Table of Contents

Copyright and Legal 3

Errors, Omissions, and Comments  3

About the Author  4

Acknowledgments  4

Introduction  5

Review Questions  12

Review Questions Answer Key  13

Chapter 2 – Agency Formation  15

Review Questions  17

Review Questions Answer Key  18

Chart 3-1: Timeline of Major Federal Financial Management Laws  20

Anti-Deficiency Act (ADA) 27

Economy Act of 1932  29

Supplemental Appropriation Act of 1955  29

GPRA of 1993/GPRMA of 2010  30

Inspector General Act of 1978  30

Sarbanes Oxley Act of 2002  30

Review Questions  32

Review Questions Answer Key  33

Chapter 4 – Appropriation Basics  35

Types of Appropriation Authority  35

The Three Basic Elements of an Appropriation  35

Chart 4-1: Basic Elements of All Appropriations  37

Apportionments and Allotments  37

Appropriation Classifications  38

Chart 4-2: Types of Appropriations  40

Miscellaneous Items to Know About Appropriations  43

Chart 4-3: IRS Budget Activity Codes  43

Review Questions  47

Review Questions Answer Key  48

Chapter 5 – United States Standard General Ledger (USSGL) 50

Chart 5-1: USSGL Major Transaction Categories  51

Chart 5-2: USSGL Standard Proprietary Equation  52

Chart 5-3: USSGL Expanded Proprietary Equation  52

Chart 5-4: USSGL Budgetary Equation  53

Chart 5-5: USSGL Accounts and Descriptions to Know By Heart  53

Chart 5-6: Standard Accounting Scenarios  61

Chart 5-7: GTAS Validations Summary  68

Chapter Summary  82

Review Questions  83

Review Question Answer Key  84

Chapter 6 – Accounting for Property  86

Chart 6-1: The Three Most Basic Federal Property Classification Types  86

Chart 6-2: Common Depreciation/Amortization Simplifying Conventions  89

Review Questions  91

Review Questions Answer Key  92

Chapter 7 – Basic Financial System Concepts  94

Review Questions  96

Review Questions Answer Key  97

Chapter 8 – Federal Contracts  98

Chart 8-1: Types of Federal Contracts  98

Review Questions  100

Review Questions Answer Key  101

Chapter 9 – Special Topics  102

Temporary Withholding of Funds (Temporary Deferrals) 102

Budget Analyst Versus Accountant and Auditor Speak  103

Chart 9-1: The Lingo of Budget Analysts, Accountants and Auditors  103

Agency Location Codes  105

IPAC Payments versus NonIPAC Transactions  106

Standard Federal (SF) Forms Every Financial Professional Should Be Aware Of  106

Agency System of Record  107

Fund Accounting  108

Federal Agency GAAP Standard Setters  108

Chart 9-2: Basis of Accounting  108

Chart 9-3: A Sample of Federal Agencies & The Accounting Standard They Use  109

Basic Federal Financial Statement Reports  110

Types of Financial Statement Audit Opinions  111

Review Questions  113

Review Questions Answer Key  114

Chapter 10 – Reference Sources: Knowing Where to Look  116

Department of the Treasury – Bureau of the Fiscal Service  116

Chart 10-1: TFM Volume I Topics (Federal Agencies)  116

Chart 10-2: TFM Volume II Topics (Federal Reserve Banks)  119

Chart 10-3: TFM Volume III Topics (Government Depositaries and Financial Agents)  120

Chart 10-4: TFM Volume IV Topics (Other Concerned Parties)  121

Chart 10-5: Sample Treasury Transmittal Letter  122

Chart 10-6: Sample Treasury Bulletin  125

Chart 10-7: Sample Treasury Supplement  131

Government Accountability Office (GAO) 134

Chart 10-8: GAO Book Cover Meanings  135

General Services Administration (GSA) 137

Federal Accounting Standards Advisory Board (FASAB) 137

Library of Congress  138

Office of Management and Budget (OMB) 138

Chart 10-9: Pertinent OMB Circulars  139

Agency Reference Documents  140

Review Questions  142

Review Questions Answers Key  143

Chapter 11 – Practical Applications  145

Scenario 1: TV Purchases  145

Scenario 2: Vehicle Proceeds  145

Scenario 3: Unable to Obligate Funds in a Reimbursable No-Year Fund – Expiring Funds  146

Scenario 4:  No Funds to Pay Valid Bill 147

Scenario 5:  No Funds to Write-off Unsupported Accounts Receivable  148

Scenario 6: Negative Cash in Revolving Fund  148

Scenario 7: Temporary Withholding Until Congress Receives a Report 149

Scenario 8: Abnormal 4201 Balance  149

Scenario 9: Release of Expense File to Auditors With No Expenditures  150

Scenario 10: Linking of OMB Object Classes and Agency Subobject Codes to USSGL Accounts  151

Scenario 11: FOIA Request – Unclaimed Monies  152

Scenario 12: Congressional Request – Fines and Penalties an Agency Collects  153

Scenario 13: Congressional Request – How Much Obligated and Paid to a Certain Organization  153

Scenario 14: Determining Available Funds in an Expired Appropriation  154

Scenario 15: Determining Available Funds in an No-Year Appropriation Involving a Prior Budget Year  155

Scenario 16: Misapplied Agency Subobject Class Codes – Reporting Risks  156

Scenario 17: Determining the Universe of Prior Year Obligation Document That Should Have Been Entered Before the Financial System Closed  157

Acronyms and Glossary  159

Index  171

CPE Exam   177