1. The FY 2017 Financial Report of the U.S. Government Part I
R. Scott Bell
Senior Staff Accountant
Department of the Treasury .
AGA – New Mexico
April 5, 2018

2. Quote from then President Thomas Jefferson to his Treasury Secretary, Albert Gallatin more than 200 years ago. Guiding principle behind the Citizen’s Guide.

3. The first Monthly Treasury Statement of Receipts and Expenses was issued in…
1789
1790
1800
1815
Answer: B

4. The first statutory Financial Report of the U. S
The first statutory Financial Report of the U.S. Government under GAAP covered which Fiscal Year?
1927
1957
1977
1997
Answer: D

5. Key Dates in FR History 1973 – Fortune Magazine – Carol Loomis
1970s – Treasury Prototypes
1990 – Chief Financial Officers Act
1990 – FASAB is formed
1999/2002 – AICPA designation
1994 – Govt Management Reform Act
1998 – First GAAP-Based FR issued.

6. Agency Financial Reports Performance & Accountability Reports
39 Significant Reporting Entities
115 Other Reporting Entities
Audited By Inspectors General & Contract Auditors
Audits Report &
Financial Statements
“How the Sausage is Made”
September 30 – Fiscal Year End
November 15 – agencies
February 15 – Governmentwide
GAO – auditor
OMB – collaborator (Treasury, in consultation with OMB…) prepares certain parts of report.
Fiscal Projections
Analysis & Summary

7. “Traditional” Reporting
This slide compares the Government’s budget deficit (cash basis of accounting) and net operating cost (accrual basis). Complementary perspectives of what the Government has earned/received and spent. (accrual includes revenues earned but not necessarily received; and costs incurred but not necessarily spent).

8. Which agency is not one of the Government Net Cost “Big Four”?
Dept. of Education
B) Social Security Administration
C) Dept. of Veterans Affairs
D) Dept. of Defense
E) Dept. of Health & Human Svcs
Correct Answer – A.

9. “Traditional Reporting” Costs and Revenues
Gross Cost: $4.6t - Earned Revenue $431.9b +/- Assumption Loss/Gain $356.5b Net Cost: $4.5t - Taxes / Other Revenue $3.4t Net Operating Cost: $1.2t
This slide summarizes the key “traditional” financial reporting metrics from the Financial Report.
Top Center - Revenue and cost crosswalk. Gross cost ($4.6t) less $357b in earned revenues (from services provided), less gains/losses from assumptions (deficit/cost difference from previous slide) = net cost ($4.5t).
Bottom Left – Top 3 contributors (per usual) to Net Cost – HHS, SSA, DOD, VA
Bottom Right – deduct $3.4t taxes/other revenues to get to bottom line net operating cost of $1.2t. Revenue increase attributable mainly to an overall growth in individual income tax collections.

10. The Government’s largest asset recorded on its consolidated balance sheet is:
A) Cash B) Property, Plant, & Equipment C) Loans Receivable D) Inventories & Related Property E) Land

11. “Traditional” Reporting
Assets and Liabilities on the Government’s Balance Sheet
Total Assets reported on Government’s Balance Sheet trillion.
Largest component – Land, followed closely by PP&E
Resources government controls is understated in this presentation – e.g., does not include much of the land that Government owns (national parks, etc) – not practical to try to assign monetary value to national parks. Instead, Government discloses acreage.
Liabilities - $24t. Largest – Federal Debt held by Public & Accrued Interest ($14.7t) – Total debt subject to limit = $20.2t. Difference = mostly intragovernmental – debt among government agencies which is eliminated upon consolidation of the governmentwide report. Appears in agency statements, but not governmentwide.
What is not shown? Social Insurance obligations – are not considered liabilities per accounting rules, but these amounts are reflected in a dedicated statement…(next slide).

12. Financial Report of the U.S. Government
FRUSG: Then & Now
Financial Report of the U.S. Government
Selected Data
1997
2017
Budget Deficit
$15 b
$665.7b
Tax and Other Revenue
$1.6 t
$3.4 t
Net Operating Cost
$21 b
$1.2 t
Total Assets
$3.5 t
Public Debt + Accd Int
$3.8 t
$14.7 t
Total Liabilities
$6.6 t
$23.9 t
Social Insurance Net Expenditures
$1.8 t*
$49.0 t
Comparison of key financial line items from the first Financial Report to this past year.
*Required Supplementary Stewardship Information
Unmodified Audit Opinion? No

13. Audit 21 of 24 CFO Act agencies received unmodified audit opinions
Disclaimer (DOD, HUD);
Yet to be released (Energy)
Governmentwide – Disclaimer
DOD
Intragovernmental Transactions
Compilation Process / Budget-Accrual Reconciliation

14. Coming Attractions: Part II
Social Insurance!!
Fiscal Sustainability!!
Long-Term Fiscal Projections
Fiscal Gap
Transparency / USASpending.gov!!

15. Find Out More!
Websites where the Guide and the full report can be accessed. Includes interactive version of the full report including links to other related resources such as individual agency reports and Social Security and Medicare Trustees Reports.
 Additional copies of the Citizen’s Guide are available upon request. Send an to if interested.