Independent Reporting on Federal Accounting Standards
The FASAB Digest provides current reporting on FASAB projects. The editor prepares for and attends FASAB meetings. The FASAB Digest is similar to an executive summary providing concise and timely information.
The FASAB Digest provides current reporting on FASAB projects. The editor prepares for and attends FASAB meetings. The FASAB Digest is similar to an executive summary providing concise and timely information.
01
Introduction
Overview of the Digest's purpose and editorial approach.
02
Editor's Commentaries
In-depth analysis and independent perspective on significant FASAB developments.
03
Reporting on FASAB Projects
Current status and analysis of active FASAB standards projects.
04
History of the Governmentwide Financial Report
A comprehensive history of the consolidated federal financial report.
05
About the Editor and Contact Information
Background and credentials of Allan Lund, Treasury FASAB staff support 1991–2005.
"
The Principals got the result they wanted — no recognition of actuarial liabilities for social insurance programs. Those of us who supported the recognition of actuarial liabilities and sent comment letters and/or appeared at public hearings were just wasting our time.
— Allan Lund, Commentary Two (February 2010)
Independent Analysis
Editor's Commentaries
Commentary One
In 1999 the AICPA granted FASAB the authority to set accounting standards for the accounting profession (Rule 203 status). This was a huge development because it gave FASAB credibility as a legitimate organization that could set generally accepted accounting principles (GAAP). It was a controversial decision at the time because many influential CPAs did not view FASAB as being an independent standard setting body because of the oversight role of the Principals (OMB, Treasury, and GAO) and the ability of any Principal to veto a recommended standard.
In May 2007 I attended the public hearing on the preliminary views document on accounting for social insurance. During the lunch break I learned that Hal Steinberg would be joining Woody Jackson as returning FASAB members. I was astounded. I thought it had been recklessly audacious to appoint Woody Jackson in November 2006 but this latest news was just breathtaking. I suspected the fix was in on accounting for social insurance.
I just watched a video of Gregory Anton (Chair of the FASAB Rule 203 Review Panel) reporting the panel's recommendations to the AICPA Council on May 23, 2010. I saw absolutely nothing in the presentation that questioned FASAB's independence. How is that possible? The AICPA should acknowledge that FASAB is a fine organization but it was manipulated by the Principals when accounting for social insurance was revisited.
This section has been updated following the November 15–16, 2006 FASAB meeting. The updating language is in bold. (Notice: This section is not current.)
ProjectStatusSignificance
Accounting for Social Insurance
At the January 2006 FASAB meeting, FASAB voted 6-4 to recognize actuarial liabilities on the balance sheet for social insurance programs. All six affirmative votes came from non-federal FASAB members. Hal Steinberg joined the four federal members to deadlock the Board 5-5 per the February 2009 FASAB meeting minutes.
Concluded — No Liability Recognition
High
SFFAS 17 — Statement of Social Insurance
SFFAS 17 requires a Statement of Social Insurance that allows amounts for various social insurance programs to be aggregated. Social insurance programs have not been treated as creating liabilities except for amounts due and payable. Social Security and Medicare are the major social insurance programs.
Issued
Significant
Elements Exposure Draft — Liabilities Definition
Established the conceptual framework for what constitutes a federal liability, including the distinction between exchange transactions (with reciprocal or two-way flows of resources or promises) and non-exchange transactions (nonreciprocal or one-way flows) — the conceptual basis for the social insurance debate.
The FASAB Digest covers all five sections in full — from project-by-project reporting to the complete history of the Governmentwide Financial Report. Written by an insider with 16 years of direct FASAB involvement.
