March 27, 2014 Wendy Payne FASAB Executive Director

Disclaimer Views expressed are my own. The Board’s views are only expressed in official publications.

Overview FASAB Three Year Plan and Annual Report – provide an update and/or decisions resulting from respondent comments and next steps, and DoD/IC impact FY 2014 Auditor Roundtable Feedback - Based on the roundtable, what decisions on project priorities will be changed or considered Reporting Entity Standard – decisions regarding changes resulting from respondent comments Internal use Software – brief of IUS Task Force Report and progress

FASAB Three-year Plan Plan recognizes effects of resource constraints Current Projects: Reporting Entity Reporting Model Leases Risk Assumed Public-Private Partnerships Volunteer Effort – Review and Improve IUS Research Projects: Linking cost to performance and managerial cost accounting Reconciling budget to accrual information Tax expenditures Natural resources

Three-year Plan, Continued Respondent comments: Endorsed completing current projects Some suggest lease standards simply follow FASB results Most often mentioned: Managerial cost accounting IUS Tax expenditures DoD Request for Guidance Next Steps Resource issues Priorities mostly endorsed DoD/IC impact Ability of FASAB/AAPC to support audit readiness by resolving long-standing and emerging issues. Resources Funding People

FY 2014 Auditor Roundtable Feedback Key Themes: Customization adds value to reports but is not seen Statement of Net Cost and Cost Accounting Value from audit Precision of estimates Controls in right places Impact of the Roundtable: Depends on FFMC action Two Studies: NAPA FASAB Study AGA potential pilot

Reporting Entity Proposal: Include organizations: In the budget Controlled by elected officials Owned Consolidation entities or disclosure organizations Administrative Assignments Related parties Significant changes: Clarify, clarify, clarify: Inclusion decision is from the perspective of the government as a whole The exception for “in the budget” Terminology Temporary relationships Federal Reserve required disclosures Potential for adding illustrations

Internal Use Software Thank you for the leadership and hard work. Reported to the Board in March Members want to know how to improve the value of information and minority of vocal members leaned toward expensing IUS if value cannot be shown or enhanced Next steps Outreach to decision makers (OMB, Project Managers and the Hill) Continue work on implementation guidance