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 decision

s

Federal financial statements

Record of what

has actually happene

d

Prepared on an

accrual basis

Provide informat

ion about

longer-term

implications

Revenue = $3.0 trillionExpenses = $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

FY 2014 financial statements

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 $56.7 trillion

Cumulative deficit 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

EarningsExpenses < Revenue = Financially Healthy

Company

Accumulated deficit

2009 2010 2011 2012 2013 2014

11.513.5

14.816.1

16.917.7

In T

rillio

ns

What’s next

Visit: aicpa.org/Wha

tsAtStake

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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