Governmental Financial Reporting Coursework Example

Governmental Financial Reporting Name: Institution: Governmental Financial Reporting Question one Administration of Children and Families (ACF) is a governmental organization under the U.S Department of health and human services. The cost allocation is based on the provisions of federal regulations at 2 CFR 225 which gives cost allocation guidelines and cost principles for state agencies to follow. According to the program Instruction (PI), there are certain allocation requirements among the departmental units that must be met before claiming title IV-E Federal Financial Particip0astion (FFP) (Information Memorandum, 2017). There are Adoption and Kinship Guardianship Assistance for administrative and training costs allowable and allocated as per the FFP rate (Information Memorandum, 2017). All costs have to be duly identified, allocated, and measured in accordance with the federal regulations at 2 CFR 225. The benefit of the method is that it ensures uniformity in identifying program costs. Question two Federal agencies are required to do annual reporting in accordance with the provisions of FASAB. In the financial section of the Annual Performance and Accountability Report, will contai8ng a balance sheet, statement of net costs, statement of changes in net position, and a statement of budgetary resources (U.S GAO, 2017). In certain departments, statement of custodial activity, statement of changes in social insurance, and statement of changes in social insurance will also be required. The standards of reporting will be implemented by the Treasury and OMB.OMB will also provide guidelines on the statements format. Submission of management representation letters relating to the general and special purpose financial statements will be required. Final performance and accountability report (PAR), Agency Financial Report (AFR), or Annual Management Report will be needed from all state agencies. OMB and OFFM will receive PAR reports while the AFR and AMR will b...