A Different World: Financial Audits of the Legislative Branch Presented by Loren Schwartz, CPA, CISA Partner, Cotton & Company LLP National Governmental Accounting & Auditing Update August 23, 2005 This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Agenda  Legislative Branch - What is it?  How much money is appropriated?  Current financial reporting practices  Compliance requirements  Current trends and the future  The BIG PICTURE This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Legislative Branch – What is it? This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Legislative Branch – What is it? • 435 Representatives • 100 Senators • Support Agencies – Capitol Police – Architect of the Capitol – Library of Congress – Government Printing Office – Government Accountability Office – Other This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Legislative Branch – Appropriations FY 2005 Appropriations (millions) House of Reps 1,128 Senate 823 Capitol Police 290 Architect of the Capitol 346 Library of Congress 740 Government Printing Office 121 Government Accountability Office 471 Other 147 Total 4,066 This is trial version www.adultpdf.com Current Reporting Practices THEY ALL DO SOMETHING DIFFERENT!!!!! Financial Audits of the Legislative Branch This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Current Reporting Practices House of Reps GAAP (CY) Senate N/A Capitol Police OCBOA (FY) Architect of the Capitol FED GAAP (FY) Library of Congress FED GAAP (FY) Government Printing Office GAAP (FY) Government Accountability Office FED GAAP (FY) Other N/A This is trial version www.adultpdf.com Compliance Requirements  Voluntary compliance based on  Reporting Goals  Objectives  External pressures  Discussion of the House of Reps and GAO Financial Audits of the Legislative Branch This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Forces Driving Legislative Bodies Toward Financial Accountability  Federal government – Executive branch  Congress  Public This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Current Trends  Financial Statements Format  GAAP  Federal GAAP  OCBOA (modified accrual or cash basis of accounting) This is trial version www.adultpdf.com [...].. .Financial Audits of the Legislative Branch Current Trends Standards and Regulations OMB vs SEC (PCAOB) FASAB vs FASB GAGAS vs GAAS FISCAM vs CobiT Timing Calendar year vs Federal fiscal year This is trial version www.adultpdf.com Financial Audits of the Legislative Branch What Does the Future Hold? Increased federal accountability (does it ever go the other way?) Consistency with the Executive Branch. .. other way?) Consistency with the Executive Branch Increased emphasis on internal control This is trial version www.adultpdf.com Financial Audits of the Legislative Branch THE BIG PICTURE Accountability Comparability Consolidation This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Questions? This is trial version www.adultpdf.com . version www.adultpdf.com Financial Audits of the Legislative Branch THE BIG PICTURE  Accountability  Comparability  Consolidation This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Questions? This. of the Legislative Branch This is trial version www.adultpdf.com Financial Audits of the Legislative Branch Current Reporting Practices House of Reps GAAP (CY) Senate N /A Capitol Police OCBOA. FASAB vs FASB  GAGAS vs GAAS  FISCAM vs CobiT  Timing  Calendar year vs Federal fiscal year This is trial version www.adultpdf.com Financial Audits of the Legislative Branch What Does the Future