CGFM Exam 2, Section 3 - Chapter 2: Federal Budgetary Accounting(rated A)PASSED

CGFM Exam 2, Section 3 - Chapter 2: Federal Budgetary Accounting(rated A)PASSED Exec Branch central financial management agencies - correct answer (1) OMB and (2) the Dept of Treasury OMB - correct answer OMB's predominant mission is to assist the president in overseeing the preparation of the federal budget and to supervise its administration by the executive branch agencies. OMB provides guidance in what forms? - correct answer Mainly with Circulars and Bulletins, but also with Memorandums OMB circulars - correct answer OMB uses the circular series when the nature of the subject matter is of continuing effect. When an instruction needs to be revised, the pertinent circular will be re-issued with the same number and a new date. OMB Bulletins - correct answer OMB uses the bulletin series when the subject matter requires single or one-time actions by the depts. Bulletins are issued in an annual series, numbered in chronological order. The last 2 numerals of the fiscal year of issuance are used to indicate the annual series; for example, Bulletin No. 15-03 was the third bulletin issued in fiscal year 2015. OMB Circular A-11, Preparation, Submission and Execution of the Budget - correct answer - The principal guidance on budget matters - Updated annually (usually in July) - Included in Circular A-11 is guidance on preparing Standard Form 133, Report on Budget Execution and Budgetary Resources. OMB Circular A-136, Financial Reporting Requirements. - correct answer The principal circular regarding financial reporting. This circular addresses the form and content of financial statements, required note disclosures and supplemental information. It is also updated annually. Standard Form 133, Report on Budget Execution and Budgetary Resources. - correct answer • An SF-133 is required for every budget account. • In addition to meeting budgetary control objectives of OMB and the Congress, this report serves as the basis for the Statement of Budgetary Resources required as a principal statement in all audited financial statements. Dept of Treasury - correct answer Among other duties, the Treasury serves as the financial manager and fiscal agent of the U.S. government. Treasury fiscal service publishes what guidance on Fed agency financial operations? - correct answer • The Treasury Financial Manual (TFM) describes the fiscal responsibilities of federal agencies and other concerned parties by providing policies, procedures and instructions. • The United States Standard General Ledger (USSGL) provides a uniform chart of accounts and technical guidance to be used in standardizing journal entries for federal agency accounting. • The USSGL Supplement (released annually) is composed of five major sections addressing (1) chart of accounts, (2) account descriptions, (3) accounting transaction codes, (4) USSGL attributes and (5) report crosswalks. Federal Financial Management Improvement Act of 1996 - correct answer mandated federal agencies comply with the United States Government Standard General Ledger(USSGL) at the transaction level. USSGL provides what 2 sets of accounts for agencies to follow? - correct answer 1. Budgetary accounting transactions are concerned with the life-cycle of an appropriation and measuring use of budget authority. Entries are required any time the appropriation is used. 2. Proprietary accounting is concerned with assets, liabilities, revenues, and expenses or costs. Entries are typically based on accrual accounting concepts so that entries capture the financial effects of transactions and events as costs are incurred, as revenue is earned, as assets are acquired, or as liabilities are incurred, regardless of the timing of budget recognition. Status of Budgetary Resources Equation - correct answer Budgetary Resources = Status of BR