Government Financial Statements | Online Homework Help
– Go to the White House’s Website to read the article titled OMB Circular A-123Management’s
Responsibility for Internal Control, dated December 21, 2004, located at
http://www.whitehouse.gov/omb/circulars_a123_rev. Be prepared to discuss.
– Go to Accounting Today’s Website to read the article titled GAO Sees Problems in Government’s
Financial Management, dated December 27, 2010, located at
http://www.accountingtoday.com/news/GAO-Sees-Problems-Government-Financial-Management-56749-1.html. Be
prepared to discuss.
¢ From the first e-Activity, note that the GAO could not issue an opinion on the financial statements
of the US government. Evaluate how this could occur considering the requirements of OMB Circular A-123.
¢ What steps would you take to alleviate the internal control problems? Differentiate between the
requirements for internal controls in government agencies and those in public companies.
DISCUSSION 2: Expenditures Please respond to the following:
Under pressure to balance their budgets, governments at all levels have resorted to fiscal gimmicks, such as
delaying the wages and salary of government employees from the last day of the month to the first day of the
following month. In the year of the change, they thereby had one fewer period to pay.
¢ Determine how such a change would affect the reported expenditures of a governmental fund under
GAAP. Provide specific examples to support your response.
¢ Evaluate the impact of GASB Interpretation No.6, Recognition and Measurement of Certain Liabilities
and Expenditures in Governmental Fund Financial Statements on the accrual and payment of the salaries.
Discussion 3: Government Bankruptcy Please respond to the following:
– Go to the US News Website to read the article titled Alabama County Bankruptcy No National
Bellwether, dated November 10, 2011, located at
http://www.usnews.com/news/articles/2011/11/10/alabama-county-bankruptcy-no-national-bellwether. Be prepared
to discuss.
– Go to the GASB Website to read Summary of Statement No. 58 Accounting and Financial Reporting for
Chapter 9 Bankruptcies, dated December, 2009, located at http://www.gasb.org/st/summary/gstsm58.html. Be
prepared to discuss.
¢ From the first two e-Activities, analyze the impact GASB Statement No. 58, Accounting and Financial
Reporting for Chapter 9 Bankruptcies, will have on the government-wide financial statement of these
governments.
¢ Assess whether or not a government should file bankruptcy or raise revenue through aIDitional taxes
and fees to pay liabilities. Explain your rationale.
Discussion 4: Proprietary and Internal Service Funds Please respond to the following:
– Go to the CPA Journal Website to read GASB Statement No. 34: THE DAWN of a New Governmental
Financial Reporting, located at: http://www.nysscpa.org/cpajournal/1999/1299/f141299a.html. Be prepared to
discuss.
¢ From the e-Activity, speculate as to why GASB Statement No. 34 changed the reporting requirements
for internal service funds. Do you agree or disagree? Explain.
¢ Compare and contrast proprietary fund reporting under GASB No.34 with GAAP financial reporting for
non-governmental entities. Examine why GASB requires the direct method for cash flow statements in the
proprietary funds instead of allowing the direct or indirect method.
Discussion 5: Fraud in Nonprofits Please respond to the following:
– Go to the Bloomberg Website to read the article titled JPMorgan Chase Sued by Ellis Institute over
Money Transfers by President,’ dated August 9, 2011, located at
tml. Be prepared to discuss.
¢ From the e-Activity, analyze the steps you would you take to prevent a similar fraud or embezzlement
in a nonprofit as a member of the board of directors or as the independent auditor.
¢ Also from the e-Activity, assess the responsibilities of the board of directors for the fraud and
whether or not they or the independent auditor should be liable as well as J.P. Morgan Chase. Explain your
rationale.
Discussion 6: Health Care Revenue Recognition Please respond to the following:
– Go to Journal of Accountancy Website to read the article titled Presentation of Patient Service
Revenue Changed for Health Care Entities, dated August 12, 2011, located at
http://www.journalofaccountancy.com/Web/20114405. Be prepared to discuss.
– Go to the FASB Website to read the article titled Presentation and Disclosure of Patient Service
Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities a
consensus of the FASB Emerging Issues Task Force, dated July, 2011, located at
http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175822797036&bl
obheader=application/pdf. Be prepared to discuss.
¢ From the two e-Activities, differentiate between the accounting provisions for revenue recognition
for patient revenue and bad debts for financial statements prior to December 31, 2011 and the provisions
effective for financial statements filed after December 31, 2011.
¢ Evaluate the potential impact of these changes on the transparency of health care financial
statements and whether or not the same information is truly represented. Explain your rationale.
DISCUSSION 7: Apple, Inc Please respond to the following:
¢ Explain whether the accounting requirements per the FASB was an improvement over the ASC 985-605
requirement and state your rationale.
¢ Explain how you would have advised Apple to adopt the new requirements, prospectively or
retrospectively.
¢ Discuss whether or not Apple fairly presented this information in their financial statement and
footnote disclosures, and state your rationale.
Discussion 8: Federal Bureau of Investigation, 2009 Crime Report Please respond to the following:
– View the 2009 Financial Crimes Report compiled by the Federal Bureau of Investigation here.
¢ Discuss how the economic crisis of 2008 impacted the findings in the 2009 Crime Report. Given the
significant increase in mortgage fraud, discuss ways this can be deterred in the future.
¢ What financial areas do you will think will emerge with significant activity on future Crime
Reports? Why?
Discussion 9: Beazer Homes, U.S.A. Please respond to the following:
¢ Explain which is more serious the allegations against Beazer Homes for possible mortgage fraud or
the allegations against Mr. Rand for possible accounting fraud. Support your rationale.
Discussion 10: General Growth Properties Please respond to the following:
¢ Many analysts expected GGP equity holders to lose most or all of their financial interests in GGP.
The joint bankruptcy filing of GGP and most of its SPEs has apparently allowed GGP to successfully
reorganize much of its debt and repay all of its obligations, while retaining substantial value for its
equity holders.
¢ Explain whether you agree or disagree with the court’s decision to allow GGP’s SPEs to enter
bankruptcy protection.
¢ Discuss the implications of the GGP bankruptcy for the securitization markets.
