Government Financial Management Flashcards

Which accounting basis does the U.S. federal government primarily use for its consolidated financial statements?

Answer: Full accrual basis

The U.S. federal government uses full accrual accounting for its consolidated financial statements as required by federal accounting standards.

What does the Antideficiency Act prohibit U.S. federal agencies from doing?

Answer: Obligating funds in excess of amounts appropriated

The Antideficiency Act prohibits federal agencies from obligating or expending funds beyond what Congress has appropriated.

Which body sets accounting and financial reporting standards for U.S. federal entities?

Answer: FASAB

The Federal Accounting Standards Advisory Board (FASAB) establishes generally accepted accounting principles for federal reporting entities.

In government budgeting, what is an 'obligation'?

Answer: A legally binding commitment that will require future outlays

An obligation is a legally binding act that commits the government to make a payment once conditions are met, such as signing a contract.

Which financial statement is unique to the U.S. federal government and not found in state/local reporting?

Answer: Statement of Net Cost

The Statement of Net Cost reports the net cost of operations for federal programs and is specific to the federal reporting model.

What is 'apportionment' in the U.S. federal budget process?

Answer: OMB's distribution of appropriated funds to agencies over time

Apportionment is the process by which OMB distributes appropriated amounts to agencies, usually by quarter, to prevent early over-spending.