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

Revenue = $2.4 trillion Expenses = exceeded

revenue by $1.3 trillion

2012 financial statements

Assets=$2.7 trillion

Liabilities=$18.8 trillion

Accumulated deficit=

$16.1 trillion

2012 financial statements

U.S. financial statements differ from other organizationsMost financial statements show obligations or liabilities on balance sheetU.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 $52 trillionCumulative deficit 16 trillion

Total deficit $68 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

EarningsExpenses < Revenue

= Financially Healthy Company

In tr

illio

ns

2009 2010 2011 2012

$11.5$13.5

$14.8$16.1

Accumulated deficit

What’s next

Visit: aicpa.org/WhatsAtStake

Watch What’s at Stake: The CPA Profession on

Federal Financial Responsibility

Policymakers: read the Financial Report of the

U.S. Government

Citizens: read A Citizen’s Guide to the Fiscal Year 2012 Financial Report of

the U.S. Government

Join the public dialogue to make the

county’s fiscal health a national priority

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(Add information about what you, your firm and/or your state society is doing in this area)

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