TO THE HEADS
OF EXECUTIVE DEPARTMENTS, AGENCIES, AND OTHER
ENTITIES SUBJECT TO THE CHIEF FINANCIAL OFFICERS ACT AND THE ACCOUNTABILITY
OF TAX DOLLARS ACT
Financial Reporting Requirements
This Circular establishes a central point of reference for all Federal
financial reporting guidance for Executive Branch departments, agencies,
and entities required to submit audited financial statements, interim
financial statements, and Performance and Accountability Reports (PARs)
under the Chief Financial Officers (CFO) Act of 1990 and the Accountability
of Tax Dollars Act (ATDA) of 2002.
Section 2 provides
background information on Federal Financial Reporting; Section 3 discusses
entities to which this Circular applies; Section 4 provides Federal
Financial Reporting policy and references the relevant bulletins and
memoranda for the specific guidance; and Section 5 provides contact
information for inquiries.
Executive Branch agencies must generally prepare and submit audited
financial statements to the Office of Management and Budget (OMB). The
CFO Act of 1990 (P.L. 101-576), as amended by the Government Management
Reform Act (GMRA) of 1994, requires the major 24 agencies of the Federal
Government to prepare and submit audited financial statements. For those
Federal entities not covered by the CFO Act, the Accountability of Tax
Dollars Act of 2002 (P.L. 107-289) requires those Federal agencies and
entities to also prepare and submit PARs to OMB.
Under the Reports Consolidation Act of 2000 (P.L. 106-531), agencies
are permitted to submit combined reports in implementing statutory requirements
for financial and performance management reporting to improve the efficiency
of executive branch performance. These reports are combined in the PAR,
which consists of the Annual Performance Report required by the Government
Performance and Results Act with annual financial statements and other
reports, such as agencies assurances on internal controls, accountability
reports by agency heads and Inspector General assessments of the agencies
most serious management and performance challenges. PARs provide financial
and performance information that enables the President, the Congress,
and the public to assess the performance of an agency relative to its
mission and to demonstrate accountability.
The Department of
the Treasury, in coordination with OMB, prepares and submits the Financial
Report of the United States Government (Financial Report),
as required by GMRA. The Financial Report presents and discusses the
Governments financial condition and operations for the fiscal
year and includes consolidated financial statements and related disclosures,
as well as reports on stewardship responsibilities. Important financial
management issues are also discussed in Managements Discussion
and Analysis section of the Financial Report.
The provisions of this Circular apply to each Executive Branch department,
agency, and other entity (agency) that is required to prepare audited
financial statements under the CFO Act and the Accountability of Tax
for Federal Financial Statements and PARs:
The purpose of accelerated reporting is to better ensure that timely
and accurate financial and performance information is made available
to Federal agency managers as soon as possible after the end of
the fiscal year and throughout the year.
Agencies shall prepare PARs in accordance with OMB Bulletin No.
01-09 Form and Content of Agency Financial Statements,
as amended, located at /omb/bulletins/b01-09.html,
and OMB Circular No. A-11 Preparation, Submission, and Execution
of the Budget, as amended, located at /omb/circulars/a11/04toc.html.
i. PARs. Agencies shall submit their PARs to OMB
and the Congress no later than 45 days after the end of the fiscal
year. (For those agencies with a September 30 fiscal year end, this
due date is November 15.) This Circular makes this 45-day deadline
a permanent annual requirement for all executive agencies regardless
of fiscal year.
Report of the United States Government. The
U.S. Treasury is required to issue the Financial Report
of the United States Government no later than one
month after the 45-day deadline as noted in (i) above. (For a September
30 fiscal year end, this due date is December 15.) This Circular
makes this deadline a permanent annual requirement.
Financial Statements. Agencies shall submit unaudited interim
financial statements to OMB 21 days after the end of each quarter
of the fiscal year. This Circular makes this deadline a permanent
Circular reiterates the accelerated reporting requirements specified
in the following Memorandum: Future External Reporting
Changes (December 21, 2001), located at /omb/financial/year_end_reporting_2001.pdf,
and Memorandum: Requirements of the Accountability of Tax Dollars
Act of 2002 (December 6, 2002), located at /omb/financial/accountablity_of_tax_dollars.pdf.
ii. In addition, updates to accelerated and other reporting requirements
for FY 2004 were provided in Memorandum M-04-20, FY 2004 Performance
and Accountability Reports and Reporting Requirements for the
Financial Report of the United States Government
(July 22, 2004), located at /omb/memoranda/fy04/m04-20.pdf.
For information concerning this Circular, please contact the Financial
Standards and Grants Branch, Office of Federal Financial Management,
Office of Management and Budget, telephone 202-395-3993.
Joshua B. Bolten