Continued Commitment to Auditability of the Financial Report of the U.S. Government Jaime M. Saling May 9, 2016

L EAD ∙ T RANSFORM ∙ D ELIVER 2 Since 1997, the Bureau of the Fiscal Service has compiled agency financial data to prepare the consolidated Financial Report of the U.S. Government, and has consecutively received a disclaimer from GAO. The Issue: A Disclaimer of Opinion DoD Compilation IGT Three Primary Impediments Disclaimer

L EAD ∙ T RANSFORM ∙ D ELIVER 3 Preparation of the Financial Report ₒCollaboration with agencies ₒSupport for top level journal vouchers ₒAnalysis of audit coverage ₒImplementation of new accounting standards ₒVariance Analysis Progress: Compilation Material Weakness

L EAD ∙ T RANSFORM ∙ D ELIVER 4 Preparation of the Financial Report ₒReporting Entity ₒSignificant Entities ₒLegal Representation Letters ₒTreaties ₒCriminal Debt Plans: Compilation Material Weakness

L EAD ∙ T RANSFORM ∙ D ELIVER 5 Current State Governmentwide Financial Reporting System (GFRS) Extensive Manual Entry Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Disclaimer

L EAD ∙ T RANSFORM ∙ D ELIVER TBD Reporting Entity Reclassified Statements and Trading Partner Data Source Notes and Other Data Source Reclassified Statements and Trading Partner Data Source Notes and Other Data Source Reclassified Statements and Trading Partner Data Source Notes and Other Data Source Significant Entity Manual Entry GTAS* Manual Entry GTAS GTAS/ Manual Entry Other Entity GTAS Manual Entry GTAS Manual Entry GTAS GTAS/ Manual Entry Planned Direction *Notes: 1)Capability provided to agencies to adjust GTAS populated financial statement line level (to be phased out over some period of time) 2)Will still require agency CFO and IG approval

L EAD ∙ T RANSFORM ∙ D ELIVER 7 Future State Limited Manual Entry Governmentwide Financial Reporting System (GFRS) Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS)

L EAD ∙ T RANSFORM ∙ D ELIVER 8 Budget Statements ₒPilot agencies for accrual-based reconciliation ₒTracing a cash transaction Progress: Compilation Material Weakness Payments and Collections Budgetary Outlays and Receipts

L EAD ∙ T RANSFORM ∙ D ELIVER 9 Reconciliations of Net Operating Cost and Unified Budget Deficit Plans: Compilation Material Weakness Agency Financial Statements (SFFAS 7) Net Cost of Operations Net Outlays Governmentwide Financial Report (SFFAS 24) Net Operating Cost Budget Deficit

L EAD ∙ T RANSFORM ∙ D ELIVER 10 FY 2015: ₒRequired Root Cause and Corrective Action Plan in TFM ₒMonitored Corrective Action Plan implementation ₒExpanded IGT Metrics and Scorecards ₒAssertion over GFRS Module GF004 Trading Partner Note Progress: Intragovernmental Material Weakness

L EAD ∙ T RANSFORM ∙ D ELIVER 11 General Fund  Completed the General Fund general ledger  Focused additional resources to assist with agency reconciliations  Subjected the General Fund to additional IGT controls and assertions Progress: Intragovernmental Material Weakness

L EAD ∙ T RANSFORM ∙ D ELIVER 12 FY 2016: ₒMonitor Corrective Action Plan implementation ₒIGT Scorecards made available to the financial management community ₒExpand metrics and scorecard process to monitor the “Unidentified” usage ₒAccess to a raw data file in GTAS to reconcile IGT differences Plans: Intragovernmental Material Weakness

L EAD ∙ T RANSFORM ∙ D ELIVER 13 General Fund of the U.S. Government ₒContinue to reconcile IGT differences with trading partners ₒAudit Coverage Internal Control Review (OMB A-123) External Audit of the General Fund Plans: Intragovernmental Material Weakness

L EAD ∙ T RANSFORM ∙ D ELIVER 14 Implementation of SFFAS 47 Reporting Entity ₒSurvey sent to agencies ₒDetermination of Consolidated Entity or Disclosure Entity ₒDiscrepancies in determination ₒAgreement by… Agency Level – Agency, IPA, and IG Governmentwide – Treasury, OMB, GAO ₒ2016 TFM Bulletin Future Reporting…2018

L EAD ∙ T RANSFORM ∙ D ELIVER Contact Information 15 Jaime M. Saling Department of the Treasury Bureau of the Fiscal Service (304)