1. Fiscal Policy Reform and Management People’s Republic of China
Ministry of Finance
Policy and Advisory Technical Assistance (PATA)

2. Fiscal Policy Reform and Management
Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Speakers
Irvin Faunce: Former Deputy Commissioner, Financial Management Service, Treasury Department
Norman Kanefsky: Current President, GLOWS Corp, Federal Core Accounting System Vendor
Pal Posner: Current Director, George Mason University, School of Public & International Affairs
David Mosso: Former Treasury, Fiscal Assistant Secretary, Chairman, Financial Accounting Standards Advisory Board (FASAB), and Vice Chairman, Financial Accounting Standards Board (FASB)
Charles A. Bowsher: Former Comptroller General of the United States, Government Accountability Office
Glanda Scheiner: Current Director, Human Resources & Management, DoD Comptroller Office
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Fiscal Policy Reform and Management

3. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Session
July 11, 2014
Speaker
Topic
Federal Government-wide Accounting, Reporting & Budget Overview
Federal Core Accounting System & Continuing Professional Education
George Mason University, Federal Financial Management Master’s Certificate Program
Accrual Accounting GAAP vs. Wealth Measurement Model (WMM)
All Participants Questions & Answers
Morning 9:00AM-12:00PM
Afternoon 1:30PM-5:30PM
July 12, 2014
Morning 9:00AM-1:00PM
Irvin Faunce
Norman Kanefski
Paul Posner
David Mosso
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Fiscal Policy Reform and Management

4. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
People’s Republic of China Key Point of Meeting
To introduce the key points and most difficult parts at the initial time when American government compiles financial statement.
To introduce the important points among your report.
To introduce the most special prospects we need to pay attention to while implement reform.
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Fiscal Policy Reform and Management

5. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Principle Objectives
The previous slide presented the Key Points identified in the June 4, from Ms. Jiac Huang of the Yonyou Government Affairs Software Co. Ltd to be presented at the July 11-12, 2014 meeting with the People Republic of China, Ministry of Finance. In addition to the identified Key Points for discussions, As an introduction, this morning I will be discussing the United States Government Financial Management Organization Structure and an overview of the Federal Financial Management operating proceseses.
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Fiscal Policy Reform and Management

6. United States Government Financial Management System
Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
United States Government Financial Management System
The United States Financial Management System is based on the separation of powers between the Legislative, Executive, and Judicial Branches of Government and specifically Article I, Section 9, Clause 7 of the United State Constitution states:
Article I, Section 9, Clause 7 of the United States Constitution:
“(7) No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law: and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.”
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Fiscal Policy Reform and Management

7. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
United States Government Financial Management Organization Structure
Internal Control
Check & Balance
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Fiscal Policy Reform and Management

8. Federal Financial Transparency, Accountability, & Integrity United States Government Financial Management Accounting, Reporting, & Budget Operational Structure
Congressional Budget Office
Whitehouse
Executive Branch
Congress
Legislative Branch
Decision Making
Office of Management & Budget
Executive Branch
Government Accountability Office
Independent Agency
Legislative Branch
Legislative Branch
Independent Agency
Transparency
Single Financial Data Repository
Financial Analysis
Public Internet Access
Federal Accounting Standards Advisory Board
Treasury Department
Executive Branch
Accountability
Independent-Data Act Audit Reporting Financial Reporting Performance Reporting
Integrity Financial Literacy Near Term–CPE Training Long Term-Federal Financial Management Institute
Independent Agency
Executive Branch
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Fiscal Policy Reform and Management

9. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Financial Management Processing Overview
Accounting and Reporting Principles and Standards
Financial Accounting Standards Advisory Board (FASAB):
FASAB is the Federal Government equivalent of Financial Accounting Standards Board (FASB) that promulgates/pronounces private sector accounting and reporting principles and standards and the Government Accounting Board (GASB) that promulgates/pronounces state and local government principles and standards. FASAB currently has 8 Board Members, three Federal Members representing the three Central Financial Agencies; GAO, OMB, & Treasury and 5 private sector organizations. See hyperlink:
The American Institute of Certified Public Accountants (AICPA) is the private sector organization that represents Certified Public Accountants Nationally regarding rule-making and standard-setting and serves as an advocate before legislative bodies, public interest groups, and other professional organizations.
National Association of State Boards of Accountancy (NASBA) is a private sector association representing the United States 55 States and Territories (50 States + 1) Commonwealth of the Northern Mariana Islands, 2) District of Columbia,3) Guam, 4) Puerto Rico, ad Virgin Islands). NASBA also supports AICPA related to certification of Continuing Professional Education (CPW) testing.
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Fiscal Policy Reform and Management

10. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Financial Management Processing Overview
Government-wide Accounting & Reporting Processes
Department of the Treasury, Office of Fiscal Assistant Secretary, Bureau of the Fiscal Service:
The Bureau of the Fiscal Service maintains the Government-wide Accounting and Reporting System that consolidates the financial results of all Legislative, Executive, and Judicial Branch Departments and Agencies and the results the Federal Reserve Banks and Branches and Commercial Depository Banks foreign and domestic. The next slide presents the functional processing flow of the Government-wide Accounting Systems Federal Financial Management Processes:
Authorization, Appropriation, and other Budget Authority Processes
Disbursing Office and Agency Payment Processes
Federal Reserve Banks Branches and Commercial Depository Payment and Deposit Processes
Department Agency Reporting of the Classification of Payment and Receipt Transactions by Appropriation, Fund, and Receipt Account Symbol.
Appropriation, Fund, and Receipt Account Symbol, also know as the Treasury Account Symbol (TAS) is published in the Treasury Federal Accounts Symbol and Titles “FASFBook.” Below is a hyperlink to the FASTBook:
FASTBook Hyperlink:
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Fiscal Policy Reform and Management

11. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Government-wide Accounting & Reporting Processes
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Fiscal Policy Reform and Management

12. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Financial Management Processing Overview
Treasury Consolidated Government-wide Accounting & Reporting
Treasury Consolidated Government-wide Accounting & Reporting includes Accounting and Reporting for Cash and Monetary Asset in the following principal reports: Daily Treasury Statement, Monthly Treasury Statement, Combined Statement of Receipts, Outlays, and Balances of the United States Government (Cash Basis), Annual Financial Report of the United States Government (Accrual Basis), and Treasury Bulletin representing a compendium of miscellaneous Federal financial information.
Treasury Bulletin
Daily Treasury Statement
Financial Report
Monthly Treasury Statement
Combined Statement
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Fiscal Policy Reform and Management

13. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Financial Management Processing Overview
Treasury Disbursing Services
The Treasury Bureau of Fiscal Service, Financial Management Service provides disbursing services all civilian agencies with the exception of: 1) Legislative and 2) Judicial Branches, 3) Department of Defense, 4) United States Marshall Service, and 4) Government Corporations that process their own payments. Treasury delegation of their Disbursing Authority to other Federal Government Agencies includes, 1) Treasury Bureau of Fiscal Service - Public Debt, 2) Department of Health & Human Services, Payment Management System for communication with and payment to grantees and medical care service providers, and the Department of State, United States Disbursing Offices that process foreign payments at U.S. Embassies and Consulates world-wide.
All government check stock is administered by the Financial Management for all of the foregoing government agencies that perform check payment services. Administration includes: the production and issuance of blank check stock to authorized Treasury and Non-Treasury Disbursing Officer, maintenance and reconciliation of detail subsidiary accounting records for all checks issued and outstanding, and reconciliation and reclamation of all over-payment, lost, stolen, and fraudulent-payment of check payment issued by all disbursing offices. All investigation stolen and fraudulent cashing of Treasury check payment transactions is administered by the U.S. Secret Service.
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Fiscal Policy Reform and Management

14. Fiscal Policy Reform and Management Agenda – July 11 – 12, 2014
Financial Management Processing Overview
Treasury Accounting, Reporting, and Maintenance of Depository Check Account Balances
The Treasury Bureau of Fiscal Service, Financial Management Service performs maintenance, accounting and reporting services for the administration of all Federal Reserve Bank (12), Federal Reserve Branch Banks (24), and approximately 600 Commercial Depository Banks world-wide. The foregoing commercial banks provide payment and collection services for the Department of the Treasury on a pay for service basis. Federal Reserve Banks and Branch Banks are Fiscal Agent of the United States and pay for there Treasury services through off-setting Treasury service coast against earning charged to commercial banks for Federal Reserve banking services. The Federal Reserve Banks pay commercial depository banks a fee for the maintenance of bank Demand Deposit Account Balances used by the Federal Reserve Banks and Branches to pay bank checks and clear bank deposits made by the commercial depository bank.
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Fiscal Policy Reform and Management