition
| When the Government advances funds to a traveler, military member, or civilian employee for expenses incidental to official business or change of duty station, that amount must be recognized as an asset (receivable) of the appropriation or fund from which the traveler is to be paid until a settlement has been recorded. (p 3.3.40) |
|
|
Term
| What are the 3 categories of Property, Plant, and Equipment (PP&E)? |
|
Definition
* General PP&E
* Heritage Assets
* Stewardship Land (p 3.3.40) |
|
|
Term
|
Definition
Consist of tangible assets (excluding those that meet the definition of Heritage Assets or Stewardship of Land) that meet all of the following criteria:
* Have an estimated life of two or more years
* Are not intended for sale in the ordinary course of operations
* Are acquired or constructed with the intention of being available for use by the entity
* Have an initial acquisition cost, book value, or when applicable, an estimated fair market value that equals, or exceeds, DoD capitalization threshold
Examples: real property (land, buildings, and structures), equipment, and computer systems. (p 3.3.40-41) |
|
|
Term
| What is the DoD capitalization threshold? |
|
Definition
| $100,000 for General PP&E, except for real property assets, which is $20,000 (p 3.3.40) |
|
|
Term
| What is the acquisition value of a General PP&E asset? |
|
Definition
| The amount paid for the asset plus transportation, installation, and other related costs of obtaining the asset and preparing it for use. The cost should be recorded in a property management system, which is a subsidiary system to the General Ledger. (p 3.3.41) |
|
|
Term
|
Definition
| The rational allocation of the full acquisition value of a General PP&E asset over its expected useful life (recovery period). (p 3.3.41) |
|
|
Term
| What is Stewardship PP&E? |
|
Definition
| Tangible assets classified as either Heritage Assets or Stewardship of Land. (p 3.3.41) |
|
|
Term
| What are Heritage Assets? |
|
Definition
| PP&E that are unique for one of more of the following reasons: historical, natural, cultural, educational significance, artistic importance, or significant architectural characteristics. These types of assets are expected to be preserved indefinitely. Physical properties resemble those of General PP&E, but their values may be indeterminable or may have little financial meaning (e.g. museum collections, monuments, assets acquired in the formation of the nation), or allocating the cost of such assets (e.g. military weapons systems) to accounting periods that benefit from the ownership of such assets is not meaningful. Also referred to as Multi-Use Heritage Assets. (p 3.3.41) |
|
|
Term
| What is Stewardship of Land? |
|
Definition
| Land and land rights other than that acquired for or in connection with General PP&E, land acquired via the public domain, or land acquired at no cost. (p 3.3.41) |
|
|
Term
| What are the financial reports reporting entities issue? |
|
Definition
* Balance Sheet
* Statement of Net Cost
* Statement of Changes in Net Position
* Statement of Custodial Activity (p 3.3.42) |
|
|
Term
| What is a Statement of Custodial Activity? |
|
Definition
| Required for entities that collect non exchange revenues for the General Fund of the Treasury, a trust fund, or other recipient entities. (p 3.3.42) |
|
|
Term
| What is the deadline established by Congress to have DoD fully auditable financial statements by? |
|
Definition
|
|
Term
| How is DoD trying to achieve fully auditable financial statements? |
|
Definition
* Using a streamlined approach that focuses on improving and auditing the information most often used to manage
* Holding leaders accountable to achieve long and short-term FIAR goals through a governance process
* Providing funding to DoD Components to improve systems, processes, and controls (p 3.3.43) |
|
|
Term
| What is the Financial Improvement and Audit Readiness (FIAR) Plan? |
|
Definition
| The strategy, methodology, and means for monitoring progress to achieve Congress' audit readiness requirement. Also advances DoD's fiscal stewardship and improves financial information needed to manage the Department. (p 3.3.43) |
|
|
Term
| What is the Balance Sheet? |
|
Definition
| Presents, as of a specific time, amounts of future economic benefits owned or managed by the reporting entity (assets), amounts owned by the entity (liabilities), and the differences (net position). (p 3.3.43) |
|
|
Term
| What is the Statement of Net Cost? |
|
Definition
| Shows the components of the net cost of the reporting entity's operation for the period. (p 3.3.45) |
|
|
Term
| What is the Statement of Changes in Net Position? |
|
Definition
| Reports the beginning net position, the items that caused net position to change during the reporting period, and the ending net position. (p 3.3.45) |
|
|
Term
| What is the Statement of Budgetary Resources? |
|
Definition
Provides information regarding how budgetary resources were made available as well as their status at the end of the period. It is broken into three sections:
* Section 1 - Budgetary Resources
* Section 2 - Status of Resources
* Section 3 - Outlays (p 3.3.47) |
|
|
Term
| What is managerial cost accounting? |
|
Definition
| The process of accumulating, measuring, analyzing, interpreting, and reporting cost. (p 3.3.49) |
|
|
Term
| What is the Managerial Cost Reporting Requirement? |
|
Definition
Use full costs of outputs in general purpose financial reports, including:
* Direct Costs (Direct Labor and Materials)
* Indirect Costs (Overhead)
* Intra-entity Costs (General and Administrative)
* Intra-entity Costs
- Cost of goods and services received from other entities
- Providing entity is responsible for providing cost data
- Recognition limited to material amounts (p 3.3.50) |
|
|
Term
| What is the categories of rations? |
|
Definition
Ratios that:
* Analyze balance sheet position
* Analyze operating results (p 3.3.50) |
|
|
Term
|
Definition
| The quotient of two numbers that, by itself, is almost meaningless. (p 3.3.50) |
|
|
Term
| What are the two ways to use a ratio for performance analysis? |
|
Definition
* Trend Analysis
* Comparative Analysis (p 3.3.50) |
|
|
Term
|
Definition
| Involves determining how the ratio has behaved across time. By charting its variation, the manager can assess the entity's performance and may be able to predict where it is headed. (p 3.3.50) |
|
|
Term
| What is comparative analysis? |
|
Definition
| The manager determines how the entity is performing at a single point in time relative to other like entities or to a DoD standard. (p 3.3.50) |
|
|
Term
|
Definition
A fundamental measurement in the analysis of balance sheet position is the comparison of current assets with current liabilities as of a date. A measure of the entity's ability to meet its current obligations.
Total Current Assets / Total Current Liabilities = Current Ration or Working Capital Ratio (p 3.3.51) |
|
|
Term
| What is DoD's goal for current ratio? |
|
Definition
|
|
Term
|
Definition
| Total current assets or simply the excess of current assets over current liabilities. (p 3.3.51) |
|
|
Term
| What is net working capital? |
|
Definition
| When "working capital" is used to indicate total current assets, "net working capital" is used to represent the excess of current assets over current liabilities. (p 3.3.51) |
|
|
Term
|
Definition
| A test of an entity's immediate solvency made by comparing the sum of cash and aged accounts receivable with current liabilities. (p 3.3.51) |
|
|
Term
|
Definition
| The sum of cash and aged accounts receivable. (p 3.3.51) |
|
|
Term
| What is the acid-test ratio? |
|
Definition
Provides a reflection of how quickly specific asset accounts can be converted to cash to meet current obligations or liabilities.
Quick Assets / Current Liabilities (p 3.3.51) |
|
|
Term
| What is DoD's goal for quick ratio? |
|
Definition
|
|
