CLA Report Looks at Evolution of a Statement of Spending for Federal Entities
A new report from CliftonLarsonAllen’s federal government consulting practice provides technical insight and ideas supportive of the efforts by the federal accounting standard-setters and federal officials to promote the preparation of a Statement of Spending by federal entities. The report incorporates the findings of an internal working group that conducted interviews and gathered information from the federal government financial reporting community.
“The objective of this research was to present CLA’s technical insights regarding the preparation of a Statement of Spending,” says Denise Wu, a partner in CLA’s federal government practice. “We wanted to share the perspectives of pilot agency preparers, potential preparers, users, and other stakeholders interested in establishing Statement of Spending as an integral part of federal financial statements.”
In December 2010, the Reporting Model Task Force of the Federal Accounting Standards Advisory Board (FASAB), which sets federal accounting standards, presented the board with recommendations for improving the annual Financial Report of the United States Government. According to the task force, the intention of these recommendations was “to increase users’ access to, and understanding and use of, financial information in the Consolidated Financial Report (CFR) of the federal government, while avoiding costly requirements that do not add value.”
One of the recommendations called for the development of a Statement of Spending to be prepared by federal entities, and for the statement to be included in the CFR.
CLA’s report looks at the potential benefits of the Statement on Spending, critiques a proposed template for presenting information, and outlines additional steps that must be taken before FASAB can formally recommend changes to federal government accounting practices.
“We hope this research will be useful to all who are responsible for preparing schedules or statements for federal entities,” Wu says.