Statement of Financing by zaaaa59

VIEWS: 10 PAGES: 14

									Statement of Financing

USDA Financial Management
         Training
       May 3, 2005

                            1
    Statement of Financing
• SFFAC 2 – No budgetary statements
• SFFAS 7 – SBR and SOF
• SOF relates obligation-based budgetary
  information to accrual-based proprietary
  information.
• Required knowledge:
  – Proprietary accounting: assets, liability, net
    position, etc.
  – Budgetary accounting: resources & status of


                                                     2
       Statement of Financing
• SOF reconciles budgetary net oblig. (i.e.,
  “budgetary resources”) and proprietary net cost
• Why are they different?
  – Net cost may be financed by non-budgetary
    resources, e.g., imputed financing, donations,
    transfers-in
  – Budgetary & non-budgetary resources may finance
    activities that aren’t components of net cost in current
    reporting period, e.g., acquisition of assets.
  – Net cost may contain components that don’t use or
    generate resources in the current period, e.g.,
    depreciation.
                                                               3
Statement of Financing

 • Net Obligations
   – Gross obligations
   – Recoveries, offsetting collections,
     other
 • Net Cost
   – Cost
   – Earned Revenue




                                           4
      Statement of Financing
• Budgetary Resources
  – “Gross obligations” (OMB definition) minus
    recoveries, offsetting collections, other = net
    obligations
  – Less: Offsetting collections, etc.
  – “Budgetary Resources” equals net obligated
    resources
  – Not total appro. received and available
  – A budgetary resource doesn’t finance activity
    unless it’s obligated.
                                                      5
  Statement of Financing

• “Non-Budgetary Resources”
  – “Other financing sources”
    • From SCNP, e.g.,
       – imputed financing,
       – Donations,
       – Transfers-in


• Total resources

                                6
Statement of Changes
    in Net Position




                       7
Statement of Financing




                         8
   Statement of Financing

• Resources used to finance items not
  part of the net cost of operations
  – Property acquisition
  – Offsetting collection activity
     • Unfilled customer orders – no affect on net cost
     • Recognize earned revenue when orders are
       filled


                                                      9
Statement of Financing




                         10
      Statement of Financing
• Components of net cost of operations
  that do not generate or use resources
  in the reporting period
  – Components of net cost not requiring or
    generating resources in the current period
  – Components not requiring or generating
    resources



                                                 11
Statement of Financing




                         12
Statement of Financing




                         13
    Statement of Financing
• Implementation Guide to Statement of
  Financing in Statement of Federal
  Financial Accounting Standards 7,
  Accounting for Revenue and Other
  Financing Sources: Detailed Information
  on the Statement of Financing
• April 2002
• Form and Content update for FY 06

                                            14

								
To top