October 19, 2000
MEMORANDUM TO CHIEF FINANCIAL OFFICERS (CFOs) AND INSPECTORS GENERAL (IGs) OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
Executive Associate Director and Controller
|SUBJECT:||OMB Bulletin 01-02, Audit Requirements for Federal Financial Statements|
Attached is the subject OMB Bulletin, which is effective for fiscal years ending on or after September 30, 2000. This bulletin supersedes OMB Bulletin 98-08, as amended. Based on comments received on preliminary drafts and events that have taken place since the first draft was circulated, the following major changes are reflected in this final bulletin:
- Removed the proposed
revisions to require opinion level assurance under the Attestation
Standards for certain required supplementary stewardship information
(RSSI). The Federal Accounting Standards Advisory Board (FASAB)
is currently considering eliminating the RSSI category. Future
audit requirements for the information currently considered
RSSI will be influenced by the final outcome of the Board's
- Removed the discussion
of "Accounting Standards and Principles" and replaced the term
"federal accounting standards" with "generally accepted accounting
principles" (GAAP) in the definitions paragraph to reflect the
recognition of standards issued by the FASAB as GAAP.
- Updated the audit
requirements for Management's Discussion and Analysis (MD&A)
and social insurance information based on new accounting standards
that became effective for fiscal years beginning after September
- Clarified that
the auditor shall report on MD&A, RSSI, and required supplementary
information (RSI) in accordance with AU Section 551.15 of the
American Institute of Certified Public Accountants' Codification
of Statements on Auditing Standards.
- Removed implementation
guidance regarding the Federal Financial Management Improvement
Act of 1996 (FFMIA). An interagency task force is revising this
guidance and will be issued as a separate document in the fall
- Added a requirement
for timely communication between the Inspector General and Chief
Financial Officer throughout the audit.
- Added a requirement
for the CFO to prepare a schedule to show how information contained
in letters from legal counsel on litigation, claims, and assessments
was considered by management in the preparation of the financial
statements. Also, clarified the requirement to prepare legal
letters, and, to promote a more uniform approach, provided an
illustrative request for a legal letter, an illustrative legal
counsel response, and a format for preparing management's schedule.
In the coming weeks, OMB and the Department of Justice will
sponsor a forum to discuss the legal letter preparation process.
Invitees will include agency CFOs, IGs, and General Counsels.
- Updated and revised the agreed-upon procedures to be applied to data submitted to the Office of Personnel Management (OPM).
These and other significant revisions are more fully described in a chart accompanying the Bulletin.
For questions about this bulletin, contact George Rippey, Office of Federal Financial Management, Office of Management and Budget, phone (202) 395-3993, fax (202) 395-4915, e-mail firstname.lastname@example.org.
Bulletin No. 01-02 (48 pages, 94 kb)