Fundamentals of Federal Financial Management - What you need to know to hit the ground running (Course Id 1434)

Accounting - Accounting for Course Id 1434

Are you a new federal employee or contractor working with accounting, auditing, budgeting, financial operations, or internal controls? Have you taken on a new position where federal financial management tasks have been added to your regular duties? If yes, this book is for you.

This publication provides a short, high level overview of federal financial management that will hopefully help you do your job faster and/or better. It will serve as a baseline for more in-depth courses on federal financial management topics and/or serve as a quick reference manual. I wish I had this course when I joined the federal government. It would have provided some basic information that took me months or years to learn.

NASBA QAS - Text - Technical - NASBA Registry - 1434

Chapter 1
Introduction to Federal Financial Management

• Describe the basic history of Federal Financial management;
• Differentiate the role of the three branches of the federal government as it pertains to federal financial management.

Chapter 2
Agency Formation

• Define the steps involved in creating a federal agency.
• Define which steps in the creation of a federal agency are mandatory.
• Differentiate between an appropriation authorization and the appropriation an agency receives.

Chapter 3
Federal Financial Management Laws

• Apply the history of federal financial management laws and understand why they were enacted.
• Differentiate between which laws would be most applicable to you.

Chapter 4
Appropriation Basics

• Define the types of budget authority.
• Differentiate between the three basic elements of every appropriation.
• Understand and be able to apply the necessary expense doctrine and bona fide need rules and how GAO applies them.
• Define the various types of appropriations.
• Identify by its symbol whether an appropriation has a duration of one year, multiple years or has an indefinite life.
• Define how long a continuing resolution can last.
• Define the meanings and uses of a budget activity code and a budget authority type indicator.
• Identify the OMB Object Classes and relate them to spending.

Chapter 5
United States Standard General Ledger (USSGL)

• Define the major USSGL account groups.
• Define what USSGL Transaction Codes mean.
• Define the USSGL balancing equations.
• Define selected USSGL budgetary accounts and what they mean.
• Associate which selected USSGL budgetary accounts are normally associated with direct or reimbursable authority attributes.
• Define the major activities that follow once an appropriation is received.
• Define the meaning of tie points.

Chapter 6
Accounting for Property

• Differentiate the unique characteristics of property accounting.
• Differentiate between the motivations to capitalize private entities and the federal entity.
• Differentiate between accountable property, nonaccountable property, and capitalized property.
• Define the following terms:
  o Capitalization amount.
  o Expected life of an asset.
  o Asset salvage value.
  o Asset in-service date.
  o Depreciation/Amortization.
• Define the use of depreciation/amortization simplifying conventions.
• Define the basic types of depreciation/amortization simplifying conventions.
• Understand that without a good reason, all federal assets should use the straight line method of depreciation.
• Apply properly the timing of gains and losses.
• Understand that property accounting takes at least one full time position.
• Associate the concept of bulk property and its potential applications.

Chapter 7
Basic Financial System Concepts

• Apply the same basic concepts of a relational database to a computer system.
• Differentiate between a table driven system, a program driven system, and a combination type system.
• Understand why going off baseline is a bad idea.
• List the purpose of using a preset system entry.
• List how to identify true wildcard transactions.
• Define the limitations of system generated reports.

Chapter 8
Federal Contracts

• Differentiate between the various contract types.
• Differentiate between FAR and nonFAR Procurement Actions.
• Define a COR .

Chapter 9
Special Topics

• Differentiate between Congressional temporary deferrals and OMB temporary deferrals.
• Differentiate between accountant, auditor, and budget analyst speak.
• Associate the uses of Agency Location Codes and how to decipher one.
• Differentiate between an IPAC versus nonIPAC transaction.
• Define when an IPAC transaction is appropriate.
• Be aware of standard federal forms found in financial management.
• Define what the agency system of record does.
• Define the basis of accounting used by a federal agency.
• Differentiate between the various financial statements.

Chapter 10
Reference Sources: Knowing Where to Look

• List what relevant information sources are available to you.
• Associate different uses of the following sources:
  o Office of Management and Budget,
  o General Services Administration,
  o Government Accountability Office,
  o Department of the Treasury,
  o Federal Accounting Standards Advisory Board, and
  o Your agency.

Chapter 11
Practical Applications

• Successfully apply what you have learned to relevant situations you may face on the job.

Chapter 1 - Introduction to Federal Financial Management

Review Questions

Chapter 2 - Agency Formation

Review Questions

Chapter 3 - Federal Financial Management Laws

Chart 3-1: Timeline of Major Federal Financial Management Laws

Anti-Deficiency Act (ADA)

Economy Act of 1932

Supplemental Appropriation Act of 1955

GPRA of 1993/GPRMA of 2010

Inspector General Act of 1978

Sarbanes Oxley Act of 2002

Review Questions

Chapter 4 - Appropriation Basics

Types of Appropriation Authority

The Three Basic Elements of an Appropriation

Chart 4-1: Basic Elements of All Appropriations

Apportionments and Allotments

Appropriation Classifications

Chart 4-2: Types of Appropriations

Miscellaneous Items to Know About Appropriations

Chart 4-3: IRS Budget Activity Codes

Review Questions

Chapter 5 - United States Standard General Ledger (USSGL)

Chart 5-1: USSGL Major Transaction Categories

Chart 5-2: USSGL Standard Proprietary Equation

Chart 5-3: USSGL Expanded Proprietary Equation

Chart 5-4: USSGL Budgetary Equation

Chart 5-5: USSGL Accounts and Descriptions to Know By Heart

Chart 5-6: Standard Accounting Scenarios

Chart 5-7: GTAS Validations Summary

Chapter Summary

Review Questions

Chapter 6 - Accounting for Property

Chart 6-1: The Three Most Basic Federal Property Classification Types

Chart 6-2: Common Depreciation/Amortization Simplifying Conventions

Review Questions

Chapter 7 - Basic Financial System Concepts

Review Questions

Chapter 8 - Federal Contracts

Chart 8-1: Types of Federal Contracts

Review Questions

Chapter 9 - Special Topics

Temporary Withholding of Funds (Temporary Deferrals)

Budget Analyst Versus Accountant and Auditor Speak

Chart 9-1: The Lingo of Budget Analysts, Accountants and Auditors

Agency Location Codes

IPAC Payments versus NonIPAC Transactions

Standard Federal (SF) Forms Every Financial Professional Should Be Aware Of

Agency System of Record

Fund Accounting

Federal Agency GAAP Standard Setters

Chart 9-2: Basis of Accounting

Chart 9-3: A Sample of Federal Agencies & The Accounting Standard They Use

Basic Federal Financial Statement Reports

Types of Financial Statement Audit Opinions

Review Questions

Chapter 10 - Reference Sources: Knowing Where to Look

Department of the Treasury – Bureau of the Fiscal Service

Chart 10-1: TFM Volume I Topics (Federal Agencies)

Chart 10-2: TFM Volume II Topics (Federal Reserve Banks)

Chart 10-3: TFM Volume III Topics (Government Depositaries and Financial Agents)

Chart 10-4: TFM Volume IV Topics (Other Concerned Parties)

Chart 10-5: Sample Treasury Transmittal Letter

Chart 10-6: Sample Treasury Bulletin

Chart 10-7: Sample Treasury Supplement

Government Accountability Office (GAO)

Chart 10-8: GAO Book Cover Meanings

General Services Administration (GSA)

Federal Accounting Standards Advisory Board (FASAB)

Library of Congress

Office of Management and Budget (OMB)

Chart 10-9: Pertinent OMB Circulars

Agency Reference Documents

Review Questions

Chapter 11 - Practical Applications

Scenario 1: TV Purchases

Scenario 2: Vehicle Proceeds

Scenario 3: Unable to Obligate Funds in a Reimbursable No-Year Fund – Expiring Funds

Scenario 4:  No Funds to Pay Valid Bill

Scenario 5:  No Funds to Write-off Unsupported Accounts Receivable

Scenario 6: Negative Cash in Revolving Fund

Scenario 7: Temporary Withholding Until Congress Receives a Report

Scenario 8: Abnormal 4201 Balance

Scenario 9: Release of Expense File to Auditors With No Expenditures

Scenario 10: Linking of OMB Object Classes and Agency Subobject Codes to USSGL Accounts

Scenario 11: FOIA Request – Unclaimed Monies

Scenario 12: Congressional Request – Fines and Penalties an Agency Collects

Scenario 13: Congressional Request – How Much Obligated and Paid to a Certain Organization

Scenario 14: Determining Available Funds in an Expired Appropriation

Scenario 15: Determining Available Funds in an No-Year Appropriation Involving a Prior Budget Year

Scenario 16: Misapplied Agency Subobject Class Codes – Reporting Risks

Scenario 17: Determining the Universe of Prior Year Obligation Document That Should Have Been Entered Before the Financial System Closed

Acronyms and Glossary