IC Financial Action Committee

March 27, 2014Wendy Payne

FASAB Executive Director

DisclaimerViews expressed are my own. The Board’s

views are only expressed in official publications.

OverviewFASAB 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 PlanPlan recognizes effects

of resource constraintsCurrent Projects:

Reporting EntityReporting ModelLeasesRisk AssumedPublic-Private

PartnershipsVolunteer Effort –

Review and Improve IUS

Research Projects:Linking cost to

performance and managerial cost accounting

Reconciling budget to accrual information

Tax expendituresNatural resources

Three-year Plan, ContinuedRespondent 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 StepsResource issuesPriorities mostly

endorsedDoD/IC impact

Ability of FASAB/AAPC to support audit readiness by resolving long-standing and emerging issues.

Resources Funding People

FY 2014 Auditor Roundtable FeedbackKey Themes:Customization adds

value to reports but is not seen

Statement of Net Cost and Cost Accounting

Value from auditPrecision of estimatesControls in right

places

Impact of the Roundtable:

Depends on FFMC action

Two Studies:NAPA FASAB StudyAGA potential pilot

Reporting EntityProposal:

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 SoftwareThank you for the leadership and hard work.Reported to the Board in MarchMembers 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 stepsOutreach to decision makers (OMB, Project

Managers and the Hill)Continue work on implementation guidance