Question

Why is Service Efforts and Accomplishments reporting especially important for local governmental and not-for-profit entities? Identify the primary functions of the following entities as they relate to financial reporting by the federal government:

Office of Management and Budget

Department of Treasury

Government Accountability Office

Answer 1

Service Efforts and accomplishments (SEA) Reporting was issued in 1994. Governmental financial statements, notes, and required supplementary information meet many of the needs of citizens, creditors, and oversight authorities. Similarly, the financial statements of private not-for-profits are useful to donors, government regulators, and creditors. However, neither governmental nor not-for-profit financial statements are particularly effective in measuring organizational effectiveness. The fundamental problem is that government and not-for-profit effectiveness cannot be expressed solely in financial terms. Effectiveness in nonbusiness organizations must be measured in terms of the quality of the service provided or the extent to which an organization fulfills its mission. For this reason, many governments and not-for-profits report nonfinancial information in addition to their financial statements. The framework for combining financial and nonfinancial information to more effectively communicate organizational effectiveness is termed Service Efforts and Accomplishments (SEA) reporting.

Primary function of the following entities are given below :

Office of Management and Budget : The office of management and budget is the largest office within the executive office of the president of U.S the main function is to produce the president's budget but also measures the quality of agency programs, policies, and procedures to see if they comply with the president's policies and coordinates inter-agency policy initiatives.

Department of Treasury : The Department of treasury maintain a strong economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively. The basic function of dept of Treasury is following :

1. Managing Federal finances;

2. Collecting taxes, duties and monies paid to and due to the U.S. and paying all bills of the U.S.;

3. Currency and coinage;

4. Enforcing Federal finance and tax laws

Goverment Accountability Office : The Government Accountability Office (GAO) is a U.S. legislative agency that monitors and audits government spending and operations. The GAO tracks how the legislative and executive branches of the government use taxpayer dollars and then provides results directly to Congress. The Comptroller General serves as head of the GAO.

The GAO conducts audits of federal government agencies to ensure that funds are allocated properly and not misappropriated. For example, it conducts audits and reviews of the Pentagon, including U.S. military spending on personnel and weapons systems. The GAO reviews government programs and policies to determine if the established goals are properly aligned with their original purpose and are being satisfied. This office also investigates allegations of illegal activity within the government and issues legal determinations on proposed rules regarding other government agencies.