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Country Report U.S.A.

A report on the U.S.A. Public Sector Accruals Symposium discussing the accomplishments and challenges in government accounting in the United States. Highlights include agencies completing audits within 45 days, clean opinions for major federal agencies, a decrease in material weaknesses, and the issuance of a citizens' guide to the financial report.

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Country Report U.S.A.

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  1. Country ReportU.S.A. Public Sector Accruals Symposium Organization of Economic Cooperation & Development March 3-4, 2008 R. Scott Bell United States of America, Department of the Treasury Senior Staff Accountant

  2. FY 2007 Accomplishments • For the 3rd year in a row, all major agencies completed their audits within 45 days of fiscal year-end (17 November). • Of the 24 major Federal agencies, 19 received clean opinions, one more than FY 2006 • The total number of material weaknesses government-wide declined from 41 to 39 (>35% decrease since 2001) • 13 agencies earned a clean audit opinion with no material weaknesses (including Justice, Energy, USAID). • The Government issued its consolidated financial report on time by 15 December. • For thefirst time, the Government earned an unqualified audit opinion on its Statement of Social Insurance. • For the first time, the Government issued a ‘Citizens Guide to the Financial Report of the U.S. Government’.

  3. Where We Are

  4. What Came In & What Went Out In - Revenues Out - Costs

  5. U.S. Government Accruals 2007 Unified Budget Deficit $163 billion $90.1b Unfunded postemployment benefits + + $24.7b Increase in: Environmental Liabilities; Net Capitalized Fixed Assets; Other $36.8b Increase in Environmental Liabilities = 2007 Net Cost $275.5 billion $(13.5b) Capitalized Fixed Assets, net of Depreciation

  6. An Unsustainable Fiscal Path Key Dates • 2006: Medicare benefits exceed taxes. • 2017: Social Security benefits exceed taxes. • 2019: Full Medicare benefits can not be paid. • 2040: Debt levels exceed WW II historical high. • 2041: Full SSA benefits cannot be paid. • 2080: Costs will = 3 X revenues.

  7. What Does this Mean? Historical & Projected U.S. Revenue and Cost as % of GDP

  8. What Does This Mean? Historical & Projected U.S. Debt Held by the Public as % of GDP

  9. Social Insurance Accounting & Sustainability Reporting • Debate continues: • How should the Federal Government account for its social insurance obligations? • To what extent should the Government recognize a social insurance liability on its balance sheet? • Short-Term Focus on Sustainability Reporting • Get the message out. • Contemplating multiple options. • Conventional / unconventional reporting methods. • Communicating intergenerational equity.

  10. Find Out More U.S. Department of the Treasury http://www.fms.treas.gov/fr/index.html Office of Management and Budget http://www.whitehouse.gov/omb/financial/reports/fy08_5yr_plan.pdf Government Accountability Office http://www.gao.gov/financial/fy2007financialreport.html Federal Accounting Standards Advisory Board www.fasab.gov

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