September 11, 2000
FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS, CHIEF
FINANCIAL OFFICERS, AND INSPECTORS GENERAL
Executive Associate Director and Controller
Amendments to OMB Bulletin 97-01, Form and Content
of Agency Financial Statements
This memorandum amends Office of Management and Budget (OMB) Bulletin
No. 97-01, Form and Content of Agency Financial Statements,
dated October 16, 1996, as amended by OMB Memoranda No. 99-03
and 00-05, dated November 20, 1998, and January 7, 2000,
respectively. The amendments include the following:
requirement to prepare comparative financial statements beginning
in Fiscal Year 2000 is waived. The presentation of comparative financial
statements is permitted, but not required.
requirement to recognize specific inter-entity imputed costs is
extended to FY 2000 financial statements. The specific inter-entity
costs addressed in this amendment are those incurred by a reporting
entity but paid by other entities. In the case of employee benefits,
the imputed amount is the difference between employer/employee
contributions and the total cost of the benefit. The requirement
to recognize specific inter-entity costs, as directed in OMB's
Memorandum "Technical Guidance for the Implementation of Managerial
Cost Accounting Standards for the Federal Government," dated April
6, 1998, (see OMB web page at /OMB/financial)
is incorporated into OMB Bulletin No. 97-01, as amended, and applies
to Fiscal Year 2000 financial statements. Reporting entities are
required to recognize the following costs, including the portions
that are funded through the Office of Personnel Management (OPM),
the Department of Defense, the Department of the Treasury, the
Department of Labor, or other agencies: (1) employees' pension,
postretirement health and life insurance benefits, (2) other post-employment
benefits for retired, terminated, and inactive employees, which
include severance payments, training and counseling, continued
health care, and unemployment and workers compensation under the
Federal Employees' Compensation Act, and (3) losses in litigation
proceedings (see Federal Accounting Standards Advisory Board Interpretation
No. 2, Accounting for Treasury Judgment Fund Transactions).
Moreover, to ensure consistency, agencies should not recognize
costs other than those listed until OMB provides further guidance.
for the listed costs, reporting entities should refer to relevant
Statements of Federal Financial Accounting Standards (SFFAS) and
Interpretations, such as SFFAS Nos. 4 and 5 and Interpretation
No. 2, OMB Bulletin No. 97-01, as amended, the Standard General
Ledger, and the Financial Management Service Intragovernmental
Fiduciary Transactions Accounting Guide for guidance. Reporting
entities should also consult with the funding and administering
agencies, such as OPM, for information needed to properly record
new SFFASs are effective for reporting periods that begin after
September 30, 1999 (i.e., FY 2000).
No. 15, Management=s Discussion and Analysis (MD&A),
requires MD&A to be included in each general purpose federal
financial report as required supplementary information and identifies
subjects that should be addressed in MD&A.
No. 16, Amendments to Accounting for Property, Plant, and
Equipment, amends accounting and reporting standards in
SFFAS Nos. 6 and 8 for heritage assets that serve a dual purpose.
No. 17, Accounting for Social Insurance, requires benefits
due and payable to be reported separately and requires the reporting
of supplementary stewardship information that facilitates assessing
the program=s long-term sustainability and the ability of the
program to raise resources from future program participants
to pay for benefits proposed to present participants.
and content of agencies' financial statements must conform to
these standards. See SFFAS Nos. 15, 16, and 17 for reporting requirements.
Financial statements shall be prepared in accordance with the formats
and instructions presented in OMB Bulletin No. 97-01, as amended
by OMB Memoranda Nos. 99-03 and 00-05 and this Memorandum. Financial
statements shall be submitted to the Director of OMB no later than
the statutory due date of March 1 following the end of the fiscal
OMB Bulletin No. 97-01, as amended, applies to those entities listed
in Appendices A and B of OMB Bulletin No. 98-08, Audit Requirements
for Federal Financial Statements, and subsequent issuances.
Date. The technical amendments described in paragraph 1 are
effective for financial statements prepared for fiscal years beginning
after September 30, 1999 (i.e., FY 2000).
Further information concerning this Memorandum may be obtained by
contacting the Office of Management and Budget, Office of Federal
Financial Management, Washington, DC 20503, telephone (202) 395-3993.
Individual copies of this memorandum may be obtained from the OMB
home page on the Internet at /OMB.