Exam 17: Accounting and Reporting for the Federal Government

Federal government agencies prepare a management's discussion and analysis (MD&A) to be included in their general purpose federal financial report.

Which of the following federal government fund groups is most similar to a state and local government custodial fund?

The Desert Conservation Agency was authorized by the United States Congress to commence operations on October 1, 2020. Record the following transactions in general journal form, as they should appear in the budgetary and proprietary accounts of the agency. For each entry indicate whether it affects the budgetary accounts or the proprietary accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. The agency received official notice that its one-year appropriation passed by the Congress and signed by the President amounted to $350 million for operating expenses for the fiscal year and $100 million for acquisition of capital assets during the year. 2. The Office of Management and Budget notified the agency that the entire appropriation had been apportioned. 3. The head of the agency allotted $75 million for the first quarter's operating expenses, and $25 million for equipment to be ordered during the first quarter. 4. Purchase orders and contracts for services recorded for the first quarter totaled $90 million (the agency does not record commitments prior to placing orders or entering into contracts). 5. Total expenditures for the first quarter amounted to $70 million for operating expenses and $18 million for equipment, for which an obligation in the amount of $84 million had been previously recorded (see item 4 above). The expenditures were all paid from fund balance with U.S. Treasury.

Under SFFAC No. 2, all federal agencies are defined as separate reporting entities for financial statement preparation and reporting purposes.

Which of the following statements is not True about the United States government-wide financial report?

The management's discussion and analysis (MD&A) required in general purpose federal financial reporting is different than that required by GASB of state and local governments in that: