x41 Agency ANALYSIS OF HHS ACCOUNTS UNDER THE CHIEF FINANCIAL OFFICER LEGISLATION FDA HASA CDC NIH ••]? •& ** Appropriation Account Tille Salaries and Expenses, FDA Salaries and Expenses, FDA (Royalties) Rental Payments (FDA) Buildings and Facilities, FDA Revolving Fund for Certification and Other Services HS Indian Health Services Health Resources and Services Health Professions & Nursing Student Loans (HRSA) Medical Facilities Guarantee and Loan Fund Health Professions Graduate Student Loan Fund Health Professions Education Fund Vaccine Injury Compensation Vaccine Improvement Program Trust Fund Indian Health Services (Medicare/Medicaid) Disease Control, Research, and Training Cooperative Research and Development Agreements (CDC) Symbol 75_0390 75_0390 Consolidated Working Fund (Grants for Research, IHS) 75X3921 Rents and Charges/Operation and Maintenance of Quarters (IHS) |75X5071 74X8073 National Library of Medicine National Institute of Child Health and Human Development Office of the Director, NIH (Royalties) National Cancer Institute (Royalties) National Institute of General Medical Sciences National Institute of Environmental Health Sciences National Institute of Environmental Health Sciences (Royalties) 75_0600 75_0601 75X0603 75X4309 75X5148 75X8247 75_0350 75_0350 75X3903 75X4430 75X4305 75X4306 75X4307 75_0320 75X8254 75X8889 75_0943 75X5146 75208145 75X8250 75_0807 75_0819 75X0838 75_0843 75J_0843 75J_0844 75_0846 75J_0846 75_0849 75_0849 75_0851 75_0862 1. Revolving Funds 2. Trust Funds 3. Pilot Program 4. Substantial Commercial Activity 5. Not Covered by Law 6. Not an Active Account 1 4 71,911,936 13.932.537 29.515,092 214,328.975 (700) 414,763.216 (1,011) 55,810.665 5 (104.332) 4 5 5 4 1 2 2 5 555454 ANALYSIS OF HHS ACCOUNTS UNDER THE CHIEF FINANCIAL OFFICER LEGISLATION Agency NIH Appropriation Account Title OASH National Heart, Lung, and Blood Institute National Heart, Lung, and Blood Institute (Royalties) National Institute of Dental Research National Institute of Dental Research (Royalties) National Institute of Diabetes, and Digestive and Kidney Diseases National Institute of Allergy & Infectious Diseases (Royalties) National Institute of Neurological Disorders & Stroke (Royalties) National Institute of Arthritis & Musculoskeletal & Skin Diseases ADAMHA Federal Subsidy for Saint Elizabeths Hospital Management Fund, NIH Management Fund, NIH (Royalties) Service and Supply Fund, NIH Cooperative Research and Development Agreements (NIH) National Center for Nursing Research National Institute on Deafness & Other Communication Disorders 75 0890 National Center for Human Genome Research Construction and Renovation, Saint Bizabeths Hospital Alcohol, Drug Abuse, and Mental Health (Royalties) Retirement Pay and Medical Benefits for Commissioned Officers Office of the Assistant Secretary for Health Scientific Activities Overseas, Special Foreign Currency Program Service and Supply Fund, OASH Public Health Service Unconditional Gift Fund AHCPR Health Care Policy and Research HCFA Program Management, HCFA Payments for Credits against Health Care Contributions Payments to Health Care Trust Funds Symbol Health Maintenance Organization Loan & Loan Guarantee Fund Survey and Certification Revolving Fund Federal Supplementary Medical Insurance Trust Fund Federal Hospital insurance Trust Fund 75_0872 75J_0872 75_0873 75_J_0873 75_0884 751_0884 75_0885 751_0885 75_0886 75 0886 75_0887 75_0888 75_0889 75_0891 75_3966 75J_3966 75X4554 75X5145 75X8248 75X8253 75X8888 75_1300 75X1312 75_1361 75_1361 75X5147 75X8555 75X8559 75_0379 75_1101 75X1102 75X4552 75X8249 75_1700 75_0511 75X0512 75X0513 75_0580 75X4420 75X4421 7520X8004 7520X8005 75X8184 1. Revolving Funds 2 Trust Funds 3. Pilot Program 4. Substantial Commercial Activity 5. Not Covered by Law 6. Not an Active Account 11222 5654-26 555-2 5 2 5 5555-6226 1 LISTING OF HHS ACCOUNTS WHICH ARE AFFECTED BY FY 1991 WAIVER REQUEST Agency Appropriation Account Titile Symbol FDA 75_0600 75X5148 75X8247 Enclosure B Question. In the past, you have said that a lack of government-wide accounting standards limits the auditing work that can be performed. Will the CFO Act change this? Answer. One of the problems which we think will be found in the preparation of financial statements is the lack of coverage in the current accounting standards for dealing with certain financial arrangements that the Federal government makes. Generally, such financial arrangements are not acknowledged through transactions in the accounting records. For example, the government has a reversionary interest in funds and assets provided to grantees on a conditional basis. When we know that a certain segment of the grantee population is not complying with these conditions, should we treat the applicable funds or assets as accounts receivables or perhaps as some kind of a contingent receivable? Generally accounting standards do not recognize contingent receivables. These kinds of issues may be difficult for auditors to address because there may be problems in finding suitable guidance for handling them. These issues will not make it impossible to audit the statements, but may result in the need for numerous explanations of why the auditors could not reach a conclusion about whether the financial statements are fairly stated. The passage of the CFO Act will not directly effect an improvement in Federal accounting standards. However, the creation of the Federal Accounting Standards Advisory Board (FASAB) may result in a longrange improvement in this situation. The FASAB was created at about the same time the CFO Act was passed. It was created to bring about improvements in Federal accounting standards and to put in place a process for developing accounting standards on a broader authority than was previously the case. Previously, Federal accounting standards were promulgated by the General Accounting Office. The FASAB has a composition which is quite broad; it should thus result in standards which are more broadly accepted by the Federal financial management community. As the FASAB becomes productive, the issues which management and auditors find troublesome in the preparation and audit of financial statements should be considered and resolved. Question. Are you in favor of the Department's request to waive the CFO Act's audit requirements for some parts of HHS? Answer. As I stated in my testimony, I support |