what's at stake? the u.s. government’s financial statements and the country's fiscal...
TRANSCRIPT
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What's at Stake?The U.S. Government’s Financial Statements and the Country's Fiscal Health
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The role of CPAs
• Serve as trusted advisors to a variety of organizations
• Help businesses and individuals achieve strong financial standing
• Protect the public interest• Explain complex financial issues
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Today
• Overview of the federal budget• Insights into the federal financial statements• Nation’s deficit reality
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Federal budget
Establishes the fiscal
goals envisioned by Congress
Measured on a cash
basis
Tool to help guide
spending decisions
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Federal financial statements
Record of what has actually
happened
Prepared on an accrual
basis
Provide information
about longer-term implications
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Revenue = $2.4 trillion Expenses = exceeded
revenue by $1.3 trillion
2012 financial statements
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Assets=$2.7 trillion
Liabilities=$18.8 trillion
Accumulated deficit=
$16.1 trillion
2012 financial statements
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U.S. financial statements differ from other organizations
Most financial statements show obligations or liabilities on balance sheet
U.S. government’s financial statements do not include Social Security and Medicare
• Footnote disclosures • Not reflected as liabilities
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Reality of future obligations
These future obligations equal:
Additional social insurance deficit $52 trillion
Cumulative deficit 16 trillion
Total deficit $68 trillion
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Key data in publicly traded company’s financial statements
Revenue: how much money the company
is bringing in
Expenses: how much money the
company is spending
EarningsExpenses < Revenue
= Financially Healthy Company
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In tr
illio
ns
2009 2010 2011 2012
$11.5
$13.5$14.8
$16.1
Accumulated deficit
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What’s next
Visit: aicpa.org/Wha
tsAtStake
Watch What’s at Stake: The CPA Profession on
Federal Financial Responsibility
Policymakers: read the Financial Report
of the U.S. Government
Citizens: read A Citizen’s Guide to the Fiscal Year 2012 Financial Report of
the U.S. Government
Join the public dialogue to make the county’s fiscal health
a national priority
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(Optional)
(Add information about what you, your firm and/or your state society is doing in this area)
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Thank you