What's at Stake?
The CPA Profession on Federal
Fiscal Responsibility
The role of CPAs
• Serve as trusted advisors to a variety of
organizations
• Help businesses and individuals achieve strong
financial standing
• Protect the public interest
• Explain complex financial issues
Today
• Overview of the federal budget
• Insights into the federal financial statements
• Nation’s deficit reality
Federal budget
Establishes
the fiscal
goals
envisioned
by Congress
Measured
on a cash
basis
Tool to help
guide
spending
decisions
Federal financial statements
Record of
what has
actually
happened
Prepared on
an accrual
basis
Provide
information
about
longer-term
implications
FY 2014 financial statements
Revenue = $3.0
trillion
Expenses = $3.8
trillion; exceeded
revenue by $0.8
trillion
FY 2014 financial statements
Assets=
$3.1 trillion
Liabilities=
$20.8 trillion
Accumulated
deficit=
$17.7 trillion
U.S. financial statements differ from
other organizations
Most financial statements show obligations or
liabilities on balance sheet
U.S. government’s financial statements do not include
Social Security and Medicare
• Footnote disclosures
• Not reflected as liabilities
Reality of future obligations
These future obligations equal:
Additional social insurance deficit
Cumulative deficit
$56.7 trillion
17.7 trillion
Total deficit
$74.4 trillion
Key data in publicly traded company’s
financial statements
Revenue: how much
money the company
is bringing in
Expenses: how
much money the
company is
spending
Earnings
Expenses < Revenue
= Financially
Healthy Company
Accumulated deficit
14.8
16.1
16.9
17.7
13.5
IN TRILLIONS
11.5
2009
2010
2011
2012
2013
2014
What’s next
Visit:
aicpa.org/WhatsAtStake
Watch What’s at Stake:
The CPA Profession on
Federal Financial
Responsibility
Citizens: read A Citizen’s
Guide to the Fiscal Year
2012 Financial Report of
the U.S. Government
Policymakers: read the
Financial Report of the
U.S. Government
Join the public dialogue
to make the
county’s fiscal health
a national priority
(Optional)
(Add information about what you, your firm and/or
your state society is doing in this area)
Thank you