prior period adjustments due to corrections of errors – years preceding the prior year ussgl board...

Prior Period Adjustments Prior Period Adjustments Due to Corrections of Errors Due to Corrections of Errors – Years Preceding the Prior – Years Preceding the Prior

YearYear

USSGL Board PresentationUSSGL Board PresentationMay 20, 2010May 20, 2010

BackgroundBackground

Corrections of Errors, as defined by SFFAS No. 21, Corrections of Errors, as defined by SFFAS No. 21, Reporting Reporting Corrections of Errors and Changes in Accounting Principles,Corrections of Errors and Changes in Accounting Principles, are are errors in financial statements that are a result of mathematical errors in financial statements that are a result of mathematical mistakes, mistakes in the application of accounting principles, or mistakes, mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time the financial oversight or misuse of facts that existed at the time the financial statements were prepared. statements were prepared.

The Government Accountability Office (GAO), auditors of the The Government Accountability Office (GAO), auditors of the Financial Report of the U.S., have advised the Financial Reports Financial Report of the U.S., have advised the Financial Reports Division to make a clear distinction between corrections of errors Division to make a clear distinction between corrections of errors that occurred in the earliest year presented, in comparison to that occurred in the earliest year presented, in comparison to corrections errors that occurred in years preceding the prior year. corrections errors that occurred in years preceding the prior year.

The USSGL Division is proposing three new accounts to capture The USSGL Division is proposing three new accounts to capture Corrections of Errors – Years Preceding the Prior YearCorrections of Errors – Years Preceding the Prior Year activity activity (Effective FY 2011)(Effective FY 2011)

Proposed USSGL AccountsProposed USSGL Accounts

3105 Unexpended Appropriations – Prior Period 3105 Unexpended Appropriations – Prior Period Adjustments Due to Corrections of Errors – Years Adjustments Due to Corrections of Errors – Years Preceding the Prior YearPreceding the Prior Year

5705 Expended Appropriations – Prior Period 5705 Expended Appropriations – Prior Period Adjustments Due to Corrections of Errors – Years Adjustments Due to Corrections of Errors – Years Preceding the Prior YearPreceding the Prior Year

7405 Prior Period Adjustments Due to Corrections 7405 Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior Yearof Errors – Years Preceding the Prior Year

3105 Unexpended Appropriations – Prior Period Adjustment Due to 3105 Unexpended Appropriations – Prior Period Adjustment Due to Corrections of Errors – Years Preceding the Prior YearCorrections of Errors – Years Preceding the Prior Year

The amount of net increase or decrease to unexpended The amount of net increase or decrease to unexpended appropriations due to errors in years preceding the prior year’s appropriations due to errors in years preceding the prior year’s financial statements that resulted from mathematical mistakes, financial statements that resulted from mathematical mistakes, mistakes in the application of accounting principles, or oversight mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time the financial statements or misuse of facts that existed at the time the financial statements were prepared. (Use only when comparative financial statements were prepared. (Use only when comparative financial statements are being presented.)are being presented.)

Justification: The Financial Reports Division (producers of the Justification: The Financial Reports Division (producers of the Financial Report of the United States) has requested an account to Financial Report of the United States) has requested an account to distinguish between corrections of errors for the prior-year in distinguish between corrections of errors for the prior-year in comparison to corrections of errors in years preceding the prior-comparison to corrections of errors in years preceding the prior-year.year.

5705 Expended Appropriations – Prior Period Adjustments Due to 5705 Expended Appropriations – Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior YearCorrections of Errors – Years Preceding the Prior Year

The amount of net increase or decrease to expended The amount of net increase or decrease to expended appropriations due to errors in years preceding the prior year’s appropriations due to errors in years preceding the prior year’s financial statements that resulted from mathematical mistakes, financial statements that resulted from mathematical mistakes, mistakes in the application of accounting principles, or oversight mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time the financial statements or misuse of facts that existed at the time the financial statements were prepared. (Use only when comparative financial statements were prepared. (Use only when comparative financial statements are being presented.)are being presented.)


7405 Prior Period Adjustments Due to Corrections of Errors – Years 7405 Prior Period Adjustments Due to Corrections of Errors – Years Preceding the Prior YearPreceding the Prior Year

The amount of adjustments affecting the cumulative results of The amount of adjustments affecting the cumulative results of operations due to errors in years preceding the prior year’s operations due to errors in years preceding the prior year’s financial statements that resulted from mathematical mistakes, financial statements that resulted from mathematical mistakes, mistakes in the application of accounting principles, or oversight mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time the financial statements or misuse of facts that existed at the time the financial statements were prepared. (Use only when comparative financial statements were prepared. (Use only when comparative financial statements are being presented.)are being presented.)


Impact on CrosswalksImpact on CrosswalksFiscal Year 2011Fiscal Year 2011

USSGL USSGL AccountAccount

Balance Balance SheetSheet

Statement Statement of Changes of Changes

in Net in Net PositionPosition

ReclassifieReclassified Balance d Balance

SheetSheet

Reclassified Reclassified Statement Statement of Changes of Changes

in Net in Net Position Position

31053105 Lines 32 & Lines 32 & 3333

Line 19bLine 19b Lines 9.1 & Lines 9.1 & 9.29.2

Line 3.3Line 3.3

57055705 Lines 32 & Lines 32 & 3333


Line 3.3Line 3.3

74057405 Lines 32 & Lines 32 & 3333


Lines 2.3 & Lines 2.3 & 3.33.3

Additional InformationAdditional Information

In addition, GAO has requested that FMS’s In addition, GAO has requested that FMS’s Financial Reports Division re-align Treasury Financial Reports Division re-align Treasury Financial Manual (TFM) 2-4700 Appendix 1, Financial Manual (TFM) 2-4700 Appendix 1, Reclassified Statement of Changes in Net Position Reclassified Statement of Changes in Net Position with the presentation of OMB Circular A136, as with the presentation of OMB Circular A136, as illustrated on the next slide illustrated on the next slide

SCNP A-136SCNP A-136(Agency)(Agency)

SCNP ReclassifiedSCNP Reclassified(Financial Report)(Financial Report)

Cumulative Results of Operations:Cumulative Results of Operations:

Line 1 Beginning BalancesLine 1 Beginning Balances(3310)(3310)

Line 2 AdjustmentsLine 2 AdjustmentsLine 2a Changes in Accounting PrinciplesLine 2a Changes in Accounting Principles

(5709, 7401)(5709, 7401)Line 2b Corrections of ErrorsLine 2b Corrections of Errors

(5708, 7400, 5705, 7405)(5708, 7400, 5705, 7405)Line 3 Beginning Balances, as AdjustedLine 3 Beginning Balances, as Adjusted

Unexpended Appropriations:Unexpended Appropriations:

Line 18 Beginning BalancesLine 18 Beginning Balances(3100)(3100)

Line 19 AdjustmentsLine 19 AdjustmentsLine 19a Changes in Accounting PrinciplesLine 19a Changes in Accounting Principles

(3109)(3109)Line 19b Corrections of ErrorsLine 19b Corrections of Errors

(3108, 3105)(3108, 3105)Line 20 Beginning Balances, as AdjustedLine 20 Beginning Balances, as Adjusted

CurrentCurrent

Line 1 Beginning Net Position BalanceLine 1 Beginning Net Position Balance(3100, 3108, 3109, 3310, 5708, 5709, 7400, 7401)(3100, 3108, 3109, 3310, 5708, 5709, 7400, 7401)

Line 2 Non-Federal Prior Period Adjustments (Not Restated)Line 2 Non-Federal Prior Period Adjustments (Not Restated)(7401)(7401)

Line 3 Federal Prior Period Adjustments (Not Restated) (RC 29)Line 3 Federal Prior Period Adjustments (Not Restated) (RC 29)(3109, 5709, 7401)(3109, 5709, 7401)

Line 4 Adjusted Beginning Net PositionLine 4 Adjusted Beginning Net Position

ProposedProposed

Line 1 Beginning Net Position BalanceLine 1 Beginning Net Position Balance(3100, 3310)(3100, 3310)

Line 2 Non-Federal Prior Period Adjustments Line 2 Non-Federal Prior Period Adjustments Line 2.1 Changes in Accounting PrinciplesLine 2.1 Changes in Accounting Principles

(7401)(7401)Line 2.2 Corrections of ErrorsLine 2.2 Corrections of Errors

(7400)(7400)Line 2.3 Corrections of Errors – Years Preceding the Prior YearLine 2.3 Corrections of Errors – Years Preceding the Prior Year

(7405)(7405)Line 3 Federal Prior Period Adjustments Line 3 Federal Prior Period Adjustments Line 3.1 Change in Accounting PrinciplesLine 3.1 Change in Accounting Principles

(3109, 5709, 7401)(3109, 5709, 7401)Line 3.2 Corrections of ErrorsLine 3.2 Corrections of Errors

(3108, 5108, 7400)(3108, 5108, 7400)Line 3.3 Corrections of Errors – Years Preceding the Prior YearLine 3.3 Corrections of Errors – Years Preceding the Prior Year

(3105, 5705, 7405)(3105, 5705, 7405)Line 4 Adjusted Beginning Net Position BalanceLine 4 Adjusted Beginning Net Position Balance

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prior period adjustments due to corrections of errors – years preceding the prior year ussgl board...

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