AGA Government Financial Manager GAFRB Question # 20 Topic 3 Discussion

The Summary of Significant Accounting Policies (SSAP), included in the notes to the financial statements, typically includes:

Description of the reporting entity

Basis of presentation and accounting principles

Methods used to apply those principles

Policy changes from prior years

However, disclosures regarding receipt or use of budget authority are not included in the SSAP. Budget authority and execution are typically addressed in the Required Supplementary Information (RSI) or other budgetary sections of federal financial reports.

Relevant References:

FASAB SFFAS No. 34 – Notes to the Financial Statements

OMB Circular A-136 – Section II.4.4: Summary of Significant Accounting Policies

GAO Federal Accounting Handbook

Answer: C. disclosure of receipt of budget authority from the entity