At its April 12, 1999 meeting, the Board continued its discussion of the draft social insurance standard. It became clear that this area continues to be one where a consensus is difficult to achieve. Board members discussed the nature of Social Insurance reporting, the mechanics of the Social Insurance Trust Fund, and whether and how the Board could or should best inform and/or educate the public on these issues.

After considerable discussion, the Chairman asked staff to provide further background and illustrative information on measures previously considered by the Board to its two newest members. This issue will be discussed again at the Board’s July meeting.

For further information, contact Richard Fontenrose, 202-512-7358, or email, fontenroser.fasab@gao.gov.

After making minor editorial changes, FASAB unanimously approved recommended statements of Concepts and Standards, for Management's Discussion and Analysis (MD&A). The recommended concepts and standards have been sent to the Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General. After they approve the documents, the standards will be effective for reporting periods beginning after September 30, 1999. Both documents are posted on FASAB’s Web Page:

For further information, contact Robert Bramlett, 202-512-7355, or email bramlettr.fasab@gao.gov.

The proposed amendments are intended to improve financial reporting by Federal credit agencies for subsidy costs incurred in providing direct loans and loan guarantees to the private sector. (See the last edition of FASAB News for details of the proposed amendments.)

Please send your comments in writing or on diskette (Word or WordPerfect format) to:

The Board looks forward to reviewing all responses and supporting rationales.

The Board reviewed the second draft (based on minor revisions resulting from Board comments at the February meeting) of a Statement of Recommended Accounting Standards for the Governmentwide Supplementary Stewardship Reporting. The preparer of the governmentwide or Consolidated Financial Statements (CFS) of the US, the Department of the Treasury representative, told the Board that in the fiscal year 1998 CFS, the only area of entity stewardship reporting that was problematic for consolidation was Heritage Assets. This is because the category is diverse and entities have latitude in reporting.

The Board discussed the requirements of the Heritage Asset standard for the governmentwide, or consolidated level. Members agreed to require a description of major types of heritage assets, major agencies reporting those assets, and a general discussion of the major issues on condition or deferred maintenance, and directing readers to the applicable entities’ financial reports. Staff will make the suggested language changes to the Governmentwide Heritage Assets standard and circulate those changes for Board approval when it circulates the final proposed standard. The Board agreed that a final recommended standard would be issued when the amendments to PP&E are completed (to ensure that those amendments would be included in the governmentwide standards).

As reported in the last issue of FASAB News, the Board is continuing to deliberate the measurement and reporting standards for National Defense property, plant, and equipment (PP&E). The Board has formed the National Defense Property, Plant, and Equipment (PP&E) Task Force. The task force held its initial meeting on May 27, 1999. Participants are from a cross-section of Federal and non-federal areas including private sector accounting firms, academia, defense agencies, the Private Sector Council, the Department of the Treasury, the Office of Management and Budget, the General Accounting Office, the Congressional Budget Office, and the FASAB staff.

The task force will consider and evaluate methods of measuring and reporting National Defense PP&E that would provide information useful for assessing defense programs. It will review, assess, and comment on documents covering measurement and reporting methods that are developed by FASAB in conjunction with working groups. The proposed working groups will include representatives of:

• Department of Defense financial statement preparers; reporting entities; and budget, planning, procurement, program management, and property accountability organizations
• Economic analysis groups
• Academia
• Citizen user groups
• Cost accounting groups

Meetings with representatives from the working groups will begin in the near future.

The highlights of the May 13 AAPC meeting are:

• The AAPC approved new projects covering 1) liabilities arising from litigation where more than one Federal agency is involved, and 2) clarification of the definitions for liabilities covered and not covered by budgetary resources. The AAPC also agreed to sponsor a forum series during the remaining months of 1999. The dates and topics will be announced shortly.

The next meeting of the AAPC will be Thursday, July 8, 1999, at 1:30, in room 4N13 of the General Accounting Office Building, 441 G Street, NW, Washington, DC, 20548. Items to be discussed will be liabilities resulting from litigation and new topics.

Wendy Payne
Executive Director
202-512-7357

Robert Bramlett
202-512-7355

Richard Fontenrose
202-512-7358

(M.) Lucy Lomax
202-512-7359

Richard Mayo
202-512-7356

Andrea Palmer
202-512-7360

Monica Valentine
202-512-7362

Rick Wascak
202-512-7363

Richard Tingley
Administrative Officer
202-512-7361

Marian Nicholson
Secretary
202-512-7350

FAX - 202-512-7366

All staff members can be reached by email using the format: last name/first initial and the office email locator. For example: lomaxm.fasab@gao.gov