Financial Audit:

Process for Preparing the Consolidated Financial Statements of the U.S. Government Needs Improvement

GAO-04-45: Published: Oct 30, 2003. Publicly Released: Oct 30, 2003.

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For the past 6 years, since GAO began auditing the consolidated financial statements of the U.S. government (CFS), GAO has been unable to express an opinion on them because of material weaknesses in internal control and financial reporting. Contributing to GAO's inability to express an opinion has been the federal government's lack of adequate systems, controls, and procedures to properly prepare its consolidated financial statements. The purpose of this report is to discuss in greater detail weaknesses in financial reporting procedures and internal control over the process for preparing the CFS that GAO identified and to recommend improvements to address those weaknesses.

GAO found deficiencies in the compilation and reporting process in the following areas: (1) controls over the compilation process, (2) unreconciled transactions affecting the change in net position, (3) reconciliation of intragovernmental activity and balances, (4) elimination of intragovernmental activity and balances, (5) reconciliation of net operating costs and unified budget surplus (or deficit), (6) statements of changes in cash balance from unified budget and other activities, (7) defining and documenting of the reporting entity, and (8) conformity with U.S. generally accepted accounting principles. Another key deficiency in the compilation and reporting process for the CFS was the failure of the Department of the Treasury's process for compiling the CFS to directly link information from federal agencies' audited financial statements to amounts reported in the CFS. Without this direct link, the information in the CFS may not be reliable. The lack of a direct link also affects the efficiency and effectiveness of the CFS audit. Treasury is designing a new compilation process that it expects to directly link this information beginning with the fiscal year 2004 CFS. GAO identified three additional areas related to the compilation and reporting process for the CFS that warrant the attention of Treasury and the Office of Management and Budget (OMB): (1) management representation letters, (2) legal representation letters, and (3) information on treaties and other international agreements.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: During its audit of the fiscal year 2004 CFS, GAO found that Treasury implemented a new process for preparing the consolidated financial statements, which did not rely materially on FACTS I and a Hyperion database.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, in connection with Treasury's current compilation process and the development of Treasury's new compilation system and process, to segregate the duties of individuals who have the capability to enter, change, and delete data within the Federal Agencies' Centralized Trial Balance System (FACTS I) and the Hyperion database and post adjustments to the CFS.

    Agency Affected: Department of the Treasury

  2. Status: Closed - Implemented

    Comments: During our fiscal year 2007 audit, we found that Treasury had significantly improved its development and documentation of policies and procedures for the CFS preparation process to better ensure that they are proper, complete, and consistently applied by staff members. As such, Treasury has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, in connection with Treasury's current compilation process and the development of Treasury's new compilation system and process, to develop and fully document policies and procedures for the consolidated financial statement preparation process so that they are proper, complete, and consistently applied among staff members.

    Agency Affected: Department of the Treasury

  3. Status: Closed - Implemented

    Comments: Management reviews were implemented by FMS in fiscal year 2003 under the current compilation environment.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, in connection with Treasury's current compilation process and the development of Treasury's new compilation system and process, to require and document reviews by management of all procedures that result in data changes to the CFS.

    Agency Affected: Department of the Treasury

  4. Status: Closed - Implemented

    Comments: Treasury has made significant progress in addressing internal control deficiencies related to intragovernmental activity and balances, such as expanding the guidance provided to federal entities and implementing a scorecard process. The remaining internal control deficiencies in this area were included in new recommendations for corrective action in GAO-14-543 under the section "Intragovernmental Activity and Balances".

    Recommendation: As Treasury is designing its new financial statement compilation process to begin with the fiscal year 2004 CFS, the Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to develop reconciliation procedures which will aid in understanding and controlling the net position balance as well as eliminate the plugs previously associated with compiling the CFS.

    Agency Affected: Department of the Treasury

  5. Status: Closed - Implemented

    Comments: In 2007, GAO found that Treasury's process to account for the change in net position no longer involves the simple subtraction of liabilities from assets, as was previously done, but instead takes into account the intragovernmental balances and activities to compute the change in net position.

    Recommendation: As Treasury is designing its new financial statement compilation process to begin with the fiscal year 2004 CFS, the Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to use balanced accounting entries to account for the change in net position rather than simple subtraction of liabilities from assets.

    Agency Affected: Department of the Treasury

  6. Status: Closed - Implemented

    Comments: During fiscal year 2011 Treasury took the lead role to address this recommendation. Specifically, Treasury published the updated Intragovernmental Business Rules, which include dispute resolution procedures for trading partner agencies to follow. Treasury's dispute resolution process includes a new Intragovernmental Dispute Resolution Request Form to be certified by federal entity chief financial officers (CFO). Treasury as the enforcer of the updated business rules, working with OMB as necessary, will work with agencies, to help ensure the effectiveness of the dispute resolution process during each fiscal year and will document the resolutions.

    Recommendation: As OMB continues to make strides to address issues related to intragovernmental transactions, the Director of the Office of Management and Budget should direct the Controller of the Office of Federal Financial Management to develop policies and procedures that document how OMB will enforce the business rules provided in OMB Memorandum M-03-01, Business Rules for Intragovernmental Transactions.

    Agency Affected: Department of the Treasury

  7. Status: Closed - Implemented

    Comments: During fiscal year 2011 Treasury took the lead role to address this recommendation. Specifically, Treasury issued updated Intragovernmental Business Rules, which include dispute resolution procedures for trading partner agencies to follow. Treasury's dispute resolution process includes a new Intragovernmental Dispute Resolution Request Form to be certified by federal entity chief financial officers (CFO). Treasury as the enforcer of the updated business rules, working with OMB as necessary, will work with agencies, to help ensure the effectiveness of the dispute resolution process during each fiscal year and will document the resolutions.

    Recommendation: As OMB continues to make strides to address issues related to intragovernmental transactions, the Director of the Office of Management and Budget should direct the Controller of the Office of Federal Financial Management to require that significant differences noted between business partners be resolved and the resolution be documented.

    Agency Affected: Department of the Treasury

  8. Status: Closed - Implemented

    Comments: The Department of the Treasury required federal agencies to report intragovernmental activity and balances by trading partner in Treasury's fiscal year 2005 closing package. Treasury also required federal agencies to report intragovernmental activity and balances that were not reconciled with trading partners as part of the material difference report process.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of the Office of Management and Budget, to implement the plan to require federal agencies to report in Treasury's new closing package, beginning with fiscal year 2004, intragovernmental activity and balances by trading partner and indicate amounts that have not been reconciled with trading partners and amounts, if any, that are in dispute.

    Agency Affected: Department of the Treasury

  9. Status: Closed - Implemented

    Comments: Treasury has made significant progress in addressing internal control deficiencies related to intragovernmental activity and balances, such as expanding the guidance provided to federal entities and implementing a scorecard process. The remaining internal control deficiencies in this area were included in new recommendations for corrective action in GAO-14-543 under the section "Intragovernmental Activity and Balances".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with OMB's Controller of the Office of Federal Financial Management, to design procedures that will account for the difference in intragovernmental assets and liabilities throughout the compilation process by means of formal consolidating and elimination accounting entries.

    Agency Affected: Department of the Treasury

  10. Status: Closed - Implemented

    Comments: Treasury has made significant progress in addressing internal control deficiencies related to intragovernmental activity and balances, such as expanding the guidance provided to federal entities and implementing a scorecard process. The remaining internal control deficiencies in this area were included in new recommendations for corrective action in GAO-14-543 under the section "Intragovernmental Activity and Balances".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with OMB's Controller of the Office of Federal Financial Management, to develop solutions for intragovernmental activity and balance issues relating to federal agencies' accounting, reconciling, and reporting in areas other than those OMB now requires be reconciled, primarily areas relating to appropriations.

    Agency Affected: Department of the Treasury

  11. Status: Closed - Implemented

    Comments: Treasury has made significant progress in addressing internal control deficiencies related to intragovernmental activity and balances, such as expanding the guidance provided to federal entities and implementing a scorecard process. The remaining internal control deficiencies in this area were included in new recommendations for corrective action in GAO-14-543 under the section "Intragovernmental Activity and Balances".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with OMB's Controller of the Office of Federal Financial Management, to reconcile the change in intragovernmental assets and liabilities for the fiscal year, including the amount and nature of all changes in intragovernmental assets or liabilities not attributable to cost and revenue activity recognized during the fiscal year. Examples of these differences would include capitalized purchases such as inventory or equipment and deferred revenue.

    Agency Affected: Department of the Treasury

  12. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and implement a process that adequately identifies and reports items needed to reconcile its net operating cost and unified budget surplus (or deficit). Treasury should report "net unreconciled differences" included in the net operating results line item as a separate reconciling activity in the reconciliation statement.

    Agency Affected: Department of the Treasury

  13. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and implement a process that adequately identifies and reports items needed to reconcile its net operating cost and unified budget surplus (or deficit). Treasury should develop policies and procedures to ensure completeness of reporting and document how all the applicable components reported in the other consolidated financial statements (and related note disclosures included in the CFS) were properly reflected in the reconciliation statement.

    Agency Affected: Department of the Treasury

  14. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and implement a process that adequately identifies and reports items needed to reconcile its net operating cost and unified budget surplus (or deficit). Treasury should establish reporting materiality thresholds for determining which agency financial statement activities to collect and report at the governmentwide level to assist in ensuring that the reconciliation statement is useful and conveys meaningful information.

    Agency Affected: Department of the Treasury

  15. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: If Treasury chooses to continue using information both from federal agencies' financial statements and from the Central Accounting and Reporting System (STAR), Treasury should demonstrate how the amounts from STAR reconcile to federal agencies' financial statements.

    Agency Affected: Department of the Treasury

  16. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: If Treasury chooses to continue using information both from federal agencies' financial statements and from the STAR system, Treasury should identify and document the cause, if any significant differences are noted.

    Agency Affected: Department of the Treasury

  17. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement a process to ensure that the Statement of Changes in Cash Balance from Unified Budget and Other Activities properly reflects the activities reported in federal agencies' audited financial statements. Treasury should document the consistency of the significant line items on this statement to agencies' audited financial statements.

    Agency Affected: Department of the Treasury

  18. Status: Closed - Implemented

    Comments: During our fiscal year 2007 CFS audit, we found that OMB had made significant progress in explaining and resolving significant differences between net outlay amounts reported in federal agencies' Statement of Budgetary Resources and the budget of the U.S. government. As such, OMB has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement a process to ensure that the Statement of Changes in Cash Balance from Unified Budget and Other Activities properly reflects the activities reported in federal agencies' audited financial statements. Treasury should request, through its closing package, that federal agencies provide the net outlays reported in their Combined Statement of Budgetary Resources and explanations for any significant differences between net outlay amounts reported in the Combined Statement of Budgetary Resources and the budget of the U.S. government.

    Agency Affected: Department of the Treasury

  19. Status: Closed - Implemented

    Comments: During our fiscal year 2007 CFS audit, we found that OMB had made significant progress in explaining and resolving significant differences between net outlay amounts reported in federal agencies' Statement of Budgetary Resources and the budget of the U.S. government. As such, OMB has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement a process to ensure that the Statement of Changes in Cash Balance from Unified Budget and Other Activities properly reflects the activities reported in federal agencies' audited financial statements. Treasury should investigate the differences between net outlays reported in federal agencies' Combined Statement of Budgetary Resources and Treasury's records in the STAR system to ensure that the proper amounts are reported in the Statement of Changes in Cash Balance from Unified Budget and Other Activities.

    Agency Affected: Department of the Treasury

  20. Status: Closed - Not Implemented

    Comments: Over the past few years, Treasury has taken certain actions to address recommendations related to the two CFS budget statements. To provide recommendations that are better aligned with the remaining control deficiencies in this area, we have (1) closed this recommendation and (2) included new recommendations for corrective action in GAO-13-540, under the section "Preparation of the Budget Statements Included in the CFS".

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement a process to ensure that the Statement of Changes in Cash Balance from Unified Budget and Other Activities properly reflects the activities reported in federal agencies' audited financial statements. Treasury should explain and document the differences between the operating revenue amount reported on the Statement of Operations and Changes in Net Position and unified budget receipts reported on the Statement of Changes in Cash Balance from Unified Budget and Other Activities.

    Agency Affected: Department of the Treasury

  21. Status: Closed - Implemented

    Comments: In fiscal year 2007, Treasury was able to provide additional support for the "other activities" section from the information provided by the underlying agency financial records.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement a process to ensure that the Statement of Changes in Cash Balance from Unified Budget and Other Activities properly reflects the activities reported in federal agencies' audited financial statements. Treasury should provide support for how the line items in the "other activities" section of this statement relate to either the underlying Balance Sheet or related notes accompanying the CFS.

    Agency Affected: Department of the Treasury

  22. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. Treasury will enhance its documentation of the assessment of the reporting entity to ensure compliance with the FASAB criteria, including documenting the reason as to whether entities are to be included or excluded and the basis for that conclusion. As part of this assessment, Treasury will also take into account FASAB's Reporting Entity standard, once it is issued. An analysis will be performed to demonstrate that the information that is not included but should be included is immaterial. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management to perform an assessment to define the reporting entity, including its specific components, in conformity with the criteria issued by FASAB. Key decisions made in this assessment should be documented, including the reason for including or excluding components and the basis for concluding on any issue. Particular emphasis should be placed on demonstrating that any financial information that should be included, but is not included, is immaterial.

    Agency Affected: Department of the Treasury

  23. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. Treasury conducted an analysis of the entity's revenue and expenses on a cash basis that are not currently required by law to submit financial statements to verify the materiality of their data to the Financial Report. This analysis demonstrated that the amounts not included in the journal voucher prepared at year-end are immaterial to the Financial Report. Treasury will finalize this analysis to cover assets and liabilities. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management to provide in the financial statements all the financial information relevant to the defined reporting entity, in all material respects. Such information would include, for example, the reporting entity's assets, liabilities, and revenues.

    Agency Affected: Department of the Treasury

  24. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. Pending the results of actions taken pursuant to recommendation Nos. 02-22 and 02-23, Treasury will enhance the current disclosure in the Financial Report related to the reporting entity. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management disclose in the financial statements all information that is necessary to inform users adequately about the reporting entity. Such disclosures should clearly describe the reporting entity and explain the reason for excluding any components that are not included in the defined reporting entity.

    Agency Affected: Department of the Treasury

  25. Status: Closed - Implemented

    Comments: During our fiscal year 2007 audit of the CFS, we reviewed Treasury's Financial Report Disclosure Checklist along with its respective Standard Operating Procedures and found that Treasury had ongoing procedures in place to timely identify GAAP requirements and better ensure that the CFS was presented in accordance with GAAP. As such, Treasury has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to establish a formal process that will allow the financial statements, related notes, stewardship, and supplemental information in the CFS to be presented in conformity with U.S. generally accepted accounting principles. The process should timely identify generally accepted accounting principles requirements.

    Agency Affected: Department of the Treasury

  26. Status: Closed - Implemented

    Comments: During our fiscal year 2007 audit of the CFS, we found Treasury's (1) financial manual, (2) Financial Report Disclosure Checklist, and (3) Operating Procedures for Preparing the Disclosure Checklist provided procedures for making timely modifications to required agency closing packages to help ensure that federal agencies submit information required by GAAP. As such, Treasury has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to establish a formal process that will allow the financial statements, related notes, stewardship, and supplemental information in the CFS to be presented in conformity with U.S. generally accepted accounting principles. The process should make timely modifications to Treasury's closing package requirements to obtain information needed.

    Agency Affected: Department of the Treasury

  27. Status: Closed - Implemented

    Comments: During our fiscal year 2007 audit of the CFS, we found that Treasury's Standard Operating Procedures for Data Analysis as well as its Financial Report Disclosure Checklist provided procedures for determining the effect of omitted disclosures. For example, Treasury provided documentation showing decisions reached related to certain disclosures that would be omitted from the CFS. As such, Treasury has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to establish a formal process that will allow the financial statements, related notes, stewardship, and supplemental information in the CFS to be presented in conformity with U.S. generally accepted accounting principles. The process should assess, qualitatively and quantitatively, the impact of the omitted disclosures.

    Agency Affected: Department of the Treasury

  28. Status: Closed - Implemented

    Comments: During our fiscal year 2007 audit of the CFS, we reviewed Treasury's documentation supporting inclusion or omission of certain GAAP requirements. We found that Treasury had procedures in place to document decisions reached and the rationale for such decisions. As such, Treasury has substantially addressed this recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to establish a formal process that will allow the financial statements, related notes, stewardship, and supplemental information in the CFS to be presented in conformity with U.S. generally accepted accounting principles. The process should document decisions reached and the rationale for such decisions.

    Agency Affected: Department of the Treasury

  29. Status: Closed - Implemented

    Comments: During the planning phase of the fiscal year 2008 CFS audit, we found that Treasury's policies and procedures included requirements for (1) analyzing agency-level representations to determine whether discrepancies exist between what the agency auditor reported and the representations made by the agency, and (2)resolving such discrepancies, which sufficiently addressed our recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures for preparing the governmentwide management representation letter to help ensure that it is properly prepared and contains sufficient representations. Specifically, these policies and procedures should require an analysis of the agency management representations to determine if discrepancies exist between what the agency auditor reported and the representations made by the agency, including the resolution of such discrepancies.

    Agency Affected: Department of the Treasury

  30. Status: Closed - Implemented

    Comments: Treasury and OMB revised their policies and procedures to address this finding in fiscal year 2007.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures for preparing the governmentwide management representation letter to help ensure that it is properly prepared and contains sufficient representations. Specifically, these policies and procedures should require a determination that the agency management representation letters have been signed by the highest-level agency officials that are responsible for and knowledgeable about the matters included in the agency management representation letters.

    Agency Affected: Department of the Treasury

  31. Status: Closed - Implemented

    Comments: Treasury and OMB revised their policies and procedures to address this finding. As part of our audit of the fiscal year 2007 CFS, we found that the policies and procedures were revised to require the consideration of materiality thresholds used by federal agencies in their respective management representation letters, which sufficiently addressed our recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures for preparing the governmentwide management representation letter to help ensure that it is properly prepared and contains sufficient representations. Specifically, these policies and procedures should require an assessment of the materiality thresholds used by federal agencies in their respective management representation letters.

    Agency Affected: Department of the Treasury

  32. Status: Closed - Implemented

    Comments: Treasury and OMB revised their policies and procedures to address this finding. As part of our audit of the fiscal year 2007 CFS, we found that the policies and procedures included requirements for considering agency-level materiality thresholds in developing the CFS management representation letter, which sufficiently addressed our recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures for preparing the governmentwide management representation letter to help ensure that it is properly prepared and contains sufficient representations. Specifically, these policies and procedures should require an assessment of the impact, if any, of federal agencies' materiality thresholds on the management representations made at the governmentwide level.

    Agency Affected: Department of the Treasury

  33. Status: Closed - Implemented

    Comments: During the planning phase of the fiscal year 2008 CFS audit, we found that Treasury's policies and procedures included requirements for analyzing the representations provided by the agencies to determine whether all required representations were properly included, which sufficiently addressed our recommendation.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures for preparing the governmentwide management representation letter to help ensure that it is properly prepared and contains sufficient representations. Specifically, these policies and procedures should require an evaluation and assessment of the omission of representations ordinarily included in agency management representation letters.

    Agency Affected: Department of the Treasury

  34. Status: Closed - Implemented

    Comments: In connection with our audit of the fiscal year 2008 CFS, we validated that Treasury adequately addressed our recommendation to establish written policies and procedures for preparing the government-wide management representation letter, including policies and procedures requiring an analysis and aggregation of federal agencies' summaries of uncorrected misstatements to determine the completeness of the summaries and to ascertain the materiality, both individually and in the aggregate, of such uncorrected misstatements to the CFS taken as a whole.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures for preparing the governmentwide management representation letter to help ensure that it is properly prepared and contains sufficient representations. Specifically, these policies and procedures should require an analysis and aggregation of the agencies' summary of unadjusted misstatements to determine the completeness of the summaries and to ascertain the materiality, both individually and in the aggregate, of such unadjusted misstatements to the CFS taken as a whole.

    Agency Affected: Department of the Treasury

  35. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. Treasury will work with the Department of Justice, OMB, GAO and the agencies to determine if further changes in policy and/or guidance (e.g., OMB Circular A-136) are needed for all agencies to provide the required information regarding the expected outcomes of legal cases in their legal representations. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to help ensure that agencies provide adequate information in their legal representation letters regarding the expected outcome of the cases.

    Agency Affected: Department of the Treasury

  36. Status: Closed - Implemented

    Comments: During fiscal year 2007, Treasury developed procedures to track the submission of management schedules, confer with OMB on agencies that failed to provide management schedules, and follow-up with agencies that did not submit a management schedule.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to help ensure that agencies provide related management schedules.

    Agency Affected: Department of the Treasury

  37. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. Agencies are currently required to report contingencies in their financial statements and notes pursuant to generally accepted accounting principles (GAAP). In addition, OMB Circular A-136 specifically references the inclusion of treaties and international agreements within "Commitments and Contingencies." Further, agencies include specific representations with respect to material liabilities or contingencies in their management representations. In addition, the financial statements of most significant entities and many other federal entities received unqualified audit opinions. However, no additional analysis of treaties has been performed to reasonably ensure that all of the federal government's treaties are considered in agency analysis or that agencies are consistently analyzing treaties for recognition or disclosure. Treasury will annually review agency financial statements, audit reports, and management representation letters for any references to treaties and international agreements, and if deemed material will disclose in the CFS. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies develop a detailed schedule of all major treaties and other international agreements that obligate the U.S. government to provide cash, goods, or services, or that create other financial arrangements that are contingent on the occurrence or nonoccurrence of future events (a starting point for compiling these data could be the State Department's Treaties in Force).

    Agency Affected: Department of the Treasury

  38. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. See the status of recommendation No. 02-37. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies classify all such scheduled major treaties and other international agreements as commitments or contingencies.

    Agency Affected: Department of the Treasury

  39. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. See the status of recommendation No. 02-37. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies disclose in the notes to the CFS amounts for major treaties and other international agreements that have a reasonably possible chance of resulting in a loss or claim as a contingency.

    Agency Affected: Department of the Treasury

  40. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. See the status of recommendation No. 02-37. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies disclose in the notes to the CFS amounts for major treaties and other international agreements that are classified as commitments and that may require measurable future financial obligations.

    Agency Affected: Department of the Treasury

  41. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. See the status of recommendation No. 02-37. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies take steps to prevent major treaties and other international agreements that are classified as remote from being recorded or disclosed as probable or reasonably possible in the CFS.

    Agency Affected: Department of the Treasury

  42. Status: Closed - Implemented

    Comments: During our fiscal year 2007 audit of the CFS, we determined that Treasury had made substantial progress in addressing this recommendation as demonstrated by its ability to show that amounts in the Statement of Social Insurance were consistent with the underlying federal agencies' audited financial statements and that the Balance Sheet and the Statement of Net Cost were consistent with federal agencies' financial statements prior to eliminating any applicable intragovernmental activity and balances.

    Recommendation: As Treasury is designing its new compilation process, which it expects to implement beginning with the fiscal year 2004 CFS, the Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to design the new compilation process to directly link information from federal agencies' audited financial statements to amounts reported in all the applicable CFS and related footnotes.

    Agency Affected: Department of the Treasury

  43. Status: Closed - Implemented

    Comments: During our fiscal year 2002 audit, we reported numerous deficiencies with Treasury's current process for compiling federal agencies' audited financial statements into amounts reported in the CFS, and made 129 recommendations to improve the CFS compilation process. In fiscal year 2004, Treasury implemented a new process for compiling the CFS. During our fiscal year 2007 audit of the CFS, we found that, to date, Treasury and OMB had implemented approximately 80% of the fiscal year 2002 recommendations we made relating to designing and implementing the new process. As such, Treasury and OMB have substantially addressed this recommendation.

    Recommendation: As Treasury is designing its new compilation process, which it expects to implement beginning with the fiscal year 2004 CFS, the Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to consider the other applicable recommendations in this report when designing and implementing the new compilation process.

    Agency Affected: Department of the Treasury

  44. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 91, that requires the reporting entity to disclose the valuation basis for foreclosed property.

    Agency Affected: Department of the Treasury

  45. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 91, that requires the reporting entity to disclose the changes from the prior year's accounting methods, if any.

    Agency Affected: Department of the Treasury

  46. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 91, that requires the reporting entity to disclose the restrictions on the use/disposal of property.

    Agency Affected: Department of the Treasury

  47. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 91, that requires the reporting entity to disclose the balances by categories (i.e., pre-1992 and post-1991 foreclosed property).

    Agency Affected: Department of the Treasury

  48. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 91, that requires the reporting entity to disclose the number of properties held and average holding period by type or category.

    Agency Affected: Department of the Treasury

  49. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 91, that requires the reporting entity to disclose the number of properties for which foreclosure proceedings are in process at the end of the period for foreclosed assets acquired in full or partial settlement of a direct or guaranteed loan.

    Agency Affected: Department of the Treasury

  50. Status: Closed - Implemented

    Comments: The disclosures related to direct loans and loan guarantees with regard to subsidy expense is now governed by SFFAS No. 32 paragraph 27f. As such, disclosure of the two kinds of subsidy re-estimates is no longer required for the CFS; only the total subsidy expense is required to be disclosed, and it was disclosed in the fiscal year 2006 CFS.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards SFFAS No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 9, that requires credit programs to reestimate the subsidy cost allowance for outstanding direct loans and the liability for outstanding loan guarantees. There are two kinds of reestimates: (a) interest rate reestimates and (b) technical/default reestimates. Entities should measure and disclose each program's reestimates in these two components separately.

    Agency Affected: Department of the Treasury

  51. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 10, that requires the reporting entity to display in the notes to the financial statements a reconciliation between the beginning and ending balances of the subsidy cost allowance for outstanding direct loans and the liability for outstanding loan guarantees reported in the entity's balance sheet.

    Agency Affected: Department of the Treasury

  52. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 11, that requires disclosure of the total amount of direct or guaranteed loans disbursed for the current reporting year and the preceding reporting year.

    Agency Affected: Department of the Treasury

  53. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 11, that requires disclosure of the subsidy expense by components, recognized for the direct or guaranteed loans disbursed in the current reporting year and the preceding reporting year.

    Agency Affected: Department of the Treasury

  54. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 11, that requires disclosure of the subsidy reestimates by components for the current reporting year and the preceding reporting year.

    Agency Affected: Department of the Treasury

  55. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 11, that requires disclosure, at the program level, of the subsidy rates for the total subsidy cost and its components for the interest subsidy costs, default costs (net of recoveries), fees and other collections, and other costs estimated for direct loans and loan guarantees in the current year's budget for the current year's cohorts.

    Agency Affected: Department of the Treasury

  56. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Loans Receivable and Loan Guarantee Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for loans receivable and loan guarantee liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 18, Amendments to Accounting Standards for Direct Loans and Loan Guarantees, paragraph 11, that requires the reporting entity to disclose, discuss, and explain events and changes in economic conditions, other risk factors, legislation, credit policies, and subsidy estimation methodologies and assumptions that have had a significant and measurable effect on subsidy rates, subsidy expense, and subsidy reestimates.

    Agency Affected: Department of the Treasury

  57. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Inventories and Related Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for inventories and operating materials and supplies meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 30, that requires the difference between the carrying amount and the expected net realizable value to be recognized as a loss or gain and either separately reported or disclosed when inventory or operating materials and supplies are declared excess, obsolete, or unserviceable.

    Agency Affected: Department of the Treasury

  58. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Inventories and Related Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for inventories and operating materials and supplies meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraphs 35 and 50, that require disclosure of inventory and operating materials and supplies general composition.

    Agency Affected: Department of the Treasury

  59. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Inventories and Related Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for inventories and operating materials and supplies meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraphs 35 and 50, that require disclosure of any changes from the prior year in accounting methods for inventory and operating materials and supplies.

    Agency Affected: Department of the Treasury

  60. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Inventories and Related Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for inventories and operating materials and supplies meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraphs 35 and 50, that require the disclosure of any restrictions on the sale of inventory and the use of operating materials and supplies.

    Agency Affected: Department of the Treasury

  61. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Inventories and Related Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for inventories and operating materials and supplies meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraphs 35 and 50, that require disclosure of any changes in the criteria for categorizing inventory and operating materials and supplies.

    Agency Affected: Department of the Treasury

  62. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Stockpile Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 56, that requires disclosure of the basis for valuing stockpile material, including valuation method and any cost flow assumptions.

    Agency Affected: Department of the Treasury

  63. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Stockpile Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 56, that requires disclosure of any changes from the prior year's accounting methods.

    Agency Affected: Department of the Treasury

  64. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Stockpile Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 56, that requires disclosure of restrictions on the use of stockpile material.

    Agency Affected: Department of the Treasury

  65. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to eliminate or lessen certain GAAP disclosure requirements for the CFS, including those related to Stockpile Material. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury included the required disclosures relating to Stockpile Material in the CFS, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 56, that requires disclosure of the balances in each category of stockpile material (i.e., stockpile material held and held for sale).

    Agency Affected: Department of the Treasury

  66. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Stockpile Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 56, that requires disclosure of the criteria for grouping stockpile material held for sale.

    Agency Affected: Department of the Treasury

  67. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Stockpile Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 56, that requires disclosure of changes in criteria for categorizing stockpile material held for sale.

    Agency Affected: Department of the Treasury

  68. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Stockpile Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for stockpile material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 55, that requires disclosure of any difference between the carrying amount (i.e., purchase price or cost) of stockpile material held for sale and the estimated selling price of such assets.

    Agency Affected: Department of the Treasury

  69. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Seized Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for seized material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 66, that requires disclosure of the valuation method.

    Agency Affected: Department of the Treasury

  70. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Seized Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for seized material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 66, that requires disclosure of any changes from the prior year's accounting methods.

    Agency Affected: Department of the Treasury

  71. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Seized Material, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for seized material meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 66, that requires disclosure of the analysis of change in seized property (including dollar value and number of seized properties) that are on hand at the beginning of the year, seized during the year, disposed of during the year, and on hand at the end of the year, as well as known liens or other claims against the property. This information should be presented by type of seizure and method of disposition, when material.

    Agency Affected: Department of the Treasury

  72. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Forfeited Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for forfeited property meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 78, that requires disclosure of the valuation method.

    Agency Affected: Department of the Treasury

  73. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Forfeited Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for forfeited property meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 78, that requires disclosure of the analysis of the changes in forfeited property by type and dollar amount that includes (1) number of forfeitures on hand at the beginning of the year, (2) additions, (3) disposals and method of disposition, and (4) end-of-year-balances.

    Agency Affected: Department of the Treasury

  74. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Forfeited Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for forfeited property meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 78, that requires disclosure of any restriction on the use or disposition of the property.

    Agency Affected: Department of the Treasury

  75. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Forfeited Property, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for forfeited property meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 78, that requires disclosure, if available, of an estimate of the value of property to be distributed to other federal, state, and local agencies in future reporting periods.

    Agency Affected: Department of the Treasury

  76. Status: Closed - Implemented

    Comments: Beginning in fiscal year 2006, the disclosure requirement of SFFAS No.3, relating to goods held under price support and stabilization programs is no longer applicable to the CFS per SFFAS No. 32, paragraph 10. However, disclosure requirements related to major commitments and contingencies contained in SFFAS No. 5 were not affected by SFFAS No. 32. We continue to monitor the sufficiency and accuracy of disclosures in the CFS relating to major commitments and contingencies.

    Recommendation: GAO recommends that the note disclosure for goods held under price support and stabilization programs meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 98, that requires that if a contingent loss is not recognized because it is less than probable or it is not reasonably measurable, disclosure of the contingency shall be made if it is at least reasonably possible that a loss may occur.

    Agency Affected: Department of the Treasury

  77. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Goods Held Under Price Support and Stabilization Programs, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for goods held under price support and stabilization programs meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 109, that requires disclosure of the basis for valuing commodities, including valuation method and cost flow assumptions.

    Agency Affected: Department of the Treasury

  78. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Goods Held Under Price Support and Stabilization Programs, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for goods held under price support and stabilization programs meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 109, that requires disclosure of any changes from the prior year's accounting methods.

    Agency Affected: Department of the Treasury

  79. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Goods Held Under Price Support and Stabilization Programs, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for goods held under price support and stabilization programs meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 109, that requires disclosure of any restrictions on the use, disposal, or sale of commodities.

    Agency Affected: Department of the Treasury

  80. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Goods Held Under Price Support and Stabilization Programs, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for goods held under price support and stabilization programs meet the requirements of Statement of Federal Financial Accounting Standards No. 3, Accounting for Inventory and Related Property, paragraph 109, that requires disclosure of the analysis of the change in dollar amount and volume of commodities, including those (1) on hand at the beginning of the year, (2) acquired during the year, (3) disposed of during the year by method of disposition, (4) on hand at the end of the year, (5) on hand at year-end and estimated to be donated or transferred during the coming period, and (6) received as a result of surrender of collateral related to nonrecourse loans outstanding. The analysis should also show the dollar value and volume of purchase agreement commitments.

    Agency Affected: Department of the Treasury

  81. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Property, Plant, and Equipment, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment (PP&E) meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraph 45, that requires disclosure of the estimated useful lives for each major class of PP&E

    Agency Affected: Department of the Treasury

  82. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Property, Plant, and Equipment, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraph 45, that requires disclosure of capitalization thresholds, including any changes in thresholds during the period.

    Agency Affected: Department of the Treasury

  83. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Property, Plant, and Equipment, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment (PP&E) meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraph 45, that requires disclosure of restrictions on the use or convertibility of general PP&E

    Agency Affected: Department of the Treasury

  84. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for property, plant, and equipment met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 10, Accounting for Internal Use Software, paragraph 35, by disclosing the cost, associated amortization, and book value for internal use software.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 10, Accounting for Internal Use Software, paragraph 35, that requires disclosure of the cost, associated amortization, and book value of internal use software.

    Agency Affected: Department of the Treasury

  85. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Property, Plant, and Equipment, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 10, Accounting for Internal Use Software, paragraph 35, that requires disclosure of the estimated useful life for each major class of software for internal use software.

    Agency Affected: Department of the Treasury

  86. Status: Closed - Implemented

    Comments: This required information regarding the method of amortization for internal use software was disclosed in the fiscal year 2005 CFS, Note 5, Inventories and Related Property, Net.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 10, Accounting for Internal Use Software, paragraph 35, that requires disclosure of the method of amortization for internal use software.

    Agency Affected: Department of the Treasury

  87. Status: Closed - Implemented

    Comments: This required information regarding physical quantities for multiuse heritage assets was disclosed in the fiscal year 2005 CFS, Note 6, Property, Plant, and Equipment, Net.

    Recommendation: GAO recommends that the note disclosure for property, plant, and equipment (PP&E) meet the disclosure requirements of Statement of Federal Financial Accounting Standards No. 16, Amendments to Accounting for Property, Plant, and Equipment, paragraph 9, that requires an appropriate PP&E note disclosure to explain that "physical quantity" information for the multiuse heritage assets is included in supplemental stewardship reporting for heritage assets.

    Agency Affected: Department of the Treasury

  88. Status: Closed - Implemented

    Comments: This required information was disclosed in the fiscal year 2005 CFS, Note 11, Federal Employee and Veteran Benefits Payable.

    Recommendation: GAO recommends that the note disclosure for federal employee and veteran benefits payable be completely and properly reported-specifically, that (1) it include a line for the valuation of plan amendments that occurred during the year and (2) the liability for military pensions and note disclosure related to the "change in actuarial accrued pension liability and components of related expenses" agree with the information presented in the Department of Defense's financial statements.

    Agency Affected: Department of the Treasury

  89. Status: Closed - Implemented

    Comments: The requirements of SFFAS No. 6, Accounting for Property, Plant, and Equipment, as they apply to the note disclosure for environmental and disposal liabilities were superseded by modified disclosure requirements contained in SFFAS No. 32. The disclosures provided in Note 12, Environmental and Disposal Liabilities, of the fiscal year 2006 CFS were in conformity with SFFAS 32 as they relate to cleanup costs associated with general PP&E.

    Recommendation: GAO recommends that the note disclosure for environmental and disposal liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, that require (1) estimation and recognition of cleanup costs associated with general property, plant, and equipment (PP&E) at the time the PP&E is placed in service and (2) recognition of a liability for the portion of the estimated total cleanup cost attributable to the portion of the physical capacity used or the portion of the estimated useful life that has passed since the general PP&E was placed in service.

    Agency Affected: Department of the Treasury

  90. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. Based on the new GAAP requirements for the CFS and additional disclosures made by Treasury, as part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Environmental and Disposal Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for environmental and disposal liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, that require inclusion of material changes in total estimated cleanup costs due to changes in laws, technology, or plans.

    Agency Affected: Department of the Treasury

  91. Status: Closed - Implemented

    Comments: Based on analysis in fiscal year 2007, of the specific lease-related information, Treasury concluded that the amounts were immaterial to the CFS and therefore no related disclosures were included in the fiscal year 2007 CFS.

    Recommendation: GAO recommends that the note disclosure for capital leases meet the requirements of Federal Accounting Standards Board, Statement of Financial Accounting Standards No. 13, Accounting for Leases, paragraph 16, that requires future minimum lease payments as of the date of the latest balance sheet presented, in the aggregate and for each of the 5 succeeding fiscal years, with separate deductions from the total for the amount representing executory costs, including any profit thereon, included in the minimum lease payments, and for the amount of the imputed interest necessary to reduce the net minimum lease payments to present value.

    Agency Affected: Department of the Treasury

  92. Status: Closed - Implemented

    Comments: Based on analysis in fiscal year 2007, of the specific lease-related information, Treasury concluded that the amounts were immaterial to the CFS and therefore no related disclosures were included in the fiscal year 2007 CFS.

    Recommendation: GAO recommends that the note disclosure for capital leases meet the requirements of Federal Accounting Standards Board, Statement of Financial Accounting Standards No. 13, Accounting for Leases, paragraph 16, that requires a summary of assets under capital lease by major asset category and the related total accumulated amortization.

    Agency Affected: Department of the Treasury

  93. Status: Closed - Implemented

    Comments: Based on analysis in fiscal year 2007, of the specific lease-related information, Treasury concluded that the amounts were immaterial to the CFS and therefore no related disclosures were included in the fiscal year 2007 CFS.

    Recommendation: GAO recommends that the note disclosure for capital leases meet the requirements of Federal Accounting Standards Board, Statement of Financial Accounting Standards No. 13, Accounting for Leases, paragraph 16, that requires a general description of the lessee's leasing arrangements, including but not limited to (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, and (3) restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

    Agency Affected: Department of the Treasury

  94. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Life Insurance Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for life insurance liabilities meet the requirements of Statement of Federal Financial Accounting Standards No. 5, Accounting for Liabilities of the Federal Government, paragraph 117, that requires all federal reporting entities with whole life insurance programs to follow applicable standards as prescribed in the private sector standards when reporting the liability for future policy benefits: Statement of Financial Accounting Standards No. 60, Accounting and Reporting by Insurance Enterprises; Statement of Financial Accounting Standards No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments; and Statement of Financial Accounting Standards No. 120, Accounting and Reporting by Mutual Life Insurance Enterprises and by Insurance Enterprises for Certain Long-Duration Participating Contracts; and American Institute of Certified Public Accountants Statement of Position 95-1, Accounting for Certain Insurance Activities of Mutual Life Insurance Enterprises.

    Agency Affected: Department of the Treasury

  95. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Life Insurance Liabilities, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for life insurance liabilities meet the requirements of Statement of Federal Financial Accounting Standards FAS No. 5, Accounting for Liabilities of the Federal Government, paragraph 5, that requires all components of the liability for future policy benefits (i.e., the net-level premium reserve for death and endowment policies and the liability for terminal dividends) to be separately disclosed in a footnote with a description of each amount and an explanation of its projected use and any other potential uses (e.g., reducing premiums, determining and declaring dividends available, reducing federal support in the form of appropriations related to administrative cost or subsidies).

    Agency Affected: Department of the Treasury

  96. Status: Closed - Implemented

    Comments: In fiscal year 2007, Treasury included in its standard operating procedures steps that the reviewing accountant should take in ensuring that the commitment and contingencies note disclosures are consistent with agencies' financial statements. We reviewed the fiscal year 2007 schedules prepared by the Treasury and noted that Treasury performed an analysis between individual agencies' financial statements and the Governmentwide Financial Reporting System (the system used by Treasury to prepare the CFS).

    Recommendation: GAO recommends that the note disclosure on major commitments and contingencies be consistent with disclosed information in individual agencies' financial statements.

    Agency Affected: Department of the Treasury

  97. Status: Closed - Implemented

    Comments: Our fiscal year 2005 audit work found that the note disclosure on major commitments and contingencies discloses sufficient information regarding certain major commitments and contingencies.

    Recommendation: GAO recommends that the note disclosure on major commitments and contingencies disclose sufficient information (detailed discussion) regarding certain major commitments and contingencies.

    Agency Affected: Department of the Treasury

  98. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for collections and refunds of federal revenue met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 7, Concepts for Reconciling Budgetary and Financial Accounting, paragraph 64, by disclosing the basis of accounting when the application of the general rule results in a modified cash basis of accounting.

    Recommendation: GAO recommends that the note disclosure for collections and refunds of federal revenue meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Concepts for Reconciling Budgetary and Financial Accounting, paragraph 64, that requires, among other things, that collecting entities disclose the basis of accounting when the application of the general rule results in a modified cash basis of accounting.

    Agency Affected: Department of the Treasury

  99. Status: Closed - Implemented

    Comments: Our fiscal year 2005 audit work found that the note disclosure for collections and refunds of federal revenue meets the requirements of SFFAS No. 7, Concepts for Reconciling Budgetary and Financial Accounting, paragraph 69.2.

    Recommendation: GAO recommends that the note disclosure for collections and refunds of federal revenue meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Concepts for Reconciling Budgetary and Financial Accounting, paragraph 69.2, that requires collecting entities to provide in the other accompanying information any relevant estimates of the annual tax gap that become available as a result of federal government surveys or studies.

    Agency Affected: Department of the Treasury

  100. Status: Closed - Implemented

    Comments: Our fiscal year 2005 audit work found that the note disclosure for dedicated collections met this requirement of SFFAS. No. 7, Part 1, Accounting for Revenue and Other Financing Sources, paragraph 85.

    Recommendation: GAO recommends that the note disclosure for dedicated collections meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires inclusion of condensed information about assets and liabilities showing investments in Treasury securities, other assets, liabilities due and payable to beneficiaries, other liabilities, and fund balance.

    Agency Affected: Department of the Treasury

  101. Status: Closed - Implemented

    Comments: Our fiscal year 2005 audit work found that the note disclosure for dedicated collections met this requirement of SFFAS. No. 7, Part 1, Accounting for Revenue and Other Financing Sources, paragraph 85.

    Recommendation: GAO recommends that the note disclosure for dedicated collections meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires inclusion of condensed information on net cost and changes to fund balance, showing revenues by type (exchange/nonexchange), program expenses, other expenses, other financing sources, and other changes in fund balance.

    Agency Affected: Department of the Treasury

  102. Status: Closed - Implemented

    Comments: In fiscal year 2007, the Treasury's Financial Management Service developed and implemented procedures to verify that all required information for dedicated collections was provided and that the information was accurate. These procedures included completing a questionnaire and documenting that information provided agreed with information provided in the agencies' audited financial statements.

    Recommendation: GAO recommends that the note disclosure for dedicated collections meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires inclusion of any revenues, other financing sources, or costs attributable to the fund under accounting standards but not legally allowable as credits or charges to the fund.

    Agency Affected: Department of the Treasury

  103. Status: Closed - Implemented

    Comments: During our audit of the fiscal year 2006 Consolidated Financial Statements of the U.S. Government, we determined that Treasury disclosed a description of each fund's purpose, how the administrative entity accounts for and reports the fund, and its authority to use those collections, in accordance with SFFAS No.7.

    Recommendation: GAO recommends that the note disclosure for Indian trust funds meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires a description of each fund's purpose, how the administrative entity accounts for and reports the fund, and its authority to use those collections.

    Agency Affected: Department of the Treasury

  104. Status: Closed - Implemented

    Comments: In collaboration with the Department of the Interior, the department responsible for management and reporting of Indian Trust Funds, Treasury completed an analysis of the materiality of required disclosure amounts, assessed applicable legal statutes, and disclosed appropriate amounts related to the Indian Trust Funds in accordance with accounting standards as part of the fiscal year 2007 CFS.

    Recommendation: GAO recommends that the note disclosure for Indian trust funds meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires the sources of revenue or other financing for the period and an explanation of the extent to which they are inflows of resources to the government or the result of intragovernmental flows.

    Agency Affected: Department of the Treasury

  105. Status: Closed - Implemented

    Comments: Our audit work found that the required information was included in the fiscal year 2005 CFS, Note 22, Indian Trust Funds.

    Recommendation: GAO recommends that the note disclosure for Indian trust funds meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires condensed information about assets and liabilities showing investments in Treasury securities, other assets, liabilities due and payable to beneficiaries, and other liabilities.

    Agency Affected: Department of the Treasury

  106. Status: Closed - Implemented

    Comments: In collaboration with the Department of the Interior, the department responsible for management and reporting of Indian Trust Funds, Treasury completed an analysis of the materiality of required disclosure amounts, assessed applicable legal statutes, and disclosed appropriate amounts related to the Indian Trust Funds in accordance with accounting standards as part of the fiscal year 2007 CFS.

    Recommendation: GAO recommends that the note disclosure for Indian trust funds meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires condensed information on net cost and changes to fund balance, showing revenues by type (exchange/nonexchange), program expenses, other expenses, other financing sources, and other changes in fund balance.

    Agency Affected: Department of the Treasury

  107. Status: Closed - Implemented

    Comments: In collaboration with the Department of the Interior, the department responsible for management and reporting of Indian Trust Funds, Treasury completed an analysis of the materiality of required disclosure amounts, assessed applicable legal statutes, and disclosed appropriate amounts related to the Indian Trust Funds in accordance with accounting standards as part of the fiscal year 2007 CFS.

    Recommendation: GAO recommends that the note disclosure for Indian trust funds meet the requirements of Statement of Federal Financial Accounting Standards No. 7, Part I, Accounting for Revenue and Other Financing Sources, paragraph 85, that requires any revenues, other financing sources, or costs attributable to the fund under accounting standards, but not legally allowable as credits or charges to the fund.

    Agency Affected: Department of the Treasury

  108. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 31, which requires program descriptions for Hospital Insurance and Supplementary Medical Insurance and an explanation of trends revealed in Chart 11: Estimated Railroad Retirement Income (Excluding Interest) and Expenditures 2002-2076.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 31, that requires the program descriptions for Hospital Insurance and Supplementary Medical Insurance and an explanation of trends revealed in Chart 11: Estimated Railroad Retirement Income (Excluding Interest) and Expenditures 2002-2076.

    Agency Affected: Department of the Treasury

  109. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 24, which requires a description of statutory or other material changes and the implications thereof affecting the Medicare and Unemployment Insurance programs after the current fiscal year.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 24, that requires a description of statutory or other material changes, and the implications thereof, affecting the Medicare and Unemployment Insurance programs after the current fiscal year.

    Agency Affected: Department of the Treasury

  110. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 25, which requires citing the significant assumptions used in making estimates and projections regarding the Black Lung and Unemployment Insurance programs.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 25, that requires the significant assumptions used in making estimates and projections regarding the Black Lung and Unemployment Insurance programs.

    Agency Affected: Department of the Treasury

  111. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 32(1)(b), which requires the total cash inflow from all sources, less net interest on intragovernmental borrowing and lending, and the total cash outflow to be shown in nominal dollars for the Hospital Insurance program.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 32(1)(b), that requires the total cash inflow from all sources, less net interest on intragovernmental borrowing and lending and the total cash outflow to be shown in nominal dollars for the Hospital Insurance program.

    Agency Affected: Department of the Treasury

  112. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 32(1)(a), which requires the narrative to accompany the cash flow data for Unemployment Insurance. The narrative should include the identification of any year or years during the projection period when cash outflow exceeds cash inflow, without interest, on intragovernmental borrowing or lending. The presentation should include an explanation of material crossover points, if any, where cash outflow exceeds cash inflow and the possible reasons for this.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 32(1)(a), that requires the narrative to accompany the cash flow data for Unemployment Insurance. The narrative should include the identification of any year or years during the projection period when cash outflow exceeds cash inflow, without interest, on intragovernmental borrowing or lending, and the presentation should include an explanation of material crossover points, if any, where cash outflow exceeds cash inflow and the possible reasons for this.

    Agency Affected: Department of the Treasury

  113. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraphs 27(3)(h) and 27(3)(j), which require the estimates of the fund balances at the respective valuation dates of the social insurance programs (except Unemployment Insurance) to be included for each of the 4 preceding years.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraphs 27(3)(h) and 27(3)(j), that require the estimates of the fund balances at the respective valuation dates of the social insurance programs (except Unemployment Insurance) to be included for each of the 4 preceding years. Only 1 year is shown.

    Agency Affected: Department of the Treasury

  114. Status: Closed - Implemented

    Comments: During our audit of the fiscal year 2006 Consolidated Financial Statements of the U.S. Government, we determined that Treasury disclosed individual program sensitivity analyses for projection period cash flow in present value dollars and annual cash flow in nominal dollars, in accordance with SFFAS No. 17.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 32(4), that requires individual program sensitivity analyses for projection period cash flow in present value dollars and annual cash flow in nominal dollars. The CFS includes only present value sensitivity analyses for Social Security and Hospital Insurance. Paragraph 32(4) states that, at a minimum, the summary should present Social Security, Hospital Insurance, and Supplementary Medical Insurance separately.

    Agency Affected: Department of the Treasury

  115. Status: Closed - Implemented

    Comments: Our audit work found that this net immigration sensitivity analysis information was disclosed in the fiscal year 2005 CFS.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 27(4)(a), that requires the individual program sensitivity analyses for Social Security and Hospital Insurance to include an analysis of assumptions regarding net immigration.

    Agency Affected: Department of the Treasury

  116. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraphs 27(4)(a), which requires the individual program sensitivity analysis for Hospital Insurance to include an analysis of death rates.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, paragraph 27(4)(a), that requires the individual program sensitivity analysis for Hospital Insurance to include an analysis of death rates.

    Agency Affected: Department of the Treasury

  117. Status: Closed - Implemented

    Comments: The fiscal year 2003 Consolidated Financial Statements note disclosure for social insurance met the disclosure requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, by not including financial interchange income (intragovernmental income from Social Security) in the actuarial present value information for the Railroad Retirement Board.

    Recommendation: GAO recommends that the note disclosure for social insurance meet the requirements of Statement of Federal Financial Accounting Standards No. 17, Accounting for Social Insurance, by not including financial interchange income (intragovernmental income from Social Security) in the actuarial present value information for the Railroad Retirement Board.

    Agency Affected: Department of the Treasury

  118. Status: Closed - Implemented

    Comments: During our audit of the fiscal year 2006 Consolidated Financial Statements of the U.S. Government, we determined that Treasury disclosed the annual investment, including a description of federally owned physical property transferred to state and local governments, for the year ended on the balance sheet as well as for each of the 4 preceding years, in accordance with SFFAS No. 8, paragraph 87.

    Recommendation: GAO recommends that the note disclosure for nonfederal physical property included in Stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 87, that requires disclosure of the annual investment, including a description of federally owned physical property transferred to state and local governments. This information should be provided for the year ended on the balance sheet date as well as for each of the 4 preceding years. If data for additional years would provide a better indication of investment, reporting of the additional years' data is encouraged. Reporting should be at a meaningful category or level.

    Agency Affected: Department of the Treasury

  119. Status: Closed - Implemented

    Comments: During our audit of the fiscal year 2006 Consolidated Financial Statements of the U.S. Government, we determined that Treasury disclosed a description of major programs involving federal investments in non-federal physical property, including a description of programs or policies under which non-cash assets are transferred to state and local governments, in accordance with SFFAS No. 8, paragraph 87.

    Recommendation: GAO recommends that the note disclosure for nonfederal physical property included in stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 87, that requires a description of major programs involving federal investments in nonfederal physical property, including a description of programs or policies under which noncash assets are transferred to state and local governments.

    Agency Affected: Department of the Treasury

  120. Status: Closed - Implemented

    Comments: During our audit of the fiscal year 2006 Consolidated Financial Statements of the U.S. Government, we determined that Treasury disclosed a narrative description and the full cost of the investment in human capital for the year being reported on as well as the preceding 4 years, in accordance with SFFAS No.8, paragraph 94.

    Recommendation: GAO recommends that the note disclosure for human capital included in stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 94, that requires a narrative description and the full cost of the investment in human capital for the year being reported on as well as the preceding 4 years (if full cost data are not available, outlay data can be reported).

    Agency Affected: Department of the Treasury

  121. Status: Closed - Implemented

    Comments: In May 2006, the Department of Treasury's Financial Management Service (FMS) developed written guidelines for reporting stewardship investments in the fiscal year 2006 CFS which included the procedures and basis for determining whether and what was feasible to report in the CFS. FMS concluded that it would be feasible to report the full cost or outlay data for investments in human capital at a meaningful category or level. The human capital information in the Supplemental Information section of the FY 2006 CFS presented such summary information.

    Recommendation: GAO recommends that the note disclosure for human capital included in stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 94, that requires the full cost or outlay data for investments in human capital at a meaningful category or level (e.g., by major program, agency, or department).

    Agency Affected: Department of the Treasury

  122. Status: Closed - Implemented

    Comments: In May 2006, the Department of Treasury's Financial Management Service (FMS) developed written guidelines for reporting stewardship investments in the fiscal year 2006 CFS which included the procedures and basis for determining whether and what was feasible to report in the CFS. FMS concluded that it would be feasible to report a narrative description of major education and training programs considered federal investments in human capital. The human capital information in the Supplemental Information section of the FY 2006 CFS presented such summary information.

    Recommendation: GAO recommends that the note disclosure for human capital included in stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 94, that requires narrative description of major education and training programs considered federal investments in human capital.

    Agency Affected: Department of the Treasury

  123. Status: Closed - Implemented

    Comments: In May 2006, the Department of Treasury's Financial Management Service (FMS) developed written guidelines for reporting stewardship investments in the fiscal year 2006 CFS which included the procedures to report the annual investment as well as investments made in each of the 4 preceding years. The research and development information in the Supplemental Information section of the FY 2006 CFS presented such summary information.

    Recommendation: GAO recommends that the note disclosure for research and development included in stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 94, that requires the annual investment made in the year ended on the balance sheet date as well as in each of the 4 years preceding that year to be reported. (As defined in this standard, "annual investment" includes more than the annual expenditure reported by character class for budget execution. Full cost shall be measured and accounted for in accordance with Statement of Federal Financial Accounting Standards No. 4, Managerial Cost Accounting Standards for the Federal Government.) If data for additional years would provide a better indication of investment, reporting of the additional years' data is encouraged. In those unusual instances when entities have no historical data, only current reporting year data need be reported. Reporting must be at a meaningful category or level-for example, a major program or department.

    Agency Affected: Department of the Treasury

  124. Status: Closed - Implemented

    Comments: In May 2006, the Department of Treasury's Financial Management Service (FMS) developed written guidelines for reporting stewardship investments in the fiscal year 2006 CFS which included a high level summary description of the major research and development programs. The research and development information in the Supplemental Information section of the FY 2006 CFS presented such summary information. As a result, stewardship investments in research and development disclosures in the fiscal year 2006 CFS were improved.

    Recommendation: GAO recommends that the note disclosure for research and development included in stewardship information meet the requirements of Statement of Federal Financial Accounting Standards No. 8, Supplementary Stewardship Reporting, paragraph 94, that requires a narrative description of major research and development programs.

    Agency Affected: Department of the Treasury

  125. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Deferred Maintenance, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for deferred maintenance meet the requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraphs 83 and 84, that require inclusion of the method of measuring deferred maintenance for each major class of property, plant, and equipment.

    Agency Affected: Department of the Treasury

  126. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Deferred Maintenance, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for deferred maintenance meet the requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraphs 83 and 84, that require that if the condition assessment survey method of measuring deferred maintenance is used, the following should be presented for each major class of property, plant, and equipment: (1) description of requirements or standards for acceptable operating condition, (2) any changes in the condition requirements or standards, and (3) asset condition and a range estimate of the dollar amount of maintenance needed to return the asset to its acceptable operating condition.

    Agency Affected: Department of the Treasury

  127. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Deferred Maintenance, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for deferred maintenance meet the requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraphs 83 and 84, that require that if the total life-cycle cost method is used, the following should be presented for each major class of property, plant, and equipment: (1) the original date of the maintenance forecast and an explanation for any changes to the forecast, (2) prior year balance of the cumulative deferred maintenance amount, (3) the dollar amount of maintenance that was defined by the professionals who designed, built, or managed the property, plant, and equipment as required maintenance for the reporting period, (4) the dollar amount of maintenance actually performed during the period, (5) the difference between the forecast and actual maintenance, (6) any adjustments to the scheduled amounts deemed necessary by the managers of the property, plant, and equipment and (7) the ending cumulative balance for the reporting period for each major class of asset experiencing deferred maintenance.

    Agency Affected: Department of the Treasury

  128. Status: Closed - Implemented

    Comments: On October 4, 2004, Treasury submitted a proposal to the Federal Accounting Standards Advisory Board (FASAB) seeking to amend certain previously issued standards and eliminate or lessen the disclosure requirements for the CFS so that GAAP would no longer require certain of the information Treasury was not reporting. On September 28, 2006, FASAB issued Statement of Federal Financial Accounting Standard (SFFAS) No. 32, Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4 "Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government", with an effective date for periods after September 30, 2005. As part of our audit of the fiscal year 2006 CFS, we found that Treasury disclosed the above noted required information relating to Deferred Maintenance, in accordance with SFFAS No. 32.

    Recommendation: GAO recommends that the note disclosure for deferred maintenance meet the requirements of Statement of Federal Financial Accounting Standards No. 6, Accounting for Property, Plant, and Equipment, paragraphs 83 and 84, that require that if management elects to disclose critical and noncritical amounts, the disclosure is to include management's definition of these categories.

    Agency Affected: Department of the Treasury

  129. Status: Open

    Comments: As of the completion of our fiscal year 2013 CFS audit, Treasury agreed that this recommendation remained open. Treasury requests this information from the agencies in the TFM 2-4700. Treasury will include this subject matter as a key area for the third quarter reporting requirements to allow sufficient time to complete this analysis. We will follow-up on progress made by the Treasury as part of our fiscal year 2014 CFS audit.

    Recommendation: GAO recommends that the note disclosure for stewardship responsibilities related to the risk assumed for federal insurance and guarantee programs meet the requirements of Statement of Federal Financial Accounting Standards No. 5, Accounting for Liabilities of the Federal Government, paragraph 106, that requires that when financial information pursuant to Financial Accounting Standards Board standards on federal insurance and guarantee programs conducted by government corporations is incorporated in general purpose financial reports of a larger federal reporting entity, the entity should report as required supplementary information what amounts and periodic change in those amounts would be reported under the "risk assumed" approach.

    Agency Affected: Department of the Treasury

 

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