Financial Reporting Review

Financial Reporting Review Paper Student’s Name Institution Course Professor’s Name Submission Date Unique Characteristics of the Federal Government The federal government in the United States of America is subjected to thorough scrutiny and monitoring by many organizations and groups because of its unique features. It has special powers to print currency, carry out taxation, and regulate commerce, which calls for professional accounting and reporting practices. Second, the federal government oversees significant roles in Medicare and Social Security, defense, and managing the supply of money, which needs consistent accounting and reporting services. The presence of a complex budgetary process involving appropriations, authorizations, and fiscal constraints was implemented to prevent fraud (McDonough & Warren, 2022). Moreover, the nature of the Federal Government’s resources and diversity necessitates that it should be regulated on how it utilizes them. For example, the Internal Revenue Service (IRS) must manage its operations within the constraints of its allocated budget while effectively collecting and accounting for tax revenue from millions of taxpayers. As a public entity, the Federal Government should be accountable to taxpayers and maintain transparency in its financial operations. Audit on Financial Report Federal agencies operate under an extensive range of standards and laws that they must comply with. The type of audit performed was to test for adherence to specific laws and regulations tied to Federal government financial reporting. The audit opinion issued was that much work needs to be done to improve federal finance management because the government faces an unsustainable fiscal path in the near future (U.S. Government Accountability Office, 2024). The report from the auditor noted that there were many material weaknesses in the use of internal controls over financial reporting, significant uncertainties in achieving projected reductions in health insurance programs, and other financial reporting drawbacks that limited compliance with selected provisions of applicable contracts, laws, grant agreements, and regulations for the fiscal year that ended on 30th September 2023. Financial Statements Statement of Net Cost It provides the net cost of all governmental operations by accounting for gains and losses from assumptions changes less the revenue earned. This report offers decision-makers a background for evaluating the performance of government agencies (Bureau of the Fiscal Service, 2023). Statement of Financial Position It is a balance sheet that illustrates the federal government's liabilities, assets, and net position. ...