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