September 25, 2001
TO THE HEADS
OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS, CHIEF FINANCIAL OFFICERS,
AND INSPECTORS GENERAL
Form and Content of Agency Financial Statements
This Bulletin provides
guidance for preparing agency financial statements. It contains
financial reporting requirements that advance Federal agencies toward
more timely, useful, and reliable financial information to support
agency management. The Bulletin also contains changes that better
integrate budget execution, financial reporting, and performance
reporting. It is a major step toward implementing that portion of
the President's Management Agenda for improving financial performance.
The last decade has
seen the development of a statutory framework for improving financial
management and accountability in the Federal Government. The preparation
and audit of financial statements in accordance with generally accepted
standards is an integral part of this framework. With three quarters
of major federal agencies receiving an unqualified audit opinion
for Fiscal Year (FY) 2000 and all major agencies submitting their
financial statements timely, much progress has been made; moving
Federal agencies toward producing timely, reliable financial information
to measure and affect performance in a real-time environment is
the intent of this Bulletin.
The Bulletin contains
significant changes in the following areas:
Reporting -- For FY 2001, the due date for stand-alone financial
statements and accountability reports to the Office of Management
and Budget (OMB) and the Congress is February 27, 2002. For
FY 2002, performance and accountability reports are required and
must be submitted to OMB and the Congress by February 1, 2003.
OMB plans to accelerate further the due dates for subsequent years
and will advise agencies of any changes in future issuances of this
Financial Reporting -- Unaudited interim financial statements
will be submitted to OMB by May 31, for the six-month period
ending March 31, 2002. In FY 2003, unaudited financial statements
shall be prepared and submitted to OMB on a quarterly basis (i.e.,
December 31, March 31, and June 30) no later than
45 days after the end of the reporting period.
Reporting -- For annual reporting periods beginning with FY
2001, the preparation of comparative financial statements is required.
Comparative reporting is also required for interim financial statements
beginning with FY 2003.
Integration -- The Statement of Budgetary Resources is revised
to improve the linkage between this statement and the Budget of
the United States Government.
Reporting -- Performance and accountability reports will be
required for FY 2002 and subsequent years. OMB is undertaking a
comprehensive assessment of all agency reporting requirements. Changes
resulting from this assessment will be included in future issuances
of this Bulletin.
Statement Format -- Labeling and formatting of line items are
improved to facilitate an understanding of the flow of information
The requirements contained
in this Bulletin are phased in beginning with FY 2001. The Summary
of Significant Changes, following Section 1, highlights key changes
from current guidance.
This Bulletin supersedes
OMB Bulletin No. 97-01, Form and Content of Agency Financial Statements,
dated October 16, 1996, as amended by OMB Memoranda No. 99-03, dated
November 20, 1998, and OMB Memoranda No. 00-05, dated January 7,
2000, and OMB Memoranda No. 00-14, dated September 11, 2000.
Inquiries should be
addressed to the Financial Standards, Reporting, and Management
Integrity Branch, Office of Federal Financial Management, OMB, Washington,
DC 20503, telephone (202) 395-3993.
This Bulletin is available
on the OMB home page on the Internet, which is currently located
Mitchell E. Daniels, Jr.
Attachment A - Form and Content of Agency Financial Statements (127 pages, 1,050k)