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Budget Issues: Financial Reporting to Better Support Decision-making

  Premium   Download PDF Now (46 pages)
Report Type Reports and Testimonies
Report Date June 1, 1993
Report No. AFMD-93-22
Subject
Summary:

This staff study analyzes the use of financial audit reports and accounting data in agency budgeting, because the budget is the principal tool used to effect policy decisions. GAO chose the Department of Veterans Affairs (VA) for this study because audited financial statements were available for fiscal years 1986 to 1989 and the range of programs at VA and its experience with financial audit reports and budgeting would be applicable to other federal entities. The study presents a conceptual framework of financial statements designed to meet the needs of financial information users--Congress, managers, and the public. The new types of statements in the study are but one way of addressing user needs, but they can be used as a basis for developing prototypes for any agency to meet the specific needs of its specific users. The study also describes how VA used accounting data from its systems in budgeting and the problems that can develop when accounting systems are not structured to provide the type of data needed in the budget process.

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