2012   Financial Report of the United States Government

U.S. Government Accountability Office

Independent Auditor's Report

The President
The President of the Senate
The Speaker of the House of Representatives

The Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, is required to annually submit audited financial statements for the U.S. government to the President and Congress. GAO is required to audit these statements.1 This report includes (1) our report on the accompanying U.S. government’s accrual-based consolidated financial statements for the fiscal years ended September 30, 2012 and 2011; the 2012, 2011, 2010, 2009, and 2008 Statements of Social Insurance; and the 2012 and 2011 Statements of Changes in Social Insurance Amounts and (2) our associated reports on internal control over financial reporting and on compliance with selected provisions of laws and regulations. As used in this report, accrual-based financial statements refer to all of the consolidated financial statements and notes, except for those related to the Statements of Social Insurance and the Statements of Changes in Social Insurance Amounts.2

Management of the federal government is responsible for (1) preparing annual consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP); (2) establishing, maintaining, and evaluating internal control to provide reasonable assurance that the control objectives of the Federal Managers’ Financial Integrity Act (FMFIA) are met;3 and (3) complying with laws and regulations. Also, the 24 Chief Financial Officers (CFO) Act agencies are responsible for implementing and maintaining financial management systems that substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA).4 Appendix I discusses the objectives, scope, and methodology of our work.

In summary, we found the following:

Significant Matters of Emphasis

Before discussing our conclusions on the consolidated financial statements, the following key items deserve emphasis in order to put the information contained in the consolidated financial statements and the Management’s Discussion and Analysis section of the 2012 Financial Report of the United States Government (2012 Financial Report) into context.

The Federal Government’s Actions to Stabilize Financial Markets and to Promote Economic Recovery

The accrual-based consolidated financial statements for fiscal year 2012 include, as they did for fiscal year 2011, substantial assets and liabilities resulting from the federal government’s actions to stabilize financial markets and to promote economic recovery. Key actions that the federal government has taken to stabilize financial markets and to promote economic recovery are discussed in the related Notes to the consolidated financial statements.

The ultimate cost of all of the federal government’s market stabilization and economic recovery actions and the effect of such actions on its financial condition will not be known for some time. As of September 30, 2012, the federal government’s actions to stabilize the financial markets and to promote economic recovery resulted in reported federal government assets of over $152 billion (e.g., investments in the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac),8 and the Troubled Asset Relief Program (TARP) equity investments)9 (reported net of about $109 billion in valuation losses). In addition, the federal government reported incurring certain liabilities resulting from these actions. In valuing these and certain other assets and liabilities, management considered and selected assumptions and data that it believed provided a reasonable basis for the estimated values reported in the accrual-based consolidated financial statements. However, as discussed in Note 1 to the consolidated financial statements, there are many factors affecting these assumptions and estimates that are inherently subject to substantial uncertainty arising from the uniqueness of certain transactions and the likelihood of future changes in general economic, regulatory, and market conditions. As such, there will be differences between the estimated values as of September 30, 2012, and the actual results, and such differences may be material. These differences will also affect the ultimate cost of the federal government’s actions.

Long-Term Fiscal Challenges

Increased attention to risks that could affect the federal government’s financial condition is made more important because of the nation’s longer-term fiscal challenges. The comprehensive long-term fiscal projections presented in the unaudited Required Supplementary Information section of the 2012 Financial Report show that—absent policy changes—the federal government continues to face an unsustainable fiscal path. The oldest members of the baby-boom generation are already eligible for Social Security retirement benefits and for Medicare benefits. Under these projections, spending for the major health and retirement programs will increase in coming decades as more members of the baby-boom generation become eligible for benefits and the health care cost for each enrollee increases. Over the long term, the structural imbalance between spending and revenue will lead to continued growth of debt held by the public as a share of gross domestic product (GDP); this means the current structure of the federal budget is unsustainable.

These projections, with regard to Social Security and Medicare, are based on the same assumptions underlying the information presented in the Statement of Social Insurance and assume that the provisions in law designed to slow the growth of Medicare costs are sustained and remain effective throughout the projection period. If, however, the cost containment measures are not sustained over the long term—a concern expressed by the Trustees of the Medicare trust funds, the Centers for Medicare & Medicaid Services’ (CMS) Chief Actuary, the Congressional Budget Office, and others—spending on federal health care programs will grow much more rapidly. GAO also prepares long-term federal fiscal simulations which continue to show debt rising as a share of GDP.10 Under GAO’s Alternative simulation,11 which uses the CMS Office of the Actuary’s alternative health care cost projections, future spending in excess of receipts would be greater and debt held by the public as a share of GDP would grow more quickly than the projections in the 2012 Financial Report.

In January 2013, the American Taxpayer Relief Act of 2012 was enacted,12 which affected taxes and made some changes to the Budget Control Act of 2011.13 Congress will be considering further legislative changes to address the fiscal challenges.

Equity Interests in Certain Financial Organizations and Commercial Entities

As discussed in Note 1 to the consolidated financial statements, the financial statements do not include the assets, liabilities, or results of operations of any financial organizations or commercial entities in which the Department of the Treasury (Treasury) holds either a direct, indirect, or beneficial equity interest. Treasury and the Office of Management and Budget (OMB) have determined that none of these organizations or entities meet the criteria for a federal entity. The federal government’s investments in and any liabilities to such organizations and entities, however, are valued and reported on the Balance Sheet.

Disclaimers of Opinion on the Accrual-Based Consolidated Financial Statements

Because of the federal government’s inability to demonstrate the reliability of significant portions of the U.S. government’s accompanying accrual-based consolidated financial statements for fiscal years 2012 and 2011, principally resulting from limitations related to certain material weaknesses in internal control over financial reporting and other limitations on the scope of our work, we are unable to, and we do not, express an opinion on such accrual-based consolidated financial statements. As a result of these limitations, readers are cautioned that amounts reported in the accrual-based consolidated financial statements and related notes may not be reliable.

The federal government did not maintain adequate systems or have sufficient, reliable evidence to support certain material information reported in the accompanying accrual-based consolidated financial statements. The underlying material weaknesses in internal control, which generally have existed for years, contributed to our disclaimer of opinion on the accrual-based consolidated financial statements. Specifically, these weaknesses concerned the federal government’s inability to

These material weaknesses continued to (1) hamper the federal government’s ability to reliably report a significant portion of its assets, liabilities, costs, and other related information; (2) affect the federal government’s ability to reliably measure the full cost as well as the financial and nonfinancial performance of certain programs and activities; (3) impair the federal government’s ability to adequately safeguard significant assets and properly record various transactions; and (4) hinder the federal government from having reliable financial information to operate in an efficient and effective manner. Due to these material weaknesses and to other limitations on the scope of our work discussed below, additional issues may exist that could affect the accrual-based consolidated financial statements that were not identified. Appendix II describes these material weaknesses in more detail and highlights the primary effects of these material weaknesses on the accompanying accrual-based consolidated financial statements and on the management of federal government operations.

Disclaimers of Opinion on the Statements of Social Insurance for 2012, 2011, and 2010, and Unqualified Opinions for 2009 and 2008, and Disclaimers of Opinion on the Statements of Changes in Social Insurance Amounts for 2012 and 2011

Because of significant uncertainties (discussed in Note 26 to the consolidated financial statements), primarily related to the achievement of projected reductions in Medicare cost growth reflected in the 2012, 2011, and 2010 Statements of Social Insurance, we were unable to obtain sufficient evidence to support the amounts presented in the 2012, 2011, and 2010 Statements of Social Insurance and the 2012 and 2011 Statements of Changes in Social Insurance Amounts. Consequently, we are unable to, and we do not, express opinions on the 2012, 2011, and 2010 Statements of Social Insurance as well as on the 2012 and 2011 Statements of Changes in Social Insurance Amounts.

These significant uncertainties include the following.

Projections of Medicare costs are sensitive to assumptions about future decisions by policymakers and about the behavioral responses of consumers, employers, and health care providers as policy, incentives, and the health care sector change over time. Such secondary impacts are not fully reflected in the Statement of Social Insurance projections but could be expected to influence the excess cost growth rate16 used in the projections. Key drivers of uncertainty about the excess cost growth rate include the future development and deployment of medical technology, the evolution of personal income, and the cost and availability of insurance, as well as federal policy changes, such as the implementation of PPACA. The work of the 2010 Medicare Technical Review Panel17 may provide additional guidance to management concerning ways to improve future Statement of Social Insurance projections and related disclosures.

As a result of the uncertainties discussed previously, readers are cautioned that amounts reported in the 2012, 2011, and 2010 Statements of Social Insurance and related Notes to such financial statements may not fairly present, in all material respects, the financial condition of the federal government’s social insurance programs, in conformity with U.S. GAAP. These uncertainties also affect the projected Medicare and Medicaid costs reported in the Fiscal Projections for the U.S. Government and Social Insurance information included in the unaudited Required Supplementary Information section of the 2012 Financial Report and summarized in Management’s Discussion and Analysis. The Required Supplementary Information section of the 2012 Financial Report includes unaudited information concerning how changes in various assumptions would change the present value of future estimated expenditures in excess of future estimated revenue. As discussed in that section, Medicare projections are very sensitive to changes in the health care cost growth assumption.

In our opinion, the Statements of Social Insurance for 2009 and 2008 present fairly, in all material respects, the financial condition of the federal government’s social insurance programs, in conformity with U.S. GAAP.

The Statement of Social Insurance presents the actuarial present value of the federal government’s estimated future revenue to be received from or on behalf of participants and estimated future expenditures to be paid to or on behalf of participants, based on benefit formulas in current law and using a projection period sufficient to illustrate the long-term sustainability of the social insurance programs.18 In preparing the Statements of Social Insurance, management considers and selects assumptions and data that it believes provide a reasonable basis for the assertions in the statement. However, because of the large number of factors that affect the Statement of Social Insurance and the fact that such assumptions are inherently subject to substantial uncertainty (arising from the likelihood of future events, significant uncertainties, and contingencies), there will be differences between the estimates in the Statement of Social Insurance and the actual results, and those differences may be material. In addition to the inherent uncertainty that underlies the expenditure projections prepared for all parts of Medicare, the Supplementary Medical Insurance Part D projections have an added uncertainty in that they were prepared using very little program experience upon which to base the estimates.

The scheduled future benefits presented in the Statement of Social Insurance are based on benefit formulas in current law. However, consistent with the respective annual Trustees Reports, the Social Security and Medicare programs are not projected to be sustainable under current financing arrangements. Also, the law concerning these programs can be changed at any time. Payment of Social Security and Medicare Hospital Insurance (Part A) benefits is limited by law to the balances in the respective trust funds. Consequently, future scheduled benefits are limited to future revenues plus existing trust fund assets. As discussed in the unaudited Required Supplementary Information section of the 2012 Financial Report, the Social Security and Medicare Hospital Insurance (Part A) trust funds are, based on achievement of the cost reductions discussed above, projected to be exhausted in 2033 and 2024, respectively, at which time they will be unable to pay the full amount of scheduled future benefits. For Social Security, as of January 1, 2012, future revenues were projected to be sufficient to pay 75 percent of scheduled benefits in 2033, the year of projected trust fund exhaustion, and decreasing to 73 percent of scheduled benefits in 2086. Similarly, for Medicare Hospital Insurance (Part A), as of January 1, 2012, future revenues were projected to be sufficient to pay 87 percent of scheduled benefits in 2024, the year of projected trust fund exhaustion, and then decreasing to 69 percent of scheduled benefits in 2086.

Other Limitations on the Scope of Our Work

For fiscal years 2012 and 2011, there were limitations on the scope of our work in addition to the material weaknesses that contributed to our disclaimer of opinion on the accrual-based consolidated financial statements. Treasury and OMB depend on representations from certain federal entities to provide their representations to us regarding the U.S. government’s consolidated financial statements. Treasury and OMB were unable to provide us with adequate representations regarding the U.S. government’s accrual-based consolidated financial statements for fiscal years 2012 and 2011 primarily because of insufficient representations provided to them by certain federal entities.

Material Weaknesses Resulted in Ineffective Internal Control over Financial Reporting

The material weaknesses discussed in this report resulted in ineffective internal control over financial reporting. Consequently, the federal government’s internal control did not provide reasonable assurance that misstatements, losses, or noncompliance material in relation to the consolidated financial statements would be prevented or detected and corrected on a timely basis. The federal government is responsible for establishing and maintaining effective internal control over financial reporting and evaluating its effectiveness. Internal control over financial reporting is a process effected by those charged with governance, management, and other personnel, the objectives of which are to provide reasonable assurance that (1) transactions are properly recorded, processed, and summarized to permit the preparation of the financial statements in conformity with U.S. GAAP, and assets are safeguarded against loss from unauthorized acquisition, use, or disposition and (2) transactions are executed in accordance with laws governing the use of budget authority and with other laws and regulations that could have a direct and material effect on the financial statements.

In planning and performing our audit, we considered internal control over financial reporting. We did not consider all internal controls relevant to operating objectives as broadly established under FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient operations. We do not express an opinion on the effectiveness of internal control over financial reporting because the purpose of our work was to determine our procedures for auditing the financial statements, not to express an opinion on internal control. Based on the scope of our work and the effects of the other limitations on the scope of our audit noted throughout this report, our internal control work would not necessarily identify all deficiencies in internal control, including those that might be material weaknesses or significant deficiencies.19 Further, our internal control work may not be sufficient for other purposes.

In addition to the material weaknesses that contributed to our disclaimer of opinion on the accrual-based consolidated financial statements, which were discussed previously, we found the following four other material weaknesses in internal control. These other material weaknesses were the federal government’s inability to

These material weaknesses are discussed in more detail in Appendix III, including the primary effects of the material weaknesses on the accompanying accrual-based consolidated financial statements and on the management of federal government operations.

We also found a significant deficiency in the federal government’s internal control over management of federal grants related to deficiencies at certain federal entities. This significant deficiency is discussed in more detail in Appendix IV.

Further, individual federal entity financial statement audit reports identified additional control deficiencies that were reported by the entities’ auditors as either material weaknesses or significant deficiencies at the individual entity level. We do not consider these additional deficiencies to represent material weaknesses or significant deficiencies with respect to the consolidated financial statements.

Compliance with Laws and Regulations

Our work to test compliance with selected provisions of laws and regulations that have a direct and material effect on the consolidated financial statements was limited by the material weaknesses and other scope limitations discussed in this report. U.S. generally accepted government auditing standards and OMB guidance require auditors to report on entities’ compliance with selected provisions of laws and regulations. Certain individual entity audit reports contain instances of noncompliance. None of these instances were deemed to be reportable noncompliance with regard to the accompanying consolidated financial statements.

We caution that other noncompliance may have occurred and not been detected. Further, the results of our limited procedures may not be sufficient for other purposes. Our objective was not to, and we do not, express an opinion on compliance with laws and regulations.

Required Supplementary Information, Required Supplementary Stewardship Information, and Other Information

U.S. generally accepted accounting principles require that required supplementary information (RSI)20 and required supplementary stewardship information (RSSI)21 be presented in the 2012 Financial Report to supplement the financial statements. This information, although not a part of the financial statements, is required by the Federal Accounting Standards Advisory Board (FASAB), which considers it to be an essential part of financial reporting for placing the financial statements in appropriate operational, economic, or historical context. We were unable to apply certain limited procedures to the RSI and RSSI in accordance with U.S. generally accepted government auditing standards because of the material weaknesses and other scope limitations discussed in this report. We did not audit and we do not express an opinion or provide any assurance on the RSI or RSSI.

Other information included in the 2012 Financial Report contains a wide range of information, some of which is not directly related to the consolidated financial statements.22 This information is presented for purposes of additional analysis and is not a required part of the consolidated financial statements, RSI, or RSSI. An objective of our audit was to form an opinion on the consolidated financial statements. We did not audit and do not express an opinion or provide any assurance on the other information in the 2012 Financial Report.

Readers are cautioned that the material weaknesses and scope limitations discussed in this audit report, including those related to our disclaimers of opinion on the 2012, 2011, and 2010 Statements of Social Insurance and the 2012 and 2011 Statements of Changes in Social Insurance Amounts, affect the reliability of certain information contained in the RSI, RSSI, and other information that is taken from the same data sources as the accrual-based consolidated financial statements; the 2012, 2011, and 2010 Statements of Social Insurance; and the 2012 and 2011 Statements of Changes in Social Insurance Amounts.

CFO Act Agency Financial Management Systems

The federal government’s ability to efficiently and effectively manage and oversee its day-to-day operations and programs relies heavily on the ability of entity financial management systems to produce complete, reliable, timely, and consistent financial information for use by executive branch agencies and Congress.23 FFMIA was designed to lead to system improvements that would result in CFO Act agency managers routinely having access to reliable, useful, and timely financial-related information to measure performance and increase accountability throughout the year. FFMIA requires auditors, as part of the 24 CFO Act agencies’ financial statement audits, to report whether those agencies’ financial management systems substantially comply with (1) federal financial management systems requirements, (2) applicable federal accounting standards, and (3) the federal government’s U.S. Standard General Ledger at the transaction level. For both fiscal years 2012 and 2011, auditors for 11 of the 24 CFO Act agencies reported that the agencies’ financial management systems did not substantially comply with one or more of the three FFMIA requirements. Agency management at the 24 CFO Act agencies also annually report on FFMIA compliance. For fiscal years 2012 and 2011, agency management at 9 and 7 of the CFO Act agencies, respectively, reported that their agencies’ financial management systems were not in substantial compliance with one or more of the three FFMIA requirements. Based on agency financial reports, the differences in the assessments of substantial compliance between the auditors and agency management reflected differences in views between management and the auditors on the impact reported deficiencies had on agencies’ financial management systems. Long-standing financial management systems weaknesses at several large CFO Act agencies, along with the size and complexity of the federal government, continue to present a formidable management challenge in providing accountability to the nation’s taxpayers and have contributed significantly to the material weaknesses and other limitations that have resulted in our disclaimers of opinion on the accrual-based consolidated financial statements.

_ _ _ _ _

We provided a draft of this report to Treasury and OMB officials, who provided technical comments, which have been incorporated as appropriate. Treasury and OMB officials expressed their continuing commitment to address the problems this report outlines.

Robert F. Dacey
Chief Accountant
U.S. Government Accountability Office

January 9, 2013

Footnotes

1The Government Management Reform Act of 1994 has required such reporting, covering the executive branch of government, beginning with financial statements prepared for fiscal year 1997. 31 U.S.C. 331(e). The federal government has elected to include certain financial information on the legislative and judicial branches in the consolidated financial statements as well. (Back to Content)

2The accrual-based consolidated financial statements for the fiscal years ended September 30, 2012 and 2011, consist of the (1) Statements of Net Cost, (2) Statements of Operations and Changes in Net Position, (3) Reconciliations of Net Operating Cost and Unified Budget Deficit, (4) Statements of Changes in Cash Balance from Unified Budget and Other Activities, and (5) Balance Sheets, including the related notes to these financial statements. Most revenues are recorded on a modified cash basis. The 2012, 2011, 2010, 2009, and 2008 Statements of Social Insurance, and the 2012 and 2011 Statements of Changes in Social Insurance Amounts, including the related notes, are also included in the consolidated financial statements. Both the Statements of Social Insurance and the Statement of Changes in Social Insurance Amounts do not interrelate with the accrual-based consolidated financial statements. (Back to Content)

331 U.S.C. 3512 (c), (d) (commonly referred to as FMFIA). This act requires executive agency heads to evaluate and report annually to the President and Congress on the adequacy of their internal control and accounting systems and on actions to correct significant problems. (Back to Content)

4FFMIA, which is reprinted in 31 U.S.C. 3512 note.(Back to Content)

5A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. (Back to Content)

6We previously reported that certain material weaknesses prevented us from expressing an opinion on the accrual-based consolidated financial statements of the U.S. government for fiscal years 1997 through 2011. Also for these years, we previously reported that (1) material weaknesses resulted in ineffective internal control over financial reporting, and (2) our tests of compliance with selected provisions of laws and regulations were limited by material weaknesses and, for some years, other scope limitations. (Back to Content)

7The valuation date is January 1 for all social insurance programs except the Black Lung program, which has a valuation date of September 30.(Back to Content)

8The Housing and Economic Recovery Act of 2008 authorized the Department of the Treasury (Treasury) to purchase, until December 31, 2009, any amount of Fannie Mae or Freddie Mac securities, whether debt or equity. Pub. L. No. 110-289, § 1117, 112 Stat. 2654, 2683-88 (July 30, 2008). (Back to Content)

9TARP was established by Treasury under authority provided in the Emergency Economic Stabilization Act of 2008, Pub. L. No. 110-343, 122 Stat. 3765 (Oct. 3, 2008). The act requires the U.S. Comptroller General to annually audit TARP’s financial statements as well as report at least every 60 days on a variety of areas associated with oversight of TARP. To obtain copies of the TARP financial statement audits and the 60-day reports, see GAO’s website. (Back to Content)

10GAO, The Federal Government’s Long-Term Fiscal Outlook: Fall 2012 Update, GAO-13-148SP (Washington, D.C.: Dec. 3, 2012).(Back to Content)

11GAO’s Fall 2012 Alternative simulation incorporates the CMS Office of the Actuary’s alternative projections for health care cost growth, which assume physician payments are not reduced as specified under current law and certain cost controls are not maintained over the long term. Also in this simulation, expiring tax provisions other than the Social Security payroll tax reductions are extended to 2022 and the alternative minimum tax exemption amount is indexed to inflation through 2022. In the Alternative simulation, discretionary spending follows the original discretionary spending caps set by the Budget Control Act of 2011, but not the lower caps triggered by the automatic enforcement procedures. Over the long term, discretionary spending and revenue are held at their historical average share of GDP. (Back to Content)

12The American Taxpayer Relief Act of 2012, Pub. L. No. 112-240, 126 Stat. 2313 (Jan. 2, 2013). (Back to Content)

13The Budget Control Act of 2011, Pub. L. No. 112-25, § 302, 125 Stat. 240, 256-59 (Aug. 2, 2011). (Back to Content)

14PPACA, Pub. L. No. 111-148, 124 Stat. 119 (Mar. 23, 2010), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029 (Mar. 30, 2010). (Back to Content)

15Statutes have been enacted with provisions that prevented scheduled reductions in Medicare payment rates for physician services from taking effect from 2003 through 2013, including the most recent provision enacted in the American Taxpayer Relief Act of 2012. Some of these statutes also included provisions that reduced the federal government’s spending on other categories of health care, which had the effect of helping to offset the increased costs related to the physician payment updates. (Back to Content)

16The excess cost growth rate is the increase in health care spending per person relative to the growth of GDP per person after removing the effects of demographic changes on health care spending. (Back to Content)

17In August 2010, the Secretary of Health and Human Services, working on behalf of the Board of Trustees, established an independent panel of expert actuaries and economists to review the assumptions and methods used by the Trustees to make projections of the financial status of the trust funds (commonly referred to as the 2010 Technical Review Panel on the Medicare Trustees Report). In December 2011, the panel members unanimously recommended a new approach that builds on certain long-standing assumptions while incorporating several key refinements. Based on the recommendations, the Medicare Trustees adopted new methods for projecting long-range Medicare costs in the 2012 Trustees Report. See section IV.D of the 2012 Medicare Trustees Report for details of the new methodology. (Back to Content)

18The projection period used for the Social Security, Medicare, and Railroad Retirement social insurance programs is 75 years. For the Black Lung program, the projections are through September 30, 2040. (Back to Content)

19A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. (Back to Content)

20RSI is comprised of Management’s Discussion and Analysis and information in the Required Supplementary Information section of the 2012 Financial Report. (Back to Content)

21RSSI is comprised of information on stewardship investments in the Required Supplementary Stewardship Information section of the 2012 Financial Report. (Back to Content)

22Other information is comprised of information in the 2012 Financial Report other than the consolidated financial statements, RSI, RSSI, the auditor’s report, and the Statement of the Comptroller General of the United States. (Back to Content)

23FFMIA defines the term “financial management systems” to include the financial systems and the financial portions of mixed systems necessary to support financial management, including automated and manual processes, procedures, controls, data, hardware, software, and support personnel dedicated to the operation and maintenance of system functions. (Back to Content)


Last Updated:  February 16, 2012