In an ACFR. the Independent Auditor's Report should be included in the
Answer(s): B
In an Annual Comprehensive Financial Report (ACFR), the Independent Auditor's Report is part of the Financial Section. It is placed immediately before the basic financial statements and after the Management's Discussion and Analysis (MD&A), not before it.The proper sequence within the Financial Section of the ACFR is:Independent Auditor's ReportManagement's Discussion and Analysis (MD&A)Basic Financial StatementsRequired Supplementary Information (RSI)Other Supplementary Information (as applicable)Relevant
GASB Statement No. 34 Basic Financial Statements and MD&AGFOA's Governmental Accounting, Auditing, and Financial Reporting (GAAFR)GFOA Checklist for ACFR PreparationAnswer : B. financial section before the basic financial statements
Congress plans to set up an activity within an agency that would:· provide procurement services to other agencies;· reimburse fees to the providing agency at a level that would cover the total estimated costs of the services.The fees would be deposited in the providing agency's accounts and would remain available until expended, to carry out the purposes of the fund. This arrangement describes a
Answer(s): A
A revolving fund is a fund established to finance a continuing cycle of operations where the receipts (e.g., fees or reimbursements) are used to finance future operations. These funds are usually self- sustaining and are designed to recover full costs of providing goods or services.The described situation -- an agency providing procurement services to other agencies and using collected fees to continue operations -- is a classic example of an intragovernmental revolving fund (also called a working capital fund).Relevant
OMB Circular A-11, Section 20 Fund ClassificationsGAO Glossary of Terms Revolving FundFASAB SFFAS No. 7 Revenue and Other Financing SourcesAnswer : A. revolving fund
An idle facility cost is an allowable expense to charge to federal grants when a
Comprehensive DetailedUnder 2 CFR § 200.446 of the OMB Uniform Guidance, idle facilities (or idle capacity) costs are generally unallowable. However, exceptions exist. One allowable condition is when the idleness results from fluctuations in workload that are considered normal for the type of operation.Other allowable cases include those due to reorganization, restraint, or repair/maintenance needs -- but only within reasonable limits and duration.Relevant
2 CFR § 200.446 Idle Facilities and Idle CapacityOMB Uniform Guidance (2 CFR Part 200) Cost PrinciplesGAO Red Book Allowable Grant ExpendituresAnswer : A. fluctuation in workload is reasonably expected
The Federal Financial Management Improvement Act of 1996 formally recognized which of the following organizations as the standard-setting body for federal accounting and reporting standards?
Answer(s): D
The Federal Financial Management Improvement Act (FFMIA) of 1996 established the requirement for federal agencies to implement and maintain financial systems that comply with federal accounting standards. It formally recognized the Federal Accounting Standards Advisory Board (FASAB) as the source of GAAP for federal agencies.FASAB's standards are authoritative for federal entities, much like GASB for state and local governments and FASB for private-sector entities.Relevant
Federal Financial Management Improvement Act of 1996 (Public Law 104208, Title VIII)FASAB Handbook Introduction & AuthorityGAO Federal Accounting Standards OverviewAnswer : D. FASAB
A federal agency should recognize an accounts receivable when
Comprehensive DetailedAccording to FASAB Statement of Federal Financial Accounting Standards (SFFAS) No. 1, an accounts receivable should be recognized when a legal claim to cash exists -- that is, when the federal agency has provided goods or services or an enforceable claim to payment has arisen.This typically occurs after performance has occurred, not merely when an agreement or order is received.Relevant
FASAB SFFAS No. 1 Accounting for Selected Assets and LiabilitiesTreasury Financial Manual (TFM) Receivables AccountingOMB Circular A-136 Financial Reporting RequirementsAnswer : A. claims to cash against other entities are established
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