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U. S. Federal Accounting Standards Advisory Board

U. S. Federal Accounting Standards Advisory Board. What’s Up with the Reporting Model? Wendy Payne, Executive Director. Disclaimer ___________________________. Views expressed are those of the speaker. The Board expresses its views in official publications.

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U. S. Federal Accounting Standards Advisory Board

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  1. U. S. Federal Accounting Standards Advisory Board What’s Up with the Reporting Model? Wendy Payne, Executive Director

  2. Disclaimer___________________________ • Views expressed are those of the speaker. The Board expresses its views in official publications.

  3. Overview___________________________ • “Reports” versus “Reporting” • Driving Forces • User Needs Research Results • More Driving Forces • Next Steps

  4. Words Matter___________________________ “Reports” versus “Reporting”

  5. Driving Forces for Information • New Public Management • Worldwide public sector movement spanning several decades • Evolution to ‘Performance Governance’: • Developing measurements • Focus on reporting information • Focus on use of information • Open Government • Demand for access to customizable information • Fiscal Constraints

  6. We Are Not Alone… • Integrated Reporting Worldwide • Framework to address finance, governance, social and environmental performance with concise but comprehensive reporting • Objectives: • Long-term consequences of decisions • Interconnections between environmental, social, governance, and financial to make clear the link between sustainability and economic value • A framework for environmental and social factors to be taken systematically into account in reporting and decision-making • Rebalance performance metrics away from undue emphasis on short-term financials • Bring reporting closer to the info used by management to run the business on a day-to-day basis

  7. Objectives for Integration in the Public Sector? • Framework to reveal long-term budget, cost, and non-financial performance with concise but comprehensive reporting • Objectives: • Long-term consequences of decisions • Interconnections between public policy, public good, and financial information to make clear the link between resource allocation/demand/need and economic value • A framework for performance and cost factors to be taken systematically into account in reporting and decision-making • Rebalance performance metrics away from undue emphasis on short-term financial and non-financial results • Bring reporting closer to the info needed by management to run the government on a day-to-day basis

  8. How the Drivers Relate to FASAB • Financial reporting objectives based on user needs • Previous user needs research conducted in the early 90s • Concerns exist regarding the benefits of accrual basis financial statements relative to the cost of preparing them • Expectations are changing • Research focused on the financial statements, terminology, and methods used to communicate basic federal financial information (reporting model)

  9. User Research Results • Overall • Participants sought information that tends to be particular and specialized. • Understandability of financial information was a concern. • Centralized source for obtaining data

  10. User Research Results • Overall • Citizens do not focus on departments and agencies. They think about health, education, homeland security, etc. • Performance information sought by all user groups • Participants (internal and external) were generally unaware of financial statements

  11. Survey of Sovereign Government Agencies Respondents • Australia • Chile • Estonia • Korea • New Zealand • Norway • Spain • Sweden • Switzerland • United Kingdom Results • Accrual dominated • Many had metrics around trends, maintenance of capital, and costs/unit • Many noted lack of experience • Use of accrual in budgeting increased use of info.

  12. More Driving Forces “At some point quantity has a quality all its own…” Senator Susan Collins of Maine

  13. More Driving Forces “[Information] will just be in the places you go in any place on any device…” Steven VanRoekel US Chief Information Officer Government Executive May 2012

  14. Reporting Model – Next Steps Projects FASAB is Starting • Statement of net cost • Performance Reporting • Budgetary Reporting

  15. Contact and Website Information • General inquiries can be directed to fasab@fasab.gov • Phone: 202 512-7350 • www.FASAB.gov • Listserv • Exposure Drafts • Active Projects • Wendy Payne • paynew@fasab.gov or 202 512-2517

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