Accounting

Like of accounting

Accounting classification code Identifies fund source Prepared when financial event initiated -commitment

A ... is prepared when the actual or constructive receipt of goods or services has occurred

Accrual

Accrual stage occurs when

Actual or constructive receipt of goods or services has occurred

Commitment of funds

Administrative reservation of funds Valid requirement Financed with proper funds

Collection/ transfer

Amount recorded must equal amount earned Accounts receivable liquidated

Budgetary accounts record budget authority such as

Appropriations, allocations, suballocstions, and allowances

Assets =

Assets (items of value that are owned) Equals Liabilities (amounts owed to others) Equity (ownership)

Propriety accounts are

Assets, liabilities, equity

Certification of funds

Attests to correctness of statements

Reimbursement

Authority received Orders received Earned reimbursement Collection / transfer

NDAA

Authorizes appropriations for a specific FY for military activities

Obligation

Binding legal reservation of public funds to pay: Orders placed Contracts awarded Services rendered

US Code

Codification by subject matter of US laws

The line of accounting is prepared for a financial event at the ....stage of accounting

Commitment

Expenditures

Commitment of funds Obligation Accrual Disbursement

Standard financial information structure (SFIS)

Common budget language

Flow of funds

Congress - NDAA (apportion$" OMB OSD Military services / defense agencies (allocation) HQ of major commands Installation level or primary level field activity Subordinate activity

General ledger

Contains chart of accounts (assets, liabilities, equity) Historical record Main accounting

Enterprise standard line of accounting

DOD effort to standardize business practices to ensure interoperability

DOD instruction

Dod issuance that implements the policy for carrying out

Earned reimbursements

Dollar amounts of goods or services provided Recorded as accounts receivable

Trial balances

Double entry booking system T account format for presenting values Prove total debit equals total credit balances Foundation of all reports

What accounting system enable the automation and integration of business process

ERP

4 main CFO dairies financial statements

Each with its own reporting requirements Statement of budgetary resources

Goal of regulations

Ensure systems are accurate complete comparable DODDMR 7000.14

.... are considered ownership or net position

Equity

The purpose of accounting is to provide a process to measure

Financial performance and status

CFO Act 1990

Gives OMB authority and responsibility for directing federal financial management

OMB Circulars

Instructions from OMB to federal agencies

Segregation of duties Proper authorizations of transaction and activities Physical control over assets are examples of

Internal controls

Disbursing systems

Make payments Report payments to the treasury Pass data to accounting systems

ADA

Making obligations or expenditures in excess of an apportionment or reapportionment In excess in amount permitted

Administrative reservation

No legally binding agreement between gov and second party

Accrual expenditure

Occurs upon constructive receipt of goods and services Journal entry establishes payable Gov has a debt Two ways to recognize: Actual receipt-goods in possession and acceptable Constructive receipt-expenditure processed assuming receipt

Disbursement

Outlay Paid to liquidate obligations or provide cash in advance Formal disbursement voucher

Accounting

Process of recording reconciling reporting and anlayzing

Departmental systems

Produce required reports on the financial status

Federal Financial Management Improvement Act 1996

Provide accurate, reliable, timely financial management info to government managers

Feeder systems

Provide data to the accounting or entitlement system WAWF

Double entry accounting is a universal approach for

Recording business transactions

Orders received

Reimburse able order - services supplies from another organization internal or external to the government Orders received - performing installation accepts reques for goods or sev cues Reimbursement - amoun collected for propert sold / goods provided

Internal control

Reliable reporting Ensure compliance with laws Safeguard readiness Plans, policies, procedures used to achieve management objectives -segregation of duties -proper authorization -adequate documentation -physical control -independent checks

Government wide treasury account symbol adjusted trial balance system (GTAS)

Replaced FACTS 1 Used to compile info for financial statements

Standard financial information structure

Replaced LOA Common set of data elements

Treasury account symbols (TAS)

Standard for all LOAs and contains four data elements

USSGL

Standardize federal accounting Maintained by treasury 6 digit identifier 5 sections Chart of accounts Accounts and definitions Account transactions Account attributes Crosswalks to standard external reports 10000-assets 20000-liabilities 30000-net position (captial) 4-budgetary 5-revenues 6-expenses 7-gains/losses 8-memo 9-agency specific stats

Entitlement systems

Travel Vendor pay Contract pay Military pay Civilian pay

Authority received

Two types Funded reimbursement authority - specific dollar amount, recorded, then used once orders are received for goods/services Automatic reimbursement authority - note on funding document, recorded when order received

The treasury account symbol does not include which of the following elements

USSGL includes -department fide -period of availability -main account

Double entry accounting

Universal approach For each entry, debit must equal credit Recording business transactions