USDA-Farm Service Agency

Compilation of Financial Statements

• Compile financial statements and footnotes in accordance with OMB Circular A-136, subsequent revisions and supplements to the bulletin by OMB or USDA, and changes to the FSA methodology, and other applicable criteria.  The five required financial statements are the Balance Sheet and Related Notes, Statement of Net Cost, Statement of Changes in Net Position, Statement of Budgetary Resources, and Statement of Financing.

• Prepare a trial balance and set of double-entry journal vouchers supporting adjustments and reclassifications to the general ledger for the financial statements.

• Prepare cross-referenced work papers and schedules documenting and supporting each line on the trial balance and clearly explaining the reasons for any journal voucher adjustments.

• Prepare cross-referenced work papers and schedules supporting each line item on principal financial statements or footnotes.

• Develop and complete a quality review process to ensure all data in the financial statements and footnotes is supported by the work papers and the trial balance, that common data elements appearing in more than one statement and/or footnotes are identical, and that revisions and changes are correctly posted to the work papers, trial balance, and financial statements and footnotes.

• Summarize elimination entries that identify transactions with other Federal agencies.

• Present the FSA financial statement data in other formats, including the input for USDA financial statements and the input for the Federal Agency Consolidated Trial Balance (FACTS) transmissions. 

Tie-Point Project

• The goals of Tie-Point Project are to:  help agencies detect certain variances before they prepare and submit quarter-end or year-end accounting data; highlight new USSGL issues; help users gain a better understanding of USSGL-based accounting and reporting; and improve the integrity of data at the Government-wide level.  We assisted FSA in validating tie-points and document specific exceptions.

• Develop, document and implement General Ledger (GL) review and analysis procedures on a monthly basis. The objectives of this work are to:  sustain the integrity of the trial balance at the Treasury symbol level; ensure that all applicable account relationships are maintained; identify and resolve issues at the Treasury symbol level; propose corrective action; and inform senior management of any underlying issues, findings, and adjustments; and revise financial statements and corresponding footnotes.

• Performed GL analysis and support including:  accounts relationships, variance analysis, and program analysis.

Audit Resolution

• Resolve Audit Findings, Adjust and Revise Financial Statements and Corresponding Footnotes.

• Resolve audit findings, proposed audit adjustments, revise the financial statements and footnotes as necessary, and make alterations to the financial statement development process.

• Implement revisions suggested by auditors due to: availability of additional information, changes in underlying data, or other changes necessary to avoid a qualification or an adverse opinion, or changes in the process by which financial statements are developed.

• Respond to auditors questions, through FSA staff, relating to the work performed by the contractor.

• Ensure that revisions are properly documented and all affected accounts are appropriately adjusted.  

• Assist in implementing auditor revisions, and other recommended improvements, in the development process. This includes changes necessary to help the agency move towards receiving an unqualified opinion on the next set of financial statements. 

Methodology for Compiling Financial Statements

• Evaluate and analyze the existing financial statement and propose revisions for preparation of the FY 2007 FAS financial statements in accordance with regulatory requirements contained in OMB Circular A-136 and other relevant publications.

• Develop a detailed, step-by-step, written methodology (in written and electronic format) guide for financial statement compilation and footnotes preparation.

Review and Improve Financial Statement Process

• Prepare report on the FY 2007 financial statement process, including a list of suggested improvements in statement preparation, data gathering, and statement compilation, for consideration by the FSA Financial Management Division.

• Make necessary adjustments to the financial statement process methodology using experience gained during the FY 2007 financial statement development process.

• Implement suggested improvements and monitor changes in the process.

• Document and update the Standard Operation Procedure (SOP) and make necessary adjustments to the methodology using authoritative guidance, and implement suggested improvements and monitor changes in the process.